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Axxcess Wealth Management LLC lowered its holdings in shares of AT&T Inc. (NYSE:T – Free Report) by 22.5% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 100,210 shares of the technology company’s stock after selling 29,056 shares during the quarter. Axxcess Wealth Management LLC’s holdings in AT&T were worth $2,445,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Albion Financial Group UT grew its holdings in AT&T by 32.5% in the third quarter. Albion Financial Group UT now owns 2,301 shares of the technology company’s stock valued at $56,000 after purchasing an additional 565 shares during the period. Inlet Private Wealth LLC raised its stake in shares of AT&T by 22.1% during the 3rd quarter. Inlet Private Wealth LLC now owns 20,178 shares of the technology company’s stock worth $492,000 after buying an additional 3,650 shares during the period. Ellis Investment Partners LLC lifted its position in shares of AT&T by 3.8% during the 3rd quarter. Ellis Investment Partners LLC now owns 21,076 shares of the technology company’s stock valued at $514,000 after buying an additional 776 shares in the last quarter. Physician Wealth Advisors Inc. lifted its position in shares of AT&T by 11.5% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 12,158 shares of the technology company’s stock valued at $297,000 after buying an additional 1,254 shares in the last quarter. Finally, Carnegie Investment Counsel grew its stake in AT&T by 27.0% in the 3rd quarter. Carnegie Investment Counsel now owns 142,506 shares of the technology company’s stock valued at $3,477,000 after acquiring an additional 30,302 shares during the period. 57.10% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting AT&T Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T reported third-quarter adjusted EPS of $0.65 and revenue of $32.32 billion, exceeding analyst estimates. Revenue increased roughly 5.2% year over year, supported by fiber and wireless growth. AT&T quarterly earnings results Positive Sentiment: Record Advanced Connectivity additions included 769,000 internet customers, 442,000 fiber additions and 379,000 postpaid phone additions. Management raised its 2026 adjusted EPS outlook to approximately $2.40 and plans roughly $10 billion in share repurchases. AT&T third-quarter results Positive Sentiment: Argus reaffirmed its buy rating with a $30 price target, while JPMorgan and KeyCorp maintained positive ratings despite reducing their targets to $31 and $33, respectively. Analyst ratings Neutral Sentiment: AT&T plans to reduce annual capital spending by about $1 billion in 2027–2028 while retaining its goal of reaching more than 60 million fiber locations by 2030. The lower spending supports cash flow but could raise questions about growth investment and fiber execution. AT&T fiber spending strategy Negative Sentiment: Investors are concerned that debt reduction is taking longer than expected. Net debt rose following the EchoStar spectrum transaction, and management now expects to return to its targeted net-debt-to-EBITDA range in 2029. A $2.6 billion noncash impairment tied to the Mexico wireless business also weighed on sentiment. AT&T debt and impairment analysis Negative Sentiment: Potential competition from SpaceX’s Starlink Mobile service is amplifying concerns about wireless subscriber growth, pricing and the need for additional customer incentives. Fiber introductory promotions are also pressuring pricing. Telecom stocks and Starlink concerns AT&T Stock Up 3.7% T stock opened at $22.73 on Friday. The firm has a market cap of $155.72 billion, a PE ratio of 9.17, a PEG ratio of 1.04 and a beta of 0.25. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.93 and a current ratio of 0.87. The firm’s 50 day moving average price is $24.86 and its 200-day moving average price is $24.25. AT&T Inc. has a one year low of $19.89 and a one year high of $29.43. AT&T (NYSE:T – Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.60 by $0.05. The business had revenue of $32.32 billion for the quarter, compared to analyst estimates of $31.69 billion. AT&T had a return on equity of 13.41% and a net margin of 10.19%. The company’s quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.54 EPS. On average, equities research analysts anticipate that AT&T Inc. will post 2.39 EPS for the current year.

AT&T Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be paid a dividend of $0.2775 per share. This represents a $1.11 annualized dividend and a yield of 4.9%. The ex-dividend date of this dividend is Friday, October 9th. AT&T’s dividend payout ratio (DPR) is 36.75%.

Analyst Ratings Changes Several research firms have issued reports on T. Sanford C. Bernstein downgraded shares of AT&T from an “outperform” rating to a “market perform” rating and set a $24.00 price objective on the stock. in a report on Tuesday, October 13th. KeyCorp cut their target price on shares of AT&T from $36.00 to $33.00 and set an “overweight” rating for the company in a research note on Thursday. Royal Bank Of Canada reduced their price target on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating for the company in a research report on Monday, July 20th. Scotiabank decreased their price target on shares of AT&T from $27.50 to $26.50 and set a “sector perform” rating on the stock in a research note on Friday, October 9th. Finally, Weiss Ratings upgraded AT&T from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, August 3rd. Twelve investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $28.55.

Read Our Latest Stock Report on T

AT&T Company Profile (Free Report)

AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.

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Carnegie Investment Counsel lifted its stake in AT&T Inc. (NYSE:T – Free Report) by 27.0% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 142,506 shares of the technology company’s stock after acquiring an additional 30,302 shares during the period. Carnegie Investment Counsel’s holdings in AT&T were worth $3,477,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the stock. State Street Corp grew its holdings in AT&T by 5.8% during the second quarter. State Street Corp now owns 334,273,613 shares of the technology company’s stock valued at $6,919,464,000 after purchasing an additional 18,468,679 shares during the last quarter. Bank of America Corp DE raised its position in shares of AT&T by 4.6% in the first quarter. Bank of America Corp DE now owns 125,191,700 shares of the technology company’s stock valued at $3,629,307,000 after purchasing an additional 5,449,222 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of AT&T by 12.7% in the first quarter. Bank of New York Mellon Corp now owns 72,764,509 shares of the technology company’s stock worth $2,109,443,000 after buying an additional 8,197,935 shares during the last quarter. GQG Partners LLC acquired a new stake in shares of AT&T in the second quarter worth $1,223,364,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of AT&T by 2.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 55,616,152 shares of the technology company’s stock worth $1,151,254,000 after buying an additional 1,336,556 shares during the last quarter. 57.10% of the stock is owned by institutional investors.

AT&T Stock Down 6.3% Shares of T stock opened at $21.95 on Thursday. AT&T Inc. has a 12 month low of $19.89 and a 12 month high of $29.43. The firm has a market cap of $150.38 billion, a PE ratio of 10.27, a price-to-earnings-growth ratio of 1.14 and a beta of 0.25. The stock has a 50 day moving average of $24.90 and a 200-day moving average of $24.29. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06.

AT&T (NYSE:T – Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.05. The business had revenue of $32.32 billion for the quarter, compared to the consensus estimate of $31.69 billion. AT&T had a net margin of 16.94% and a return on equity of 12.86%. AT&T’s quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter last year, the company posted $0.54 earnings per share. On average, equities analysts predict that AT&T Inc. will post 2.33 EPS for the current year. AT&T Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be paid a dividend of $0.2775 per share. This represents a $1.11 annualized dividend and a yield of 5.1%. The ex-dividend date is Friday, October 9th. AT&T’s dividend payout ratio is presently 36.75%.

Analyst Upgrades and Downgrades Several research firms recently issued reports on T. Wolfe Research raised shares of AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 price objective for the company in a report on Thursday, July 23rd. BNP Paribas Exane upgraded shares of AT&T from a “neutral” rating to an “outperform” rating and lifted their target price for the stock from $26.00 to $30.00 in a report on Monday, September 21st. KeyCorp reiterated an “overweight” rating and issued a $36.00 target price on shares of AT&T in a report on Wednesday, October 7th. Argus cut their target price on shares of AT&T from $33.00 to $30.00 and set a “buy” rating for the company in a research report on Thursday, July 23rd. Finally, Royal Bank Of Canada cut their target price on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating for the company in a research report on Monday, July 20th. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $28.89.

Get Our Latest Analysis on T

AT&T News Summary Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T reported adjusted third-quarter EPS of $0.65 and revenue of $32.32 billion, exceeding consensus estimates. Revenue increased approximately 5.2% year over year. Stock Market Today, Oct. 21: AT&T Beats Earnings on Strong Fiber Growth, Raises 2026 Profit Outlook Positive Sentiment: Growth was led by record Advanced Connectivity additions of 769,000, including 442,000 fiber and 327,000 fixed-wireless customers, along with 379,000 postpaid phone net additions. AT&T also added more than 1 million advanced-connectivity customers for a second consecutive quarter. T Q3 Earnings Beat Estimates on Fiber and Wireless Growth Positive Sentiment: Management raised its 2026 adjusted EPS outlook to approximately $2.40, maintained its long-term double-digit adjusted-earnings growth target, and plans roughly $10 billion in 2026 share repurchases. It also lowered planned annual capital investment for 2027 and 2028 to $22 billion-$23 billion. AT&T raises 2026 earnings outlook as fibre and wireless growth accelerates Neutral Sentiment: AT&T CEO John Stankey downplayed the threat from SpaceX’s Starlink Mobile, saying low-Earth-orbit networks are particularly useful for rural coverage. However, investors remain concerned that satellite competition could pressure wireless subscriber growth, pricing, and promotional spending. AT&T’s CEO throws shade at Musk’s Starlink mobile ambitions Negative Sentiment: Reported results included a $2.6 billion noncash impairment tied to the Mexico wireless business, while net debt rose to approximately $149.8 billion following the EchoStar spectrum transaction. Management now expects to return to its 2.5-times net-debt-to-adjusted-EBITDA target during 2029, signaling slower deleveraging than some investors expected. AT&T Slides After Earnings as Investors Focus on Debt, Spending and an Impairment Charge AT&T Profile (Free Report)

AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.

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AT&T added more than 1 million Advanced Connectivity customers for a second consecutive quarter, driven by net adds across fiber, fixed wireless and postpaid phone

AT&T updates outlook to reflect higher 2026 adjusted EPS* and lower long-term capital investment while remaining on track to reach more than 60 million locations with fiber by end of 2030

, /PRNewswire/ -- AT&T Inc. (NYSE: T) reported third-quarter results, extending the momentum of its investment-led strategy as it delivers advanced connectivity to more consumers and businesses. The Company achieved a record quarter for Advanced Connectivity internet net adds and grew its base of high-value converged relationships by approximately 350,000. The results demonstrate the value of AT&T's differentiated fiber and 5G portfolio as it continues to accelerate growth in consolidated service revenue and improve operating efficiency, driving durable long-term profitability.  

"We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless," said John Stankey, AT&T Chairman and CEO. "Our asset base positions us well for the AI era, with a leading position in fiber – the best technology available. We're building the nation's strongest network, backed by America's Best Guarantee, to deliver faster, more reliable and more accessible connectivity."

Third-Quarter 2026 Consolidated Financial Results1

Revenues totaled $32.3 billion, up 5.3% year over year
Diluted EPS from continuing operations was $0.13, which includes a non-cash impairment charge associated with the Company's held-for-sale Mexico wireless business as well as employee separation charges, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment; adjusted EPS* was $0.65, versus $0.54 in the year-ago quarter
Operating income was $4.1 billion; adjusted operating income* was $7.6 billion
Income from continuing operations was $1.3 billion; adjusted EBITDA* was $12.5 billion, up 5.4% year over year
Cash from operating activities from continuing operations was $10.5 billion, versus $10.2 billion in the year-ago quarter
Capital expenditures related to continuing operations were $5.1 billion; capital investment* was $5.6 billion
Free cash flow* was $5.0 billion, versus $4.9 billion in the year-ago quarter

Third-Quarter 2026 Highlights

Second consecutive quarter with over 1 million Advanced Connectivity customer additions, driven by accelerated internet net adds and solid postpaid phone net adds
Advanced Connectivity service revenue of $23.9 billion, up 6.1% year over year
Advanced Connectivity operating income of $7.6 billion, up 18.9% year over year, with EBITDA* of $12.3 billion, up 7.3%
42.8% of households with AT&T's advanced home internet services also chose AT&T wireless2 
769,000 total consumer and business Advanced Connectivity internet net adds, a record quarter, including 442,000 fiber and 327,000 fixed wireless
379,000 postpaid phone net adds with postpaid phone churn of 0.92%
Reached more than 39 million total consumer and business locations with fiber; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million locations by the end of 20303 
Returned approximately $4.8 billion to shareholders, including $2.8 billion in common share repurchases

Financial Outlook and Capital Allocation Plan

AT&T is increasing its outlook for 2026 adjusted EPS* and lowering its long-term outlook for capital investment. AT&T maintains its long-term outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio* will return to a level consistent with its target in the 2.5x range during 2029.

AT&T's long-term outlook is presented on a continuing operations basis and, for 2027-2028, excludes AT&T Mexico, which it has agreed to sell to Grupo Televisa and Fintech Holdings.

The Company's long-term outlook for 2026-2028 includes4:

Service revenue growth in the low-single-digit range annually

Advanced Connectivity service revenue growth in the mid-single-digit range annually, including expected growth of 5%+ in 2026
Legacy service revenue decline of 20%+ in 2026 and be immaterial by the end of 2029

Adjusted EBITDA* growth in the upper portion of the 3% to 4% range in 2026, improving to 5% or better in 2028

Advanced Connectivity EBITDA* growth in the mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026
Legacy EBITDA* expected to turn negative after 2027, until AT&T has substantially eliminated direct costs associated with operating its copper-based network5

Adjusted EPS* in the $2.40 range in 2026 with a double-digit 3-year CAGR through 2028
Capital investment* in the $23 billion to $24 billion range in 2026 and in the $22 billion to $23 billion range annually in 2027 and 2028
Free cash flow* of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028
Strong capital returns, including plans to maintain its current annualized common stock dividend of $1.11 per share and $24 billion+ of share repurchases, including approximately $10 billion during 2026

Note: AT&T's third-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, October 21, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.

