Q2 26 EPS
$0.65
BEAT +10.71%
Est. $0.59
Q2 26 Revenue
$31.56B
MISS 0.79%
Est. $31.81B
vs S&P Since Q2 26
+3.4%
BEATING MARKET
T +6.9% vs S&P +3.4%
Market Reaction
Did T Beat Earnings? Q2 2026 Results
AT&T delivered a stronger-than-expected second quarter, posting adjusted EPS of $0.65 against a consensus estimate of $0.59, a beat of 10.71% that extended the telecom giant's streak of topping earnings forecasts to five consecutive quarters. Revenue… Read more AT&T delivered a stronger-than-expected second quarter, posting adjusted EPS of $0.65 against a consensus estimate of $0.59, a beat of 10.71% that extended the telecom giant's streak of topping earnings forecasts to five consecutive quarters. Revenue of $31.56 billion grew 2.3% year over year but came in slightly below the $31.81 billion consensus, a modest shortfall overshadowed by the profit outperformance. The central engine behind the earnings strength was AT&T's Advanced Connectivity segment, where service revenue grew 5.1% and operating income climbed 20.3% to $7.34 billion, lifted by lower depreciation on fully depreciated legacy assets and ongoing transformation savings. The company added 432,000 postpaid phone net adds and 646,000 internet net adds in the quarter, while fiber locations reached 38.6 million, keeping AT&T on pace for its 40 million year-end target. Despite pre-earnings concerns about cash conversion and fiber-related capital demands, free cash flow improved to $4.67 billion. AT&T reiterated full-year adjusted EPS guidance of $2.25 to $2.35 and maintained its free cash flow target of $18 billion or more for 2026.
Key Takeaways
- • Advanced Connectivity service revenue grew 5.1% YoY to $23.5 billion
- • 432,000 postpaid phone net adds with postpaid phone churn of 0.86%
- • 646,000 total internet net adds including 367,000 fiber and 279,000 fixed wireless
- • 42.5% convergence rate — advanced home internet customers who also use AT&T wireless
- • Lumen mass markets fiber acquisition adding fiber customer relationships
- • Cost reductions from transformation initiatives and lower content licensing fees
- • Lower depreciation expense from fully depreciated legacy assets
- • Lower cash tax payments improving operating cash flow
T Forward Guidance & Outlook
AT&T reiterated all consolidated full-year 2026 and multi-year financial guidance through 2028. For 2026: adjusted EPS of $2.25 to $2.35; adjusted EBITDA growth of 3% to 4%; service revenue growth in the low-single-digit range; Advanced Connectivity service revenue growth of 5%+; legacy service revenue decline of 20%+; capital investment of $23-$24 billion; and free cash flow of $18 billion+. Through 2028: free cash flow of $19 billion+ in 2027 and $21 billion+ in 2028; adjusted EBITDA growth improving to 5%+ in 2028; double-digit adjusted EPS 3-year CAGR; and total shareholder returns of $45 billion+ through dividends and approximately $24 billion in share repurchases (accelerated to approximately $10 billion in 2026). The company expects to maintain its $1.11 annualized common stock dividend. AT&T expects its net debt-to-adjusted EBITDA ratio to return to the 2.5x target range within approximately three years following the EchoStar transaction closing. Legacy EBITDA is expected to turn negative after 2027 as the copper network is decommissioned. The company targets reaching 40 million+ total fiber locations by end of 2026 and 60 million+ by end of 2030.
T YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
T Revenue by Segment
With YoY comparisons, source: SEC Filings
T Revenue by Geography
Regional revenue distribution
“The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity. We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position. With an industry-leading position in fiber – the best connectivity technology available – we believe our network performance and operating scale can't be matched.”
— John Stankey, Q2 2026 Earnings Press Release
T Earnings Trends
T vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
T EPS Trend
Earnings per share: estimate vs actual
T Revenue Trend
Quarterly revenue: estimate vs actual
T Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.59 | $0.65 | +10.71% | $31.56B | -0.79% |
| Q1 26 BEAT | $0.55 | $0.57 | +3.43% | $31.51B | +0.86% |
| Q4 25 BEAT FY | $0.47 | $0.52 | +11.59% | $33.47B | +1.78% |
| FY Full Year | $2.06 | $2.12 | +3.05% | $125.65B | +0.50% |
| Q3 25 BEAT | $0.54 | $0.54 | +0.00% | $30.71B | -0.57% |
| Q2 25 BEAT | $0.53 | $0.54 | +1.89% | $30.85B | +1.27% |
| Q1 25 BEAT | $0.49 | $0.51 | +4.08% | $30.63B | +0.87% |