It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
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. Through its subsidiaries and affiliates, the company offers a wide range of communication and business solutions that include wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale and cloud-based services.
T is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. T has a Momentum Style Score of B, and shares are up 2.4% over the past four weeks.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $2.33 per share. T boasts an average earnings surprise of +6.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, T should be on investors' short list.
Bank of Nova Scotia boosted its holdings in TELUS Corporation (NYSE:TU – Free Report) (TSE:T) by 20.4% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 21,108,090 shares of the Wireless communications provider’s stock after purchasing an additional 3,571,734 shares during the quarter. Bank of Nova Scotia owned about 1.36% of TELUS worth $271,237,000 as of its most recent SEC filing.
A number of other hedge funds have also recently modified their holdings of the stock. Manchester Capital Management LLC lifted its position in TELUS by 320.0% in the fourth quarter. Manchester Capital Management LLC now owns 2,247 shares of the Wireless communications provider’s stock valued at $30,000 after acquiring an additional 1,712 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of TELUS during the fourth quarter worth about $33,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its position in shares of TELUS by 129.0% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,473 shares of the Wireless communications provider’s stock worth $33,000 after purchasing an additional 1,393 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of TELUS during the fourth quarter worth about $55,000. Finally, State of Wyoming purchased a new stake in shares of TELUS in the 2nd quarter valued at about $61,000. 49.40% of the stock is owned by hedge funds and other institutional investors.
TELUS Price Performance Shares of TU opened at $10.11 on Friday. The company has a current ratio of 0.67, a quick ratio of 0.63 and a debt-to-equity ratio of 1.59. The stock’s 50 day moving average is $11.42 and its two-hundred day moving average is $12.57. TELUS Corporation has a twelve month low of $9.95 and a twelve month high of $16.72. The firm has a market capitalization of $15.91 billion, a PE ratio of 22.97, a P/E/G ratio of 7.65 and a beta of 0.63.
TELUS (NYSE:TU – Get Free Report) (TSE:T) last issued its earnings results on Friday, May 8th. The Wireless communications provider reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.64 billion. TELUS had a return on equity of 8.29% and a net margin of 4.54%.The company’s revenue for the quarter was down .6% on a year-over-year basis. During the same period in the prior year, the business posted $0.26 EPS. Research analysts anticipate that TELUS Corporation will post 0.74 earnings per share for the current year.
TELUS Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 10th were given a dividend of $0.4184 per share. This represents a $1.67 annualized dividend and a dividend yield of 16.6%. The ex-dividend date was Wednesday, June 10th. TELUS’s payout ratio is presently 275.00%.
Wall Street Analyst Weigh In TU has been the topic of a number of research reports. Scotiabank downgraded TELUS from an “outperform” rating to a “sector perform” rating in a research note on Friday, April 10th. Raymond James Financial started coverage on TELUS in a report on Wednesday, July 15th. They issued a “market perform” rating for the company. TD Securities upgraded shares of TELUS from a “buy” rating to a “buy” rating in a research report on Tuesday, April 28th. TD Cowen raised shares of TELUS from a “hold” rating to a “buy” rating in a report on Tuesday, April 28th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of TELUS in a research report on Friday, July 17th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, TELUS has a consensus rating of “Hold” and a consensus price target of $15.67.
View Our Latest Stock Report on TELUS
TELUS Profile (Free Report)
TELUS Corporation (NYSE: TU) is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.
Beyond core connectivity, TELUS has expanded into health and digital services.
Featured Stories Five stocks we like better than TELUS Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding TU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TELUS Corporation (NYSE:TU – Free Report) (TSE:T).
Receive News & Ratings for TELUS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TELUS and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEBank of Nova Scotia Has $92.86 Million Stake in Freeport-McMoRan Inc. $FCX
NEXT HEADLINE »Bank of New York Mellon Corp Has $50.77 Million Stock Holdings in Lamb Weston $LW
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
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.
HomeIndustriesTelecommunicationsThe Ratings GameThe Ratings GameHowever, that doesn’t mean Starlink won’t be an overhang on wireless stocksJuly 23, 2026, 1:57 p.m. ET
SpaceX’s Starlink business has cast a shadow over AT&T’s stock recently, but a Wolfe Research analyst says investors are worrying prematurely — if they even have to be concerned at all.
“Starlink may bully its way into mobility, but it would take years to acquire and clear the right spectrum,” Wolfe’s Peter Supino wrote in a note to clients titled “Starlink Shmarlink!”
Key Takeaways T tied growth and operating leverage to fiber, wireless convergence and a shrinking copper footprint.Advanced Connectivity revenue rose 5.1% as T posted strong phone, fiber and fixed wireless additions.T kept 2026 EPS and cash flow targets intact while raising planned buybacks to about $10 billion. AT&T Inc. (T - Free Report) used its second-quarter call to argue that its investment cycle is starting to show up in both growth and operating leverage. Management’s main message was that fiber, wireless convergence and a shrinking copper footprint are now reinforcing one another.
That framing mattered more than the quarterly beat itself. T reported adjusted EPS of $0.65, ahead of the Zacks Consensus Estimate of $0.59, while revenue of $31.56 billion came in slightly below the $32.04 billion consensus.
AT&T Leans on ConvergenceChief executive officer John Stankey said the quarter validated AT&T’s push to build more high-value converged customers across fiber, fixed wireless and postpaid phones. He pointed to more than 1 million advanced connectivity subscriber additions and a record quarter for combined fiber and fixed wireless net adds.
The company said 42.5% of advanced home internet customers also take AT&T wireless, a figure management framed as evidence that the convergence model is improving lifetime value and churn.
That strategy is also shaping how T thinks about product economics. Stankey said management is less focused on maximizing stand-alone ARPU by product and more focused on total revenue per customer account.
T Sees Margin Upside in ScaleChief financial officer Pascal Desroches said second-quarter service revenue rose 2.7% year over year and adjusted EBITDA increased 5.2%, lifting adjusted EBITDA margin by 110 basis points to 39.1%. Management tied that improvement to scale in fiber and 5G, lower legacy costs and transformation savings.
Within Advanced Connectivity, service revenue rose 5.1% and EBITDA climbed 8.0%. The segment posted 432,000 postpaid phone net adds, 367,000 fiber net adds and 279,000 fixed wireless net adds.
T also said it remains on track to deliver $4 billion of consolidated annual cost savings by the end of 2028. That helped explain why management spent more time on operating leverage than on the headline revenue shortfall versus consensus.
AT&T Pushes Fiber Expansion HarderManagement repeatedly returned to fiber buildout as the core of the longer-term story. The company added more than 1 million total consumer and business locations reached with fiber in the quarter, ending at 38.6 million and reiterating its target to top 40 million by year-end 2026.
Stankey said 2026 will be AT&T’s largest year ever for fiber expansion, including more than 4 million acquired Lumen locations. In Q&A, he said the company is nearing the back end of market-by-market conversion work in the Lumen footprint and expects another step-up in volume as branding and systems conversion are completed.
Desroches added that advanced home internet revenue grew more than 27% year over year, though fiber ARPU was down 1.3% because Lumen subscribers came over at lower ARPUs. Excluding the acquired footprint, fiber ARPU was about flat.
T Keeps Full-Year Targets IntactAT&T reiterated its full-year 2026 outlook, including adjusted EPS of $2.25 to $2.35, free cash flow of at least $18 billion and capital investment of $23 billion to $24 billion. The company also maintained its multi-year targets through 2028.
Desroches said second-quarter free cash flow of $4.7 billion exceeded the company’s own guidance of $4.0 billion to $4.5 billion. He added that third-quarter free cash flow should be roughly stable year over year, with stronger growth expected in the fourth quarter.
On capital returns, management raised its planned 2026 repurchases to about $10 billion from $8 billion previously. That sharper buyback stance was one of the clearest changes in tone on the call.
AT&T Uses Q&A to Sharpen StrategyQuestions from Morgan Stanley, UBS and BNP Paribas pushed management on pricing, fiber monetization and the trade-off between broadband and wireless growth. Stankey’s answers were notably direct: he said T intends to be aggressive across the fiber price continuum, especially when fiber can be bundled with wireless to improve account economics.
A New Street Research analyst also asked whether management’s comments about solving broadband corner cases hinted at more M&A. Stankey rejected that reading and instead pointed to satellite-enabled coverage extensions, including work tied to AST SpaceMobile, as a way to cover the last portion of customer connectivity needs.
Another recurring theme in Q&A was the copper shutdown. Stankey said AT&T now has approval to discontinue legacy services in more than 30% of its wire centers by late 2026, reinforcing the view that legacy cost removal is becoming more tangible.
T Leaves Investors With a Clearer PostureThe overall tone was confident and more expansive than a standard quarterly update. Management argued that stronger growth, higher margins and faster buybacks are all emerging from the same strategic base: denser fiber, better wireless economics and a more deliberate retreat from legacy infrastructure.
That does not make the quarter a simple recap of subscriber gains. It leaves investors with a clearer picture of what T wants to optimize over the next several years: converged account growth, targeted network density and cash returns without backing away from fiber investment.
Zacks Signals Stay Mixed for TT currently carries a Zacks Rank #3 (Hold), alongside a Value Score of A, Growth Score of D, Momentum Score of A, and VGM Score of B. Under the Zacks framework, a Rank #3 can still be held, and stronger style grades are more favorable than weaker ones, but the most attractive combinations are typically Zacks Rank #1 (Strong Buy) or #2 (Buy) paired with A or B Style Scores. You can see the the complete list of today’s Zacks #1 Rank stocks here.
That leaves a mixed but not unfavorable signal set. The strong Value, Momentum and VGM grades compare well with the weak Growth Score, while the Zacks Rank #3 points to a more balanced near-term setup than a clear outperform call. As always, that rank can change as earnings estimate revisions adjust after the quarter.
Key Takeaways T beats second-quarter earnings estimates as profitability and free cash flow improved.Low valuation multiples and planned shareholder returns support AT&T's appeal to value investors.High debt, rising leverage and $23B-$24B in 2026 capital spending keep AT&T's thesis balanced. AT&T Inc. (T - Free Report) has a clearer investment case after its latest earnings beat, but the setup is not a simple value call. The company is generating cash, improving profitability and trading at low valuation multiples.
The question is whether that discount reflects upside potential or the market’s caution about leverage, capital spending and uneven growth.