Detailed Third-Quarter 2026 Consolidated Financial Results

Revenues for the third quarter totaled $32.3 billion, versus $30.7 billion in the year-ago quarter, up 5.3%. This was largely due to growth in Advanced Connectivity wireless service and equipment revenues, and fiber revenues, which include the impact of the Company's first-quarter acquisition of Lumen's mass markets fiber business. Operating revenues in Latin America were also higher due to favorable foreign exchange impacts and growth in postpaid revenues. Offsetting the increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network.
Operating expenses were $28.2 billion, versus $24.6 billion in the year-ago quarter. Operating expenses increased primarily due to a non-cash impairment charge associated with the Company's held-for-sale Mexico wireless business of $2.6 billion, employee separation charges, increased wireless equipment costs, as well as higher advertising and higher bad debt expenses driven by subscriber growth. The increase was also due to incremental customer costs related to the acquired mass markets fiber business. These increases were partially offset by cost reductions from transformation initiatives and apportioned legal settlements in the prior-year period. Depreciation expense was also lower year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives.
Operating income was $4.1 billion, versus $6.1 billion in the year-ago quarter. Adjusted operating income* was $7.6 billion, versus $6.6 billion in the year-ago quarter.
Income from continuing operations was $1.3 billion, versus $9.7 billion in the year-ago quarter.
Income from continuing operations attributable to common stock was $0.9 billion, versus $9.3 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.13, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment. Adjusting for $0.52, which includes a non-cash impairment charge associated with the held-for-sale Mexico wireless business, employee separation charges, and other items, adjusted earnings per diluted common share* was $0.65, versus $0.54 in the year-ago quarter.
Adjusted EBITDA* was $12.5 billion, versus $11.9 billion in the year-ago quarter.
Cash from operating activities from continuing operations was $10.5 billion, versus $10.2 billion in the year-ago quarter, which included voluntary pension plan contributions. The increase also reflects timing of working capital payments.
Capital expenditures related to continuing operations were $5.1 billion, versus $4.9 billion in the year-ago quarter. Capital investment* totaled $5.6 billion, versus $5.3 billion in the year-ago quarter. Cash payments for vendor financing totaled $0.5 billion, versus $0.4 billion in the year-ago quarter.
Free cash flow* was $5.0 billion, versus $4.9 billion in the year-ago quarter.
Total debt was $159.6 billion at the end of the third quarter and net debt* was $149.8 billion, both reflecting a sequential increase related to the closing of the EchoStar spectrum transaction.

AT&T Third-Quarter 2026 Segment Results6

Advanced Connectivity service revenues grew 6.1% year over year, driving growth in operating income of 18.9% and EBITDA* of 7.3%. Internet net adds were 769,000 – comprised of 442,000 fiber and 327,000 fixed wireless – and postpaid phone net adds were 379,000.

Advanced Connectivity

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues

$            29,481

$            27,503

7.2

%

Service

23,902

22,529

6.1

%

Wireless Service

17,764

16,926

5.0

%

Advanced Home Internet

2,975

2,411

23.4

%

Business Fiber and Advanced Connectivity

1,992

1,832

8.7

%

Business Transitional and Other

1,023

1,198

(14.6)

%

Other Service

148

162

(8.6)

%

Equipment

5,579

4,974

12.2

%

Operating Expenses

21,853

21,086

3.6

%

Operating Income

7,628

6,417

18.9

%

Operating Income Margin

25.9

%

23.3

%

260

BP

EBITDA*

$            12,330

$           11,493

7.3

%

EBITDA Margin*

41.8

%

41.8

%

—

BP

Advanced Connectivity segment revenues grew 7.2% year over year, driven by service revenue growth of 6.1% and higher equipment revenue. Wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts on wireless subscriber additions. Advanced home internet revenue growth, which included an impact from the acquired mass markets fiber business that closed in the first quarter, reflects increases in fiber and AT&T Internet Air revenues. Business fiber and advanced connectivity revenues increased largely due to higher fiber and fixed wireless revenues. Business transitional and other revenues decreased due to lower demand for virtual private network and wholesale services.

Operating expenses were up 3.6% year over year, due to increased wireless equipment costs, higher advertising expense, incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth. These increases were partially offset by cost reductions from transformation initiatives. Additionally, depreciation expense decreased year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. 

Operating income was $7.6 billion, up 18.9% year over year. EBITDA* was $12.3 billion, up $837 million year over year.

Legacy revenues continued to decline year over year in line with AT&T's goal to decommission the large majority of its copper-based network by the end of 2029.

Legacy

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues

$             1,519

$              2,013

(24.5)

%

Operating Expenses

1,021

1,334

(23.5)

%

Operating Income

498

679

(26.7)

%

Operating Income Margin                            

32.8

%

33.7

%

(90)

BP

EBITDA*

$                498

$                 679

(26.7)

%

EBITDA Margin*

32.8

%

33.7

%

(90)

BP

Legacy segment revenues were down 24.5% year over year, primarily due to lower demand for services as the Company continues to decommission its copper-based network. Operating expenses, which represent direct operating costs, were $1.0 billion, down 23.5% year over year. Expense declines were primarily driven by lower personnel and other costs resulting from the decommissioning of the copper-based network, and lower fulfillment cost amortization, partially offset by favorable vendor settlements in the prior-year period. Operating income and EBITDA* were $498 million, down $181 million year over year.

On October 13, 2026, AT&T entered into an agreement to sell its Mexico wireless business, which is the entirety of the Latin America segment. AT&T applied held-for-sale accounting in continuing operations as of September 30, 2026, and recorded a non-cash impairment charge of $2.6 billion at Corporate and Other that did not impact third-quarter segment results. AT&T will continue to present results within the Latin America segment.

Latin America

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues                                         

$                1,240

$                     1,095

13.2 %

 Service

798

696

14.7 %

 Equipment

442

399

10.8 %

Operating Expenses

1,195

1,073

11.4 %

Operating Income

45

22

— %

EBITDA*

236

199

18.6 %

Latin America segment revenues were up 13.2% year over year, primarily driven by favorable foreign exchange rates and postpaid wireless subscriber growth. Operating expenses were up 11.4% year over year due to unfavorable foreign exchange rates, higher bad debt expenses, and higher equipment costs. Operating income was $45 million, up $23 million year over year. EBITDA* was $236 million, up $37 million year over year.

* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.

1 With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's quarterly results. The recently acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, Forged Fiber 37, which is classified as held-for-sale and reflected as discontinued operations. Upon acquisition, AT&T initially sought an equity partner to co-invest in Forged Fiber 37 and has since agreed to sell a controlling interest in the business.

2 Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. This 3Q26 convergence metric is presented based on available information and is subject to revision.

3 Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which represent locations served from the recently acquired mass markets fiber business, Gigapower, and other commercial open access providers.

4 The Company's long-term outlook for 2026-2028 is presented on a continuing operations basis and excludes discontinued operations related to Forged Fiber 37. AT&T's long-term outlook for 2027-2028 excludes the held-for-sale Mexico wireless business.

5 The strategy to remove legacy fixed costs across a geography is tied to the decommissioning of infrastructure after all customers have been upgraded to newer services. Gaining approvals could delay this decommissioning beyond 2029.

6 Effective with the Company's first-quarter 2026 reporting, AT&T revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.

About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated October 21, 2026. Adjusted EPS, adjusted operating income, EBITDA, EBITDA margin, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T's continuing operations and does not include discussion of balances or activity related to discontinued operations.

Adjusted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Non-operational items arising from asset acquisitions and dispositions include the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate; in these cases, we use the actual tax expense or combined marginal rate of approximately 25%.

For 3Q26, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.13 adjusted for $0.41 impairment charge associated with the held-for-sale Mexico wireless business, $0.09 employee separation charges, and $0.02 for benefit-related, transaction, legal and other items. For 3Q25, adjusted EPS of $0.54 is diluted EPS of $1.29 minus $0.79 gain on the sale of the DIRECTV investment, plus $0.04 benefit-related, transaction, legal and other items. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods, novel theories of liability, and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries.

The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion (based on preliminary information), a non-cash mark-to-market benefit plan gain/loss and other items. The Company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. AT&T's projected adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, the Company cannot provide a reconciliation between this projected non-GAAP metric and the most comparable GAAP metric without unreasonable effort.

Adjusted operating income is operating income adjusted for revenues and costs the Company considers non-operational in nature, including items arising from asset acquisitions or dispositions. For 3Q26, adjusted operating income of $7.6 billion is calculated as operating income of $4.1 billion, plus adjustments of $3.5 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For 3Q25, adjusted operating income of $6.6 billion is calculated as operating income of $6.1 billion, plus $435 million of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026, and include transaction, legal, and other costs as discussed above.

EBITDA is income from continuing operations plus income tax, interest, and depreciation and amortization expenses minus equity in net income (loss) of affiliates and other income (expense) – net. Adjusted EBITDA is calculated by excluding from EBITDA certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation, and other material gains and losses. Adjustments include transaction, legal, and other costs as discussed above.

For 3Q26, adjusted EBITDA of $12.5 billion is calculated as income from continuing operations of $1.3 billion, plus income tax expense of $1.4 billion, plus interest expense of $2.0 billion, plus equity in net income (loss) of affiliates of $(10) million, minus other income (expense) – net of $0.6 billion, plus depreciation and amortization of $5.0 billion, plus adjustments of $3.4 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For 3Q25, adjusted EBITDA of $11.9 billion is calculated as income from continuing operations of $9.7 billion, plus income tax expense of $1.0 billion, plus interest expense of $1.7 billion, plus equity in net income (loss) of affiliates of $(20) million, minus other income (expense) – net of $6.3 billion, plus depreciation and amortization of $5.3 billion, plus adjustments of $425 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026.

At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 3Q26, Advanced Connectivity EBITDA of $12.3 billion is operating income of $7.6 billion plus depreciation and amortization of $4.7 billion. For 3Q25, Advanced Connectivity EBITDA of $11.5 billion is operating income of $6.4 billion plus depreciation and amortization of $5.1 billion.

Adjusted EBITDA, Advanced Connectivity EBITDA, and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.

Free cash flow for 3Q26 of $5.0 billion is cash from operating activities from continuing operations of $10.5 billion, minus capital expenditures of $5.1 billion and cash paid for vendor financing of $0.5 billion. For 3Q25, free cash flow of $4.9 billion is cash from operating activities of $10.2 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.4 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.

Capital investment provides a comprehensive view of cash used to invest in our networks, product developments, and support systems. In connection with capital improvements, we have favorable payment terms of 120 days or more with certain vendors, referred to as vendor financing, which are excluded from capital expenditures and reported as financing activities. Capital investment includes capital expenditures and cash paid for vendor financing ($0.5 billion in 3Q26, $0.4 billion in 3Q25). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metric without unreasonable effort.

Net debt of $149.8 billion at September 30, 2026, is calculated as total debt (debt maturing within one year and long-term debt) of $159.6 billion, plus debt classified as held-for-sale related to the Mexico wireless business of $1.2 billion, less cash and cash equivalents of $10.8 billion and time deposits (i.e., deposits at financial institutions that are greater than 90 days) of $0.3 billion. Net debt-to-adjusted EBITDA is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.

Discussion and Reconciliation of Non-GAAP Measures 

We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).

On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). Upon acquisition, we initially sought an equity partner to co-invest in Forged Fiber and have since agreed to sell a controlling interest in the business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.

Free Cash Flow

Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

Free Cash Flow and Free Cash Flow Dividend Payout Ratio

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Net Cash Provided by Operating Activities from Continuing Operations

$      10,519

$       10,152

$      28,915

$       28,964

Less: Distributions from DIRECTV classified as operating activities

—

—

—

(1,926)

Less: Cash taxes paid on DIRECTV

—

—

—

251

Less: Capital expenditures

(5,061)

(4,887)

(15,638)

(14,061)

Less: Payment of vendor financing

(505)

(400)

(1,148)

(823)

Free Cash Flow

4,953

4,865

12,129

12,405

Less: Dividends paid

(1,950)

(2,033)

(5,923)

(6,168)

Free Cash Flow after Dividends

$        3,003

$         2,832

$        6,206

$         6,237

Free Cash Flow Dividend Payout Ratio

39.4

%

41.8

%

48.8

%

49.7

%

Cash Paid for Capital Investment

In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems. 

Cash Paid for Capital Investment

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Capital expenditures

$          (5,061)

$          (4,887)

$         (15,638)

$         (14,061)

Payment of vendor financing

(505)

(400)

(1,148)

(823)

Cash paid for Capital Investment

$          (5,566)

$          (5,287)

$         (16,786)

$         (14,884)

EBITDA

Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.

These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.

There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.

EBITDA and Adjusted EBITDA

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Income from Continuing Operations

$            1,306

$            9,677

$          10,563

$          19,230

Additions:

     Income Tax Expense

1,390

976

3,353

3,512

     Interest Expense

1,979

1,700

5,675

5,013

     Equity in Net (Income) Loss of Affiliates

10

20

80

(1,905)

     Other (Income) Expense - Net

(590)

(6,254)

(1,880)

(7,476)

     Depreciation and amortization

4,978

5,317

14,910

15,758

EBITDA

9,073

11,436

32,701

34,132

     Transaction, legal and other costs

44

487

339

615

     Benefit-related (gain) loss 

16

(62)

(60)

(126)

     Asset impairments and abandonments and restructuring

3,372

—

3,658

504

Adjusted EBITDA1

$          12,505

$          11,861

$          36,638

$          35,125

1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items.

Segment EBITDA and EBITDA Margin

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Advanced Connectivity Segment

Operating Income

$        7,628

$         6,417

$      21,826

$       18,495

  Add: Depreciation and amortization

4,702

5,076

14,094

15,084

EBITDA

$      12,330

$       11,493

$      35,920

$       33,579

Total Operating Revenues

$      29,481

$       27,503

$      86,567

$       82,192

Operating Income Margin

25.9

%

23.3

%

25.2

%

22.5

%

EBITDA Margin

41.8

%

41.8

%

41.5

%

40.9

%

Legacy Segment

Operating Income

$           498

$            679

$        1,633

$         2,657

  Add: Depreciation and amortization

—

—

—

—

EBITDA

$           498

$            679

$        1,633

$         2,657

Total Operating Revenues

$        1,519

$         2,013

$        4,919

$         6,583

Operating Income Margin

32.8

%

33.7

%

33.2

%

40.4

%

EBITDA Margin

32.8

%

33.7

%

33.2

%

40.4

%

Latin America Segment

Operating Income

$             45

$              22

$           103

$            111

  Add: Depreciation and amortization

191

177

580

482

EBITDA

$           236

$            199

$           683

$            593

Total Operating Revenues

$        1,240

$         1,095

$        3,637

$         3,120

Operating Income Margin

3.6

%

2.0

%

2.8

%

3.6

%

EBITDA Margin

19.0

%

18.2

%

18.8

%

19.0

%

Adjusting Items

Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and that those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.

The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.   

