Key Highlights
- Shares of AT&T gained 2.5% during premarket hours following second quarter results that exceeded Wall Street projections
- Earnings per share reached $0.65, surpassing the analyst consensus of $0.59
- Top-line revenue increased 2.3% from the prior year to $31.6 billion
- The company secured 432,000 new postpaid phone subscribers, significantly above the projected ~338,500
- Management maintained full-year 2026 EPS outlook of $2.25ā$2.35
Shares of AT&T (T) advanced 2.5% in Wednesday’s premarket session following the telecommunications giant’s second quarter financial report, which exceeded analyst projections for both profitability and customer acquisition.
The company delivered adjusted earnings per share of $0.65, topping the Street consensus of $0.59. Top-line revenue climbed 2.3% from the year-ago period to $31.6 billion, falling slightly short of the $31.8 billion analyst forecast.
Adjusted EBITDA expanded 5.2% to reach $12.3 billion. The company generated $4.7 billion in free cash flow, representing an improvement from $4.4 billion recorded in the comparable quarter of the previous year.
The three-month period represented a milestone for the telecommunications provider, achieving record combined fiber and fixed wireless customer additions. The company also posted its strongest consumer postpaid wireless account expansion in over three years.
AT&T successfully onboarded 432,000 net postpaid phone subscribers, substantially exceeding the analyst projection of approximately 338,500. The postpaid phone churn rate registered at 0.86%.
In the broadband segment, the telecommunications provider attracted 646,000 total consumer and business internet customers. This figure comprised 367,000 fiber net additions alongside 279,000 fixed wireless net additions.
Infrastructure Expansion Progressing as Planned
The company extended fiber access to over 1 million additional locations during the quarter, elevating its total footprint to 38.6 million. Management confirmed the company remains positioned to reach 40 million fiber locations by the conclusion of 2026 and exceed 60 million by 2030.
Advanced Connectivity service revenue expanded 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 phasing out its copper-based infrastructure. The Latin America segment posted 16% revenue growth.
Capital expenditures from continuing operations totaled $5.7 billion, while aggregate capital investment reached $6.1 billion.
Company Increases Stock Repurchase Program
Chief Executive Officer John Stankey announced that AT&T is advancing its share repurchase timeline for the current year to approximately $10 billion, reflecting management’s confidence in the organization’s competitive standing.
“We believe our network performance and operating scale can’t be matched,” Stankey said.
The telecommunications provider also reaffirmed its commitment to distribute $45 billion or more to shareholders through 2028 through a combination of dividend payments and stock buybacks.
According to company data, 42.5% of households utilizing AT&T’s advanced home internet services also maintain AT&T wireless subscriptions.
The company reaffirmed its full-year 2026 adjusted EPS guidance range of $2.25 to $2.35, compared to the analyst consensus estimate of $2.32. Management is targeting a double-digit three-year compound annual growth rate extending through 2028.
Earlier in May, the company introduced a new service plan with pricing beginning at $15 per line monthly, strategically designed to attract individual subscribers away from family plan arrangements.
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