T Earnings Beat Helps the Bull CaseAT&T reported second-quarter 2026 adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues rose 2.3% to $31.56 billion, but missed the consensus mark of $32.04 billion by 1.5%.
The earnings beat still helps the bullish case because profitability moved in the right direction. Consolidated operating income increased 8.3% year over year, adjusted EBITDA rose 5.2% and the adjusted EBITDA margin expanded to 39.1% from 38%.
Free cash flow also improved, rising 6.3% to $4.67 billion despite higher capital expenditures. That matters for a company that must fund network investment, dividends and buybacks while keeping leverage under control.
AT&T Valuation Looks Cheap but Not Clear-CutAT&T’s valuation is the strongest part of the investment debate. The stock trades at 7.5X trailing 12-month enterprise value to EBITDA, well below 22.0X for the Zacks sub-industry, 20.6X for the Zacks sector and 18.5X for the S&P 500.
The company’s 6- to 12-month price target stands at $26, compared with a stock price of $23.04 as of July 22, 2026. The shares also trade at 10.5X current fiscal-year earnings, which keeps the valuation case anchored in modest expectations rather than aggressive growth assumptions.
Low multiples can support a recovery if AT&T continues to convert fiber and wireless momentum into earnings and cash flow. They can also reflect skepticism about long-term growth quality, especially with legacy services declining and capital needs remaining high.
T-Mobile US Inc. (TMUS - Free Report) is a relevant comparison because it competes for the same U.S. wireless customers and gives investors another benchmark for subscriber growth. Verizon Communications Inc. (VZ - Free Report) is another natural reference point for income-oriented telecom investors, given its similar focus on wireless and broadband connectivity.
T Shareholder Returns Add AppealAT&T’s cash-return profile remains a key attraction. The company has an annualized dividend of $1.11 per share, with a dividend yield of 4.8%.
Management also reiterated plans to return more than $45 billion to shareholders during 2026 to 2028 through dividends and share repurchases. That framework gives income-focused investors a clearer line of sight than a valuation argument alone.
The board authorized an additional $10 billion of common stock repurchases in January 2026. AT&T expects to repurchase about $10 billion of stock in 2026 while maintaining its current dividend.
AT&T Debt and Spending Temper the ThesisThe counterargument starts with the balance sheet. AT&T ended the second quarter of 2026 with net debt-to-adjusted EBITDA of 2.68X, total debt of $144 billion and cash and equivalents of $17.6 billion.
Leverage is expected to rise to about 3.2X after the planned EchoStar spectrum acquisition, before returning to the 2.5X range within about three years. That path depends on steady execution, cash generation and disciplined spending.
The company also expects annual capital investment of $23 billion to $24 billion in 2026. Buybacks and dividends look more attractive when operating trends hold, but they can tighten financial flexibility if revenue growth softens or network spending remains elevated.
What T’s Mixed Signals Mean for InvestorsThe bottom line is that AT&T looks more attractive for value and income investors than for buyers seeking a clean growth story. Earnings execution, free cash flow and discounted valuation support the stock, while leverage, capital intensity and mixed growth trends keep the thesis balanced.
T currently carries a Zacks Rank #3 (Hold). That rank points to a more neutral near-term setup rather than a high-conviction buy signal.
The Style Scores sharpen the distinction. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The Value Score supports the case for discounted valuation, but weaker Growth and Momentum scores suggest investors may want stronger expansion and estimate-revision trends before taking a more aggressive stance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways T added 367,000 fiber customers as advanced home Internet connections rose 29.5% year over year.Converged households churn at roughly half the rate and deliver a high-single-digit revenue uplift.AT&T targets 70% of wireless traffic on open-capable platforms and $4 billion in annual savings. AT&T Inc. (T - Free Report) is trying to turn connectivity demand into a more durable growth model. Its strategy now leans on fiber, 5G and business network services rather than old media and video assets.
Execution matters. Fiber reach, wireless scale and edge demand can support revenues and margins, while capital intensity and competition remain checks.
AT&T Rides the Fiber Convergence TrendFiber is central to AT&T because it supports more than stand-alone broadband additions. In the second quarter of 2026, the company recorded more than 1 million advanced connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
AT&T added 367,000 fiber customers in the quarter, while advanced home Internet connections rose 29.5% year over year. The convergence rate reached 42.5%, meaning a growing share of those Internet customers also had an AT&T postpaid wireless plan.
That mix matters because management indicated that converged households churn at roughly half the rate of stand-alone accounts and carry a high-single-digit average revenue per account uplift. AT&T ended the quarter with 38.6 million consumer and business fiber locations reached.
T Uses 5G to Broaden Internet ReachAT&T’s 5G strategy supports the fiber push rather than replacing it. The company uses millimeter-wave spectrum in dense areas and mid- and low-band holdings elsewhere to balance capacity and coverage.
Management has tied fiber and 5G together in a converged network that reaches more than 90 million customer locations with advanced Internet services over either fiber or 5G. Fixed wireless is one sign of that broader reach, with AT&T adding 279,000 fixed wireless customers in the second quarter.
T-Mobile US, Inc. (TMUS - Free Report) remains a relevant benchmark in wireless and home broadband competition. Its presence keeps pressure on carriers to pair network quality with attractive customer offers.
AT&T Pushes Toward AI-Ready NetworksAT&T’s edge and artificial intelligence-related network strategy is an emerging growth angle, not an immediate earnings reset. Management expects AI-ready connectivity needs to grow as users require lower latency, stronger uplink capacity and reliable traffic management.
The building blocks are dense fiber, 5G backhaul, spectrum depth, mobile edge computing zones and private 5G deployments. AT&T has cited more than 20 metro mobile edge computing zones live and more than 150 active private 5G and edge trials.
The planned EchoStar 600 MHz spectrum acquisition is intended to strengthen low-band uplink capacity. That could become more useful if AI workloads gradually lift backbone traffic and demand more reliable two-way network performance.
T Seeks Efficiency Through Open RANGrowth alone is not enough for AT&T’s investment case. The company also needs to run its network more efficiently as fiber, spectrum and 5G spending remain high.
Open radio access network, or Open RAN, is part of that effort. AT&T plans to use Ericsson technology to deploy a commercial-scale Open RAN buildout and aims to move 70% of wireless network traffic across open-capable platforms by late 2026.
The broader transformation plan includes vendor rationalization, artificial intelligence enablement, digitalization and lower legacy operating support costs. Management is targeting $4 billion in annual cost savings by the end of 2028. Verizon Communications Inc. (VZ - Free Report) offers another large-scale network comparison for investors focused on network cost discipline.
How AT&T’s Ratings Frame the Trend TradeAT&T offers exposure to several important connectivity trends, but the stock is not a clean growth call. Fiber convergence, fixed wireless adoption, edge workloads and Open RAN efficiency give the company a credible roadmap, while legacy declines and promotional wireless competition still limit improvement.
The stock currently carries a Zacks Rank #3 (Hold). Its Value Score of A points to a favorable valuation profile, but the Growth Score of D and Momentum Score of F show weaker signals on earnings growth characteristics and near-term price trend.
The VGM Score of C places the combined style picture in the middle. Investors may see value in T’s connectivity exposure and income profile, but the market is still waiting for stronger growth and momentum signals.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
From the pitch to the community, AT&T is bringing fans closer to the game through unforgettable experiences, local impact, and the MLS All-Star Skills Challenge presented by AT&T
Key Takeaways:
Through AT&T's wireless and fiber networks, including Turbo Live by AT&T, fans can stay connected to the action throughout MLS All-Star Week. AT&T has been an MLS partner since 2009, supporting the players, fans, and communities that help the sport grow. From Soccer Celebration and player appearances to the MLS All-Star Skills Challenge presented by AT&T, AT&T is bringing people together around the sport they love. AT&T is investing in Charlotte through community engagement initiatives, including a $25,000 donation to Katie Blessing Center. , /PRNewswire/ -- Soccer's momentum across North America has never been stronger, and AT&T is right at the center of it during MLS All-Star Week in Charlotte.
As the Official Wireless and Wireline Provider of Major League Soccer, AT&T is creating unforgettable moments across Charlotte, from player appearances to community investments and the MLS All-Star Skills Challenge presented by AT&T. In its 17th season as an MLS partner, AT&T continues to help grow the game on and off the pitch.
"Soccer has the unique ability to bring communities together through a shared passion," said Sabina Ahmed, assistant vice president of media and sponsorships, AT&T. "As excitement for the sport continues to build, MLS All-Star Week is an opportunity to celebrate the players, fans, and local communities who make soccer culture so special. We're proud to be part of that story."
Celebrating Soccer Across Charlotte
The celebration kicks off July 25-26 at MLS Soccer Celebration, the league's free fan festival at Romare Bearden Park. Fans can test their skills in the AT&T Shooting Challenge – an interactive experience with real-time performance tracking and personalized digital highlights inspired by the MLS All-Star Skills Challenge presented by AT&T.
Additional experiences include giveaways and appearances by MLS and U.S. Soccer legend Landon Donovan, Charlotte FC midfielder Brandt Bronico, and U.S. Men's National Team captain and Charlotte FC defender Tim Ream.
The excitement continues Monday, July 27, where fans can visit the AT&T Promenade retail store located at 230 E. W.T. Harris Blvd from 6:30-8 p.m. for a chance to meet Charlotte FC captain Ashley Westwood. Fans can also learn how to score Fanatics FanCash to use on their favorite MLS merch, while supplies last.
AT&T will also donate $25,000 to Katie Blessing Center, reinforcing the company's commitment to supporting the Charlotte community and creating a positive impact beyond matchday.
MLS All-Star Skills Challenge Presented by AT&T
On July 28 at Truist Field, the best of MLS and LIGA MX go head-to-head in the MLS All-Star Skills Challenge presented by AT&T. AT&T is sponsoring both the All-Star Shooting Challenge and the MLS vs. LIGA MX Relay Challenge, showcasing the elite talent and competitive spirit that fuels the sport's growth.
At the MLS All-Star Game presented by Chime, 20,000 co-branded AT&T and MLS shirts will fill the stands, featuring MLS's "Thanks World, We'll Take It From Here" campaign message.
Through AT&T's wireless and fiber networks, including Turbo Live by AT&T, fans can stay connected to the action throughout MLS All-Star Week – whether they're posting content, replaying highlights, or following along in real time.