Adjusting Items

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Operating Expenses

Transaction, legal and other costs1

$                 44

$               487

$               339

$               615

  Benefit-related (gain) loss

16

(62)

(60)

(126)

Asset impairments and abandonments and restructuring

3,372

—

3,658

504

Adjustments to Operations and Support Expenses

3,432

425

3,937

993

   Amortization of intangible assets

80

10

221

28

Adjustments to Operating Expenses

3,512

435

4,158

1,021

Other

 Equity in net income of DIRECTV

—

—

—

(1,926)

  Gain on sale of DIRECTV

—

(5,479)

—

(5,479)

  Benefit-related (gain) loss, impairments of investments and other

(10)

(99)

(71)

(224)

Adjustments to Income from Continuing Operations Before

Income Taxes

3,502

(5,143)

4,087

(6,608)

Tax impact of adjustments

(34)

67

106

(266)

Tax-related items

—

177

365

177

Adjustments to Income From Continuing Operations

$            3,536

$          (5,387)

$            3,616

$          (6,519)

  Preferred stock redemption gain

—

—

—

(90)

Adjustments to Income From Continuing Operations

Attributable to Common Stock

$            3,536

$          (5,387)

$            3,616

$          (6,609)

1  Includes certain legal reserves and settlements that cover extended historical periods, novel theories of liability and/or are unpredictable in
both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of
expected insurance recoveries and are primarily associated with legacy legal matters and cybersecurity events. 

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.

Adjusted Operating Income, Adjusted Operating Income Margin,

Adjusted EBITDA and Adjusted EBITDA Margin

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Operating Income

$        4,095

$        6,119

$      17,791

$       18,374

Adjustments to Operating Expenses

3,512

435

4,158

1,021

Adjusted Operating Income

$        7,607

$        6,554

$      21,949

$       19,395

EBITDA

$        9,073

$      11,436

$      32,701

$       34,132

Adjustments to Operations and Support Expenses

3,432

425

3,937

993

Adjusted EBITDA

$      12,505

$      11,861

$      36,638

$       35,125

Total Operating Revenues

$      32,322

$      30,709

$      95,386

$       92,182

Operating Income Margin

12.7 %

19.9 %

18.7 %

19.9 %

Adjusted Operating Income Margin

23.5 %

21.3 %

23.0 %

21.0 %

Adjusted EBITDA Margin

38.7 %

38.6 %

38.4 %

38.1 %

Adjusted Diluted EPS

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Diluted Earnings Per Share (EPS) From Continuing

Operations

$          0.13

$              1.29

$          1.34

$              2.51

     Gain on sale of DIRECTV

—

(0.79)

—

(0.79)

     Equity in net income of DIRECTV

—

—

—

(0.21)

     Restructuring and impairments

0.50

—

0.53

0.05

     Benefit-related, transaction, legal and other items

0.02

0.04

0.04

0.04

     Tax-related items

—

—

(0.05)

—

Adjusted EPS

$          0.65

$              0.54

$          1.86

$              1.60

Year-over-year growth - Adjusted

20.4

%

16.3

%

Weighted Average Common Shares Outstanding with

Dilution (000,000)

6,844

7,169

6,938

7,203

Net Debt to Adjusted EBITDA

Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by adding debt classified as held-for-sale related to our Mexico wireless business and subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.

Net Debt to Adjusted EBITDA - 2026

Dollars in millions

Three Months Ended

Dec. 31,

March 31,

June 30,

Sept. 30,

Four

Quarters

20251

20261

20261

2026

Adjusted EBITDA

$          11,236

$          11,795

$          12,338

$          12,505

$          47,874

End-of-period current debt

9,483

End-of-period long-term debt

150,144

Total End-of-Period Debt

159,627

Add: Mexico held-for-sale finance leases

1,209

Less: Cash and Cash Equivalents

10,767

Less: Time Deposits

250

Net Debt Balance

149,819

Annualized Net Debt to Adjusted EBITDA Ratio

3.13

 1 As reported in AT&T's Form 8-K filed July 22, 2026.

Net Debt to Adjusted EBITDA - 2025

Dollars in millions

Three Months Ended

Dec. 31,

March 31,

June 30,

Sept. 30,

Four

Quarters

20241

20251

20251

20251

Adjusted EBITDA

$          10,791

$          11,533

$          11,731

$          11,861

$          45,916

End-of-period current debt

11,378

End-of-period long-term debt

128,090

Total End-of-Period Debt

139,468

Less: Cash and Cash Equivalents

20,272

Less: Time Deposits

350

Net Debt Balance

118,846

Annualized Net Debt to Adjusted EBITDA Ratio

2.59

1 As reported in AT&T's Form 8-K filed July 22, 2026.

© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

SOURCE AT&T

Fourth-Generation High-Speed Arena Network Marks the Latest Evolution of the Leagues' Connectivity Backbone, Connecting Leading Arenas, Production Facilities and Content Partners

Multiyear Extension Continues AT&T's Role as Official Connectivity Partner of the NBA and WNBA

Key Takeaways:

AT&T, the NBA and WNBA are launching the fourth-generation High-Speed Arena Network. HSAN will move live game content, highlights, replays, in-arena programming and stats quickly and reliably. The network is supported by more than 68,000 miles of AT&T fiber and infrastructure. AT&T is extending its role as Official Connectivity Partner of the NBA and WNBA. , /PRNewswire/ -- The National Basketball Association (NBA), Women's National Basketball Association (WNBA) and AT&T today announced the launch of the fourth generation of the High-Speed Arena Network (HSAN), the latest evolution of the leagues' connectivity platform built to quickly and reliably transport live game content, highlights, replays, in-arena programming and stats to fans and business partners, while enabling the behind-the-scenes technology that helps support the game operations.

Supported by more than 68,000 miles of AT&T's expansive fiber and network infrastructure, the fourth-generation HSAN will be designed to transport more than 118 concurrent, high-quality, low-latency streams per game, supporting millions of hours of basketball consumption during the 2027-28 NBA season.

"Today's fans follow the game across live broadcasts, replays, highlights, social media and NBA digital platforms," said Kellyn Smith Kenny, chief marketing & growth officer, AT&T. "Together with the NBA, AT&T is helping build the connectivity foundation that moves game content quickly and reliably across the league, so fans can stay closer to the moments that matter wherever they are watching."

"For nearly a decade, AT&T has helped us connect with fans in new and innovative ways, and we're excited to expand our partnership to leverage their next-generation network for HSAN to deepen that connection," said Kerry Tatlock, EVP Global Marketing Partnerships and Media, NBA. "Together, we look forward to building experiences that bring fans closer to the NBA in ways that are personalized and customized for each fan."

"AT&T has been an integral partner in the WNBA's growth, helping us reach new fans and elevate the experience for our players, teams, and communities," said WNBA Chief Growth Officer Colie Edison. "As our inaugural WNBA Changemaker, we look forward to continuing our work together to drive innovation, visibility, and opportunity for the next generation of players and fans."

AT&T, the NBA and the WNBA have also extended their longstanding marketing partnership, continuing AT&T's role as the leagues' Official Connectivity Partner, building on a relationship that began in 2018. The extension also continues AT&T's partnership with the NBA G League, USA Basketball and NBA Take-Two Media.

As part of the extended marketing partnership, AT&T and the NBA will create new fan touchpoints across content and retail activations that debut around American Express NBA Tip-Off. Fans will have additional opportunities to engage with NBA stars and AT&T athletes, including Shai Gilgeous-Alexander, through unique experiences, special access moments and original content over the course of the NBA season. AT&T will also continue to connect fans with their favorite teams and players through its partnerships with the Chicago Bulls, Dallas Mavericks, Miami HEAT and LA Clippers.

As a WNBA Changemaker, AT&T will maintain its prominent presence across the league, including through its branding on all WNBA team jerseys and continued entitlement partnership of WNBA All-Star. AT&T will also continue its partnerships with WNBA stars A'ja Wilson and Sabrina Ionescu, building on its commitment to connect fans with the players and moments shaping the game.

"I've always appreciated how basketball brings together different communities, cultures and creativity," said Shai Gilgeous-Alexander, NBA Champion, two-time NBA MVP and Oklahoma City Thunder guard. "Through my relationship with AT&T and experiences like ShaiT&T, we're creating new ways for fans to connect with the game while celebrating the stories and culture that make basketball so special. I'm excited to keep building on that this season." 

"The WNBA's growth has been incredible to be a part of, and it takes partners who are committed to investing in the game and its future," said A'ja Wilson, Las Vegas Aces center and five-time WNBA MVP. "AT&T has consistently shown up for our league, our players and our fans, helping create experiences that bring people closer to the game. I'm excited to see AT&T continue its partnership with the WNBA and keep building even more opportunities to connect with basketball fans everywhere."

Other highlights of the partnership include AT&T's continued title sponsorship of AT&T Slam Dunk at NBA All-Star, which began in 2019. The partnership also builds on the introduction of on-court apron branding during nationally televised NBA regular-season games in the 2025-26 season and continues to enhance fan connectivity through Turbo Live by AT&T*. Available at select NBA arenas, Turbo Live enables fans, regardless of carrier, to access prioritized connectivity on the AT&T network, making it easier to share, engage and stay connected throughout the game.

Frequently Asked Questions

What did AT&T and the NBA announce?
AT&T and the NBA announced a multiyear extension of their marketing partnership and the launch of the fourth generation of the NBA High-Speed Arena Network (HSAN). The agreement continues AT&T's role as the Official Connectivity Partner of the NBA, WNBA, NBA G League, USA Basketball and NBA Take-Two Media.

What is the NBA High-Speed Arena Network (HSAN)?
The NBA High-Speed Arena Network (HSAN) is the league's dedicated connectivity backbone that links NBA arenas, production facilities, data centers and media partners. It helps move live game broadcasts, replays, highlights, statistics, and other content quickly and reliably across the NBA ecosystem.

Why is HSAN important?
HSAN powers many of the behind-the-scenes workflows that make modern basketball coverage possible. It supports the delivery of live broadcasts, highlights, replays, statistics, alternate viewing experiences, radio programming, mobile content, and in-arena entertainment.

How does HSAN benefit NBA fans?
Fans may never directly see HSAN, but they benefit from what it enables. The network helps move content quickly and reliably across the league, supporting broadcasts, replays, highlights, statistics, and digital experiences that keep fans connected to the game wherever they watch.

How large is the network supporting HSAN?
The network is supported by more than 68,000 miles of AT&T fiber and network infrastructure, providing high-capacity connectivity between key NBA locations and partners.

What content travels across HSAN?
HSAN helps transport:

Live game video Replays Highlights Statistics Audio feeds Broadcast content Digital media content Other mission-critical league data How does AT&T support the NBA's technology infrastructure?
AT&T provides the connectivity foundation that helps move game content between arenas, production facilities, data centers, media partners, and broadcast platforms. The company also monitors network performance through its Network Operations Center to support reliable content delivery.

What fan experiences are included in the renewed partnership?
Beginning around NBA Tip-Off, AT&T and the NBA will introduce a season-long series of fan experiences, merchandise drops, content opportunities, and special access moments in markets across the country. Fans will also have opportunities to engage with NBA stars and AT&T athletes.

1Req's a 5G-capable smartphone. May require an unlocked device & open eSIM slot for activation.

About AT&T
We help more than 100 million U.S. families, friends, and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

About the NBA
The National Basketball Association (NBA) is a global sports and media organization with the mission to inspire and connect people everywhere through the power of basketball. Built around five professional sports leagues: the NBA, WNBA, NBA G League, NBA 2K League and Basketball Africa League, the NBA has established a major international presence with games and programming available in 214 countries and territories in more than 50 languages, and merchandise for sale in more than 200 countries and territories on all seven continents. NBA rosters at the start of the 2025-26 season featured a record 135 international players from a record-tying 43 countries. The NBA's digital assets include NBA TV, NBA.com, the NBA App, and NBA League Pass. The NBA has created one of the largest social media communities in the world, with more than 2.5 billion likes and followers globally across all leagues, team, and player platforms. The NBA's Tap to Watch provides seamless access to local, national, and global live game telecasts via the NBA App, NBA.com, third-party digital platforms, and NBA partner platforms. NBA Cares, the NBA's global social impact platform, drives change on issues facing fans and communities in the areas of health and wellness, civic engagement, social justice and inclusion, and sustainability.

About the WNBA 
Currently in its historic 30th season in 2026, the WNBA continues to be one of the fastest-growing brands in sports, fueled by record-breaking momentum and unprecedented growth. Having reached a new transformational Collective Bargaining Agreement in March 2026, the league enters a bold new chapter focused on elevating the player experience, increased investment, and growing women's basketball globally. The WNBA's dedication to societal impact is supported by the WNBA Changemakers Collective (Ally, AT&T, AWS, CarMax, Deloitte, Google, and Nike), a first-of-its-kind group of purpose-driven companies working to empower players and the league, increase visibility, and drive business transformation.

© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

SOURCE AT&T

Perpetual Ltd grew its position in shares of AT&T Inc. (NYSE:T – Free Report) by 33.6% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 123,325 shares of the technology company’s stock after purchasing an additional 31,041 shares during the quarter. Perpetual Ltd’s holdings in AT&T were worth $3,009,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. HF Advisory Group LLC increased its position in shares of AT&T by 16.9% during the third quarter. HF Advisory Group LLC now owns 154,318 shares of the technology company’s stock worth $3,765,000 after buying an additional 22,310 shares during the period. Dupree Financial Group LLC raised its stake in AT&T by 0.6% during the third quarter. Dupree Financial Group LLC now owns 144,188 shares of the technology company’s stock worth $3,518,000 after buying an additional 867 shares during the last quarter. Valley Wealth Managers Inc. raised its stake in AT&T by 3.3% during the third quarter. Valley Wealth Managers Inc. now owns 188,989 shares of the technology company’s stock worth $4,611,000 after buying an additional 6,000 shares during the last quarter. Atlas Brown Inc. lifted its holdings in AT&T by 1.6% in the third quarter. Atlas Brown Inc. now owns 61,240 shares of the technology company’s stock valued at $1,494,000 after buying an additional 981 shares during the period. Finally, Castleview Partners LLC lifted its holdings in AT&T by 13.4% in the third quarter. Castleview Partners LLC now owns 39,751 shares of the technology company’s stock valued at $970,000 after buying an additional 4,706 shares during the period. Institutional investors and hedge funds own 57.10% of the company’s stock.

