Track market-moving stories before they get noisy

Brookstone Capital Management boosted its stake in AT&T Inc. (NYSE:T – Free Report) by 8.9% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 542,972 shares of the technology company’s stock after purchasing an additional 44,594 shares during the period. Brookstone Capital Management’s holdings in AT&T were worth $13,249,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the stock. NBT Bank N.A. acquired a new position in AT&T during the 3rd quarter worth about $2,229,000. Root Financial Partners LLC grew its position in shares of AT&T by 15.7% in the 3rd quarter. Root Financial Partners LLC now owns 14,601 shares of the technology company’s stock valued at $356,000 after buying an additional 1,979 shares during the last quarter. FARMERS & MERCHANTS TRUST Co OF LONG BEACH increased its stake in shares of AT&T by 1.1% in the third quarter. FARMERS & MERCHANTS TRUST Co OF LONG BEACH now owns 46,144 shares of the technology company’s stock valued at $1,126,000 after buying an additional 492 shares during the period. JSF Financial LLC increased its stake in shares of AT&T by 14.3% in the third quarter. JSF Financial LLC now owns 22,042 shares of the technology company’s stock valued at $538,000 after buying an additional 2,750 shares during the period. Finally, Cypress Wealth Services LLC increased its stake in shares of AT&T by 8.5% in the third quarter. Cypress Wealth Services LLC now owns 25,117 shares of the technology company’s stock valued at $614,000 after buying an additional 1,971 shares during the period. 57.10% of the stock is owned by institutional investors.

AT&T Stock Performance Shares of AT&T stock opened at $20.96 on Friday. AT&T Inc. has a 52 week low of $19.89 and a 52 week high of $29.43. The company has a quick ratio of 0.93, a current ratio of 0.87 and a debt-to-equity ratio of 1.22. The business has a 50 day moving average price of $24.78 and a 200-day moving average price of $24.23. The company has a market cap of $141.23 billion, a PE ratio of 9.51, a price-to-earnings-growth ratio of 1.14 and a beta of 0.25.

AT&T (NYSE:T – Get Free Report) last announced its earnings results on Wednesday, October 21st. The technology company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.05. The company had revenue of $32.32 billion for the quarter, compared to analysts’ expectations of $31.69 billion. AT&T had a return on equity of 13.41% and a net margin of 10.19%. AT&T’s quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.54 earnings per share. Equities analysts anticipate that AT&T Inc. will post 2.38 earnings per share for the current fiscal year. AT&T Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be given a dividend of $0.2775 per share. This represents a $1.11 dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date of this dividend is Friday, October 9th. AT&T’s dividend payout ratio (DPR) is presently 36.75%.

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

Positive Sentiment: AT&T reported third-quarter adjusted earnings of $0.65 per share and revenue of $32.32 billion, exceeding consensus estimates of $0.60 and $31.69 billion, respectively. Revenue increased roughly 5% year over year. AT&T Stock Sinks on Subscriber and SpaceX Worries Positive Sentiment: Analysts continue to see long-term value in the stock. Argus reaffirmed a Buy rating with a $30 price target, while JPMorgan maintained an Overweight rating at $31; Erste Group also modestly raised its 2026 EPS estimate to $2.35. Argus AT&T rating Neutral Sentiment: Citi estimates that SpaceX’s Starlink wireless service may not launch nationally until 2029 or later, but reported talks to secure access to as many as 80,000 U.S. cell sites could accelerate the competitive timeline. Starlink Is Years Away From Competing With AT&T Negative Sentiment: SpaceX’s potential entry as a fourth nationwide wireless carrier raised fears of greater pricing pressure, subscriber losses and higher network costs for AT&T, Verizon and T-Mobile. Tower operators benefited because SpaceX may become a major tenant, while telecom carriers sold off. AT&T Slides on SpaceX Cell-Site Talks Negative Sentiment: Investors also remain concerned about AT&T’s subscriber trends, elevated leverage and margin pressure. The company’s plan to reduce planned capital spending by roughly $1 billion in 2027–28 while maintaining its 2030 fiber goal may support cash flow, but introductory pricing could weigh on fiber economics. AT&T Q3 Earnings Call and Fiber Strategy Analyst Upgrades and Downgrades T has been the topic of a number of recent analyst reports. Wolfe Research raised AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 price objective on the stock in a research note on Thursday, July 23rd. JPMorgan Chase & Co. lowered their price target on shares of AT&T from $33.00 to $31.00 and set an “overweight” rating for the company in a report on Thursday. BNP Paribas Exane upgraded shares of AT&T from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $26.00 to $30.00 in a research report on Monday, September 21st. Argus reaffirmed a “buy” rating and issued a $30.00 price objective on shares of AT&T in a research note on Thursday. Finally, Royal Bank Of Canada reduced their price objective on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating on the stock in a research note on Monday, July 20th. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $28.55.

Read Our Latest Report on 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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Shares of AT&T (T -7.96%) fell 8% on Friday after a new report stoked investors' fears of a potentially disruptive encroachment by Space Exploration Technologies (SPCX +1.89%) into the lucrative U.S. wireless market.

Image source: Getty Images.

A worrisome new threatSpaceX is in talks to obtain access to at least 80,000 cell sites across the U.S., according to a report by Bloomberg. The telecommunications infrastructure would serve a crucial role in SpaceX CEO Elon Musk's plan to create a formidable rival to AT&T, Verizon, and T-Mobile.