Since 2009, AT&T has helped grow the game alongside Major League Soccer. Today, that commitment extends from world-class fan experiences and community investments to the technology that keeps millions connected. As soccer's next chapter unfolds across the country, AT&T is proud to help bring fans closer to every moment.
Frequently Asked Questions
How long has AT&T been a partner of Major League Soccer? AT&T has been a partner of MLS since 2009. What soccer organizations and leagues does AT&T support? AT&T's soccer portfolio includes partnerships with Major League Soccer (MLS), National Women's Soccer League (NWSL), U.S. Soccer, Mexican National Team, and Leagues Cup. Why is investing in soccer important to AT&T? Soccer is the fastest-growing sport in North America. AT&T has invested in the game for nearly two decades because it brings people together — across cultures, generations, and geographies. How is AT&T supporting the growth of soccer in North America? Through partnerships with MLS, U.S. Soccer, NWSL, Leagues Cup, and the Mexican National Teams, AT&T helps create fan experiences, invest in local communities and bring people closer to the sport. 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
ABN Amro Investment Solutions boosted its holdings in shares of AT&T Inc. (NYSE:T – Free Report) by 9.0% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 387,796 shares of the technology company’s stock after buying an additional 32,096 shares during the quarter. ABN Amro Investment Solutions’ holdings in AT&T were worth $11,242,000 at the end of the most recent quarter.
Several other institutional investors also recently bought and sold shares of T. IFM Investors Pty Ltd lifted its stake in shares of AT&T by 5.3% in the first quarter. IFM Investors Pty Ltd now owns 1,488,172 shares of the technology company’s stock valued at $43,142,000 after buying an additional 74,684 shares during the period. Parr Mcknight Wealth Management Group LLC acquired a new stake in AT&T during the first quarter worth about $2,901,000. World Investment Advisors increased its stake in AT&T by 85.0% during the fourth quarter. World Investment Advisors now owns 338,942 shares of the technology company’s stock valued at $8,419,000 after acquiring an additional 155,728 shares during the period. Annex Advisory Services LLC increased its stake in AT&T by 749.1% during the fourth quarter. Annex Advisory Services LLC now owns 159,598 shares of the technology company’s stock valued at $3,964,000 after acquiring an additional 140,802 shares during the period. Finally, Cerity Partners LLC raised its holdings in AT&T by 3.7% in the 4th quarter. Cerity Partners LLC now owns 1,668,862 shares of the technology company’s stock valued at $41,449,000 after acquiring an additional 59,279 shares in the last quarter. 57.10% of the stock is currently owned by institutional investors.
Key Stories Impacting AT&T Here are the key news stories impacting AT&T this week:
Positive Sentiment: AT&T beat Q2 adjusted EPS expectations at $0.65 versus roughly $0.59 expected, helping reinforce the company’s earnings momentum. AT&T Delivers Strong Second-Quarter Results as Investment-Led Strategy Gains Momentum Positive Sentiment: The company added more than 1 million advanced connectivity customers, including strong postpaid phone and broadband growth, which suggests its wireless and fiber strategy is gaining traction. AT&T tops targets for wireless subscriber additions as bundle offers gain traction Positive Sentiment: Free cash flow improved and AT&T reiterated its full-year 2026 guidance while signaling faster buybacks, which is supportive of shareholder returns and valuation. AT&T’s stock rises after earnings. Here’s why investors are cheering. Neutral Sentiment: Revenue came in slightly below estimates, so the report was not a clean beat across all metrics even though profits and subscriptions were strong. AT&T (NYSE:T) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings Neutral Sentiment: Investor attention remains focused on competition from satellite players like SpaceX/Starlink, but management pushed back on those fears, suggesting the threat may be overstated for now. Why AT&T Stock Rallied Today Analyst Ratings Changes T has been the subject of a number of research reports. Oppenheimer downgraded AT&T from an “outperform” rating to a “market perform” rating in a research report on Wednesday, June 3rd. Barclays reduced their target price on AT&T from $26.00 to $24.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 8th. The Goldman Sachs Group set a $30.00 price target on shares of AT&T in a research report on Wednesday. Morgan Stanley lowered their price objective on AT&T from $30.00 to $25.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. Finally, Royal Bank Of Canada reduced their target price 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. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, AT&T has a consensus rating of “Moderate Buy” and an average price target of $29.19.
View Our Latest Research Report on T
AT&T Stock Up 3.5% NYSE T opened at $23.04 on Thursday. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.87 and a current ratio of 0.92. AT&T Inc. has a 52 week low of $19.89 and a 52 week high of $29.79. The stock has a market capitalization of $160.06 billion, a P/E ratio of 7.73, a price-to-earnings-growth ratio of 0.88 and a beta of 0.24. The stock has a fifty day moving average of $22.83 and a 200-day moving average of $25.25.
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 (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.49%. The company had revenue of $31.56 billion for the quarter, compared to analyst estimates of $31.80 billion. During the same quarter last year, the firm earned $0.54 EPS. The company’s revenue for the quarter was up 2.3% on a year-over-year basis. 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 2.32 EPS for the current year.
AT&T Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.2775 per share. This represents a $1.11 annualized dividend and a dividend yield of 4.8%. The ex-dividend date is Friday, July 10th. AT&T’s payout ratio is presently 37.25%.
About AT&T (Free Report)
AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
Featured Articles Five stocks we like better than AT&T Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
Receive News & Ratings for AT&T Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEKKR & Co. Inc. (KKR) to Post Earnings on Thursday
NEXT HEADLINE »Alamar Capital Management LLC Takes Position in Williams-Sonoma, Inc. $WSM
Shares of AT&T Inc. (NYSE:T – Get Free Report) shot up 3.5% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $23.65 and last traded at $23.0350. 187,202,083 shares traded hands during mid-day trading, an increase of 270% from the average daily volume of 50,654,254 shares. The stock had previously closed at $22.26.
The technology company reported $0.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.59 by $0.06. The firm had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $31.80 billion. AT&T had a return on equity of 12.49% and a net margin of 16.94%.The company’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS.
AT&T Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a $0.2775 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a yield of 4.8%. AT&T’s payout ratio is 37.25%.
Trending Headlines about AT&T Here are the key news stories impacting AT&T this week:
Positive Sentiment: AT&T beat Q2 adjusted EPS expectations at $0.65 versus roughly $0.59 expected, helping reinforce the company’s earnings momentum. AT&T Delivers Strong Second-Quarter Results as Investment-Led Strategy Gains Momentum Positive Sentiment: The company added more than 1 million advanced connectivity customers, including strong postpaid phone and broadband growth, which suggests its wireless and fiber strategy is gaining traction. AT&T tops targets for wireless subscriber additions as bundle offers gain traction Positive Sentiment: Free cash flow improved and AT&T reiterated its full-year 2026 guidance while signaling faster buybacks, which is supportive of shareholder returns and valuation. AT&T’s stock rises after earnings. Here’s why investors are cheering. Neutral Sentiment: Revenue came in slightly below estimates, so the report was not a clean beat across all metrics even though profits and subscriptions were strong. AT&T (NYSE:T) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings Neutral Sentiment: Investor attention remains focused on competition from satellite players like SpaceX/Starlink, but management pushed back on those fears, suggesting the threat may be overstated for now. Why AT&T Stock Rallied Today Wall Street Analysts Forecast Growth T has been the topic of a number of recent analyst reports. KeyCorp raised their price target on shares of AT&T from $30.00 to $36.00 and gave the company an “overweight” rating in a report on Wednesday, March 25th. Scotiabank decreased their price objective on shares of AT&T from $31.00 to $29.25 and set a “sector perform” rating for the company in a report on Wednesday, July 15th. Morgan Stanley lowered their price objective on shares of AT&T from $30.00 to $25.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 7th. Royal Bank Of Canada dropped their target price on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating on the stock in a report on Monday. Finally, Wall Street Zen raised shares of AT&T from a “sell” rating to a “hold” rating in a research report on Saturday, June 20th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $29.19.
Get Our Latest Stock Report on AT&T
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in AT&T by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 664,055,700 shares of the technology company’s stock valued at $16,495,144,000 after buying an additional 3,585,661 shares during the period. State Street Corp increased its holdings in AT&T by 2.6% during the fourth quarter. State Street Corp now owns 332,089,723 shares of the technology company’s stock valued at $8,249,109,000 after buying an additional 8,314,678 shares during the last quarter. Bank of America Corp DE raised its position in 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 worth $3,629,307,000 after acquiring an additional 5,449,222 shares during the period. Norges Bank bought a new position in AT&T in the fourth quarter worth approximately $2,181,977,000. Finally, Bank of New York Mellon Corp boosted its stake in shares of AT&T by 12.7% during the 1st 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 acquiring an additional 8,197,935 shares during the last quarter. 57.10% of the stock is owned by hedge funds and other institutional investors.
AT&T Stock Up 3.5% The company’s 50 day moving average price is $22.83 and its two-hundred day moving average price is $25.25. The firm has a market cap of $160.06 billion, a PE ratio of 7.73, a PEG ratio of 0.88 and a beta of 0.24. The company has a current ratio of 0.92, a quick ratio of 0.87 and a debt-to-equity ratio of 1.05.
AT&T Company Profile (Get Free Report)
AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
Further Reading Five stocks we like better than AT&T Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Receive News & Ratings for AT&T Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T and related companies with MarketBeat.com's FREE daily email newsletter.
AT&T (T +3.50%), a nationwide wireless and broadband carrier, closed at $23.04, up 3.50%. Earnings and subscriber growth data beat estimates, even as revenue missed expectations.
Trading volume reached 177.6 million shares, coming in about triple its three-month average of 57.9 million shares.
How the markets moved todayThe S&P 500 (^GSPC -0.14%) fell 0.13% to 7,499, while the Nasdaq Composite (^IXIC -0.57%) declined 0.57% to 25,691. Among U.S. wireless telecommunications services peers, Verizon Communications (VZ +1.17%) rose 1.16% to $44.29, while T-Mobile US (TMUS +0.19%) was little changed, edging down 0.09% to $190.94.
What this means for investorsInvestors cheered AT&T’s results despite a slight revenue miss. More important was strong subscriber growth, especially as investors eyed the upcoming initial quarterly report from Space Exploration Technologies (SPCX -6.70%).
SpaceX’s Starlink service could be a big disruptor for the existing wireless market, but today’s results indicate AT&T isn’t seeing it yet. Investors should continue to watch how space-based broadband develops, though. SpaceX isn’t the only player in the game. AST SpaceMobile (ASTS -2.18%) is also building a satellite network to provide broadband directly to smartphones anywhere on Earth.