AT&T News Summary Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T agreed to sell its Mexico wireless business for $2 billion in cash to Grupo Televisa and Fintech Holdings. The deal should simplify AT&T’s portfolio, release capital for its U.S. network investments and reduce exposure to the Mexican market. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval. AT&T will classify the business as held for sale in its third-quarter filing. AT&T to Sell AT&T Mexico to Grupo Televisa and Fintech Holdings Positive Sentiment: Erste Group modestly raised its 2026 EPS forecast to $2.34 from $2.33, slightly above the current consensus estimate. The adjustment offers a small positive signal ahead of AT&T’s third-quarter earnings report, though it is unlikely to materially change the investment case. AT&T analyst estimate update Neutral Sentiment: AT&T’s shares rose despite a Bernstein downgrade tied to the potential competitive threat from SpaceX’s expansion into mobile wireless. The downgrade reflects longer-term uncertainty, but investors appear to view satellite services as complementary to, rather than an immediate replacement for, terrestrial 5G networks. AT&T Stock Rises Despite a Downgrade on SpaceX Competition Negative Sentiment: The Mexico sale removes a sizable operating business from AT&T’s portfolio. AT&T Mexico had approximately 24.7 million subscribers and generated 2025 revenue of 85.4 billion Mexican pesos, so the divestiture could reduce geographic diversification and future growth potential. The $2 billion proceeds and the ultimate use of capital will be important for shareholders. AT&T Trading Up 1.7% NYSE:T opened at $22.87 on Wednesday. The company has a current ratio of 0.97, a quick ratio of 0.93 and a debt-to-equity ratio of 1.06. The stock has a market capitalization of $156.69 billion, a price-to-earnings ratio of 7.57, a PEG ratio of 1.12 and a beta of 0.25. The firm has a fifty day simple moving average of $24.99 and a two-hundred day simple moving average of $24.53. AT&T Inc. has a 12 month low of $19.89 and a 12 month high of $29.43. AT&T (NYSE:T – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The firm had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $31.80 billion. During the same period in the previous year, the firm posted $0.54 earnings per share. The business’s revenue was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Analysts expect that AT&T Inc. will post 2.33 EPS for the current fiscal year.

AT&T Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a $0.2775 dividend. The ex-dividend date is Friday, October 9th. This represents a $1.11 annualized dividend and a dividend yield of 4.9%. AT&T’s dividend payout ratio (DPR) is currently 36.75%.

Analyst Ratings Changes A number of analysts have commented on the stock. Wolfe Research raised shares of AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 price target on the stock in a research report on Thursday, July 23rd. Scotiabank lowered their price objective on AT&T from $27.50 to $26.50 and set a “sector perform” rating for the company in a research report on Friday, October 9th. Morgan Stanley boosted their price objective on AT&T from $27.00 to $28.00 and gave the company an “overweight” rating in a research note on Monday, September 28th. Barclays cut their target price on AT&T from $26.00 to $24.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 8th. Finally, KeyCorp reaffirmed an “overweight” rating and set a $36.00 target price on shares of AT&T in a research note on Wednesday, October 7th. Eleven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, AT&T presently has a consensus rating of “Moderate Buy” and an average price target of $29.05.

View Our Latest Analysis on AT&T

AT&T Profile (Free Report)

AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.

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AT&T shares just got hammered by a Starlink spectrum deal that spooked the entire telecom sector, but the selloff may have created something unexpected for investors willing to look past the dividend.

The 24/7 Wall St. price target for AT&T (NYSE:T | T Price Prediction) is $30.55 over the next 12 months. With shares at $22.15 midday Friday, that means 37.9% upside. AT&T earns a buy rating from the model with high confidence.

Metric Value Current Price $22.15 Price Target from 24/7 Wall St. $30.55 Upside/Downside 37.9% Recommendation BUY Confidence Level 90% The forward dividend of $1.11 yields about 5%. On free cash flow, management guides to $18B+ this year, rising to $21B+ in 2028, with buybacks at roughly $10B in 2026.

Starlink Spectrum Fears Knock AT&T to a Fresh Discount Shares fell 9.95% in Friday’s session after SpaceX announced a spectrum deal for Starlink Mobile, which hit telecom stocks generally. AT&T is down 8.85% for the week, 13.48% for the month and 7.64% year to date. That leaves it 23% below its 52-week high of $28.75 and 12.8% above its low of $19.63.

Operations look much better than the share price. Q2 adjusted EPS of $0.65 beat the $0.5871 consensus. Revenue of $31.56B fell slightly short of the $31.81B estimate.

AT&T added 432,000 postpaid phones and on October 6 announced a new fiber joint venture with Global Infrastructure Partners and CPP Investments.

Why Bulls See $31.79 and Beyond Fiber is the engine. AT&T covers 38.6M fiber locations and targets 60M+ by 2030. Consumer wireline broadband revenue rose 27.3%, and 42.5% of home internet customers also carry AT&T wireless. CEO John Stankey: “Where we have fiber, we win.”

Management guides to double-digit adjusted EPS growth over three years and $45B+ in shareholder returns. Analysts are mostly positive with 16 Buy or Strong Buy ratings and a $28.77 consensus target. An upside case covers $31.79, about 43.5% above the current price.

What Could Go Wrong for AT&T Satellite-to-phone competition is now a live concern. Net debt stands at $144B, with leverage expected to rise to the 3.2 times range after the EchoStar (NASDAQ:SATS) spectrum purchase. Legacy copper revenue fell 25.9%, and interest expense rose 13.8%.

Capex rose 16.4% due to faster fiber deployment. The EchoStar and Lumen Technologies (NYSE:LUMN) deals are expected to add to earnings by 2028. Our bear case of $26.69 still is 20.5% above the current price.

How AT&T Compares to Verizon and T-Mobile Company Forward P/E Dividend Yield AT&T 9x 5.0% Verizon 9x 6.08% T-Mobile 12x 2.46% Verizon (NYSE:VZ) competes head-to-head with AT&T in wireless and fiber. Its quarterly earnings fell 22% year over year, yet it trades at about the same multiple as AT&T, whose adjusted EPS beat expectations in Q2. That gap suggests AT&T deserves a premium.

T-Mobile (NASDAQ:TMUS) is the growth benchmark in wireless, with revenue up 7.9% year over year. At $30.55, AT&T would trade near 13x forward earnings, roughly in line with T-Mobile. Against both peers, our target looks reasonable.

AT&T Price Prediction 2026-2030 I’m sticking with our 24/7 Wall St. price target of $30.55, a buy rating and 90% confidence. The free cash flow path toward $21B+ tips the scale.

The bull case holds if fiber and wireless bundling keeps cutting churn. It weakens if Starlink cuts into AT&T’s wireless pricing or leverage remains above 2.5x. At about 9x earnings, the market is pricing in more disruption than AT&T’s results show.

Our model projects where AT&T could trade in the years ahead if current trends hold.

Year Price Target from 24/7 Wall St. 2026 $25.12 2027 $30.55 2028 $35.44 2029 $39.32 2030 $42.95 These estimates assume AT&T stays on track with fiber expansion and deleveraging. Satellite competition or delays in retiring copper lines could change these numbers.

Contact [email protected] for any questions or corrections.

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AT&T (T) buy the dip

Buy AT&T (T). The selloff is driven by fear that Starlink Mobile will replace traditional carriers, but AT&T’s fundamentals are steady: revenue up 2.3% QoQ, advanced connectivity revenue up 5.1% YoY, and low-single-digit service growth guidance. The chart also supports a rebound: it’s above the 100-week EMA and forming an inverted head-and-shoulders, with a likely move back toward $26.65 resistance.

Key Risk: SpaceX/Starlink actually wins enough US mobile customers fast enough to force AT&T to cut guidance and lose pricing power, not just create headlines.

Verizon (VZ) relative-value buy

Buy Verizon (VZ) versus the group. The article shows broad telecom dumping on the same SpaceX spectrum headline, but the market is likely overpricing near-term competitive impact. Verizon has similar “steady cash flow + dividends” appeal, so if the fear fades, VZ should rebound with less downside than the most fragile names. Use the same catalyst: selloff likely to mean-revert as FCC details and deployment realities (towers, limited spectrum) sink in.

Key Risk: Regulators or competitors accelerate spectrum/coverage plans in a way that makes Starlink’s competitive threat immediate and measurable in Verizon’s subscriber trends.

AT&T stock plunged by over 7% in the premarket session as investors dumped most telecommunications companies after SpaceX announced an agreement to purchase spectrum in the United States. It tumbled to $23, down by 13.3% from its highest point in September this year. 

Other top telecommunications stocks have also tumbled. Verizon stock dropped by 5.1%, while T-Mobile fell by over 6.6%. The same trend is happening globally, with Deutsche Telekom, BT Group, and Vodafone falling by over 3%.

AT&T and other top telecom companies are in a steep freefall after SpaceX announced an agreement to purchase a nationwide spectrum portfolio from Gain Management, which specializes in digital infrastructure. In a statement, the company said:

“This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US.”

The concern among investors is that SpaceX, through its Starlink service, will become a major competitor to AT&T and other telecom companies. Still, history suggests that such disruption fears are often overstated. 

Investors once worried that Amazon would upend retailers like Walmart and Target, and that traditional automakers would overtake Tesla in electric vehicles. Yet Walmart, Target, and Tesla all proved resilient.

Most notably, SpaceX faces some major challenges in urban areas as it will need to deploy towers on the ground. The new spectrum is also quite limited. 

Focus now shifts to an upcoming vote by the FCC on a proposal to auction 25 megahertz of “prime spectrum” to support D2D services from satellites to smartphones. The vote will happen on October 29 and will benefit SpaceX and Amazon, which are building these solutions. 

AT&T’s business is doing modestly well

The most recent results showed that AT&T’s business held steady in the second quarter. Its revenue rose by 2.3% in the quarter to $31.6 billion, with operating income rising to $7 billion.

The company added over 1 million advanced connectivity customers, which was driven by year-over-year increases in net adds across its fiber, fixed wireless and postpaid phone subscribers.

This growth brought its advanced connectivity services revenue to over $23.5 billion, up by 5.1% YoY. Most notably, its guidance was strong, with its service revenue is expected to grow by low single digits. It returned $4.1 billion to shareholders through dividends and buybacks, and plans to return $45 billion through 2028.

Analysts remain bullish on the stock. Scotiabank analysts have a target of $27.50, while Morgan Stanley, BNP Paribas, TD Cowen, and Argus suggest that it will jump to over $30.

T stock chart | Source: TradingView

The weekly chart shows that the AT&T share price slipped from a high of $26.64 in September to $23. A closer look shows that it has formed an inverted head-and-shoulders pattern, a common bullish reversal pattern.

The stock has remained slightly below the 23.6% Fibonacci Retracement level. It has moved above the 100-week Exponential Moving Average (EMA). Therefore, it is likely that the stock will bounce back as the SpaceX sell-off fades. Such a move may see it rebound to the key resistance level of $26.65.

Key Takeaways T will own 50% of a new wholesale fiber joint venture with GIP and CPP Investments.The venture combines Forged Fiber 37 with Gigapower to expand open-access fiber across 16 states.AT&T targets more than 60 million fiber locations by 2030, pairing broadband growth with 5G. AT&T Inc. (T - Free Report) has agreed to form a new U.S. fiber joint venture with Global Infrastructure Partners ("GIP") and the Canada Pension Plan Investment Board ("CPP Investments"). The partnership aims to accelerate fiber expansion and bring high-speed Internet access to more communities across the country.

The new joint venture will include AT&T’s subsidiary, Forged Fiber 37, which holds the fiber build engine, network assets and operations acquired from Lumen Technologies, Inc. (LUMN - Free Report) , along with Gigapower, its existing wholesale fiber joint venture with GIP. It will operate as a wholesale commercial open-access fiber company, supporting AT&T’s network growth across major metropolitan areas in 16 states through a capital-light model while allowing multiple service providers to access the infrastructure.

AT&T will own 50% of the joint venture, while GIP and CPP Investments will collectively own the remaining 50%. The company plans to use the transaction proceeds to reduce debt, invest in its business and return capital to shareholders. The deal is expected to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions.

The initiative supports AT&T’s goal of reaching more than 60 million fiber locations by the end of 2030. The expanded fiber footprint is expected to create opportunities to grow high-value customer relationships by combining broadband and 5G wireless services, supporting the company’s strategy of offering converged connectivity solutions.

How Are Competitors Focusing on Fiber?AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Verizon is strengthening its fiber network to expand high-speed broadband access across the United States. The company is deepening its fiber investment through a multiyear agreement with Corning Incorporated (GLW - Free Report) for more than 80 million miles of optical fiber from 2027 to 2032. Verizon’s fiber focus supports growing demand for advanced connectivity, including applications linked to cloud computing and artificial intelligence.

T-Mobile is expanding its fiber presence through partnerships that allow it to enter more markets and broaden its home broadband offerings. The company is pairing its 5G network with fiber services to give customers more options for high-speed connectivity. This approach allows T-Mobile to leverage its national brand and distribution alongside established fiber operators to scale its broadband business more efficiently.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 6.6% over the past year against the industry’s growth of 132.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.27, below the industry tally of 8.67.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have decreased 0.4% to $2.33 over the past 60 days, while the same for 2027 have decreased 0.8% to $2.55.

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AT&T cut its dividend in half back in 2022, and investors are still waiting to find out whether that painful reset actually fixed anything or just delayed a bigger problem.

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AT&T (NYSE:T | T Price Prediction) will pay its next $0.2775 quarterly dividend on November 2, 2026. That works out to $1.11 a year and a 4.53% yield. Its dividend has stayed flat since the April 13, 2022 ex-dividend date, when it dropped from $0.52. It has not been raised since. The cut came the same month AT&T spun WarnerMedia off and merged it with Discovery. So the company writing checks today is a different business, with different cash sources supporting the dividend.

Smaller Check, Wider Cushion In 2021, dividends of $15.068 billion took about 59% of operating cash flow left after capex. In 2025, AT&T paid $8.18 billion, roughly 49% of its $16.586 billion in free cash flow. In Q2 2026, the $1.976 billion dividend used about 42% of the $4.67 billion in free cash flow.

Wireless and Fiber Now Carry the Load The Advanced Connectivity segment brings in over 90% of service revenue and nearly all adjusted EBITDA. Last quarter AT&T added 432,000 postpaid phone subscribers, with churn at 0.86%. It also added 367,000 fiber customers, and 42.5% of its home internet customers now buy AT&T wireless as well. Management explained the logic on the earnings call:

“Our goal is not to maximize our crew of individual products, but instead to maximize total advanced connectivity service revenues in order to drive attractive returns on our investments in 5G and fiber.”

The old copper business is contracting quickly. Legacy service revenue fell 26%.