During SpaceX's third-quarter earnings call on Oct. 20, chief operating officer Gwynne Shotwell said Starlink Mobile's monthly users jumped 37% to over 22 million. The satellite-to-cellular network connects ordinary smartphones to SpaceX's low-Earth orbit constellation.

$20.93-$1.81 (-7.96%)

NYSE · As of 4:00 PM ET 10/23/26

The space technology titan recently acquired a nationwide portfolio of low-band spectrum licenses that it says "will pave the way for Starlink Mobile to become a major mobile carrier in the U.S."

"We will be building out our terrestrial network such that there is broad-based connectivity anywhere that SpaceX and Starlink are allowed to operate," Musk said.

AT&T won't go down without a fightSpaceX isn't an adversary to be taken lightly. However, building another nationwide wireless carrier won't be cheap, with costs likely to reach tens of billions of dollars. It's also likely to take time -- and perhaps longer than today's sell-off in AT&T's share price would suggest.

In the meantime, AT&T continues to win new customers. The telecom leader added 379,000 postpaid phone subscribers in the third quarter, along with 442,000 fiber and 327,000 fixed wireless customers.

AT&T's revenue, in turn, rose 5% to $32.3 billion, and management lifted its full-year adjusted earnings guidance to $2.40 per share. Following today's declines, AT&T's stock can be had for less than 9 times its projected 2026 profits.

Moreover, the wireless leader expects its cash profits to grow -- not fall -- in the coming years. AT&T sees its free cash flow rising to over $21 billion in 2028, up from $18 billion this year.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

AT&T (T -6.63%) stock had been on a roll, more than doubling from July 2023 to a closing high of $28.10 on March 27, 2026. However, after a strong start to 2026, AT&T stock has since come under pressure from the potential threat of Space Exploration Technologies (SPCX +2.00%) entering the U.S. mobile market. While the stock is becoming more attractively valued, I wouldn't be buying it just yet.

Let's dig into AT&T's recent results and prospects to see when might be a good time to buy the stock.

$21.23-$1.51 (-6.63%)

NYSE · As of 2:16 PM ET 10/23/26

The SpaceX threat AT&T CEO John Stankey addressed a potential SpaceX threat on the company's earnings call this week, although it wasn't enough to assuage investor fears. He said that low earth orbit (LEO) satellites are a way to expand wireless connectivity in rural areas, but not a means to replace wireless networks. Stankey said that in metropolitan areas, typically 40% to 45% of wireless traffic comes from inside buildings that cannot be efficiently served by traditional outdoor macro cell towers or LEOs. As such, it would take years of heavy investments for SpaceX to get to the performance levels of incumbent players.

In addition to the fears of SpaceX entering the market, investors were also not impressed with the company's wireless postpaid phone subscriber additions, which only met analyst expectations. It still added a robust 379,000 postpaid wireless phone customers in the quarter. Broadband, meanwhile, remained a bright spot. AT&T added 442,000 fiber subscribers and 327,000 fixed wireless users. It said the over 1 million advanced connectivity subscriber additions were its most in more than four years.

Turning to its results, total revenue climbed by 5.3% to $32.3 billion, while adjusted earnings per share (EPS) jumped by 20% to $0.65. The results surpassed Wall Street expectations for adjusted EPS of $0.60 on revenue of $31.7 billion.

Its advanced connectivity segment revenue increased 7.2% to $29.5 billion. Service revenue jumped 6.1% to $23.9 billion, while equipment sales rose 12.2% to $5.6 billion.

Within the segment, wireless revenue climbed 5% to $17.8 billion, while home internet revenue surged 23.4% to nearly $3 billion. Postpaid phone average revenue per subscriber (ARPU) rose 4% to $58.90, while broadband ARPU fell by 5.2% to $68.55.

Fiber remains a big emphasis for the company, with a goal of reaching 60 million locations by the end of the decade. It also has a joint venture with Global Infrastructure Partners and CPP Investments to increase fiber deployments. It noted that more than 90% of U.S. data centers are within 10 miles of its fiber network, and it has partnerships with Amazon and Microsoft to help them with their connectivity needs.

Looking ahead, the company raised its outlook for 2026 adjusted EPS to $2.40 from a prior range of between $2.25 and $2.35. It expects to generate $6 billion in free cash flow in the quarter.

Through 2028, it is projecting low-single-digit annual revenue growth, with mid-single-digit advanced connectivity revenue growth. It expects adjusted earnings to grow by double digits, with free cash flow of over $21 billion in 2028. It plans to maintain its current $ 1.11-per-share dividend.

Image source: The Motley Fool.

Hold off on buying AT&T turned in overall strong quarterly results, although the narrative for the company has shifted due to SpaceX's potential moves. With Verizon trading at a cheaper valuation and having a higher yield, I think it is the better stock to own over AT&T on this pullback in communication stocks.

That said, I do think the SpaceX worry is overdone, and that the Elon Musk company won't enter the U.S. mobile market in a traditional way, with it more centered on robot and physical AI connectivity. I would be interested in AT&T stock if it falls into the bargain bin and, as such, I would prefer to be a buyer of AT&T around $19, which is 7.5 times forward earnings estimates.

Telecom stocks are tumbling on news that SpaceX is aiming to secure 80,000 cell sites across the US, raising the specter of fierce competition between the industry's big three and Starlink Mobile.

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Stock to Watch: AT&T (T - Free Report) Based in Dallas, TX, AT&T Inc. is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. It provides wireless, local exchange, long-distance, broadband, Internet, video, managed networking, wholesale and cloud-based services.