For now, the focus was on AT&T's continued growth. The company gained 432,000 postpaid phone net subscribers during the quarter, surpassing Wall Street's expectations of 338,500 additions.
With competition coming from satellite-based solutions, though, AT&T investors should closely follow what SpaceX says about its existing Starlink business when it reports earnings on Aug. 4.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Shares of AT&T (T +3.50%) rose on Wednesday after the wireless carrier delivered reassuring financial results and reaffirmed its long-term growth forecast.
Image source: The Motley Fool.
AT&T continues to attract new subscribers AT&T saw solid gains in what it calls "advanced connectivity customers." This includes 432,000 postpaid phone additions, 367,000 fiber accounts, and 279,000 fixed wireless clients.
AT&T is on track to reach over 60 million total fiber locations by the end of 2030, up from 38.6 million at the end of the second quarter. That bodes well for the telecommunications titan's customer growth and retention efforts, as more than 40% of households with AT&T's home internet services also elected to become wireless subscribers.
"With an industry-leading position in fiber -- the best connectivity technology available -- we believe our network performance and operating scale can't be matched," CEO John Stankey said.
Today's Change
(
3.50
%) $
0.78
Current Price
$
23.04
All told, AT&T's revenue rose 2.3% year over year to $31.6 billion, while its adjusted earnings jumped 20% to $0.65 per share.
Additionally, the telecom giant's free cash flow increased by 7% to $4.7 billion, enabling AT&T to reward its shareowners with $4.1 billion in dividends and stock buybacks.
SpaceX isn't a threat yet Better still, AT&T reaffirmed its full-year and long-term growth targets. Management continues to expect adjusted earnings per share of $2.25 to $2.35 in 2026. The company also remains on track to generate annual free cash flow of over $18 billion this year and $21 billion by 2028.
This reiterated guidance helped to lessen investors' fears regarding competition from satellite-based communication services like SpaceX's Starlink and its potential to crimp AT&T's profitability.
The wireless leader's shareholders breathed a sigh of relief, and its stock price rose in turn.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AT&T (T) shares are on the rise following the release of its Q2 earnings report, which revealed an adjusted EPS of $0.65, surpassing the FactSet consensus of $0
AT&T Inc. (T) Q2 2026 Earnings Call July 22, 2026 8:30 AM EDT
Company Participants
Brett Feldman - Senior Vice President of Finance & Investor Relations
John Stankey - CEO, President & Chairman
Pascal Desroches - Senior EVP & CFO
Conference Call Participants
Sean Diffley - Morgan Stanley, Research Division
John Hodulik - UBS Investment Bank, Research Division
David Barden - New Street Research LLP
Craig Moffett - MoffettNathanson LLC
Michael Rollins - Citigroup Inc., Research Division
Samuel McHugh - BNP Paribas, Research Division
Peter Supino - Wolfe Research, LLC
Presentation
Operator
Good morning, and welcome to AT&T's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference call over to our host, Brett Feldman, Treasurer and Head of Investor Relations. Please go ahead.
Brett Feldman
Senior Vice President of Finance & Investor Relations
Thank you, and good morning. Welcome to our second quarter call. I'm Brett Feldman, Treasurer and Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our Chairman and CEO; and Pascal Desroches, our CFO. Before we begin, I need to call your attention to our safe harbor statement. It says that some of our comments today may be forward-looking. As such, they are subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information as well as our earnings materials are available on the Investor Relations website.
With that, I'll turn things over to John.
John Stankey
CEO, President & Chairman
Thanks, Brett, and good morning, everyone. I do appreciate you joining us today. Earlier this year, we provided an outlook for accelerated growth and execution of our strategy, and that's exactly what we delivered in the second quarter. We gained more than 1 million advanced connectivity subscribers from fiber, fixed wireless and postpaid phones, with all 3
If you were hoping for a repeat of Tuesday's chip-fueled rally, Wednesday had other plans.
The major indexes are moving in different directions on Wednesday morning as an oil price spike and anticipation of key earnings reports create a split market. The Dow Jones Industrial Average (^DJI +0.13%) is up 0.2%, gaining support from traditional blue chip stocks. The S&P 500 (^GSPC +0.01%) is barely positive at 0.1%, caught between strength in industrials and weakness in technology. The Nasdaq Composite (^IXIC -0.31%) is down 0.1%. The tech-heavy index is taking a breather after the proverbial Silicon Valley carried the market yesterday.
The morning started rough. All three indexes opened lower, with the Nasdaq briefly dipping 0.6% before lunch. But the Dow found its footing early, climbing as high as 0.5% around 10:00 a.m. ET. The Nasdaq clawed its way back from the depths, even briefly turning positive before settling into negative territory again. As of this writing, it's a narrow 0.3% spread from the Dow's gains to the Nasdaq's drop.
^DJI data by YCharts
Middle East tensions send energy prices soaring Rising oil prices and elevated interest rates are creating headwinds for growth stocks today, particularly in the technology sector. Brent crude is hovering near $94 per barrel, up about 4%, after President Trump threatened to target Iranian infrastructure every time Iran attacks a ship in the Strait of Hormuz.
The energy shock is bringing back inflation worries and keeping the 10-year Treasury yield stuck at 4.6%, which is exactly what growth stocks don't need right now. Many tech companies would love easy access to low-interest loans and other funding right now, in order to invest in AI computing infrastructure. That's just not on the menu.
Image source: Getty Images.
But some stocks are bucking the downtrend. Super Micro Computer (SMCI +20.94%) is having a fantastic day, up 17.5% after raising guidance due to record AI server orders. AT&T (T +2.25%) gained 3.6% after beating quarterly profit estimates and announcing a $10 billion accelerated share repurchase program for 2026.
Nvidia (NVDA +3.09%) is up 2.6%, single-handedly lifting both the S&P 500 and Nasdaq. Chipmaking partner Wistron is opening a new assembly facility in Texas, boosting Nvidia's domestic manufacturing capacity. On the other hand, Microsoft (MSFT -2.33%) is a drag on all three indexes with a 2.1% price drop. Macroeconomic concerns weigh on the software titan today.
Index
NASDAQ Composite IndexToday's Change
(
-0.31
%)
-80.82
Index Level
25,756.39
What's next? The third earnings season of this calendar year is in full swing with many heavyweights slated to release results over the next couple of weeks. Magnificent 7 reports are likely to move the top indexes, starting with Tesla (TSLA -0.92%) and Alphabet (GOOG +0.00%) (GOOGL -0.13%) after the closing bell tonight. The remaining Magnificent 7 names are slated for next week, apart from Nvidia's late-August update. By the end of July, investors will have a better idea of how the AI boom is working out for operators at different steps of the supply chain.
Meanwhile, Wall Street keeps wobbling in the short term. The Iranian conflict adds a thick layer of economic uncertainty. The market is stuck in wait-and-see mode, split between old-economy resilience and new-economy jitters.
Anders Bylund has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
2 ETFs to Access the World's Best-Performing Stock Markets In 2026AT&T NYSE: T reported faster growth in service revenue, adjusted EBITDA and adjusted earnings per share in the second quarter of 2026, with executives pointing to gains in fiber, fixed wireless and postpaid phone subscribers as the main drivers of the quarter’s performance.
Chairman and CEO John Stankey said the company added more than 1 million “Advanced Connectivity” subscribers across fiber, fixed wireless and postpaid phones, with all three categories posting higher net additions than a year earlier. He said the quarter marked AT&T’s best-ever second quarter for fiber net additions and a record quarter for combined fiber and fixed wireless net additions.
Get AT&T alerts:
Travelers Stock Surges 10% as Earnings Beat Reveals Underwriting Discipline“Earlier this year, we provided an outlook for accelerated growth and execution of our strategy. That’s exactly what we delivered in the second quarter,” Stankey said.
Revenue and Earnings Growth Accelerate CFO Pascal Desroches said consolidated revenue rose 2.3% year-over-year in the second quarter, driven by 2.7% growth in service revenue. Adjusted EBITDA increased 5.2%, and adjusted EBITDA margin rose 110 basis points to 39.1%.
MarketBeat Week in Review – 07/13- 07/17Adjusted earnings per share were $0.65, up more than 20% from $0.54 in the prior-year period. Desroches attributed the increase primarily to adjusted EBITDA growth and lower depreciation expense.
The company reiterated its full-year outlook for consolidated service revenue growth in the low-single-digit range, adjusted EBITDA growth of 3% to 4%, and adjusted EPS of $2.25 to $2.35.
Free cash flow rose by roughly $300 million year-over-year to $4.7 billion, exceeding the company’s guidance range of $4 billion to $4.5 billion. AT&T maintained its expectation for more than $18 billion in full-year free cash flow and $23 billion to $24 billion in capital investment.
Fiber, Wireless and Convergence Remain Central AT&T’s Advanced Connectivity segment, which Desroches said contributes more than 90% of service revenue and nearly all adjusted EBITDA, continued to lead growth. Segment service revenue increased 5.1% year-over-year, while EBITDA rose 8%.
Wireless service revenue grew 3.3%, supported by customer growth, including 432,000 postpaid phone net additions, and pricing actions that took effect during the quarter. Desroches said AT&T added 147,000 consumer postpaid wireless accounts, its best result in more than three years.
Advanced home internet service revenue increased more than 27% year-over-year, driven by fiber net additions, accelerated fiber deployment, converged offers and the acquisition of fiber assets from Lumen in the first quarter. Fiber ARPU declined 1.3% from a year earlier, which Desroches said primarily reflected the full-quarter impact of the Lumen transaction, as those subscribers have lower ARPUs. Excluding customers in the acquired Lumen footprint, fiber ARPU was approximately flat.
Stankey said 42.5% of AT&T’s advanced home internet customers also had a postpaid wireless account at the end of the quarter. Excluding customers in the acquired Lumen footprint, the convergence rate was 45%.
“When customers consolidate their internet access with us, we see lower churn, outstanding brand affinity, higher lifetime values,” Stankey said.
During the question-and-answer session, Stankey said AT&T is focused on growing average account revenue and service revenue, rather than maximizing ARPU for individual products. He said the company is willing to use discounts strategically when they help create converged customer relationships that typically have lower churn and higher lifetime value.
Lumen Integration and Fiber Expansion Progress Stankey said 2026 will be AT&T’s largest year ever for fiber expansion, with plans to reach 8 million new locations, including more than 4 million locations acquired from Lumen.
