AT&T Q3 2026 Earnings: Six Straight Beats and a Raised Outlook

AT&T posted adjusted EPS of $0.65 for the third quarter of 2026, beating expectations, with revenue also topping estimates and growing year over year. The streak of consecutive EPS beats now stands at six quarters running.

The headline GAAP numbers fell short by comparison, with net income falling sharply from a year ago, but the culprit is a $2.6 billion non-cash impairment charge tied to the Mexico wireless unit now being sold to Grupo Televisa in a deal expected to close in early 2027. That charge has no bearing on the underlying wireless and fiber businesses investors own.

AT&T logged a record 769,000 internet net additions in the quarter, split between fiber and fixed wireless, and remains on track to reach 40 million fiber locations by the end of 2026. Consumer broadband revenue rose and Advanced Connectivity operating income margin expanded.

Management raised its 2026 adjusted EPS outlook to approximately $2.40 and kept its free cash flow target intact for the full year, scaling higher by 2028. The buyback program remains in place across 2026 through 2028, and the annualized common stock dividend was maintained at $1.11 per share.

One risk worth tracking is the balance sheet: net debt to adjusted EBITDA stood at 3.13 times at quarter end, above the company's long-term target, with total debt rising after the EchoStar spectrum transaction. Management has guided for the ratio to return to the target range by 2029, meaning debt reduction will compete with buybacks and capital investment for cash over the next several years.