What Gets Paid Before Shareholders Do Several bills come first. Capital spending is guided to $23 billion to $24 billion this year. Total debt stands at $144 billion, and interest expense rose 13.8%. Net leverage (net debt divided by adjusted EBITDA) is 2.68x, and management expects it to climb to about 3.2x after the EchoStar (NASDAQ:SATS) spectrum deal. Dividends plus buybacks will total about $18 billion in 2026, which management called “essentially 100%” of its free cash flow outlook. CEO John Stankey explained why buybacks got a bigger share:

“I probably have a bias that says I’d like to buy more of it back because I think it’s incredibly undervalued.”

How Verizon and T-Mobile Price the Same Business Verizon Communications (NYSE:VZ) pays out more, at a 6.09% yield, but its quarterly revenue slid 0.7%. T-Mobile US (NASDAQ:TMUS) is the growth option. Its yield is just 2.5%, revenue grew 7.9%, and the stock trades at a forward P/E of 12. AT&T sits between the two, with 2.3% revenue growth and a forward P/E of about 10.

Answer for Investors Who Took the Cut The $1.11 dividend is on stronger ground than the old $0.52 quarterly payout was. Coverage is wider, and the cash comes from subscription connectivity rather than debt-funded media assets. Management has committed to holding the payout steady through 2028, with free cash flow guidance of $19 billion+ in 2027 and $21 billion+ in 2028. Buybacks are the shock buffer: they can be scaled back before the dividend is cut. The stock is down 7.78% over the past year, which shows investors want to see the growth delivered first.

One risk could undo this view. If free cash flow growth stalls just as Legacy EBITDA turns negative after 2027, leverage could stay near 3.2x instead of returning to the 2.5x target. That would leave the dividend competing with debt repayment for the same cash. The fourth quarter’s expected free cash flow recovery is the next checkpoint.

Contact [email protected] for any questions or corrections.

AT&T's 4% yield and steady payout history make it look like a reliable income play, but the company's own CFO revealed a detail on the latest earnings call that should make dividend investors look twice before buying.

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Income investors love a familiar name paying a fat check, and few names in the S&P 500 fit that description more comfortably than AT&T (NYSE:T | T Price Prediction). The stock traded around $25.21 on Sept. 28 with a 4.4% dividend yield, with a trailing P/E of 8 and a chart that has quietly returned 22.98% over five years. On the surface, this looks like the safest high-yield payer in telecom. The company’s own numbers say the payout has less breathing room than the headline coverage ratio suggests.

A dividend becomes unsustainable when the cash going out (payouts, CapEx, buybacks, interest) starts to press against the cash coming in, and management has to fund the shortfall with debt or asset sales. Coverage ratios on paper can look fine while the underlying free cash flow gets stretched thinner every quarter. That is the exact tension inside AT&T right now.

Why the Yield Reads as Safe The optics are genuinely reassuring. AT&T pays a 27-cent quarterly dividend, or $1.11 annualized, and has held that rate steady across every ex-dividend date from January 2022 through July 2026. Full-year 2025 adjusted EPS came in at $2.12, and 2026 guidance sits at $2.25 to $2.35. Against that earnings base, the payout ratio on adjusted EPS lands near 52%, well inside what a mature telecom can carry.

Operating momentum is real. Second-quarter 2026 service revenue rose 2.7% year over year, adjusted EBITDA rose 5.2% and the company added 432,000 postpaid phone net adds and 646,000 internet net adds in the quarter. A MarketWatch analyst piece earlier this week even framed AT&T as the smartest bet in the wireless sector. So where is the warning?

Where the Coverage Gets Thin The right lens for AT&T is free cash flow after capex, interest, and the competing shareholder-return commitments the company has already promised, rather than EPS. On the Q2 2026 call, CFO Pascal Desroches confirmed that planned share repurchases and dividend payments will total approximately $18 billion in 2026, against a full-year free-cash-flow outlook of $18 billion plus. Management itself called that “essentially 100% of our outlook for free cash flow.” There is very little slack for a miss.

That slack matters because capital investment is climbing, not falling. Second-quarter CapEx was $6.1 billion, versus $5.1 billion a year earlier, and full-year capital investment guidance stands at $23 billion to $24 billion annually through 2028 as fiber deployment accelerates toward 60 million locations by 2030. Buybacks are being pushed higher in parallel: the company now targets roughly $10 billion of repurchases in 2026, up from a prior $8 billion. Every dollar of buyback is a dollar not available to defend the dividend if free cash flow disappoints.

Balance Sheet Is Going the Wrong Way Leverage is the second flashing light. On June 30, net debt to adjusted EBITDA sat at 2.68x, above the company’s stated 2.5x target. Total debt on the balance sheet stood at $162.888 billion, with total liabilities of $301.925 billion. Interest expense was up 13.8% year-over-year in Q2 2026.

Then comes the EchoStar spectrum purchase (roughly $23 billion) and the Lumen fiber acquisition ($5.75 billion). Desroches said net leverage will increase to the 3.2x range following the close of the EchoStar transaction, then return to a level consistent with the 2.5x target within approximately three years. Higher leverage during a period when the payout, the buyback, and the fiber build all need funding is the definition of a stretched capital plan.

A Yield That Is Elevated Because the Price Fell The dividend rate itself has not grown. AT&T last reset the payout to 27 cents in January 2022, down from $0.52, and has held it flat since. Management guides to maintaining the $1.11 annualized dividend through 2028 with no raise attached, despite double-digit adjusted EPS growth. A dividend “held through stress” is a signal, not reassurance, and it is one of the classic warning signs we cataloged in a free report on dividend traps. The yield you see today is partly a function of price weakness: the stock is down 5.89% over the past year. Price-driven yield is a warning, not a feature.

The legacy business is the quiet accelerant. Legacy-segment service revenue fell 26% year over year, legacy EBITDA fell about 46% and AT&T expects legacy EBITDA to turn negative after 2027. That is a live cash-flow drag heading straight into the years when leverage is supposed to come back down.

What Would Have to Go Right For the payout to hold comfortably, AT&T needs three things: free cash flow to reach the guided $19 billion in 2027 and $21 billion in 2028, cost savings to hit the promised $4 billion annual run rate by the end of 2028, and the EchoStar-driven leverage spike to reverse on schedule. Miss on any two of those and the board’s own words become relevant. CEO John Stankey told analysts, “This is a decision for the board. It’s not my decision to make exclusively.”

The single falsifiable metric to watch is quarterly free cash flow versus the combined dividend-plus-buyback run rate. If FCF trails the shareholder-return cadence for two consecutive quarters while capex stays elevated, the buyback gets cut first, and the dividend becomes the next lever the board can pull. A cut usually takes the share price with it, which is why yield alone is never a thesis. On the numbers AT&T itself publishes, this dividend is simply covered by less margin than the 52% payout ratio implies.

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Key Takeaways Cogent shares fell 80.7% in a year as debt, Sprint runoff, weak cash generation and a dividend cut weighed.Wavelength revenue jumped 63.8% in Q2 as Cogent expanded services across 1,137 locations.Cogent ended Q2 with $2.34B in debt, though net leverage fell sequentially and capex dropped 31.4%. Cogent Communications Holdings, Inc.’s (CCOI - Free Report) shares have plunged 80.7% over the past year against the industry’s growth of 93.1%, lagging peers like AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) . AT&T has lost 10.1%, while Verizon is up 8.5% over this period.

This reflects investor concerns surrounding its elevated debt burden, continued runoff of the acquired Sprint Wireline business and weak cash generation. The sharp reduction in its dividend has further dented investor sentiment. Cogent cut its quarterly dividend to just 2 cents per share in late 2025 from $1.015 previously.

One-Year CCOI Stock Price Performance

Image Source: Zacks Investment Research

Growth Engines Offer EncouragementCogent’s core operations are showing signs of improvement despite weakness in consolidated revenues. In the second quarter of 2026, service revenues declined 4.3% year over year to $235.6 million, primarily reflecting the continued contraction of the acquired Sprint business. However, on-net revenues, including wavelength services, increased 6.2% to $150.2 million.

The wavelength business remains a notable growth catalyst. Second-quarter wavelength revenues surged 63.8% year over year to $14.8 million, while wavelength customer connections increased 66.4%. Cogent is currently offering wavelength services across 1,137 locations and believes it can eventually capture 25% of the North American long-haul wavelength market compared with roughly 3% currently.

Profitability trends are also moving in the right direction. Adjusted EBITDA increased sequentially to $71.1 million, while the adjusted EBITDA margin expanded 90 basis points sequentially to 30.2%. The growing contribution from higher-margin on-net services and continued cost reductions should support further margin improvement.

High Leverage Remains CCOI's Biggest ConcernDespite operational improvements, Cogent’s balance sheet remains a major overhang. Total debt was approximately $2.34 billion at the end of the second quarter. Although adjusted net leverage improved to 6.23 times from 6.79 times sequentially, it remains elevated.

The company also has $750 million of unsecured notes maturing in June 2027. Management had targeted the third quarter of 2026 for refinancing these obligations, making successful execution and the resulting interest cost critical factors to watch.

Cogent is also taking steps to strengthen its financial position. The sale of 10 data centers generated $224.2 million in net proceeds, while the company has been repurchasing secured notes at discounts. Capital expenditures declined 31.4% year over year in the second quarter, which should help cash-flow generation.

Should You Bet on CCOI?CCOI’s 80.7% decline reflects genuine fundamental concerns rather than merely weak market sentiment. High leverage, refinancing requirements, declining Sprint revenues and uncertain sustainable free cash flow warrant caution.

Nonetheless, rapid wavelength growth, expanding margins, asset monetization and declining leverage provide a foundation for a potential recovery if execution improves. Consequently, investors with the ability to tolerate elevated risk may consider staying invested in CCOI for long-term growth.

Cogent currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways AT&T is adding complimentary LifeMD memberships for eligible wireless and fiber customers.T will waive LifeMD's $19 monthly fee, giving eligible customers access to virtual care and pharmacy services.The benefit initially covers 29M customers in 11 states, with nationwide expansion expected in January 2027. AT&T Inc. (T - Free Report) has added new healthcare benefits for its eligible wireless and fiber customers through a partnership with LifeMD, Inc. (LFMD - Free Report) , offering complimentary access to virtual care and pharmacy services. The collaboration expands AT&T’s customer offerings by providing healthcare services alongside its wireless and fiber products.

Per the agreement, AT&T will provide more than 100 million eligible customers with a LifeMD membership worth $228 annually, waiving the regular $19 monthly fee. Customers can connect with healthcare providers for everyday health needs, obtain prescriptions and access pharmacy services, with many medications delivered directly through LifeMD’s pharmacy.

The company is offering the benefit through AT&T’s &More program, which provides members with savings and special deals. Customers must enroll to activate the complimentary membership and will pay only for the visits, prescriptions, or other services they use. The rollout will initially cover about 29 million AT&T customers in 11 states and is expected to expand nationwide in January 2027.

As demand for convenient telemedicine services continues to grow, the initiative supports AT&T’s efforts to broaden its customer benefits and strengthen engagement across its service ecosystem.

How Are Competitors Advancing in the Healthcare Sector?AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Verizon is enhancing its healthcare technology offerings with artificial intelligence (AI)-powered solutions for telehealth and connected care. Its AI Connect platform helps healthcare organizations manage secure, real-time data flows. Verizon provides network solutions to support connected medical devices and healthcare facilities.

T-Mobile is strengthening its healthcare offerings with 5G and wireless technologies that support telehealth and virtual care. The company provides private and hybrid 5G networks for healthcare organizations, helping connect facilities, applications and medical devices. T-Mobile’s solutions also support patient monitoring, connected hospital operations and secure digital healthcare services.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 8.9% over the past year against the industry’s growth of 94.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.39, below the industry tally of 8.07.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 1.3% to $2.35 over the past 60 days, while the same for 2027 have risen 0.8% to $2.57.

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Smart Money Shifts: U.S. Bancorp Pairs Tech With YieldAT&T NYSE: T executives said the company’s second-quarter performance reflected the benefits of its fiber expansion, spectrum investments and recently closed acquisitions, while emphasizing a strategy centered on converged wireless and broadband customer relationships.

Speaking at the 2026 Bank of America Telecom and Media Conference, Chief Financial Officer Pascal Desroches said AT&T had reached a “tipping point” in the second quarter after several years of investment in fiber deployment, wireless-network modernization and spectrum.

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TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip DemandDesroches said the acquisitions of Lumen consumer assets and EchoStar spectrum have expanded the company’s opportunity to accelerate fiber and fixed-wireless growth. The EchoStar spectrum has enabled AT&T to offer fixed wireless in more areas, while the Lumen transaction added customer locations where AT&T sees an opportunity to increase broadband penetration and wireless share.

“Together, those assets positioned us for accelerated growth,” Desroches said, adding that AT&T expects broadband revenue growth to accelerate across fiber and fixed wireless.

Outlook and capital returns Intel’s ASML Milestone Gives Investors a New Reason to Revisit the StockDesroches said AT&T continues to expect double-digit earnings-per-share growth over the next three years, along with accelerating EBITDA growth. He also reiterated that the company expects to return $18 billion to shareholders through dividends and buybacks this year and $45 billion over the following three years.

He said the company’s business segment grew service revenue 1.8% in the most recent quarter and is expected to deliver low-single-digit service-revenue growth for the foreseeable future.

Consumer strategy emphasizes choice and convergence Jen Robertson, executive vice president and general manager of AT&T Consumer, said industry switching activity has remained broadly consistent with the prior year. She described the competitive environment as healthy and said AT&T’s results were driven by execution rather than a major change in consumer switching behavior.

Robertson highlighted three factors behind the company’s consumer performance:

Growth in converged households that combine broadband and wireless services. Pricing-plan changes designed to provide customers with more choices. The company’s AT&T Guarantee value proposition, which Robertson said has helped build customer trust. AT&T introduced revised pricing constructs earlier in the year, including its Unlimited Your Way and Build-A-Plan offerings. Robertson said the Build-A-Plan option allows customers to start at $15 per line and add selected features, while the company’s broader plans allow family-plan customers to mix and match service tiers.

AT&T reported higher average revenue per user, lower postpaid phone churn and its highest postpaid phone account growth in more than three years during the second quarter, according to Robertson.

She said AT&T approaches pricing changes using three principles: providing additional value with any price increase, communicating changes transparently in advance, and offering customers options to remain on their plan or move to a higher- or lower-priced alternative. The company models pricing actions using conservative churn assumptions, she said, and has generally experienced lower churn than expected.