T is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.62; value investors should take notice.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.36 per share. T boasts an average earnings surprise of +8.4%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, T should be on investors' short list.

Key Takeaways AT&T's fiber and wireless growth strengthens its investment appeal, but rising leverage warrants caution.AT&T added 442,000 fiber customers as wireless service revenues rose 5% in the third quarter of 2026.AT&T's net debt climbed to $149.8 billion after its $23 billion EchoStar deal, pushing leverage to 3.13X.
AT&T Inc. (T - Free Report) is pairing faster fiber and wireless growth with a balance sheet that became more leveraged after its EchoStar spectrum purchase. Third-quarter 2026 results showed that the core connectivity strategy is gaining traction, but the investment case is not one-sided.

The question for investors is whether improving service revenues, a modest valuation and shareholder returns provide enough compensation for legacy declines, higher interest costs and a longer deleveraging path.

AT&T's Fiber Expansion Strengthens the Growth CaseAT&T added more than 1 million Advanced Connectivity customers in the third quarter, including 769,000 Internet net additions across consumer and business accounts. Fiber additions totaled 442,000, while fixed wireless added 327,000 customers.

Advanced home Internet service revenue increased 23.4% year over year. The convergence rate reached 42.8%, and AT&T added about 350,000 converged relationships during the quarter. The company reached 39.7 million fiber locations and remains on track to exceed 40 million by year-end 2026.

T's Wireless Gains Support Recurring Service RevenueWireless service revenues rose 5% year over year, driven by subscriber growth and pricing. AT&T added 379,000 postpaid phone subscribers, while postpaid phone average revenue per user increased about 4%. Management continues to expect Advanced Connectivity service revenue growth of at least 5% in 2026.

T-Mobile US, Inc. (TMUS - Free Report) is also expanding its broadband footprint through fiber partnerships alongside its 5G broadband business. Verizon Communications Inc. (VZ - Free Report) , with a large wireless base and fiber broadband operations, remains another relevant benchmark for investors comparing converged connectivity strategies.

AT&T's Valuation Looks Modest Against Key BenchmarksAT&T trades at 2.1X trailing 12-month enterprise value to sales, below its five-year median of 2.26X. The multiple also sits well below the Zacks sub-industry's 8.15X and the broader sector's 8.31X.

The shares trade at 9.4X forward earnings, while the PEG ratio is 0.97. Those measures support the value case, but a low multiple alone does not eliminate execution risk when leverage is elevated and legacy operations are shrinking.

T's Debt and Legacy Declines Keep Risks ElevatedLegacy revenues fell 24.5% year over year in the third quarter, while Legacy EBITDA declined 26.7%. Copper retirement should reduce costs over time, but the transition continues to weigh on reported revenues and earnings before the remaining expense base is fully removed.

Net debt rose to $149.8 billion, and net debt to adjusted EBITDA increased to 3.13X from 2.68X in the second quarter after the $23 billion EchoStar spectrum purchase. AT&T still targets leverage near 2.5X during 2029. Capital investment, dividends and buybacks will continue competing for cash while higher interest payments pressure financial flexibility.

Image Source: Zacks Investment Research

AT&T's Scores Favor Value and MomentumAT&T's operating trends and valuation create a more constructive setup than the balance-sheet risks alone suggest. Still, the combination of rising leverage, legacy erosion and promotional fiber pricing argues against treating the stock as a clear-cut buy based only on recent growth.

The stock currently carries a Zacks Rank #3 (Hold). AT&T also has a Value Score of A, Growth Score of C, Momentum Score of A and VGM Score of A. The A grades support the stock's value and momentum characteristics, while the Growth Score of C is less favorable.

Style Scores are designed to complement the Zacks Rank rather than replace it. With a Zacks Rank #3, AT&T fits a hold or wait-and-see posture better than an aggressive new-buy stance, even as the A-rated Value, Momentum and VGM profiles keep the shares worth monitoring if execution and leverage improve. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AT&T Inc. (NYSE:T) shares are trading higher Thursday. But they are still in a downtrend.

AT&T remains a buy, offering a near 5% yield and potential for multiple expansion as management executes on growth and efficiency initiatives. T delivered a double-beat in Q3, raised its earnings outlook, and expects double-digit EPS growth through 2028, outpacing key peers. Leverage at 3.13x is a key risk; sustained FCF growth and deleveraging are essential for upside, with shares likely rangebound near-term.

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.

See Also Five stocks we like better than AT&T GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors Want to see what other hedge funds are holding T? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for AT&T Inc. (NYSE:T – Free Report).

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SummaryAT&T Inc. has had a rough go with major competition concerns.The revenue number, key customer metrics, and earnings were better than expected.The T outlook was further positive.Cash flow is king here, and the T dividend is well covered, though the significant leverage remains a paramount concern.Looking for a helping hand in the market? Members of BAD BEAT Investing get exclusive ideas and guidance to navigate any climate. Learn More » MicroStockHub/iStock via Getty Images

In this column we check back in on our long-term holding in AT&T Inc. (T). It has had a bit of a rough go with major competition concerns. However, we believe shares have retraced enough for

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

$21.91-$1.51 (-6.45%)

NYSE · As of 4:00 PM ET 10/21/26

AT&T (T -6.45%), a U.S. telecom carrier, closed at $21.91, down 6.45%. Premarket results beat estimates, but investors are weighing higher spending needs and SpaceX competition. Investors are watching free-cash-flow targets and the raised 2026 profit outlook.

Trading volume reached 82.7 million shares, coming in well above its three-month average of 45.9 million shares.