He said AT&T has spent the past six months standing up operations in the acquired Lumen footprint to support growth, network deployment and the branded rollout of AT&T Fiber. Stankey said June converged gross additions in those territories were up 45% compared with February, a figure he later clarified referred to AT&T’s ability to pair broadband sales with wireless service, not overall broadband sales volume.
Stankey said AT&T is converting infrastructure, branding, support systems, technician processes and customer equipment market by market in the acquired footprint. He said the company is nearing the point where it can “put a little more gasoline on the fire” and increase sales volumes under the AT&T brand.
Buybacks Raised as EchoStar Deal Nears Close AT&T returned $4.1 billion to shareholders in the second quarter, including approximately $2.2 billion of share repurchases. Desroches said the company is on pace to repurchase nearly $1 billion of stock in July and now expects to buy back approximately $10 billion of shares in 2026, up from a prior target of $8 billion.
Desroches said the updated repurchase plan represents a pull-forward of planned buybacks through 2028. Combined with expected dividend payments, shareholder returns are expected to total approximately $18 billion this year, essentially matching the company’s full-year free cash flow outlook.
AT&T ended the quarter with net debt to adjusted EBITDA of 2.68 times, essentially flat with the first quarter. Desroches said AT&T expects leverage to rise to the 3.2 times range after closing its planned acquisition of spectrum licenses from EchoStar, which the company expects by the end of July, and then return to its target range of about 2.5 times within approximately three years.
Stankey said the board remains actively engaged on capital allocation and that the company’s decision to increase repurchases reflected what management sees as a gap between AT&T’s operating fundamentals and its stock valuation.
Copper Retirement, AI Traffic and Network Strategy Stankey said AT&T made progress exiting inefficient copper-based services, helped by recent Federal Communications Commission actions. He said the FCC gave AT&T permission to discontinue legacy copper voice service at about 60% of its wire centers in California. Nationwide, AT&T has approval to discontinue legacy services in more than 30% of its wire centers, effective by late 2026.
Desroches said legacy segment service revenue declined 26% year-over-year, while EBITDA declined about 46% as AT&T accelerates the process of powering down its legacy copper network and migrating customers to more advanced voice and internet services.
Stankey also used the call to outline AT&T’s view of AI-driven network demand. He said agentic AI is changing network traffic in “volume, shape, symmetry, and criticality,” citing industry research showing AI agents can generate up to 450% more total traffic per task than a human performing the same work. He said agentic adoption is projected to drive approximately nine times growth in enterprise traffic and approximately seven times growth in consumer traffic by 2035.
Stankey said AT&T’s fiber and spectrum investments position the company to handle future demand for low-latency, high-bandwidth and uplink-optimized connectivity. In response to analyst questions, he said the company’s planned EchoStar spectrum acquisition and 600 MHz spectrum position should help support stronger wireless uplink performance.
AT&T also discussed leadership transition plans following the announcement that Desroches will retire at the end of the year. Stankey said Jennifer Biry will return to the company as CFO and described the transition as “deliberate and carefully planned.”
About AT&T (NYSE:T)AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T's product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in AT&T Right Now?Before you consider AT&T, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AT&T wasn't on the list.
While AT&T currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
AT&T Inc. delivered strong Q2 earnings, with EPS beating estimates by over 10% and rising 20% year-over-year. Core Advanced Connectivity business grew revenues 4% and expanded EBITDA margin by 150 bps to 42%, offsetting legacy copper network declines. Free cash flow reached $4.7B in Q2, supporting a 12% FCF yield, a 5% dividend, and accretive T share repurchases at sub-10x earnings.
AT&T Chairman and CEO John Stankey appeared on a Wednesday, July 22, CNBC interview tied to the company’s Q2 earnings call to push back against the narrative that satellite operators like SpaceX’s Starlink pose an existential threat to legacy telecom carriers.
He believes that decades of terrestrial infrastructure investment, combined with a fiber-plus-wireless convergence strategy, have built a moat that a satellite entrant cannot economically replicate.
AT&T Beats Earnings as Fiber and Wireless Add 1 Million Accounts AT&T (NYSE:T | T Price Prediction) delivered adjusted EPS of $0.65 against a $0.5871 consensus, a 10.71% beat and the company’s fifth consecutive quarterly earnings beat. Revenue reached $31.558 billion, up 2.3% year over year, slightly below the $31.81 billion estimate. Net income climbed 11.96% to $5.038 billion.
Stankey cited over a million new strategic accounts, the most in three years, alongside nearly 370,000 new fiber additions and 430,000 postpaid voice additions. Fixed wireless subscribers via AT&T Internet Air grew 77.4% year over year to 2.611 million connections, and consumer wireline broadband revenue rose 27.3% to $2.926 billion. Full-year guidance was reiterated at $2.25 to $2.35 adjusted EPS, with EBITDA and EPS lifted to the upper end of the range.
AT&T’s CEO Says Starlink Cannot Replicate Its Infrastructure Moat On the product itself, Stankey said: “We have the best broadband product that’s out there that’s built on a foundation of fiber. Our wireless business gets stronger and stronger. We bolstered the performance of that business with some really important and strategic spectrum acquisitions.”
On Starlink’s positioning, he argued: “They’re coming to the game very late, after this industry has been established. They have to catch up with substantial amounts of infrastructure investment that’s been going on for decades inside hospitals, on university campuses, in stadiums, in tall buildings.” He added that AT&T “handles 98%+ of the traffic on a converged customer” already today, with partnerships expected to cover remaining edge cases by next year.
Rather than pursuing a wholesale Starlink deal, AT&T is co-buying satellite capacity through a JV consortium alongside T-Mobile and Verizon for coverage gaps. As Stankey framed it: “I don’t feel a need right now that I need to have a satellite partner as a main distribution vehicle for me, because I don’t think it addresses a part of the market that I can’t get to on my own.“
SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now.
AT&T’s CEO Says Its Current Multiple Is Too Cheap Stankey acknowledged the disconnect between operating momentum and share price: “I do believe our multiple right now is probably suppressed based on what this business is going to do and perform moving forward. When the cash shows up, eventually the valuation dynamic takes care of itself.“
The stock is up 55% over three years but down 16% over the past year. $T trades at a trailing P/E of 7 and a forward P/E of 9, with an EV/EBITDA of 5 and an average analyst price target of $29.03, slightly above the stock’s current price of $22.81.
AT&T is accelerating repurchases to approximately $10 billion in 2026, part of a $45+ billion capital return plan through 2028. Free cash flow is guided to $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028. Fiber locations reached 38.6 million, targeting 40 million by year-end 2026 and 60 million by 2030.
Wall Street Still Sees Starlink and Cash Flow Risks CEO Stankey’s confidence collides with skepticism from parts of the Street. Bernstein and Scotiabank have cut price targets citing Starlink competition, and TechStock² flagged that AT&T needs to generate $11.0 to $11.5 billion in free cash flow in the second half to hit guidance.
Jim Cramer has said he does not want to own AT&T or Verizon (NYSE:VZ) due to Starlink. Verizon is up 10.09% over the past year, having closed its Frontier fiber acquisition in January.
The next test will be whether AT&T can meet its second-half-of-the-year cash flow targets and convince investors that satellite competition does not threaten its long-term growth.
Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.
From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.
AT&T (NYSE: T | T Price Prediction) just posted its fifth consecutive earnings beat, with management accelerating buybacks to roughly $10 billion for the year.
Our 24/7 Wall St. price target for the next 12 months is $27.91, implying 21.81% upside from the current $22.91 quote. Confidence in this call is high at 90%, and the recommendation is a buy.
24/7 Wall St. Price Target Summary Metric Value Current Price $22.91 24/7 Wall St. Price Target $27.91 Upside 21.81% Recommendation BUY Confidence Level 90% A Record Quarter Sets the Stage AT&T reported Q2 2026 adjusted EPS of $0.65 against a $0.5871 consensus, a 10.71% beat. Revenue of $31.56 billion came in 0.79% light of estimates but grew 2.3% year over year. Operating income climbed 7.45% and net income rose 11.96% to $5.04 billion. Subscriber trends were strong: 432,000 postpaid phone net adds, 367,000 fiber net adds, and postpaid phone churn of just 0.86%.
Shares are up 6.21% over the past week and 4.04% over one month, though T remains down 5.76% year to date. The stock sits well below its 52-week high of $28.75 and above the $19.63 low.
The Case for $30 and Above The bull scenario points to $30.20, a 31.8% total return. Advanced Connectivity service revenue is up 5.1% with operating income surging 20.3% to $7.34 billion. Fiber locations reached 38.6 million, tracking a 40 million year-end target and 60 million by 2030. Fixed wireless subscribers jumped 77.4% to 2.611 million.
CEO John Stankey told investors, “We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position.” Combined with $45 billion+ in total shareholder returns targeted through 2028, this supports a re-rating toward the $29.03 analyst consensus and beyond.
The Risks Worth Watching The bear scenario lands at $24.84. Legacy copper revenue fell 25.9%, net debt to EBITDA of 2.68x exceeds the 2.5x target, and interest expense rose 13.8%.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AT&T didn't make the cut. Grab the names FREE today.
Regulatory delays on the pending EchoStar spectrum deal could weigh on sentiment. Bulls counter that capex jumped 16.4% to $5.70 billion to fund fiber and spectrum investments driving out-year free cash flow to $21 billion+ by 2028.
How AT&T Compares to Verizon and T-Mobile Verizon (NYSE: VZ) trades at a forward P/E of 9x with a 6.36% dividend yield and an analyst target of $51.12. AT&T’s forward P/E of 10x is slightly richer, but T’s fiber footprint and stronger EPS growth trajectory justify the premium.
T-Mobile US (NASDAQ: TMUS) trades at a forward P/E of 19x with an analyst target of $252.73, reflecting faster subscriber growth. Against that peer, AT&T’s implied 12x forward multiple at our target leaves substantial room, making our 24/7 Wall St. price target look conservative.
Company Forward P/E Dividend Yield AT&T 10x 5.06% Verizon 9x 6.36% T-Mobile 19x 2.01% Our Bottom Line The 24/7 Wall St. price target of $27.91 and buy rating, backed by 90% confidence, reflects a business generating record profits at an attractive multiple. The setup remains constructive so long as the fiber build stays on pace toward 40 million locations by year-end.
