Key Highlights
- First quarter adjusted earnings per share reached $0.57, surpassing the consensus forecast of $0.55
- Total revenue hit $31.5 billion, representing a 2.9% year-over-year increase and exceeding the $31.25 billion projection
- Postpaid phone customer additions totaled 294,000, beating analyst expectations of 270,000
- Shares climbed 0.8% in response to the quarterly announcement
- Full-year 2026 outlook maintained, projecting free cash flow of no less than $18 billion
AT&T launched Wednesday’s trading session with an impressive first quarter performance, outpacing Wall Street’s projections across key metrics including profitability, revenue generation, and customer acquisition.
The company’s adjusted earnings per share registered at $0.57 compared to analyst expectations of $0.55. Total revenue reached $31.5 billion, marking a 2.9% year-over-year climb and beating the anticipated $31.25 billion figure.
Shares responded positively, climbing 0.8% following the earnings disclosure.
The telecommunications provider successfully brought on 294,000 new postpaid phone customers during the three-month period. This figure outperformed Wall Street’s expectations, which ranged between 270,000 and 272,000 additions.
The company’s bundling approach continues to gain traction. Approximately 42% to 45% of AT&T’s home internet subscriber base also maintains a wireless subscription — a convergence approach that has emerged as a critical competitive advantage.
Broadband customer gains totaled 584,000 during the quarter, with an even distribution: 292,000 fiber subscribers and 292,000 fixed wireless customers.
AT&T and competitor T-Mobile both maintained aggressive device promotions throughout the first quarter, leveraging iPhone offers and discounted service plans to attract new subscribers.
Rate Adjustments
The telecommunications company implemented price increases on both its entry-level and premium wireless service tiers. The strategic objective centers on migrating subscribers toward mid-tier offerings while boosting average revenue per customer.
Industry observers suggest this approach focuses more on optimizing customer value rather than initiating competitive pricing battles.
Operational Realignment
Beginning with this reporting period, AT&T restructured its operational divisions into revised segments designed to emphasize primary growth drivers.
The newly established Advanced Connectivity division — encompassing domestic 5G and fiber operations — delivered approximately 5% revenue expansion. Service revenue within this division increased 3.6% year-over-year to $22.9 billion. Operating income surged 14.8% to $6.9 billion.
Portion of this expansion stemmed from the integration of mass market fiber assets acquired from Lumen.
Free cash flow totaled $2.5 billion, declining from $3.1 billion in the comparable year-ago period. This reduction reflects elevated capital investment as AT&T intensifies fiber infrastructure expansion.
Capital outlays for the quarter totaled $4.9 billion, up from $4.3 billion during the same period last year.
CEO John Stankey characterized the results as the “best first quarter ever for Advanced Connectivity internet customer net additions.”
AT&T confirmed its complete 2026 fiscal year outlook: adjusted earnings per share between $2.25 and $2.35, EBITDA expansion of 3% to 4%, and free cash flow of at minimum $18 billion.
The telecommunications provider also upheld its commitment to buy back approximately $8 billion worth of shares throughout 2026.
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