How the markets moved todayS&P 500 (^GSPC +0.58%) rose 0.59% to 7,758, while the Nasdaq Composite (^IXIC +1.05%) gained 1.05% to 26,703. Among integrated telecommunications services; wireless, broadband, and enterprise connectivity peers, Verizon Communications closed at $43.56, down 2.20%, and T-Mobile U.S. finished at $153.75, down 2.54% as sector rivals tracked AT&T's post-earnings pressure.

What this means for investorsOn Wednesday, Oct. 21, AT&T announced record internet net additions and more than one million advanced connectivity customer additions for a second straight quarter. That growth points to the strength of the company's fiber offerings, signaling the capital investments in this area are paying off.

AT&T reported adjusted earnings per share (EPS) and revenue that topped estimates. It raised its 2026 profit outlook and kept free-cash-flow targets intact, yet the stock still fell.

Investors looked past the headline beat, focusing on spending needs and the growing SpaceX threat. The Elon Musk-led company forged a nationwide low-band spectrum deal with Grain Management, which marks a major step toward SpaceX offering direct-to-device phone coverage across the U.S.

On Oct. 13, AT&T agreed to sell its Mexico wireless unit for $2 billion in cash, sharpening its U.S. focus and potentially changing the capital-allocation story. Earlier this month, the company filed its Mexico-sale 8-K, which formalized the deal and kept the divestiture on investors' radar.

Robert Izquierdo has positions in AT&T, Space Exploration Technologies, T-Mobile US, and Verizon Communications. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

Key Takeaways AT&T's Q3 adjusted EPS rose 20.4% to 65 cents, beating estimates, while revenues grew 5.3% to $32.32B.Record Internet additions of 769,000 included 442,000 fiber and 327,000 fixed wireless connections.AT&T raises its 2026 adjusted EPS outlook to $2.40 and targets at least $18B in free cash flow.
AT&T Inc. (T - Free Report) reported third-quarter 2026 adjusted earnings of 65 cents per share, up 20.4% year over year, surpassing the Zacks Consensus Estimate of 61 cents by 6.56%. Revenues rose 5.3% to $32.32 billion, beating the $31.68 billion consensus by 2.02%.

Growth in fiber and wireless services supported results, with Advanced Connectivity adding a record 769,000 internet connections. The company also added 379,000 postpaid phone subscribers and raised its full-year adjusted earnings outlook.

T's Advanced Connectivity Revenues Gain GroundAdvanced Connectivity revenues increased 7.2% year over year to $29.48 billion. Service revenues rose 6.1% to $23.9 billion, while equipment revenues climbed 12.2% to $5.58 billion, benefiting from stronger wireless equipment activity.

Wireless service revenues rose 5% to $17.76 billion, supported by retail subscriber growth, converged accounts and pricing actions. Promotional discounts partially offset these gains. Advanced home internet revenues jumped 23.4% to $2.98 billion, reflecting fiber and AT&T Internet Air growth, including contributions from the acquired Lumen mass-market fiber business.

AT&T's Internet Additions Reach a RecordThe company added 442,000 fiber and 327,000 fixed wireless internet connections during the quarter. Total consumer and business locations reached with fiber exceeded 39 million, keeping AT&T on track to surpass 40 million by year-end.

The advanced home Internet convergence rate reached 42.8%, representing the proportion of advanced home internet customers also subscribing to AT&T's postpaid wireless service. Its converged customer base expanded by approximately 350,000. Postpaid phone churn was 0.92%, indicating the share of subscribers leaving the service.

T's Business Connectivity Growth Offsets DeclinesBusiness fiber and advanced connectivity revenues grew 8.7% year over year to $1.99 billion, primarily on higher fiber and fixed wireless revenues. This contributed to a 2.5% increase in overall business service revenues.

Business transitional and other revenues fell 14.6% to $1.02 billion as demand for virtual private network and wholesale services declined. Other service revenues were down 8.6% to $148 million, illustrating the continuing shift away from older offerings.

AT&T's Legacy Business Continues to ContractLegacy segment revenues declined 24.5% year over year to $1.52 billion amid lower demand for copper-based network services. Operating expenses decreased 23.5% to $1.02 billion, reflecting lower personnel costs, network decommissioning and reduced fulfillment cost amortization.

Legacy operating income dropped 26.7% to $498 million, with operating margin falling 90 basis points to 32.8%. More than 90% of wire centers have been approved to stop selling legacy services as the company works toward substantially retiring its copper-based network.

T's Adjusted Profit Grows Despite ChargesConsolidated operating expenses increased to $28.2 billion from $24.6 billion, largely reflecting a $2.6 billion noncash impairment tied to the planned sale of AT&T Mexico, employee separation costs and higher wireless equipment expenses. Advertising and bad debt costs also increased.

Reported operating income declined to $4.1 billion from $6.1 billion, while adjusted operating income improved to $7.6 billion from $6.6 billion. Adjusted EBITDA increased 5.4% to $12.51 billion, with the adjusted EBITDA margin edging up to 38.7% from 38.6% a year ago.

AT&T's Latin America Revenues RiseLatin America revenues increased 13.2% year over year to $1.24 billion, primarily driven by favorable foreign exchange movements and postpaid wireless subscriber growth. Service revenues rose 14.7%, while equipment revenues advanced 10.8%.

Operating expenses increased 11.4% to $1.2 billion due to currency effects, higher bad debt expenses and equipment costs. Operating income improved to $45 million from $22 million, while EBITDA rose 18.6% to $236 million.