The thesis weakens if net debt to EBITDA drifts further above 2.5x or the EchoStar spectrum deal stalls. On balance, the risk-reward at $22.91 skews positive.
Year 24/7 Wall St. Price Target 2026 $27.91 2027 $31.50 2028 $35.00 2029 $38.25 2030 $41.54 These projections assume AT&T executes on its 60 million+ fiber location target by 2030 and its double-digit EPS CAGR guidance holds. Upside or downside could come from EchoStar spectrum integration, copper decommissioning by 2029, or interest rate shifts affecting the $144 billion debt load.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AT&T didn't make the cut. Grab the names FREE today.
AT&T Inc. delivered a strong Q2 earnings beat and robust $4.7B FCF despite the slight revenue miss, underscoring favorable unit economics that reinforce a structural recovery. Its convergence-led growth strategy and successful Lumen asset integration continue to drive fiber net adds while managing churn on recent wireless pricing actions, which supports durable long-term FCF expansion. Capital-efficient satellite partnerships and prudent M&A integration underpin AT&T's competitive positioning and ROI trajectory despite sectoral headwinds.
Key Takeaways T's adjusted earnings rose 20.4% to 65 cents, beating the consensus estimate by 10.2%.AT&T added over 1 million Advanced Connectivity customers, led by Internet and postpaid phone gains.AT&T reaffirmed its 2026 outlook and now expects about $10 billion in share repurchases. AT&T Inc. (T - Free Report) reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.
Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
T Gains From Advanced Connectivity MomentumAdvanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.
Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense.
AT&T Posts Strong Internet Customer GrowthAdvanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.
AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end.
T Benefits From Wireless Subscriber ExpansionWireless Service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.
Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.
AT&T Navigates Legacy Declines and Mexico CostsLegacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.
Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.
T Expands Profitability and Cash GenerationConsolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.
Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.
AT&T Reaffirms Outlook and Accelerates BuybacksAT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.
The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68.
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 second-quarter 2026 earnings on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting a growth of 21.9% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.9%. Arista delivered an average earnings surprise of 8.3% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2026 earnings on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, indicating an 8.7% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8.1%. Akamai delivered an average earnings surprise of 7.5% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2026 earnings on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, implying a rise of 9.1% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 27%. Pinterest delivered an average negative earnings surprise of 4.1% in the last four reported quarters.
For the quarter ended June 2026, AT&T (T - Free Report) reported revenue of $31.56 billion, up 2.3% 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 -1.49% over the Zacks Consensus Estimate of $32.04 billion. With the consensus EPS estimate being $0.59, the EPS surprise was +10.17%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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:
Internet Connections - Fiber: 12.87 million versus 12.81 million estimated by three analysts on average.Internet Connections- AT&T Business Fiber: 724 thousand versus the three-analyst average estimate of 722.67 thousand.Internet Net Adds- AT&T Business Fiber: 23 thousand compared to the 21.67 thousand average estimate based on three analysts.Internet Net Adds- AT&T Fiber: 344 thousand compared to the 290 thousand average estimate based on three analysts.Operating Revenues- Corporate and Other: $87 million versus the five-analyst average estimate of $90.93 million. The reported number represents a year-over-year change of -7.5%.Operating Revenues- Latin America: $1.22 billion versus $1.13 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.1% change.Operating Revenues- Legacy: $1.63 billion versus $1.67 billion estimated by five analysts on average.Operating Revenues- Advanced Connectivity: $28.62 billion compared to the $29.05 billion average estimate based on five analysts.Operating Revenues- Advanced Connectivity- Other service: $151 million versus the three-analyst average estimate of $155.96 million.Operating Revenues- Advanced Connectivity- Advanced home internet: $2.93 billion versus the three-analyst average estimate of $3.01 billion.Revenues- Latin America- Wireless equipment: $444 million compared to the $427.92 million average estimate based on three analysts. The reported number represents a change of +13.3% year over year.Revenues- Latin America- Wireless service: $780 million compared to the $678.12 million average estimate based on three analysts. The reported number represents a change of +17.8% year over year.View all Key Company Metrics for AT&T here>>>
Shares of AT&T have returned -2.4% over the past month versus the Zacks S&P 500 composite's +0.3% 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.
Dallas-headquartered AT&T Inc (T) is extending gains on Wednesday morning after reporting Q2 earnings that came in handily above Street estimates.
The company posted $31.56 billion in revenue – up 2.3% on a year-over-year basis – on $0.65 per share of earnings (EPS), representing an exciting 20.4% increase from last year.
More importantly, responding to rising fears of Starlink competition in a CNBC interview, AT&T’s chief executive John Stankey said: “We can compete with anybody that comes in; we’re in a very strong position with the best product out there.”
That said, AT&T stock remains down over 20% versus its year-to-date high.
According to Stankey, new entrants like Starlink face severe structural hurdles trying to “replicate” ground-based connectivity.
While low-Earth orbit (LEO) satellites grab headlines, he pointed out that new rivals are “coming to the game very late after this industry has already been established.”
Crucially, satellite networks can’t really replace the tens of billions of dollars invested over decades to bring high-speed fiber and 5G connectivity into “dense environments” like hospitals, university campuses, stadiums, and high-rise office buildings.
AT&T currently handles more than 98% of the data traffic generated by its converged customers, leaving satellite coverage to fill only the coverage gaps when users walk entirely off the terrestrial grid, he added.
While there’ve been concerns that legacy carriers might repeat past missteps by signing wholesale network agreements that empower new competitors, Stankey dismissed the notion entirely.
According to him, AT&T does not need a wholesale partnership with Starlink to defend its market position, adding that the company pursues wholesale arrangements only when a segment of the market cannot be reached through its own brand, distribution, or fiber footprint.
In primary metropolitan and suburban US markets, AT&T’s combination of fiber buildouts and 5G spectrum allows it to “acquire and retain” both consumer and business accounts directly – making satellite-based distribution unnecessary for core market coverage.
Rather than surrendering distribution to a single satellite giant, AT&T Inc is leveraging an industry joint venture alongside T-Mobile and Verizon to manage off-grid coverage efficiently.
Stankey highlighted that the consortium allows carriers to aggregate consumer traffic volumes and contract across the entire satellite ecosystem – whether sourcing capacity from SpaceX, Amazon’s Kuiper, or AST SpaceMobile.
By maintaining flexibility across multiple satellite constellations, AT&T can handle the remaining fraction of off-network traffic at economical rates without undermining its primary connectivity offerings.
This pragmatic approach reinforces AT&T Inc’s core “fiber and wireless strategy” while offering seamless, affordable backup connectivity for subscribers wherever they travel.
Wall Street currently has a consensus Overweight rating on AT&T stock, with the mean price target of $29 indicating significant further upside from here.
AT&T remains a Buy as aggressive buybacks and steady EBITDA growth offset legacy business declines. T's free cash flow is on track for $18B+ in 2026, supporting $10B buybacks and $8B in dividends. We go over our outlook and how we played it for an 11% yield.
Index Dow Jones +0,32 % na 52390,54 b. S&P 500 +0,12 % na 7518,33 b. Nasdaq Composite -0,09 % na 25812,72 b.
Ve středeční seanci se americké indexy ze začátku mírně korigují, protože investoři jsou opatrní před zveřejněním klíčových zpráv o hospodaření společností jako Alphabet a Texas Instruments, které by mohly poskytnout další signály o obchodu s umělou inteligencí. Trhy se také soustřeďují na americko-íránský konflikt, jelikož obě strany pokračovaly ve vzájemných úderech již jedenáctý den po sobě. Začínají tak vznikat opět obavy z narušení dodávek ropy způsobených potenciálně se rozšiřujícím konfliktem na Blízkém východě. Bohužel, diplomatické jednání nepřineslo okamžitý pokrok. Americký prezident Donald Trump v úterý nabídl na nová jednání s představiteli Iránu pesimistický pohled a uvedl, že Washington „nemá zájem se s Íránem zatím setkat“. Dolar na páru s eurem zatím opslabuje o -0,2% tj. 1,1414 USD/EUR.
V hledáčku investorů je stále ropa, která stále roste a dnes WTI přidává 2,4% a dostává se k úrovni 86,4 USD/barel. Jak ropa roste , tak se opět vynořují obavy investorů že energetický šok způsobený válkou by mohl vyvolat globální inflační výbuch a vlnu zvyšování úrokových sazeb centrálních bank. Tyto komentáře přicházejí v době, kdy média naznačují, že se mediátoři nadále snaží oživit diplomatické řešení íránského konfliktu, který nyní hrozí rozšířením do dalších částí Perského zálivu. Dnes byly také zveřejněny zásoby surové ropy a podle EIA zásoby vzrostly o 2,010 mil. barelů, když trh předpokládal pokles o 1,950 mil. barelů. Tato situace vyhovuje akciím v těžebním sektoru černého zlata a tak akcie těžebního obra Exxon Mobil ( XOM ) přidávají 1,5% a hned v závěsu jsou akcie konkurenta Baker Hughes ( BKR ), jež se posunují výš na tržní ceně více než 1%. Podobně si vedou také akcie Marathonu Petroleum ( MPC ) se ziskem více než 1% a také akcie britské skupiny BP ( BP ) se posouvají výš o více než 1,5%. Solidně si vedou také akcie APA ( APA ), které se přehouply přes 1% a také konkurenční akcie Occidentalu Petroleum ( OXY ) na tržní ceně přidávají cca 1,5%. Velmi slušně si vedou také akcie brazilského těžaře Petrobrasu ( PBR ), jež se pohybují v kladném se ziskem 2,5%. Dnes přidávají na tržní ceně také akcie francouzského výrobce a dodavatele těžní techniky Schlumbergeru ( SLB ) o více než 2% a také akcie amerického konkurenta Halliburtonu ( HAL ) 0,6% a do této skupiny patří také akcie Chevronu ( CVX ), které přidávají cca 1%.
S oslabením dolaru si dnes dobře vede žlutý kov, který přidává 1,4% a zlato se tak dostává l úrovni 4 138 USD/Troy. unci. Tato situace je tak příznivě nakloněna akciím v těžebním sektoru zlata a tak akcie největšího kanadského těžaře Barrick Mining ( B ) dnes zpevňují o 3,9% a hned v závěsu jsou akcie jeho amerického konkurenta Newmontu ( NEM ) s ještě větším ziskem cca 4,5%. Za zmínku stojí také akcie známého těžaře Eldorado Gold ( EGO ), jež se posunují výš o 6,7%.
