AT&T Lifts 2026 Profit Outlook After Q3 Beat

AT&T (T) reported third-quarter 2026 revenue of $32.3 billion, an increase of 5.3% from the prior-year period and above market expectations of about $31.69 billion. Adjusted earnings per share were $0.65, exceeding the analyst estimate of $0.60. The company said it delivered its internal Q3 forecast and reiterated confidence in meeting its full-year 2026 guidance.

Total revenues were supported by Advanced Connectivity service revenue of $23.9 billion, which rose 6.1% year over year. Management highlighted that bundled services and converged customer relationships are playing a growing role in driving both customer retention and broadband growth.

In mobility, AT&T (T) added 379,000 postpaid phone net additions in the quarter. Postpaid phone churn was 0.92%, reflecting customer stability within the wireless base. The company also noted that 42.8% of households with its advanced home internet services chose AT&T wireless, underscoring the appeal of converged offerings.

Advanced Connectivity internet services delivered a record 769,000 net additions in the quarter. This included 442,000 fiber net adds and 327,000 fixed wireless net adds, marking the strongest quarter yet for this segment. The company also reported that it expanded converged customer relationships by approximately 350,000 during the period.

Free cash flow for the third quarter of 2026 was $5.0 billion. AT&T returned approximately $4.8 billion to shareholders during the quarter, including $2.8 billion in common share repurchases. These distributions came alongside ongoing capital deployment into network and service expansion.

Capital expenditures related to continuing operations were $5.1 billion in the quarter, and total capital investment was $5.6 billion. Total debt stood at $159.6 billion, with net debt of $149.8 billion, reflecting the impact of the EchoStar spectrum transaction on the balance sheet.

On the back of the stronger-than-expected quarter, AT&T raised its full-year 2026 adjusted earnings-per-share guidance to about $2.40. The company reiterated free cash flow targets of at least $18 billion in 2026, at least $19 billion in 2027, and at least $21 billion in 2028. At the same time, it lowered its long-term capital investment outlook while keeping these cash flow goals intact.

In an SEC exhibit filed on October 20, 2026, AT&T stated that it had delivered its Q3 forecast and expected to deliver on its full-year 2026 guidance. Management emphasized that demand for bundled and converged services is a key factor supporting both the updated earnings outlook and the company’s multi-year financial framework.