T's Cash Flow and Outlook Take FocusFree cash flow increased to $4.95 billion from $4.87 billion a year earlier. Cash provided by operating activities from continuing operations totaled $10.52 billion, while capital investment reached $5.57 billion. The company returned approximately $4.8 billion to shareholders, including $2.8 billion in share repurchases.

AT&T ended the quarter with $10.77 billion in cash and equivalents and $149.82 billion in net debt. Net debt increased sequentially following the EchoStar spectrum purchase, taking the net debt-to-adjusted EBITDA ratio to 3.13.

Management now expects adjusted earnings around $2.40 per share in 2026. It projects capital investment of $23 billion to $24 billion this year and $22 billion to $23 billion annually in 2027 and 2028. Free cash flow targets are at least $18 billion in 2026, $19 billion in 2027 and $21 billion in 2028.

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

Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2026 earnings on Nov. 3. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting a growth of 44% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 22.8%. Arista delivered an average earnings surprise of 8.9% in the last four reported quarters.

Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, indicating a 10.2% decline from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.9%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.

GLOBALFOUNDRIES Inc. (GFS - Free Report) is set to release third-quarter 2026 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share, implying a rise of 24.4% from the year-ago reported figure.

GLOBALFOUNDRIES has a long-term earnings growth expectation of 21.2%. GFS delivered an average earnings surprise of 10.9% in the last four reported quarters.

AT&T added over 1 million advanced connectivity subscribers in the quarter. Annual fiber capital investment will drop by $1 billion through 2028.

For the quarter ended September 2026, AT&T (T - Free Report) reported revenue of $32.32 billion, up 5.3% over the same period last year. EPS came in at $0.65, compared to $0.54 in the year-ago quarter.

The reported revenue represents a surprise of +2.02% over the Zacks Consensus Estimate of $31.68 billion. With the consensus EPS estimate being $0.61, the EPS surprise was +6.56%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how AT&T performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Retail Wireless Net Adds- Phone - Postpaid: 379 thousand versus 365.63 thousand estimated by three analysts on average.Internet Net Adds- AT&T Fiber: 416 thousand versus 369.33 thousand estimated by three analysts on average.Internet Net Adds- AT&T Business Fiber: 26 thousand versus 20.67 thousand estimated by three analysts on average.Retail Wireless Net Adds- Phone - Prepaid: -21 thousand versus -69.85 thousand estimated by three analysts on average.Operating Revenues- Corporate and Other: $82 million compared to the $92.53 million average estimate based on five analysts. The reported number represents a change of -16.3% year over year.Operating Revenues- Legacy: $1.52 billion versus $1.54 billion estimated by five analysts on average.Operating Revenues- Latin America: $1.24 billion versus the five-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of +13.2%.Operating Revenues- Advanced Connectivity: $29.48 billion versus the five-analyst average estimate of $28.89 billion.Operating Revenues- Advanced Connectivity- Business fiber and advanced connectivity: $1.99 billion versus $2 billion estimated by three analysts on average.Operating Revenues- Advanced Connectivity- Business transitional and other: $1.02 billion compared to the $1.02 billion average estimate based on three analysts.Operating Revenues- Advanced Connectivity- Other service: $148 million versus $153.41 million estimated by three analysts on average.Operating Revenues- Advanced Connectivity- Advanced home internet: $2.98 billion versus $3.05 billion estimated by three analysts on average.View all Key Company Metrics for AT&T here>>>

Shares of AT&T have returned -6.7% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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"I wouldn't over-rotate on what I would call one carrier of low band spectrum," John Stankey said Wednesday, referring to Elon Musk's Starlink.

Win McNamee/Getty Images (Musk); Lluis Gene/AFP via Getty Images (Stankey)

Elon Musk wants SpaceX to become a major US mobile carrier. AT&T CEO John Stankey says: not so fast.

AT&T has an advantage from years of investment in dense urban and suburban areas, he said on AT&T's third-quarter earnings call, a day after Musk and SpaceX chief operating officer Gwynne Shotwell reported more than 22 million monthly Starlink Mobile users.

"Our competitors cannot and will not match our operating proficiency, network performance, or exceptional converged value proposition," Stankey said.

Stankey sees a use case for satellite-based internet to soften the edges of fiber-connected and 5G networks, especially in places where it's too expensive to build out the physical infrastructure, he said.

"I think LEO constellations are fantastic for delivering bandwidth to rural areas," he said, using the acronym for low-Earth orbit satellite arrays.

Shotwell said Tuesday that Starlink recently got FCC approval to launch 15,000 V2 satellites. She also noted a recent agreement to acquire a portfolio of low-band transmission spectrum, or wireless frequency licenses, which better penetrate buildings to reach indoor devices.

Stankey was unimpressed.

"How you perform indoors, of course, is extremely important, and we shouldn't think about those as being nominal loads," he said. "They're significant loads, even with robust Wi-Fi networks that are out there."

This is especially critical in crowded environments like stadiums and hospitals, where he said AT&T has been focused on beefing up signal support.

"I wouldn't over-rotate on what I would call one carrier of low band spectrum," he said, referring to Starlink.

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Dominick Reuter is a senior retail reporter for Business Insider, primarily covering Walmart, Target, Costco, and other big box retailers. His stories tend to focus on issues and trends that affect employees and customers, such as affordability challenges and the growing race to provide ultra-fast delivery services on e-commerce orders.Prior to joining BI in 2019, Dominick worked for more than a decade as an independent photojournalist covering a wide range of stories for global wire services and newspapers, including Reuters, the Wall Street Journal, and Agence France-Presse.Dominick studied photojournalism at Boston University and later earned a Masters in business and economics journalism from Columbia University.If you're an employee or customer with a story to share, please contact me via email or text/call/Signal at 646-768-4750.