Za pozornost investorů stojí dnes tabáková skupina Philip Morris ( PM ) vykázala zisk za druhé čtvrtletí, který překonal odhady díky robustním tržbám poháněným poptávkou po jejím nekuřáckém produktu. Náladu však utlumilo určité zklamání z jejího ročního výhledu. Tržby společnosti meziročně vzrostly o 10,4 % na 11,19 mld. USD. Organické tržby byly meziročně vyšší o 7,6 %, zatímco trh očekával růst pouze o 4,91 %. Philip Morris celkově dodal 205,2 mld. jednotek produktů, což představuje meziroční růst o 2,5 %. Zisk na akcii meziročně klesl o 7,7 % na 1,80 USD, a to vlivem nepeněžního odpisu podílu v kanadské RBH ve výši 511 mil. USD (dopad 0,33 USD na akcii). Očištěný zisk na akcii naopak vzrostl o 15,2 % na 2,20 USD (bez měnového vlivu +13,6 %) a překonal očekávání trhu ve výši 2,04 USD. I když výhled byl opatrný, tak investoři pozitivně vnímají reportovaná čísla a akcie Philip Morris ( PM ) posilují na tržní ceně o více než 1,9%.
Své výsledky za 2Q. 2026 dnes představila také telekomunikační společnost AT&T ( T ) Čistý přírůstek postpaid mobilních zákazníků překonal průměrný odhad analytiků. Nad očekávání byl rovněž reportován očištěný zisk na akcii a očištěný zisk EBITDA. Akcie AT &T ( T ) se tak dnes těší z přízně investorů a posilují o cca 3,2%.
Index S&P 500 +0,12 % na 7518,33 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Utility +1,6 % Zbytná spotřeba -0,6 % Základní materiály +1,3 % Reality -0,2 % Energie +0,9 % Komunikační služby -0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Super Micro Computer (SMCI) +24 % TE Connectivity (TEL) -7,7 % Westinghouse Air Brake Technologies Corp (WAB) +11 % GE Vernova (GEV) -6,9 % Dell Technologies (DELL) +9,6 % ServiceNow (NOW) -4,9 % EQT Corp (EQT) +6,9 % PTC (PTC) -4,7 % CME Group (CME) +6,0 % DoorDash (DASH) -4,7 %
Luboš Bedrník
Fio banka, a.s.
Prohlášení
Index Dow Jones +0,52 % na 52498,58 b. S&P 500 +0,11 % na 7517,66 b. Nasdaq Composite -0,17 % na 25793,08 b.
Wall Street se v úvodu seance obchoduje ve smíšených číslech. Investoři zaujímají opatrný postoj před výsledky technologických společností. Dnes po konci obchodování budou reportovat společnosti Alphabet, Tesla, IBM a ServiceNow.
Investory zaujala rovněž zpráva Wall Street Journal, podle které společnost AMD uzavřela se společností Anthopic kontrakt na dodávku AI serverů v hodnotě několik desítek miliard dolarů.
Dnes před otevřením trhu reportovala výsledky řada společnosti, příkladem je Philip Morris International, GE Vernova a AT&T.
Americká tabáková společnost překonala tržní predikce napříč hlavními ukazateli. Tržby poprvé překonaly hranici 11 mld. USD. Celoroční výhled očištěného zisku na akcii společnost mírně snížila, a to prakticky výhradně kvůli měnovým vlivům.
Co se týče výsledků amerického výrobce energetického zařízení GE Vernova. Její divize energetiky a elektrifikace nadále těží z rychle rostoucí poptávky spojené mimo jiné s výstavbou datových center a modernizací rozvodných sítí, přičemž větrná energetika zůstává ztrátová. Díky silnému přílivu objednávek, expanzi marží a výrazné tvorbě hotovosti společnost navýšila svůj celoroční výhled pro rok 2026.
Telekomunikační operátor AT&T reportoval výsledky za 2Q. Čistý přírůstek postpaid mobilních zákazníků překonal průměrný odhad analytiků. Nad očekávání byl rovněž reportován očištěný zisk na akcii a očištěný zisk EBITDA.
Index S&P 500 +0,11 % na 7517,66 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,5 % Informační technologie -0,4 % Utility +1,4 % Reality 0 % Energie +1,3 % Zdravotní péče +0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Super Micro Computer (SMCI) +23 % TE Connectivity (TEL) -7,3 % Westinghouse Air Brake Technologies Corp (WAB) +11 % GE Vernova (GEV) -6,4 % Dell Technologies (DELL) +9,7 % DoorDash (DASH) -3,9 % CME Group (CME) +7,2 % AppLovin Corp (APP) -3,5 % Hewlett Packard Enterprise (HPE) +6,0 % Datadog (DDOG) -3,5 % Zdroj: Bloomberg
AT&T Chairman and CEO John Stankey joins "Squawk Box' to discuss the company's quarterly earnings results, competition from SpaceX's Starlink, future of telecom, state of the consumer, and more.
AT&T CEO John Stankey discusses second-quarter results that added more monthly wireless phone subscribers than analysts expected. Stankey says he's “pretty confident we can keep that moving going forward” as he discusses the results, the competitive landscape in wireless and broadband technologies, and the company's use of AI.
AT&T (T - Free Report) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.17%. A quarter ago, it was expected that this telecommunications company would post earnings of $0.55 per share when it actually produced earnings of $0.57, delivering a surprise of +3.64%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AT&T, which belongs to the Zacks Wireless National industry, posted revenues of $31.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.49%. This compares to year-ago revenues of $30.85 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AT&T shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for AT&T?While AT&T has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AT&T was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $32.13 billion in revenues for the coming quarter and $2.32 on $130.03 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Liberty Capital Corporation (GLIBA - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of +22.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Liberty Capital Corporation's revenues are expected to be $265 million, up 1.5% from the year-ago quarter.
U.S. stocks traded mixed this morning, with the Nasdaq Composite falling more than 100 points on Wednesday.
Following the market opening Wednesday, the Dow traded up 0.02% to 52,237.67 while the NASDAQ declined 0.52% to 25,703.94. The S&P 500 also fell, dropping, 0.20% to 7,493.98.
Leading and Lagging Sectors
Energy shares jumped by 1.1% on Wednesday.
In trading on Wednesday, information technology stocks fell by 0.7%.
Top Headline
AT&T Inc. (NYSE:T) stock gained more than 4% on Wednesday after the telecom giant reported second-quarter fiscal 2026 earnings that topped Wall Street expectations.
The company, which is navigating an increasingly competitive U.S. wireless market, reported revenue of $31.56 billion, up 2.3% from a year earlier but below the analyst consensus estimate of $31.80 billion. Adjusted earnings were 65 cents per share, beating analysts’ expectations of 59 cents.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded up 2.3% to $86.27 while gold traded up 1.6% at $4,142.50.
Silver traded up 1.5% to $59.99 on Wednesday, while copper fell 0.6% to $6.5115.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 rose 0.8%, while Spain’s IBEX 35 Index rose 1.3% London’s FTSE 100 rose 1.5%, Germany’s DAX gained 0.6%, while France’s CAC 40 surged 1.1%.
Asia Pacific Markets
Asian markets closed mostly lower on Wednesday, with Japan’s Nikkei 225 falling 0.18%, Hong Kong’s Hang Seng index falling 0.95%, China’s Shanghai Composite rising 0.07% and India’s BSE Sensex falling 0.92%.
Economics
The volume of mortgage applications surged by 1.9% in the week ending July 17.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
AT&T Inc (NYSE:T, XETRA:SOBA) reported second-quarter adjusted earnings and profit growth that topped Wall Street estimates on Wednesday, driven by robust postpaid phone additions and broadband growth, sending shares up 4.3% at the open.
The telecom giant posted adjusted earnings per share of $0.65, up 20.4% from a year earlier and ahead of analyst estimates of $0.60.
Revenue rose 2.3% to $31.6 billion, just shy of the $31.7 billion analysts had expected.
AT&T added 432,000 postpaid phone subscribers in the quarter, well above the 338,500 additions analysts had forecast, while postpaid phone churn held at 0.9%.
Adjusted EBITDA climbed 5.2% to $12.3 billion, beating estimates of $12.11 billion, and free cash flow rose 7% to $4.7 billion, also topping expectations of $4.51 billion.
The company's advanced connectivity segment, which includes its fiber and wireless businesses, generated revenue of $28.62 billion, up 4.1% from a year earlier.
AT&T added more than 1 million advanced connectivity customers in the quarter, including 646,000 internet net adds, split between 367,000 fiber additions and 279,000 fixed wireless additions. Fiber locations reached 38.6 million.
Legacy segment revenue continued to decline, falling 25.9% to $1.63 billion, while Latin America revenue rose 16.1% to $1.22 billion.
AT&T returned $4.1 billion to shareholders in the quarter, including roughly $2.2 billion in share buybacks. The company said it has accelerated its 2026 buyback program to approximately $10 billion, and reiterated a target of more than $45 billion in capital returns between 2026 and 2028.
The company affirmed its full-year guidance, projecting adjusted EBITDA growth of 3% to 4%, adjusted earnings per share of $2.25 to $2.35, capital investment of $23 billion to $24 billion, and free cash flow of more than $18 billion.
AT&T adds more than 1 million Advanced Connectivity customers, driven by year-over-year increases in net adds across fiber, fixed wireless, and postpaid phone subscribers
The Company reiterates all consolidated full-year 2026 and multi-year financial guidance and multi-year capital return plans, with accelerated pace of share repurchases in 2026
, /PRNewswire/ -- AT&T Inc. (NYSE: T) reported strong second-quarter results, driven by consistent execution of the Company's investment-led strategy, demonstrating improved growth in consolidated service revenue and profitability. The Company continues to grow its base of high-value converged customers as it delivered a record quarter for combined fiber and fixed wireless net adds and its strongest consumer postpaid wireless account growth in more than three years.
"The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity," said John Stankey, AT&T Chairman and CEO. "We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position. With an industry-leading position in fiber – the best connectivity technology available – we believe our network performance and operating scale can't be matched."
