Key Highlights
- AT&T shares gained 2.5% in early trading following stronger-than-expected Q2 financial results
- Earnings per share reached $0.65, surpassing analyst projections of $0.59
- Quarterly revenue increased 2.3% from the prior year to $31.6 billion
- Postpaid phone subscriber additions totaled 432,000, significantly exceeding the estimated ~338,500
- Company maintained full-year 2026 EPS outlook of $2.25–$2.35
Shares of AT&T (T) advanced 2.5% during premarket hours on Wednesday following the telecom giant’s announcement of second-quarter financial performance that exceeded Wall Street’s projections for both profitability and customer acquisition.
The company reported adjusted earnings per share of $0.65, topping the consensus estimate of $0.59. Total revenue climbed 2.3% on a year-over-year basis to reach $31.6 billion, falling slightly short of the $31.8 billion analyst projection.
Adjusted EBITDA grew 5.2% to $12.3 billion for the quarter. The company’s free cash flow improved to $4.7 billion, compared to $4.4 billion during the corresponding quarter of the previous year.
The three-month period represented a milestone for the telecommunications provider, with combined fiber and fixed wireless subscriber additions reaching an all-time high. Consumer postpaid wireless account expansion also hit its strongest level in over three years.
AT&T reported net postpaid phone subscriber additions of 432,000, substantially higher than the Street’s forecast of approximately 338,500. The company’s postpaid phone churn rate registered at 0.86%.
In the broadband segment, the telecommunications provider secured 646,000 total consumer and business internet customers. This figure comprised 367,000 fiber net additions alongside 279,000 fixed wireless net additions.
Fiber Network Expansion Progressing as Planned
During the quarter, AT&T extended fiber connectivity to over 1 million additional locations, elevating its cumulative total to 38.6 million. Management confirmed the company is maintaining its trajectory to reach 40 million fiber-enabled locations by the conclusion of 2026 and exceed 60 million by decade’s end.
Revenue from Advanced Connectivity services increased 5.1% to $23.5 billion. The segment’s operating income surged 20.3% to reach $7.3 billion.
Legacy business revenues declined 26% as AT&T progresses with its copper network phase-out strategy. Revenue from Latin American operations grew 16%.
The company invested $5.7 billion in capital expenditures from continuing operations, with aggregate capital investment totaling $6.1 billion.
Company Increases Share Repurchase Program
Chief Executive Officer John Stankey announced that AT&T is expediting its share buyback initiative for the current year to roughly $10 billion, pointing to management’s confidence in the company’s competitive positioning.
“We believe our network performance and operating scale can’t be matched,” Stankey said.
The telecommunications company also reaffirmed its commitment to distribute $45 billion or more to shareholders by 2028 through a combination of dividend payments and stock repurchases.
According to company data, 42.5% of customers utilizing AT&T’s advanced home internet services also maintain AT&T wireless subscriptions.
Management reiterated its full-year 2026 adjusted earnings per share guidance range of $2.25 to $2.35, compared to the analyst consensus of $2.32. The company is targeting double-digit compound annual growth through 2028.
Earlier in May, AT&T introduced a promotional offering beginning at $15 per line monthly, designed to appeal to individual customers currently enrolled in family plan arrangements.
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