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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

AT&T boosted its full-year profit outlook after adding further subscribers for its postpaid phone service in the third quarter.

With U.S. stock futures trading higher this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:

Wall Street expects Tesla Inc. (NASDAQ:TSLA) to report quarterly earnings of 43 cents per share on revenue of $27.88 billion after the closing bell, according to data from Benzinga Pro. Tesla shares rose 1.8% to $380.45 in after-hours trading. Netflix Inc. (NASDAQ:NFLX) reported mixed results for the third quarter and narrowed its FY26 sales guidance below estimates. Also, the company issued its weak fourth-quarter sales guidance. Netflix shares fell 5.8% to $64.72 in the after-hours trading session. Analysts are expecting Meta Platforms Inc. (NASDAQ:META) to post earnings of $5.74 per share on revenue of $63.37 billion for the latest quarter. The company will release earnings after the markets close. Meta shares gained 0.1% to $695.00 in after-hours trading. Check out our premarket coverage here

Space Exploration Technologies Corp. (NASDAQ:SPCX) reported better-than-expected financial results for the third quarter after the market close on Tuesday. SpaceX reported revenue of $14.58 billion for the third quarter, beating analyst estimates of $12.74 billion, according to Benzinga Pro. The Elon Musk-led company posted third-quarter earnings of 35 cents per share, beating estimates of 12 cents per share. SpaceX shares jumped 8.1% to $159.70 in the after-hours trading session. Analysts expect AT&T Inc. (NYSE:T) to post quarterly earnings of 60 cents per share on revenue of $31.69 billion before the opening bell. AT&T shares gained 1% to $23.64 in after-hours trading. Photo courtesy: Shutterstock

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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

Counterpoint Mutual Funds LLC bought a new position in AT&T Inc. (NYSE:T – Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 375,631 shares of the technology company’s stock, valued at approximately $9,165,000.

Several other hedge funds have also bought and sold shares of the business. Bank of America Corp DE purchased a new stake in AT&T during the second quarter valued at about $2,310,898,000. GQG Partners LLC purchased a new position in shares of AT&T in the second quarter worth $1,223,364,000. Legal & General Group Plc purchased a new stake in AT&T during the 2nd quarter valued at $960,695,000. State Street Corp increased its position in shares of AT&T by 5.8% in 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 acquiring an additional 18,468,679 shares during the period. Finally, Nykredit A S bought a new stake in shares of AT&T in the second quarter worth about $259,954,000. Institutional investors and hedge funds own 57.10% of the company’s stock.

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

Positive Sentiment: Mexico exit supports U.S. investment: AT&T agreed to sell its Mexican wireless operations to Grupo Televisa and Fintech Holdings for approximately $2 billion. Management plans to redirect resources toward U.S. fiber and 5G, while the transaction should simplify AT&T’s international footprint and provide additional financial flexibility. AT&T Agrees To Exit Its Mexican Wireless Business Positive Sentiment: Fiber expansion remains a growth priority: AT&T’s $5.75 billion acquisition of Lumen Technologies’ consumer fiber business adds more than 1 million subscribers and reaches over 4 million locations. The deal could accelerate broadband expansion and strengthen AT&T’s ability to bundle fiber with wireless services. AT&T Does Buying Fiber Create More Value Than Building It? Positive Sentiment: AT&T expanded its customer-service guarantee, promising access to an expert within five minutes or a callback, with additional support for customers combining fiber and wireless services. The initiative could aid customer retention, although its direct financial impact is uncertain. AT&T Expands America’s Best Guarantee Neutral Sentiment: Construction of AT&T’s planned $1 billion-plus Plano headquarters campus is expected to begin December 1, with completion targeted for March 2029. The project reinforces its corporate presence but represents a substantial long-term capital commitment. AT&T Plano Headquarters Construction Eyed for December 1 Start Neutral Sentiment: Investors are awaiting third-quarter results on October 21. Beyond revenue and EPS, attention will likely center on wireless subscribers, broadband growth, cash flow, and management’s outlook. Countdown to AT&T Q3 Earnings Negative Sentiment: Bernstein downgraded AT&T to Market Perform amid concerns that SpaceX’s satellite connectivity could increase competitive pressure on traditional wireless operators. The downgrade adds near-term selling pressure ahead of earnings. AT&T Stock Downgraded Over SpaceX Analysts Set New Price Targets T has been the subject of several research analyst reports. KeyCorp reaffirmed an “overweight” rating and issued a $36.00 target price on shares of AT&T in a research report on Wednesday, October 7th. Wall Street Zen raised shares of AT&T from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. Royal Bank Of Canada reduced their price objective on AT&T from $31.00 to $27.00 and set an “outperform” rating for the company in a research report on Monday, July 20th. Wolfe Research upgraded 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 note on Thursday, July 23rd. Finally, BNP Paribas Exane upgraded shares of AT&T from a “neutral” rating to an “outperform” rating and increased their price target for the company from $26.00 to $30.00 in a report on Monday, September 21st. Eleven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $29.05. Get Our Latest Analysis on T

AT&T Stock Down 0.2% T stock opened at $23.44 on Friday. The business’s 50-day moving average price is $24.98 and its 200-day moving average price is $24.44. The stock has a market cap of $160.65 billion, a P/E ratio of 7.76, a PEG ratio of 1.14 and a beta of 0.25. AT&T Inc. has a twelve month low of $19.89 and a twelve month high of $29.43. 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 issued 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. AT&T had a net margin of 16.94% and a return on equity of 12.86%. 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 firm posted $0.54 EPS. 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. On average, equities research analysts forecast that AT&T Inc. will post 2.33 EPS for the current year.