Device promotions tied to customer value With new smartphones expected to be introduced during the holiday selling season, Desroches said AT&T intends to remain within its device-subsidy budget even if handset manufacturers raise prices.

Robertson said the company is focused on growing service revenue rather than pursuing customer additions “for volume’s sake.” AT&T can tailor promotions through trade-in values, eligibility tied to wireless rate plans and offers directed at converged households, she said.

“The more value on the household account itself, the more value we’re willing to give on the offer because the long-term value of the account grows,” Robertson said.

She said growth has been particularly strong in AT&T’s value segment, where the company has historically been underpenetrated. The company is using combinations of fiber, Internet Air fixed wireless and wireless service to target one- and two-line accounts while also protecting its mult-line customer base.

Fiber remains the priority where available Desroches said AT&T will prioritize fiber connections in areas where it has built the network because fiber offers the strongest customer experience, the lowest incremental cost to deliver data and a lower cost to serve. Fixed wireless remains an important product in places where the company does not have fiber, particularly in markets where it has lower wireless market share.

He said AT&T does not expect to pursue a fixed-wireless base as large as some competitors, describing its approach as selective and focused on sustainable returns.

Executives also said they increasingly evaluate broadband and wireless economics at the household level rather than as separate products. Robertson said AT&T may accept lower fiber ARPU in some cases to acquire a household that can later produce more wireless revenue, lower churn and greater long-term value.

AT&T said 42.5% of its internet customers had postpaid wireless service at the end of the second quarter, or 45% excluding the Lumen footprint. Robertson said the company has publicly targeted 50% convergence and views that as an achievable objective, though the expanding number of fiber locations can affect the percentage from quarter to quarter. Desroches added that AT&T’s fixed-wireless customer base is already more than 50% converged.

Lumen integration and fiber costs Desroches said the acquired Lumen assets include about 4.5 million consumer locations that were roughly 25% penetrated, compared with approximately 40% in AT&T’s owned-and-operated footprint. AT&T has been adding distribution capacity, marketing support and customer equipment to meet demand in those markets.

Robertson said the initial effort has included using AT&T retail locations, third-party sales channels and marketing to existing wireless customers to promote the Quantum Fiber brand. A broader launch under the AT&T Fiber brand and AT&T Guarantee will occur market by market as network work is completed, executives said.

On fiber construction costs, Desroches said AT&T has long-term fiber supply commitments and agreements with contractors and labor unions that provide visibility into costs. He also cited lower connection costs as more homes use self-installation, as well as lower maintenance and energy requirements compared with copper networks.

About AT&T (NYSE:T)AT&T Inc NYSE: T is a telecommunications company that provides wireless communications, broadband internet, voice, and related connectivity services. Its offerings include mobile phone and data plans, fiber-optic internet, fixed wireless access, traditional voice services, and networking solutions for businesses and government customers.

The company serves consumers, businesses, and public-sector organizations primarily across the United States. AT&T also provides wireless services in Mexico and operates extensive communications networks that support mobile connectivity, internet access, data transmission, and enterprise communications.

AT&T traces its history to the development of the Bell System and has evolved through a series of reorganizations and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Intel’s ASML Milestone Gives Investors a New Reason to Revisit the StockAT&T NYSE: T Chairman and CEO John Stankey said the company’s strategy remains centered on expanding fiber infrastructure, strengthening its wireless network and using the two services together to drive customer growth, lower churn and improve household economics.

Speaking at the Goldman Sachs Communacopia + Technology Conference, Stankey said AT&T has invested at an industry-leading level for roughly five years with the expectation that a stronger asset base would produce faster growth and a better profitability profile. He said the company began to see evidence of that inflection in its most recent quarter.

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AST SpaceMobile Stock Soared 12%—This Was the Catalyst“The goal here is to make sure that we are a scaled provider in fiber and we lead in deployment of fiber infrastructure over time, strengthen our already strong wireless business, and carry it forward,” Stankey said.

Fiber-led convergence strategy Stankey said AT&T’s fiber-led convergence strategy extends beyond offering discounts to customers who take both wireless and broadband service. Combining the services can improve churn, customer lifetime value and brand loyalty, he said, particularly because fiber broadband is a higher-performing product.

Don't Miss These 3 Companies Delivering Strong Guidance UpdatesOver time, he expects convergence to become more focused on integrated features and a seamless connectivity experience across satellite, wireless, fixed broadband and Wi-Fi networks. He cited AT&T’s OneConnect offering as an example of an approach designed to simplify the process of connecting devices such as tablets and vehicles.

“It’s not just a discount,” Stankey said. “It’s a product that works better for the customer.”

The company is also adjusting its go-to-market plans to serve a broader set of customers, including value-oriented segments where it has historically been less competitive. Stankey said initiatives such as Build-A-Plan are intended to improve AT&T’s wireless penetration in underpenetrated segments, while lower-priced broadband options can help the company add customers after fiber infrastructure has been deployed.

He said the company recorded what he characterized as its best new-account growth in more than three years in the last quarter, supported by its ability to compete in more portions of the market.

Stankey said AT&T evaluates the value of a household rather than that of a single service. That could mean discounting one product to add a profitable wireless or broadband customer, provided the combined household relationship is accretive over time.

Excluding recently acquired Lumen assets that AT&T has not had much time to manage, Stankey said the company’s convergence rate was 45%, up five percentage points over two years.

Satellite, business and AI opportunities On satellite connectivity, Stankey said satellite will have useful applications but is unlikely to replace the bulk of connectivity provided by terrestrial infrastructure. He said AT&T’s existing network addresses roughly 98% of use cases and described satellite as a means to address the remaining coverage needs.

He said AT&T’s joint venture with T-Mobile and Verizon is intended to support customer-friendly satellite connectivity, including by securing access from more than one satellite constellation and incorporating satellite service into existing plans.

In the business segment, Stankey said advanced connectivity service revenue returned to growth in the latest quarter. He attributed that progress to placing fiber in the right locations, selling into existing fiber inventory, expanding indirect distribution channels and pursuing new business customers rather than concentrating solely on longstanding enterprise relationships.

AT&T is also preparing products that would allow business customers to manage service quality, security and cloud connectivity across fixed and wireless networks, Stankey said. He said those capabilities could provide an advantage over providers with unmanaged offerings or without both fixed and wireless networks.

Artificial intelligence is contributing to demand for cloud access, bandwidth and data-center connectivity, according to Stankey. He said AT&T is participating in data-center-to-data-center and data-center-to-metro interconnection where it aligns with the company’s network routes, though he does not expect that business to become the company’s primary focus.

Internally, Stankey said AT&T is using AI in customer service, engineering, software development, churn management and pricing. He said AI-assisted call handling has produced high customer satisfaction and resolution rates, while software-development productivity has allowed the company to complete more projects and pursue additional cost-saving initiatives.

Copper retirement and capital allocation Stankey said retiring legacy copper infrastructure is a major part of AT&T’s long-term transformation. The company previously identified $6 billion in legacy costs that it intends to remove, he said, including costs related to central offices, chillers, leases, mainframes and other infrastructure.

He also said AT&T plans to monetize copper removed from its network, with proceeds helping fund the work required to shut down legacy systems. By the end of the decade, Stankey said, AT&T aims to operate as a metropolitan fiber provider supported by a nationwide wireless network.

Stankey characterized the company’s investments in Lumen fiber assets and EchoStar spectrum as complementary. He said the Lumen assets provide access to markets where AT&T had been underpenetrated in wireless, while the company has already seen gross additions from converged customers in those markets rise by nearly 50% in the short period since it acquired the assets.

EchoStar’s spectrum, including low-band 600 MHz spectrum, is expected to strengthen AT&T’s network capacity for upstream traffic and potential applications such as autonomy, robotics and cloud-based video processing, he said.

Looking ahead, Stankey said AT&T plans to balance continued investment in growth with maintaining its dividend, repurchasing shares when management believes the stock is undervalued and reducing leverage to roughly 2.5 times net debt to adjusted EBITDA.

About AT&T (NYSE:T)AT&T Inc NYSE: T is a telecommunications company that provides wireless communications, broadband internet, voice, and related connectivity services. Its offerings include mobile phone and data plans, fiber-optic internet, fixed wireless access, traditional voice services, and networking solutions for businesses and government customers.

The company serves consumers, businesses, and public-sector organizations primarily across the United States. AT&T also provides wireless services in Mexico and operates extensive communications networks that support mobile connectivity, internet access, data transmission, and enterprise communications.

AT&T traces its history to the development of the Bell System and has evolved through a series of reorganizations and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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In the latest close session, AT&T (T - Free Report) was down 1.81% at $25.72. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

Shares of the telecommunications company have appreciated by 10.46% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.81%, and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to go public on October 21, 2026. The company is forecasted to report an EPS of $0.62, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.74 billion, up 3.34% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.35 per share and a revenue of $129.27 billion, representing changes of +10.85% and +2.88%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AT&T is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, AT&T is presently trading at a Forward P/E ratio of 11.17. For comparison, its industry has an average Forward P/E of 11.61, which means AT&T is trading at a discount to the group.

Investors should also note that T has a PEG ratio of 1.3 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless National was holding an average PEG ratio of 1.51 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Key Takeaways AT&T's adjusted EBITDA margin expanded to 39.1% as operating income and EBITDA improved.AT&T targets $4 billion in annual cost savings by the end of 2028 through cost transformation.Wireless gains, fiber growth and service bundling are supporting T's customer growth and profitability. AT&T, Inc.’s (T - Free Report) consolidated operating income increased 8.3% year over year to $7.04 billion in the second quarter. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%. There are several factors driving this improvement in profitability.

T is benefiting from increased scale across its 5G and fiber operations. The company's Advanced Connectivity business remained a major contributor, with service revenues increasing 5.1% year over year and EBITDA growing 8% in this segment. 432,000 postpaid phone net additions and pricing adjustments during this quarter propelled the wireless service revenues.

Cost transformation was another major contributor. AT&T remains on track to achieve $4 billion in consolidated annual cost savings by the end of 2028. The company is gradually shutting down its older copper-based network and moving customers toward fiber, wireless and other advanced services. This transition is expected to eliminate costs associated with maintaining an increasingly inefficient legacy network.

Its strategy of combining wireless and home internet services is supporting customer growth and improving customer economics. Converged subscribers generally have lower churn and higher lifetime value. This is strengthening profitability and customer base.

How Are Competitors Faring?AT&T faces competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Verizon continues to strengthen its financial profile through disciplined execution, improving customer economics and cost transformation initiatives. Mobility and broadband service revenue increased 2.8% year over year in second-quarter 2026, while adjusted EBITDA reached a company record of $13.7 billion and adjusted EPS rose 6.6% to $1.30, exceeding consensus estimates.

Reported profitability, however, reflected sizable special items. Verizon’s net income declined 22.9% year over year to $3.95 billion, while GAAP EPS fell to 92 cents from $1.18. The decline primarily stemmed from $1.8 billion of pretax special charges, including losses related to business dispositions, asset rationalization and severance expenses.

During the second quarter, T-Mobile’s operating expenses increased to $17.30 billion from $15.92 billion in the prior-year quarter. Higher costs of services, equipment sales, selling, general and administrative expenses, and depreciation and amortization all contributed to the increase.

Despite elevated expenses, profitability remained resilient. Net income rose modestly to $3.24 billion from $3.22 billion a year earlier, while diluted earnings per share increased 5.3% year over year to $2.99. Core adjusted EBITDA increased 11.7% year over year to $9.54 billion, reflecting continued operating leverage as service revenues expanded.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 11.2% over the past year against the industry’s growth of 81.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-earnings ratio of 10.42, below the industry tally of 37.57.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 1.3% to $2.35 over the past 60 days, while the same for 2027 have increased 1.2% to $2.57.

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ancora Advisors LLC bought a new stake in AT&T Inc. (NYSE:T – Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 22,982 shares of the technology company’s stock, valued at approximately $476,000.

Several other hedge funds have also recently added to or reduced their stakes in T. PDT Partners LLC bought a new stake in AT&T during the second quarter valued at $575,000. Canada Pension Plan Investment Board bought a new position in shares of AT&T in the 2nd quarter worth about $130,182,000. Legal & General Group Plc bought a new position in shares of AT&T in the 2nd quarter worth about $960,695,000. The Manufacturers Life Insurance Company acquired a new position in shares of AT&T in the 2nd quarter valued at about $102,416,000. Finally, Kelly Lawrence W & Associates Inc. CA bought a new stake in shares of AT&T during the 2nd quarter valued at about $268,000. Institutional investors own 57.10% of the company’s stock.

Wall Street Analyst Weigh In T has been the subject of a number of research analyst reports. Scotiabank lowered their target price on AT&T from $31.00 to $29.25 and set a “sector perform” rating for the company in a report on Wednesday, July 15th. Morgan Stanley lifted their price objective on shares of AT&T from $25.00 to $27.00 and gave the company an “overweight” rating in a research note on Thursday, July 23rd. Oppenheimer lowered shares of AT&T from an “outperform” rating to a “market perform” rating in a research note on Wednesday, June 3rd. Argus decreased their price target on shares of AT&T from $33.00 to $30.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. Finally, Wall Street Zen upgraded AT&T from a “sell” rating to a “hold” rating in a report on Saturday, June 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $29.19.

Check Out Our Latest Report on AT&T AT&T Price Performance Shares of NYSE T opened at $26.03 on Friday. The company has a current ratio of 0.97, a quick ratio of 0.93 and a debt-to-equity ratio of 1.06. The stock has a fifty day simple moving average of $23.15 and a two-hundred day simple moving average of $25.23. AT&T Inc. has a 1-year low of $19.89 and a 1-year high of $29.79. The firm has a market cap of $178.37 billion, a price-to-earnings ratio of 8.62, a price-to-earnings-growth ratio of 1.03 and a beta of 0.23.

AT&T (NYSE:T – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.06. The firm had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $31.80 billion. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The company’s revenue was up 2.3% on a year-over-year basis. During the same quarter last year, the company earned $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Analysts anticipate that AT&T Inc. will post 2.34 earnings per share for the current year.

AT&T Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were paid a $0.2775 dividend. The ex-dividend date was Friday, July 10th. This represents a $1.11 annualized dividend and a yield of 4.3%. AT&T’s dividend payout ratio is currently 36.75%.

