AT&T Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.84%.
Did T Beat Earnings? Q1 2026 Results
AT&T posted a solid first quarter for 2026, with adjusted earnings per share of $0.57 climbing 11.8% from the year-ago period's $0.51, while consolidated revenue of $31.51 billion advanced 2.9% year over year, as the telecom giant's converged connectivity strategy continued to gain traction. The single most consequential driver of the quarter was AT&T's February closing of its acquisition of substantially all of Lumen Technologies' Mass Markets fiber business, which helped propel advanced home internet revenue 27.3% higher to $2.80 billion and contributed to 584,000 internet net subscriber additions, split evenly between fiber and fixed wireless. The company's Advanced Connectivity segment, its primary operating unit, generated $28.47 billion in revenue, up 4.7%, with nearly 45% of home internet subscribers also holding AT&T wireless service. Free cash flow of $2.51 billion reflected heavier capital investment of $5.09 billion as fiber deployment accelerates. AT&T reiterated full-year guidance, including adjusted EPS of $2.25 to $2.35 and free cash flow exceeding $18.00 billion, while targeting more than 40 million fiber locations by year-end.
- Advanced Connectivity service revenue grew 3.6% year over year to $22.9 billion
- 584,000 total internet net adds, split between 292,000 fiber and 292,000 fixed wireless
- 294,000 postpaid phone net adds with 0.89% postpaid phone churn
- Nearly 45% organic convergence rate of advanced home internet subscribers also choosing AT&T wireless
- Advanced home internet revenue surged 27.3%, including two months of Lumen fiber customer impact
- Wireless service revenue growth driven by retail subscriber growth in underpenetrated categories and converged accounts
- Lower depreciation expense from fully depreciated legacy assets
- Latin America revenue up 20.8% due to favorable foreign exchange and subscriber growth
“We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built.”
AT&T CEO, on the earnings call
Forward Guidance & Outlook
AT&T reiterated all full-year 2026 and multi-year financial guidance. For 2026, the company expects: service revenue growth in the low-single-digit range, including Advanced Connectivity service revenue growth of 5%+ and Legacy service revenue decline of 20%+; adjusted EBITDA growth of 3% to 4%, including Advanced Connectivity EBITDA growth of 6%+; adjusted EPS of $2.25 to $2.35; capital investment of $23 billion to $24 billion; free cash flow of $18 billion+, including cash taxes of $1.0 to $1.5 billion and pension contributions of approximately $350 million. The company plans to maintain its annualized common stock dividend of $1.11 per share and repurchase approximately $8 billion in shares during 2026. Multi-year plans include returning $45 billion+ to shareholders during 2026-2028, with improved growth in adjusted EBITDA, adjusted EPS, and higher free cash flow through 2028. AT&T expects its net debt-to-adjusted EBITDA ratio to return to the 2.5x target range within approximately three years following its EchoStar transaction. The company targets over 40 million total fiber locations by end of 2026 and more than 60 million by end of 2030.
T YoY Financials
T Revenue by Segment
T Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.