AT&T Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be issued a $0.2775 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.7%. AT&T’s dividend payout ratio (DPR) is 36.75%.

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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Wall Street analysts expect AT&T (T - Free Report) to post quarterly earnings of $0.61 per share in its upcoming report, which indicates a year-over-year increase of 13%. Revenues are expected to be $31.68 billion, up 3.2% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

With that in mind, let's delve into the average projections of some AT&T metrics that are commonly tracked and projected by analysts on Wall Street.

Based on the collective assessment of analysts, 'Operating Revenues- Corporate and Other' should arrive at $92.53 million. The estimate indicates a year-over-year change of -5.6%.

The collective assessment of analysts points to an estimated 'Operating Revenues- Latin America' of $1.15 billion. The estimate suggests a change of +5.4% year over year.

The combined assessment of analysts suggests that 'Revenues- Latin America- Wireless equipment' will likely reach $454.10 million. The estimate suggests a change of +13.8% year over year.

The consensus among analysts is that 'Revenues- Latin America- Wireless service' will reach $654.66 million. The estimate indicates a year-over-year change of -5.9%.

Analysts' assessment points toward 'Retail Wireless Net Adds- Phone - Postpaid' reaching 365.63 thousand. Compared to the current estimate, the company reported 328.00 thousand in the same quarter of the previous year.

The average prediction of analysts places 'Retail Wireless Subscribers- Phone - Postpaid' at 75.29 million. The estimate compares to the year-ago value of 90.26 million.

It is projected by analysts that the 'Retail Wireless Subscribers- Phone' will reach 91.73 million. Compared to the current estimate, the company reported 73.80 million in the same quarter of the previous year.

Analysts predict that the 'Internet Connections - Fiber' will reach 13.26 million. Compared to the present estimate, the company reported 10.12 million in the same quarter last year.

The consensus estimate for 'Internet Net Adds - Fiber' stands at 390.00 thousand. Compared to the current estimate, the company reported 288.00 thousand in the same quarter of the previous year.

Analysts expect 'Internet Connections - Fixed Wireless' to come in at 2.91 million. The estimate compares to the year-ago value of 4.37 million.

Analysts forecast 'Retail Wireless Subscribers- Phone - Prepaid' to reach 16.45 million. Compared to the current estimate, the company reported 18.54 million in the same quarter of the previous year.

According to the collective judgment of analysts, 'Internet Net Adds - AT&T Internet Air (AIA)' should come in at 238.33 thousand. The estimate is in contrast to the year-ago figure of 270.00 thousand.

View all Key Company Metrics for AT&T here>>>

Over the past month, AT&T shares have recorded returns of -7.4% versus the Zacks S&P 500 composite's +2.4% change. Based on its Zacks Rank #3 (Hold), T will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

AT&T (T - Free Report) closed at $23.42 in the latest trading session, marking a +1.61% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day. Meanwhile, the Dow experienced a rise of 1.08%, and the technology-dominated Nasdaq saw an increase of 0.08%.

Prior to today's trading, shares of the telecommunications company had lost 10.87% lagged the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.

The investment community will be paying close attention to the earnings performance of AT&T in its upcoming release. The company is slated to reveal its earnings on October 21, 2026. The company's earnings per share (EPS) are projected to be $0.61, reflecting a 12.96% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $31.68 billion, up 3.17% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.33 per share and revenue of $129.17 billion. These totals would mark changes of +9.91% and +2.8%, respectively, from last year.

Any recent changes to analyst estimates for AT&T should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. AT&T currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AT&T is holding a Forward P/E ratio of 9.89. This expresses a discount compared to the average Forward P/E of 10.5 of its industry.

One should further note that T currently holds a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

AT&T guarantees to speak to an expert in 5 min, schedule a call back—or will make it right

Key Takeaways:

Whether customers are buying a new device, seeking technical support, paying a bill, or starting service, they'll connect with a friendly expert within five minutes—or be offered a callback.1 Customers who pair AT&T Fiber or AT&T Internet Air and wireless service can work with one technical expert, eliminating unnecessary transfers and repeated explanations.2 If AT&T doesn't meet these commitments, eligible customers will receive a benefit. , /PRNewswire/ -- What's New: AT&T is expanding America's Best Guarantee to deliver a faster, simpler experience. Now, customers who call AT&T can expect an answer in 5 minutes or less and if not, they will be offered a callback at a time they choose. Customers who pair AT&T Fiber or AT&T Internet Air and wireless will have one dedicated technical expert to assist from start to finish. If we fall short of these promises, the Guarantee proactively makes it right with a benefit.

Why it Matters: As Americans push back on the "annoyance economy" of endless hold times, transfers and repetitive processes, AT&T is simplifying support and giving customers time back in their day. A recent AT&T survey conducted by Harris Poll reported that 60% of Americans say getting transferred from one agent to the next is a top pet peeve. More than 3 in 4 Americans say 15 minutes is the most they're willing to wait for customer support. Now, AT&T guarantees a live expert answers within 5 minutes or a callback is scheduled.  If we miss the mark, we make it right. Customers value their time—AT&T's latest commitments reduce two of the biggest customer frustrations: long waits and repeated transfers.