AT&T News Roundup Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T’s operating margin reportedly reached a multi-year high as the company winds down its copper network. Lower legacy-network costs and operating leverage could improve profitability and support cash generation. AT&T Stock’s Margin Hit A Multi-Year Best As Its Copper Network Winds Down Positive Sentiment: Recent bullish investment analysis argues that AT&T’s turnaround has further upside, citing its discounted valuation, robust cash flows, fiber expansion, and growth in its Advanced Connectivity segment. Management’s target for 2026 EBITDA growth of 3%–4%, accelerating to more than 5% annually from 2028, strengthens the long-term case. AT&T Doesn’t Need Heroic Results To Offer Heroic Upside Positive Sentiment: AT&T’s investment and partnership with Hark could position its network as an infrastructure provider for AI-native, always-connected consumer devices. The opportunity is early-stage but offers potential exposure to new connectivity demand beyond smartphones. Investors Reacting to AT&T Backing Hark’s AI-Native Device Ecosystem Neutral Sentiment: AT&T, T-Mobile, and Verizon are described as overcoming a shared competitive or regulatory challenge involving satellite-based connectivity. The development may ease concerns about satellite disruption, but the article provides limited detail on its direct financial impact. AT&T, T-Mobile, and Verizon Defeat a Common Foe Neutral Sentiment: AT&T will release third-quarter 2026 results before the market opens on October 21 and hold a conference call afterward. The announcement itself does not change fundamentals, but it gives investors a near-term catalyst to assess subscriber trends, fiber growth, margins, and guidance. AT&T to Release Third-Quarter 2026 Earnings on Oct. 21 Neutral Sentiment: AT&T is promoting free Turbo Live access at select football season openers and selling season passes. The campaign could support brand engagement and customer acquisition, but its immediate financial contribution is likely limited. AT&T Kicks Off Football Season with Free Turbo Live AT&T Profile (Free Report)

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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E Fund Management Co. Ltd. acquired a new stake in shares of AT&T Inc. (NYSE:T – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 25,791 shares of the technology company’s stock, valued at approximately $534,000.

A number of other large investors have also added to or reduced their stakes in T. Rachor Investment Advisory Services LLC bought a new position in shares of AT&T during the 4th quarter valued at $25,000. Safe Harbor Fiduciary LLC bought a new stake in shares of AT&T in the fourth quarter worth $25,000. Cresta Advisors Ltd. bought a new stake in shares of AT&T in the fourth quarter worth $26,000. Blueline Advisors LLC purchased a new stake in AT&T during the fourth quarter valued at $26,000. Finally, Winnow Wealth LLC increased its position in AT&T by 362.8% during the fourth quarter. Winnow Wealth LLC now owns 1,046 shares of the technology company’s stock valued at $26,000 after acquiring an additional 820 shares during the last quarter. Institutional investors own 57.10% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research analysts have weighed in on the company. Barclays lowered their target price on AT&T from $26.00 to $24.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 8th. Wolfe Research raised shares of AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 price target for the company in a research report on Thursday, July 23rd. Wall Street Zen upgraded shares of AT&T from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. TD Cowen raised their price objective on shares of AT&T from $32.00 to $33.00 and gave the stock a “hold” rating in a report on Thursday, July 23rd. Finally, Scotiabank cut their target price on shares of AT&T from $31.00 to $29.25 and set a “sector perform” rating for the company in a research report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, AT&T presently has a consensus rating of “Moderate Buy” and an average price target of $29.19.

Check Out Our Latest Stock Report on AT&T AT&T News Roundup Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T’s post-earnings momentum remains constructive: the company reported quarterly EPS of $0.65 versus the $0.59 consensus estimate, while revenue increased 2.3% year over year. Analysts are watching whether earnings estimates and the stock’s advance can continue. AT&T Up 9.5% Since Last Earnings Report Positive Sentiment: AT&T’s Advanced Connectivity business is gaining traction through fiber expansion, customer convergence and rising demand for AI-related network capacity. This supports the company’s longer-term growth outlook and helps offset slower legacy operations. AT&T Rides on Strength in Advanced Connectivity Positive Sentiment: A partnership with Hark gives AT&T exposure to emerging AI-native consumer devices. AT&T will invest in Hark and provide connectivity, certification and infrastructure support, potentially creating incremental traffic and device-related revenue opportunities. Hark and AT&T Partner on Connectivity for Future AI Devices Positive Sentiment: AT&T reportedly reduced the cost of coding and other AI tasks by as much as 56% by using model-routing tools and open-source systems, with only a modest decline in output quality. Lower internal AI costs could support productivity and margins. AT&T Slashes AI Costs by Adopting Model Routers and Open Source Neutral Sentiment: Analysts continue to highlight AT&T as a highly ranked value and income stock, with a roughly 4.5% dividend yield and a low earnings multiple. However, the company’s growth is expected to remain moderate, making customer revenue increases important. AT&T Is a Top-Ranked Value Stock Negative Sentiment: Bernstein cautions that SpaceX’s potential telecom ambitions could intensify competition for AT&T, Verizon and T-Mobile. Meanwhile, heavy capital spending, elevated interest rates and industry balance-sheet pressures remain risks. Bernstein Remains Bullish on SpaceX AT&T Price Performance Shares of AT&T stock opened at $25.33 on Monday. AT&T Inc. has a one year low of $19.89 and a one year high of $29.79. The stock’s fifty day moving average is $22.83 and its 200 day moving average is $25.27. The stock has a market cap of $173.57 billion, a P/E ratio of 8.39, a P/E/G ratio of 1.03 and a beta of 0.23. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97.

AT&T (NYSE:T – Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.06. AT&T had a return on equity of 12.86% and a net margin of 16.94%.The company had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $31.80 billion. During the same period in the previous year, the business earned $0.54 earnings per share. AT&T’s quarterly revenue was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Sell-side analysts anticipate that AT&T Inc. will post 2.34 earnings per share for the current year.

AT&T Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were given a dividend of $0.2775 per share. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date of this dividend was Friday, July 10th. AT&T’s payout ratio is presently 36.75%.

About AT&T (Free Report)

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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Gables Capital Management Inc. purchased a new position in shares of AT&T Inc. (NYSE:T – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 36,283 shares of the technology company’s stock, valued at approximately $751,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Rachor Investment Advisory Services LLC purchased a new stake in shares of AT&T during the 4th quarter valued at $25,000. Safe Harbor Fiduciary LLC bought a new stake in shares of AT&T during the 4th quarter worth $25,000. Cresta Advisors Ltd. purchased a new position in shares of AT&T in the 4th quarter worth about $26,000. Blueline Advisors LLC purchased a new position in shares of AT&T in the 4th quarter worth about $26,000. Finally, Winnow Wealth LLC grew its position in AT&T by 362.8% during the fourth quarter. Winnow Wealth LLC now owns 1,046 shares of the technology company’s stock valued at $26,000 after buying an additional 820 shares during the period. Hedge funds and other institutional investors own 57.10% of the company’s stock.

Trending Headlines about AT&T Here are the key news stories impacting AT&T this week:

Positive Sentiment: AT&T’s post-earnings momentum remains constructive: the company reported quarterly EPS of $0.65 versus the $0.59 consensus estimate, while revenue increased 2.3% year over year. Analysts are watching whether earnings estimates and the stock’s advance can continue. AT&T Up 9.5% Since Last Earnings Report Positive Sentiment: AT&T’s Advanced Connectivity business is gaining traction through fiber expansion, customer convergence and rising demand for AI-related network capacity. This supports the company’s longer-term growth outlook and helps offset slower legacy operations. AT&T Rides on Strength in Advanced Connectivity Positive Sentiment: A partnership with Hark gives AT&T exposure to emerging AI-native consumer devices. AT&T will invest in Hark and provide connectivity, certification and infrastructure support, potentially creating incremental traffic and device-related revenue opportunities. Hark and AT&T Partner on Connectivity for Future AI Devices Positive Sentiment: AT&T reportedly reduced the cost of coding and other AI tasks by as much as 56% by using model-routing tools and open-source systems, with only a modest decline in output quality. Lower internal AI costs could support productivity and margins. AT&T Slashes AI Costs by Adopting Model Routers and Open Source Neutral Sentiment: Analysts continue to highlight AT&T as a highly ranked value and income stock, with a roughly 4.5% dividend yield and a low earnings multiple. However, the company’s growth is expected to remain moderate, making customer revenue increases important. AT&T Is a Top-Ranked Value Stock Negative Sentiment: Bernstein cautions that SpaceX’s potential telecom ambitions could intensify competition for AT&T, Verizon and T-Mobile. Meanwhile, heavy capital spending, elevated interest rates and industry balance-sheet pressures remain risks. Bernstein Remains Bullish on SpaceX AT&T Stock Up 0.7% Shares of NYSE T opened at $25.33 on Friday. AT&T Inc. has a one year low of $19.89 and a one year high of $29.79. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.97 and a quick ratio of 0.93. The business’s fifty day moving average price is $22.83 and its 200-day moving average price is $25.27. The stock has a market capitalization of $173.57 billion, a PE ratio of 8.39, a P/E/G ratio of 1.03 and a beta of 0.23. AT&T (NYSE:T – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.06. AT&T had a return on equity of 12.86% and a net margin of 16.94%.The company had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $31.80 billion. During the same quarter in the prior year, the company earned $0.54 EPS. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, equities research analysts anticipate that AT&T Inc. will post 2.34 EPS for the current year.

AT&T Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were issued a dividend of $0.2775 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $1.11 annualized dividend and a yield of 4.4%. AT&T’s dividend payout ratio is 36.75%.

Analysts Set New Price Targets A number of analysts recently issued reports on the stock. Oppenheimer downgraded shares of AT&T from an “outperform” rating to a “market perform” rating in a report on Wednesday, June 3rd. Sanford C. Bernstein reiterated an “outperform” rating and issued a $25.00 target price on shares of AT&T in a research note on Monday, July 13th. Argus reduced their target price on shares of AT&T from $33.00 to $30.00 and set a “buy” rating for the company in a research report on Thursday, July 23rd. Wolfe Research raised shares of AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 target price for the company in a research report on Thursday, July 23rd. Finally, TD Cowen raised their price target on shares of AT&T from $32.00 to $33.00 and gave the stock a “hold” rating in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $29.19.

Get Our Latest Stock Report on T

AT&T Company Profile (Free Report)

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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Key Takeaways T's Advanced Connectivity revenues rose 4.1% year over year to $28.62 billion in the second quarter.T added more than 1 million fiber locations in Q2, bringing its total to 38.6 million.T's convergence strategy is gaining traction, while AI-driven demand could support long-term growth. AT&T, Inc. (T - Free Report) is benefiting from solid traction in the Advanced Connectivity segment. The segment revenues rose 4.1% year over year to $28.62 billion. There are multiple growth drivers in this segment. Fiber is one of the largest growth drivers. The company added more than 1 million fiber locations in the second quarter. The total number of fiber locations has now reached 38.6 million. T remains on track to exceed 40 million by year-end 2026 and 60 million by 2030.

Growth in converged fiber and wireless customers is another catalyst. In the second quarter, 42.5% of advanced home Internet households had an AT&T postpaid wireless account. The convergence strategy is gaining strong traction, helping AT&T retain customers and deepen relationships. By combining wireless and home Internet services, the company is creating more cross-selling opportunities and increasing customer lifetime value.

Internet subscriber growth remains a major contributor to segment revenues. AT&T generated 646,000 Internet net adds, consisting of 367,000 fiber and 279,000 fixed wireless additions.

The company is witnessing solid traction in the wireless vertical as well. AT&T added 432,000 postpaid phone subscribers in the second quarter. An increase in retail wireless subscribers, particularly in underpenetrated categories and the rising number of converged customers are propelling this growth.

Artificial intelligence (AI)-driven demand for advanced connectivity is an emerging growth driver. The expansion of AI workloads is expected to increase demand for faster, higher-capacity and lower-latency networks. As AI processing moves closer to end users, demand for fiber-enabled networks will further increase. This will likely be a long-term growth driver for the Advanced Connectivity segment.

How Are Competitors Faring?The company faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) in the telecom market. In the second quarter of 2026, Verizon’s Mobility and broadband service revenues increased 2.8% year over year to approximately $23.4 billion. Verizon continues to broaden its addressable market through fiber expansion and broadband growth, while strengthening convergence opportunities. In second-quarter 2026, the company added 348,000 broadband subscribers, including continued contributions from fixed wireless access and fiber, increasing total fixed wireless access and fiber broadband connections to approximately 17.1 million.

T-Mobile continues to benefit from healthy demand trends across wireless and broadband services. In the second quarter 2026, the company added 277,000 postpaid net accounts while postpaid ARPA increased 2% to $152.91. Service revenues increased 9% year over year, supported by premium plans, business wireless and broadband adoption.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 14.6% over the past year against the industry’s 80% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.31, below the industry average of 8.04.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 1.3% to $2.35 over the past 60 days, while the same for 2027 have increased 1.2% to $2.57.

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AT&T (T +1.23%) appears to face a significant threat from Space Exploration Technologies (SPCX -5.55%). COO Gwynne Shotwell announced that SpaceX's connectivity segment, Starlink, will compete with AT&T, Verizon, and T-Mobile as a full-fledged wireless carrier.

Admittedly, such a move appears bleak for AT&T shareholders, since Starlink can cover the entire planet if the law allows, whereas AT&T can cover only the populated parts of the U.S. However, AT&T's 4.7% dividend yield stands out compared to SpaceX, which offers no dividend.

Moreover, AT&T trades at a massive valuation discount to SpaceX, and even with a recent pullback, the competitive threat from SpaceX probably does not justify a discounted valuation for AT&T stock for two reasons.

Image source: Getty Images.

1. The extent of SpaceX's competitive advantage is uncertain At first glance, competition from SpaceX appears to put AT&T at a competitive disadvantage. Starlink plans to build a terrestrial coverage network, claiming it will use low-cost ground small cells and femtocells to improve signal where coverage is weak. It believes it offers a lower-cost approach to coverage than the massive networks of existing carriers.

Still, AT&T investors should remember that satellite internet has not threatened its own internet business. Also, Starlink's internet service comes with critical limitations. It needs a line of sight to a satellite, and adverse weather, network congestion, and other factors can negatively affect its service. That is why it needs its own terrestrial network to compete.

Nonetheless, this also raises challenges, suggesting Starlink's service may not add significant value. For one, Starlink has a partnership with T-Mobile in which satellite-to-cell service can take over when the terrestrial network is unavailable. T-Mobile CEO Srini Gopalan said that this type of service accounts for only 0.0003% of its network usage, even during the busiest times of the summer.

