AT&T delivered a strong third quarter 2026, beating consensus estimates for both revenue and adjusted earnings. The Company's investment-led strategy centered on 5G and fiber convergence continues to drive momentum, resulting in the best consolidated service revenue growth in over four years. Management raised the full-year 2026 adjusted EPS outlook to the $2.40 range and lowered long-term capital investment targets through 2028.
Key Highlights
- Revenue and Earnings Growth: Consolidated revenues rose 5.3% year-over-year to $32.3 billion, while adjusted EBITDA increased 5.4% to $12.5 billion.
- Connectivity Momentum: The Company added 769,000 Advanced Connectivity internet subscribers, including 442,000 fiber adds, reaching over 39 million total fiber locations.
- Convergence Strategy: Approximately 42.8% of households with AT&T's advanced home internet services also utilize AT&T wireless services, highlighting the success of bundled offerings.
- Asset Divestiture: AT&T agreed to sell its Mexico wireless business, resulting in a non-cash impairment charge of $2.6 billion during the quarter.