July 22, 2026

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AT&T Inc. (NYSE: T) reported second-quarter 2026 results with higher earnings, service revenue growth, stronger free cash flow, and more than 1 million Advanced Connectivity customer additions, though revenue came in below estimates.
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AT&T is a telecommunications company that provides wireless, fiber internet, fixed wireless, business connectivity, broadband, and communications services to consumers and businesses.
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The company reported adjusted EPS of $0.65, above estimates of $0.59, representing a 10.2% earnings surprise. Revenue came in at $31.56 billion, below estimates of $32.04 billion, with revenue growth of 2.3%.

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Results Showed Higher Earnings

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Revenue totaled $31.6 billion, up 2.3% from the prior-year quarter.
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Diluted EPS from continuing operations was $0.66, compared with $0.62 a year earlier.
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Adjusted EPS was $0.65, compared with $0.54 in the prior-year quarter.
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Operating income was $7.0 billion, while adjusted operating income was $7.5 billion.
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Income from continuing operations was $5.0 billion, up 3.6% year-over-year.
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Adjusted EBITDA increased 5.2% to $12.3 billion.

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Free Cash Flow Improved

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Cash from operating activities from continuing operations was $10.8 billion, compared with $9.8 billion a year earlier.
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Capital expenditures related to continuing operations were $5.7 billion.
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Capital investment was $6.1 billion.
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Free cash flow increased to $4.7 billion from $4.4 billion in the prior-year quarter.
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AT&T ended the quarter with total debt of $144.0 billion and net debt of $126.4 billion.

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Advanced Connectivity Drove Growth

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AT&T added more than 1 million Advanced Connectivity customers during the quarter.
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That included 646,000 total consumer and business internet net adds, made up of 367,000 fiber net adds and 279,000 fixed wireless net adds.
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The company also added 432,000 postpaid phone subscribers, with postpaid phone churn of 0.86%.
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Advanced Connectivity service revenue increased 5.1% year-over-year to $23.5 billion.
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Advanced Connectivity operating income increased 20.3% to $7.3 billion, while EBITDA increased 8.0% to $12.0 billion.

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Fiber and Fixed Wireless Expanded

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AT&T added more than 1 million total consumer and business locations reached with fiber.
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The company ended the quarter with 38.6 million total fiber locations reached.
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AT&T said it remains on track to reach more than 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030.
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The company also said 42.5% of households with AT&T advanced home internet services also chose AT&T wireless.

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Guidance Reiterated and Buybacks Accelerated

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AT&T reiterated its consolidated full-year 2026 and multi-year financial guidance.
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The company expects adjusted EPS of $2.25 to $2.35 in 2026.
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Free cash flow is expected to exceed $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028.
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AT&T also reiterated plans to return more than $45 billion to shareholders from 2026 through 2028 through dividends and share repurchases.
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The company now expects about $10 billion of share repurchases in 2026.
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AT&T returned $4.1 billion to shareholders in the second quarter, including about $2.2 billion in common share repurchases.

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The Bigger Picture

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AT&T delivered a steady quarter built around connectivity growth and cash generation.
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Adjusted EPS beat expectations, free cash flow improved, Advanced Connectivity revenue grew, and customer additions were strong across fiber, fixed wireless, and postpaid phone. The company also reiterated its long-term outlook and accelerated its 2026 share repurchase plan.
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The key question is whether AT&T can keep growing fiber and wireless while decommissioning legacy copper services and managing a large debt load.
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