TLDR
- AT&T rose 2.5% in premarket trading after Q2 earnings topped Wall Street estimates
- EPS came in at $0.65, beating the $0.59 consensus estimate
- Revenue rose 2.3% year-over-year to $31.6 billion
- Added 432,000 postpaid phone net subscribers, well above the ~338,500 estimate
- Full-year 2026 EPS guidance reiterated at $2.25–$2.35
AT&T (T) stock climbed 2.5% in premarket trading Wednesday after the company posted Q2 results that beat analyst expectations on earnings and subscriber growth.
Adjusted EPS came in at $0.65, ahead of the $0.59 consensus. Revenue rose 2.3% year-over-year to $31.6 billion, just shy of the $31.8 billion forecast.
Adjusted EBITDA increased 5.2% to $12.3 billion. Free cash flow rose to $4.7 billion, up from $4.4 billion in the same period last year.
AT&T $T Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $31.6B (Est. $31.7B) 🟡; +2.3% YoY
🔹 Adj. EPS: $0.65 (Est. $0.6) 🟢; +20.4% YoY
🔹 Adj EBITDA: $12.3B (Est. $12.11B) 🟢; +5.2% YoY
🔹 Free Cash Flow: $4.7B (Est. $4.51B) 🟢; +7% YoY
🔹 Postpaid Phone Net Adds: 432K (Est 338,500) 🟢… pic.twitter.com/q2JUOxrANb— Wall St Engine (@wallstengine) July 22, 2026
The quarter marked a record for combined fiber and fixed wireless net additions. It was also AT&T’s highest consumer postpaid wireless account growth in more than three years.
AT&T added 432,000 postpaid phone net subscribers, well above the analyst estimate of around 338,500. Postpaid phone churn came in at 0.86%.
On the internet side, the company added 646,000 total consumer and business internet subscribers. That included 367,000 fiber net adds and 279,000 fixed wireless net adds.
Fiber Build-Out on Track
AT&T added more than 1 million fiber locations in the quarter, bringing its total to 38.6 million. The company says it remains on track to pass 40 million fiber locations by end of 2026 and more than 60 million by 2030.
Advanced Connectivity service revenue rose 5.1% to $23.5 billion. Operating income in that segment jumped 20.3% to $7.3 billion.
Legacy revenues slid 26% as AT&T continues to wind down its copper network. Latin America revenue rose 16%.
Capital expenditures from continuing operations were $5.7 billion, with total capital investment at $6.1 billion.
Share Buybacks Accelerated
CEO John Stankey said AT&T is accelerating its planned share repurchases this year to approximately $10 billion, citing confidence in the company’s market position.
“We believe our network performance and operating scale can’t be matched,” Stankey said.
AT&T also maintained its plan to return $45 billion or more to shareholders through 2028 via dividends and buybacks.
42.5% of households using AT&T’s advanced home internet also subscribe to AT&T wireless, the company said.
Full-year 2026 adjusted EPS guidance was reiterated at $2.25 to $2.35, versus the $2.32 analyst consensus. The company targets a double-digit three-year compound annual growth rate through 2028.
In May, AT&T launched a new plan starting at $15 per line per month, aimed at attracting single adults away from family plans.
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