AT&T Sinks 5% Despite Q3 Beat and Raised Outlook; Verizon and T-Mobile Drop 3%

A quarter that topped forecasts and lifted the profit outlook isn’t protecting AT&T (NYSE:T | T Price Prediction), whose shares are falling harder than those of its biggest wireless rivals. AT&T stock is at $22.35, down 5%, a slide that shows sellers looking straight past the headline beat. That reaction runs against the usual script for a report that beats on revenue and raises guidance.

Selling stretches across the national carrier group, with Verizon Communications (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) shares also trading lower. Specifically, Verizon stock is at $43.12, down 3%, a softer decline than the one hitting AT&T. T-Mobile stock is at $152.92, also down 3% and tracking Verizon closely.

Telecom weakness also registers in the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC), which is at $109.08, down 1%. Advertising-driven businesses carry the most weight in that fund, so its dip works as sector context and says little about AT&T in particular. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $771.34, up 0.3%, so the broad market is holding firm while carriers fall.

Beat and Raise Collide With a Mexico Write-Down

AT&T released its Q3 2026 results before the opening bell, with revenue of $32.3 billion and adjusted earnings per share both topping analysts’ expectations. AT&T also raised its full-year adjusted earnings per share outlook and trimmed its long-term capital investment plans. Chief executive John Stankey stated, “We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless.”

Beneath the headline beat, AT&T’s reported earnings per share landed far below its adjusted figure because of a non-cash impairment tied to its Mexico wireless business. Earlier this month, AT&T agreed to sell that operation, so the charge reflects a unit already headed out the door, and while such a charge leaves cash intact, the gap between reported and adjusted profit hands the quarter a messier headline than the beat alone would suggest.

AT&T’s Fiber Bundle Sets It Apart From Verizon and T-Mobile

Carrier stocks face a fresh competitive question after a very different kind of rival stepped toward the wireless market. SpaceX (NASDAQ:SPCX) agreed to buy a nationwide spectrum portfolio from Grain Management, subject to Federal Communications Commission approval. That spectrum, SpaceX stated, will help its Starlink Mobile service become a major mobile carrier in the U.S.

AT&T pairs its fiber home internet business with mobile service, while Verizon and T-Mobile lean more heavily on wireless, and this mix means a satellite-based rival reaches AT&T, Verizon and T-Mobile in different ways. On paper, the fiber bundle gives AT&T a home connection that a phone service can’t easily replace.

Even with that fiber anchor, AT&T shares are absorbing a bigger loss than either Verizon or T-Mobile stock. One upside case rests on the revenue beat, the higher profit outlook and a lower long-term spending plan. Weighing against AT&T are the impairment-driven gap in reported profit and a share price falling even after a stronger quarter.

Spectrum Ruling Shapes AT&T’s Next Move

The next test for AT&T is whether the Federal Communications Commission approves the SpaceX spectrum purchase. A ruling in favor would clarify how quickly Starlink Mobile can push into a market that AT&T, Verizon and T-Mobile already serve.

AT&T now carries a quarter that strengthened its profit outlook alongside a regulatory uncertainty that could reshape competition in its core wireless market. Its fiber footprint remains its main defense. Investors weighing their exposure should adjust their holdings carefully given that AT&T shares are earning little credit for the higher forecast.

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