Another issue is capital expenditures (capex). Even if Starlink can deliver wireless service at a lower cost, the capex costs could still be considerable. The connectivity segment of SpaceX (Starlink) spent just over $4.9 billion on capex over the trailing 12 months. Connectivity accounted for nearly 12% of SpaceX's capex over that period. That will have to increase, which could affect other parts of SpaceX.

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2. An unclear investor benefit The main reasons to invest in SpaceX's stock, aside from Elon Musk's reputation as an innovator, are a near-monopoly on space launches and the prospect of AI data centers in space. The massive growth of Starlink also contributes to its success, but its satellite-based internet remains a niche market.

Furthermore, investing in SpaceX is considerably riskier than owning AT&T stock. SpaceX does not have a P/E ratio, reflecting ongoing losses. That's one less tool in the standard value investor toolbelt. Buying SpaceX stock today means one pays 85 times sales for a money-losing enterprise that does not pay dividends.

Also, AT&T derives nearly all of its revenue from serving as a wireless carrier and a wireless and fiber-based internet service provider. That makes the company much simpler to understand than SpaceX from an investor standpoint.

Additionally, it produced over $16 billion in free cash flow over the trailing 12 months. Around $8 billion of that free cash flow funds a $1.11-per-share annual dividend, which offers the aforementioned yield of 4.7%, well above the S&P 500's (^GSPC -0.29%) average yield of 1.2%. Also, it sells at a P/E ratio of just 8, and the P/S ratio of 1.3 is a tiny fraction of SpaceX's sales multiple.

To be sure, AT&T still has its challenges. The company's stock is inexpensive because it has run up massive debt. It has spent heavily on capex and lost tens of billions of dollars in failed satellite TV and media content ventures years ago, leaving it with a strained balance sheet that may concern its investors. Still, its profitability should reassure risk-averse investors, especially when compared with SpaceX.

Choose AT&T stock Investors should probably stay with AT&T despite SpaceX's plan to become a wireless carrier.

Indeed, Musk has built a reputation for technological transformation, and investors should not forget SpaceX stock. Nonetheless, investors should remember that Starlink has not threatened AT&T's internet service business. Moreover, the massive costs of entering a competitive industry like wireless services offer no obvious benefit to investors.

In contrast, AT&T's stable dividend and low valuation probably make it a less risky investment choice than SpaceX stock. Hence, if you're choosing between these stocks, the safer move is to buy AT&T and collect its generous dividend.

, /PRNewswire/ -- AT&T's 5G home internet hit 2 million subscribers in roughly a year, and more than half of them pair it with AT&T wireless

Key Takeaways

AT&T Internet Air reached 2 million customers, adding its second million in about half the time it took to reach its first. More than 50% of AT&T's 5G home internet subscribers are converged customers, meaning they also choose AT&T for wireless. Starting next month, customers can order AT&T Internet Air in-store and leave with the equipment on the spot. What's the News? AT&T Internet Air® has reached 2 million subscribers, marking a major milestone for AT&T's 5G home internet service. At the same time, 1 million AT&T Internet Air subscribers also have AT&T wireless, proving customers are increasingly choosing AT&T as their primary source for connectivity.

Why it Matters: After taking roughly two years to reach its first 1 million subscribers, AT&T Internet Air added its second million in about a year — doubling its customer base in about half the time.

Beyond its rapid adoption, the momentum shows a bigger trend: customers are increasingly choosing AT&T as their one-stop connectivity provider, with simple home internet and wireless service working together under one roof.

Quotable: "People want simple internet from a provider they trust, and that's what AT&T Internet Air delivers," said Josh Goodell, vice president, broadband product development, AT&T. "Today's milestone shows it's resonating with customers, and when they pair it with AT&T wireless, we're seeing industry-leading satisfaction. That tells us customers see the value in Internet Air and that it is an important part of how AT&T keeps them connected."

What's Next: AT&T is continuing to make Internet Air easier to get and start using. Starting next month, customers will be able to order AT&T Internet Air in stores and take their equipment home on the spot. It's another way we're making the experience simpler and helping customers get online faster.

More Details: Bringing internet and wireless together means more value and big savings for AT&T customers. Those who combine AT&T Internet Air with an eligible AT&T wireless plan, can get home internet for as low as $35/month. And with both services backed by the AT&T Guarantee, customers get more than savings – they get confidence in the connections they count on every day. Because when the connection matters – it has to be AT&T.

Frequently Asked Questions

What is AT&T Internet Air?
AT&T Internet Air brings you strong Wi-Fi at home. Delivered over the AT&T 5G network, you can set up home internet in minutes without waiting for cables or complicated installations. Plus, there are no surprise charges or equipment rental fees. 

It's designed to support the whole household, including streaming, gaming, remote work, homework, and everyday browsing, all with unlimited data and no annual contract. AT&T Internet Air is a great fit for busy families, remote workers, and anyone looking for reliable, high-speed home internet with the flexibility of wireless technology. 

Where is AT&T Internet Air available?
AT&T Internet Air is offered across the contiguous U.S., including the state of New York. However, availability varies by address. Please visit att.com/internet to see what internet technology is available at your location.

What is the AT&T Guarantee?
We value our customers, and we believe that connecting changes everything. We're committed to providing reliable connectivity with value-led pricing and customer-first care, or we'll make it right.

With the AT&T Guarantee, customers can expect:

Connectivity you depend on. In the rare event of a network outage, we'll automatically credit your bill. And, when you have AT&T Fiber with Wireless we provide Internet Backup for no extra cost. Guaranteed.1 Deals you want. Our best deals on smartphones don't require the most expensive plan.2 And no hidden fees or equipment charges with fiber. Guaranteed. Prompt, friendly service you deserve. Speak to a friendly tech expert within five minutes or schedule a callback at a time that you choose.3 Plus, same or next day technician availability. Guaranteed. 1Credit for fiber and Internet Air downtime lasting 20 minutes or more; or for wireless and downtime lasting 60 minutes or more caused by a single incident impacting 8 or more towers. Must be connected to impacted tower at onset of outage. Restrictions and exclusions apply. Internet Backup: Fiber internet only. Requires eligible wireless service, activation, and power source; speeds vary; AT&T may slow data speeds if the network is busy. Backup may not be available in all locations. See att.com/guarantee for full details. 
2Offers vary by device. Restrictions may apply. 
3Five minutes begins once customer is routed to technical support assistance. AT&T Fiber and postpaid wireless customers only. For small business customers, learn more about the AT&T Guarantee at att.com/businessguarantee.

About AT&T
We help more than 100 million U.S. families, friends, and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

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The market has spent years treating AT&T (T +4.77%) as a bond that happens to trade on an exchange. Slow growth, a big dividend, and not much to think about in between.

The company's second-quarter report, delivered on Wednesday, July 22, mostly confirms that description on the revenue line. Second-quarter revenue rose 2.3% year over year to $31.6 billion. But nobody is buying this stock for the top line anyway.

What the quarter did change is the size of the indirect "payments" shareholders get via share repurchases. Management lifted its 2026 buyback plan to about $10 billion from $8 billion, and the stock closed Friday at $24.13 after a 5.1% gain in the session -- still about 19% below its 52-week high of $29.79, and yielding 4.6%.

So does the cash actually cover everything management has now promised?

Image source: AT&T.

A slow top line and a fast bottom line Notably, underneath that 2.3% revenue figure, the profit lines are moving considerably faster.

Non-GAAP (adjusted) earnings per share came in at $0.65, up from $0.54 a year earlier -- growth of about 20% year over year. Diluted earnings per share from continuing operations rose to $0.66 from $0.62. And adjusted EBITDA margin expanded 110 basis points to 39.1%.

Free cash flow, the figure that actually pays the dividend, was $4.7 billion in the second quarter, up from $4.4 billion in the year-ago period.

And the operating detail behind it is better than the revenue growth rate suggests. AT&T added 432,000 postpaid phone subscribers and 646,000 internet customers, split between 367,000 fiber and 279,000 fixed wireless. Fiber now passes 38.6 million locations, up by a million in three months.

That mix matters. Fiber and postpaid phone customers are the higher-margin, longer-tenured end of this business, and the margin expansion is what a shift toward them looks like in the numbers.

Where the free cash flow goes Here is the arithmetic that decides the investment case.

AT&T pays $1.11 per share annually across about 6.9 billion shares, which comes to about $7.6 billion of dividends. Add the roughly $10 billion of repurchases management now plans, and the company intends to hand shareholders somewhere near $18 billion this year.

Its guidance for 2026 free cash flow is at least $18 billion.

In other words, the dividend and the buyback together consume essentially all of it. That isn't a hidden problem. It's the plan, and management said as much. But it does define what an investor is buying: a payout covered with almost no cushion this year -- unless, of course, you consider the company's capital allocated for repurchases a cushion for the dividend. And this would be a fair way to think about it.

But the company's multi-year outlook suggests there could be greater breathing room for the dividend in the future. Management guided for free cash flow above $19 billion in 2027 and above $21 billion in 2028, against a commitment to return more than $45 billion to shareholders across the three years. Stack those up and the company expects to generate about $58 billion while returning $45 billion, which leaves some runway for paying down debt.

Of course, debt is the part income investors should look at hardest. Net debt stood at $126.4 billion at quarter's end, or 2.68 times adjusted EBITDA. Management expects that ratio to climb to about 3.2 times once its transaction with EchoStar closes, then work back toward 2.5 times over about three years.

So leverage is going up before it comes down, at a company already returning all of its free cash flow.

Today's Change

(

4.77

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1.10

Current Price

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24.06

That is the trade-off, and I think it's a fair one at this price. The stock trades at about eight times earnings, though the sharper comparison uses the $2.25 to $2.35 in adjusted earnings per share management guided to for 2026, which puts shares closer to 10 times. Even at the 52-week high of $29.79, that guidance would imply under 13 times.

A 4.6% yield covered by contracted, recurring revenue, from a company that grew adjusted earnings about 20% year over year last quarter while buying back its own stock, is a reasonable thing to own. CEO John Stankey said the accelerated repurchase reflects a gap between the company's operating fundamentals and how the market values the shares, and the numbers back that up more than they don't.

I wouldn't call it a bargain, though. AT&T grows revenue 2% a year -- a concerning rate, and one that is just a few percentage points from flipping to a decline.

Still, for income investors, this quarter made the case stronger. The dividend is covered, the fiber business is finally producing the margin expansion it promised, and the stock sits nearly a fifth below its 52-week high. I'd own it for the yield, keep the position modest, and treat the buyback as a bonus rather than the reason.

AT&T Inc. (T) Q2 2026 Earnings Call July 22, 2026 8:30 AM EDT

Company Participants

Brett Feldman - Senior Vice President of Finance & Investor Relations
John Stankey - CEO, President & Chairman
Pascal Desroches - Senior EVP & CFO

Conference Call Participants

Sean Diffley - Morgan Stanley, Research Division
John Hodulik - UBS Investment Bank, Research Division
David Barden - New Street Research LLP
Craig Moffett - MoffettNathanson LLC
Michael Rollins - Citigroup Inc., Research Division
Samuel McHugh - BNP Paribas, Research Division
Peter Supino - Wolfe Research, LLC

Presentation

Operator

Good morning, and welcome to AT&T's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference call over to our host, Brett Feldman, Treasurer and Head of Investor Relations. Please go ahead.

Brett Feldman
Senior Vice President of Finance & Investor Relations

Thank you, and good morning. Welcome to our second quarter call. I'm Brett Feldman, Treasurer and Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our Chairman and CEO; and Pascal Desroches, our CFO. Before we begin, I need to call your attention to our safe harbor statement. It says that some of our comments today may be forward-looking. As such, they are subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information as well as our earnings materials are available on the Investor Relations website.

With that, I'll turn things over to John.

John Stankey
CEO, President & Chairman

Thanks, Brett, and good morning, everyone. I do appreciate you joining us today. Earlier this year, we provided an outlook for accelerated growth and execution of our strategy, and that's exactly what we delivered in the second quarter. We gained more than 1 million advanced connectivity subscribers from fiber, fixed wireless and postpaid phones, with all 3

Dallas-headquartered AT&T Inc (T) is extending gains on Wednesday morning after reporting Q2 earnings that came in handily above Street estimates.

The company posted $31.56 billion in revenue – up 2.3% on a year-over-year basis – on $0.65 per share of earnings (EPS), representing an exciting 20.4% increase from last year.

More importantly, responding to rising fears of Starlink competition in a CNBC interview, AT&T’s chief executive John Stankey said: “We can compete with anybody that comes in; we’re in a very strong position with the best product out there.”

That said, AT&T stock remains down over 20% versus its year-to-date high.

According to Stankey, new entrants like Starlink face severe structural hurdles trying to “replicate” ground-based connectivity.

While low-Earth orbit (LEO) satellites grab headlines, he pointed out that new rivals are “coming to the game very late after this industry has already been established.”

Crucially, satellite networks can’t really replace the tens of billions of dollars invested over decades to bring high-speed fiber and 5G connectivity into “dense environments” like hospitals, university campuses, stadiums, and high-rise office buildings.

AT&T currently handles more than 98% of the data traffic generated by its converged customers, leaving satellite coverage to fill only the coverage gaps when users walk entirely off the terrestrial grid, he added.

While there’ve been concerns that legacy carriers might repeat past missteps by signing wholesale network agreements that empower new competitors, Stankey dismissed the notion entirely.

According to him, AT&T does not need a wholesale partnership with Starlink to defend its market position, adding that the company pursues wholesale arrangements only when a segment of the market cannot be reached through its own brand, distribution, or fiber footprint.

In primary metropolitan and suburban US markets, AT&T’s combination of fiber buildouts and 5G spectrum allows it to “acquire and retain” both consumer and business accounts directly – making satellite-based distribution unnecessary for core market coverage.

Rather than surrendering distribution to a single satellite giant, AT&T Inc is leveraging an industry joint venture alongside T-Mobile and Verizon to manage off-grid coverage efficiently.

Stankey highlighted that the consortium allows carriers to aggregate consumer traffic volumes and contract across the entire satellite ecosystem – whether sourcing capacity from SpaceX, Amazon’s Kuiper, or AST SpaceMobile.

By maintaining flexibility across multiple satellite constellations, AT&T can handle the remaining fraction of off-network traffic at economical rates without undermining its primary connectivity offerings.

This pragmatic approach reinforces AT&T Inc’s core “fiber and wireless strategy” while offering seamless, affordable backup connectivity for subscribers wherever they travel.

Wall Street currently has a consensus Overweight rating on AT&T stock, with the mean price target of $29 indicating significant further upside from here.