Trust by Design: AT&T proactively shares the recap of conversations between their friendly experts and customers. Authenticated customers who opt in can receive an AI-generated recap of their customer care conversation by text—giving them a convenient copy of what was discussed. This allows customers to know what was discussed and what comes next, saving them time and helping prevent the frustration of repeating their story or saving screenshots just in case.

Connecting people all ways and always: At home, at work, and on the go, customers expect to always be connected when it matters most. With America's largest wireless and fiber networks,3 AT&T brings together two of the strongest connectivity assets in the industry—and we're the first and only provider with a guarantee that includes both fiber and wireless networks, with a care experience to match.  In the rare event of an outage, we proactively make it right with a bill credit for a full day of service.4 No action required from the customer. We're committed to delivering the simple, smart, and expert experience our customers deserve.

Quotable: "Customers want support that is simple, fast, and transparent," said Jenifer Robertson, executive vice president and general manager, AT&T Consumer. "This is about more than speed—it's about removing friction and earning trust in every interaction. We're setting a clear standard for the experience customers should expect and holding ourselves accountable when we miss it."

The AT&T Guarantee is a promise to always do our best by customers, and to make it right when we don't.

Related articles on TechBuzz by AT&T:

What is fiber internet? Frequently Asked Questions

What is the AT&T Guarantee?
We value our customers, and we believe that connecting changes everything. We're committed to providing dependable connectivity with the deals you want, and the service you deserve, guaranteed, 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.5 Deals you want. Our best deals on smartphones don't require the most expensive plan.6 And no hidden fees or equipment charges with AT&T Fiber. Guaranteed. Prompt, friendly service you deserve. Speak to a friendly expert within five minutes or schedule a callback at a time that you choose.1 Plus, same or next day fiber technician availability. Guaranteed. What is AT&T Fiber?
Fiber optic internet uses thin glass cables and light to send data, allowing for hyper fast speeds.

There are several key benefits to choosing fiber internet:

Fast speeds: Fiber internet can reach speeds that make it ideal for streaming HD videos, online gaming, and using many devices at once. Equal upload and download speeds: As customers game, stream, share, and rely more on AI-enabled applications, symmetrical speeds are becoming increasingly important to the connectivity experience. With the nation's largest fiber network, AT&T Fiber delivers the equally fast upload and download speeds customers need at home for a more seamless experience. Reliable connectivity: Fiber internet offers consistent speeds even during busy times when many people are online. This means fewer interruptions and a smoother online experience. Fiber optic internet offers fast, reliable, and consistent service, making it one of the best choices for anyone who wants a top-quality home internet connection.

What are the benefits of choosing AT&T?
Whether you need reliable wireless service, great home internet, or both, AT&T delivers. AT&T Wireless helps you stay in touch with multiple plans to choose from. AT&T Fiber keeps your home connected with superfast speeds. We are the first and only provider to have a guarantee that includes both wireless and fiber networks.

At home, or on the go, AT&T delivers the fastest speeds across home internet and wireless.  As America's largest wireless and fiber provider,3 AT&T already brings together two of the strongest connectivity assets in the industry: AT&T Fiber and wireless. Now, new analysis by Ookla of Speedtest Intelligence data shows customers who subscribe to both have the fastest converged experience  in the nation.7

AT&T has the fastest upload speeds in America.  Opensignal's first-ever Converged Report shows that AT&T wins the nation's fastest converged upload speeds by a wide margin. AT&T's converged upload speeds were more than twice as fast as the closest competitor. AT&T Fiber ranked #1 in both upload and download speeds, outperforming other fiber, cable and fixed wireless competitors by double digits. As AI becomes a bigger part of everyday life, upload speed is becoming increasingly important to a seamless connectivity experience. A recent broadband report showed that upstream usage grew faster than other broadband usage metrics in 2025. With the nation's largest fiber and wireless networks, AT&T is delivering the upload and download speeds customers need at home and on the go.

Can I try AT&T Wireless for free?
Yes, you can download the AT&T app to test drive our network while keeping your current wireless service, cell phone, and phone number. No credit card required. It's a simple process—download the AT&T app, sign up in minutes, activate a new eSIM, and enjoy a risk-free trial for 30 days. Learn why AT&T is right for you.

Where can I sign up for AT&T Fiber?
Signing up for AT&T Fiber is easy. Simply check availability at your home address or visit a local AT&T store.   

1Five minutes begins once customer is routed to assistance. AT&T Fiber, AT&T Internet Air, and postpaid wireless customers only. See details at att.com/guarantee.
2Single agent guarantee limited to technical assistance only. See details at att.com/guarantee.
3Largest Wireless: Compares cellular networks, excluding satellite. Largest Fiber: Based on the number of fiber to the home households using publicly available data.
4Consumers only. Credit for downtime lasting 20 minutes or more; or for wireless downtime lasting 60 minutes or more caused by a single incident impacting 8 or more towers. Other restrictions and exclusions apply.
5Must 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.
6Offers vary by device. Restrictions may apply.
7Based on Ookla® Speedtest Intelligence® data, United States, 1H 2026. See https://www.ookla.com/research/reports/united-states-converged-report-h1-2026 for details. All rights reserved.

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.

© 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

The market expects AT&T (T - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis telecommunications company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +13%.

Revenues are expected to be $31.68 billion, up 3.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for AT&T?For AT&T, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.77%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that AT&T will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that AT&T would post earnings of $0.59 per share when it actually produced earnings of $0.65, delivering a surprise of +10.17%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AT&T appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.