Second-Quarter Consolidated Results1
Revenues totaled $31.6 billion, up 2.3% from the year-ago quarter Diluted EPS from continuing operations was $0.66, versus $0.62 in the year-ago quarter; adjusted EPS* was $0.65, versus $0.54 in the year-ago quarter Operating income was $7.0 billion; adjusted operating income* was $7.5 billion Income from continuing operations was $5.0 billion, up 3.6% year over year; adjusted EBITDA* was $12.3 billion, up 5.2% year over year Cash from operating activities from continuing operations was $10.8 billion, versus $9.8 billion in the year-ago quarter Capital expenditures related to continuing operations were $5.7 billion; capital investment* was $6.1 billion Free cash flow* was $4.7 billion, versus $4.4 billion in the year-ago quarter Second-Quarter Highlights
Added over 1 million Advanced Connectivity customers, driven by year-over-year increases in net adds across fiber, fixed wireless, and postpaid phone subscribers Advanced Connectivity service revenue of $23.5 billion, up 5.1% year over year Advanced Connectivity operating income of $7.3 billion, up 20.3% year over year with EBITDA* of $12.0 billion, up 8.0% 42.5% of households with AT&T's advanced home internet services also chose AT&T wireless2 646,000 total consumer and business Advanced Connectivity internet net adds, including 367,000 fiber and 279,000 fixed wireless 432,000 postpaid phone net adds with postpaid phone churn of 0.86% Added more than 1 million total consumer and business locations reached with fiber for a total of 38.6 million; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 20303 Returned $4.1 billion to shareholders, including approximately $2.2 billion in common share repurchases under the 2024 authorization Outlook and Capital Allocation Plan
AT&T maintains its 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 within approximately three years following the closing of its transaction with EchoStar.
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 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* of $2.25 to $2.35 in 2026 with a double-digit 3-year CAGR through 2028 Capital investment* in the $23 billion to $24 billion range annually during 2026-2028 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 approximately $24 billion of share repurchases, including approximately $10 billion during 2026 Note: AT&T's second-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, July 22, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.
Consolidated Financial Results
Revenues for the second quarter totaled $31.6 billion, versus $30.8 billion in the year-ago quarter, up 2.3%. This was largely due to growth in Advanced Connectivity fiber and wireless revenues, with fiber revenues including the impact of our first-quarter acquisition of Lumen's mass markets fiber business. Revenues in Mexico were also higher due to favorable foreign exchange impacts. Offsetting these increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network. Operating expenses were $24.5 billion, versus $24.3 billion in the year-ago quarter. Operating expenses increased due to an asset abandonment charge associated with the reprioritization of the Company's spectrum strategy, 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 largely offset by lower depreciation expense from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. Also offsetting the increase were cost reductions from transformation initiatives, lower content licensing fees, and gains on tower transactions. Operating income was $7.0 billion, versus $6.5 billion in the year-ago quarter. When adjusting for certain items, adjusted operating income* was $7.5 billion, versus $6.5 billion in the year-ago quarter. Income from continuing operations was $5.0 billion, versus $4.9 billion in the year-ago quarter, which included equity in net income of DIRECTV. Income from continuing operations attributable to common stock was $4.6 billion, versus $4.5 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.66, versus $0.62 in the year-ago quarter. Adjusting for $(0.01), which includes a benefit from tax items that were primarily offset by an asset abandonment charge, and transaction, legal, and other items, adjusted earnings per diluted common share* was $0.65, versus $0.54 in the year-ago quarter. Adjusted EBITDA* was $12.3 billion, versus $11.7 billion in the year-ago quarter. Cash from operating activities from continuing operations was $10.8 billion versus $9.8 billion in the year-ago quarter, which benefitted from $0.3 billion of cash received from DIRECTV, net of related tax payments. The increase reflects lower cash tax payments and timing of working capital payments, which were partially offset by a voluntary pension plan contribution of $100 million. Capital expenditures related to continuing operations were $5.7 billion, compared to $4.9 billion in the year-ago quarter. Capital investment* totaled $6.1 billion, versus $5.1 billion in the year-ago quarter. Cash payments for vendor financing totaled $0.4 billion, versus $0.2 billion in the year-ago quarter. Free cash flow* was $4.7 billion, versus $4.4 billion in the year-ago quarter. Total debt was $144.0 billion at the end of the second quarter, and net debt* was $126.4 billion. Segment Results6
Advanced Connectivity service revenues grew 5.1% year over year, driving growth in operating income of 20.3% and EBITDA* of 8.0%. Internet net adds were 646,000 — comprised of 367,000 fiber and 279,000 fixed wireless — and postpaid phone net adds were 432,000.
Advanced Connectivity
Dollars in millions
Second Quarter
Percent
Unaudited
2026
2025
Change
Operating Revenues
$ 28,615
$ 27,497
4.1
%
Service
23,478
22,334
5.1
%
Wireless Service
17,413
16,853
3.3
%
Advanced Home Internet
2,926
2,299
27.3
%
Business Fiber and Advanced Connectivity
1,946
1,769
10.0
%
Business Transitional and Other
1,042
1,249
(16.6)
%
Other Service
151
164
(7.9)
%
Equipment
5,137
5,163
(0.5)
%
Operating Expenses
21,270
21,391
(0.6)
%
Operating Income
7,345
6,106
20.3
%
Operating Income Margin
25.7
%
22.2
%
350
BP
EBITDA*
$ 12,032
$ 11,141
8.0
%
EBITDA Margin*
42.0
%
40.5
%
150
BP
Advanced Connectivity segment revenues grew 4.1% year over year, driven by service revenue growth of 5.1%. 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 partly due to lower demand for virtual private network and wholesale services.
Operating expenses were down 0.6% year over year, due to lower depreciation expense from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. Also contributing to the decline were cost reductions from transformation initiatives, lower content licensing fees, and tower transaction gains. These decreases were partially offset by higher advertising expense, incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth.
Operating income was $7.3 billion, up 20.3% year over year. EBITDA* was $12.0 billion, up $891 million year over year.
Legacy revenues continued to decline year over year in line with AT&T's goal to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029.
Legacy
Dollars in millions
Second Quarter
Percent
Unaudited
2026
2025
Change
Operating Revenues
$ 1,632
$ 2,202
(25.9)
%
Operating Expenses
1,109
1,243
(10.8)
%
Operating Income
523
959
(45.5)
%
Operating Income Margin
32.0
%
43.6
%
(1,160)
BP
EBITDA*
$ 523
$ 959
(45.5)
%
EBITDA Margin*
32.0
%
43.6
%
(1,160)
BP
Legacy segment revenues were down 25.9% 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 $1.1 billion, down 10.8% 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 vendor settlements. Operating income and EBITDA* were $523 million, down $436 million year over year.
Latin America
Dollars in millions
Second Quarter
Percent
Unaudited
2026
2025
Change
Operating Revenues
$ 1,224
$ 1,054
16.1
%
Service
780
662
17.8
%
Equipment
444
392
13.3
%
Operating Expenses
1,186
1,008
17.7
%
Operating Income
38
46
(17.4)
%
EBITDA*
227
201
12.9
%
Latin America segment revenues were up 16.1% year over year, primarily driven by favorable foreign exchange rates and postpaid wireless subscriber growth. Operating expenses were up 17.7% year over year due to unfavorable foreign exchange rates, higher bad debt expense, and higher depreciation expense. Operating income was $38 million, down $8 million year over year. EBITDA* was $227 million, up $26 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 year-to-date results, unless otherwise indicated. The recently acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, of which AT&T plans to sell a controlling interest to an equity partner that will co-invest in the ongoing business. As such, the subsidiary is classified as held-for-sale and reflected as discontinued operations.
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 2Q26 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.
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 July 22, 2026. Adjusted diluted 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 2Q26, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.66 adjusted to remove $0.05 benefit from tax items and adjusted for a $0.03 asset abandonment charge, and $0.01 for benefit-related, transaction, legal and other items. For 2Q25, adjusted EPS of $0.54 is diluted EPS of $0.62 minus $0.05 equity in net income of DIRECTV and minus $0.03 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 2Q26, adjusted operating income of $7.5 billion is calculated as operating income of $7.0 billion, plus adjustments of $418 million. For 2Q25, adjusted operating income of $6.5 billion is calculated as operating income of $6.5 billion minus adjustments of $12 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated July 22, 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 2Q26, adjusted EBITDA of $12.3 billion is calculated as income from continuing operations of $5.0 billion, plus income tax expense of $0.8 billion, plus interest expense of $1.9 billion, plus equity in net income (loss) of affiliates of $(29) million, minus other income (expense) – net of $0.7 billion, plus depreciation and amortization of $5.0 billion, plus adjustments of $334 million. For 2Q25, adjusted EBITDA of $11.7 billion is calculated as income from continuing operations of $4.9 billion, plus income tax expense of $1.2 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $0.5 billion, minus other income (expense) – net of $0.8 billion, plus depreciation and amortization of $5.3 billion, minus adjustments of $21 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated July 22, 2026.
At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 2Q26, Advanced Connectivity EBITDA of $12.0 billion is operating income of $7.3 billion plus depreciation and amortization of $4.7 billion. For 2Q25, Advanced Connectivity EBITDA of $11.1 billion is operating income of $6.1 billion plus depreciation and amortization of $5.0 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 2Q26 of $4.7 billion is cash from operating activities from continuing operations of $10.8 billion, minus capital expenditures of $5.7 billion and cash paid for vendor financing of $0.4 billion. For 2Q25, free cash flow of $4.4 billion is cash from operating activities of $9.8 billion, less cash distributions from DIRECTV classified as operating activities of $0.5 billion, less cash taxes paid on DIRECTV of $0.3 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.2 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 ($0.4 billion in 2Q26, $0.2 billion in 2Q25). 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 $126.4 billion at June 30, 2026, is calculated as total debt of $144.0 billion less cash and cash equivalents of $17.6 billion and time deposits (i.e., deposits at financial institutions that are greater than 90 days) of $0. 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). We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing 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
Second Quarter
Six-Month Period
2026
2025
2026
2025
Net Cash Provided by Operating Activities from Continuing Operations
$ 10,801
$ 9,763
$ 18,396
$ 18,812
Less: Distributions from DIRECTV classified as operating activities
—
(503)
—
(1,926)
Less: Cash taxes paid on DIRECTV
—
251
—
251
Less: Capital expenditures
(5,700)
(4,897)
(10,577)
(9,174)
Less: Payment of vendor financing
(431)
(220)
(643)
(423)
Free Cash Flow
4,670
4,394
7,176
7,540
Less: Dividends paid
(1,976)
(2,044)
(3,973)
(4,135)
Free Cash Flow after Dividends
$ 2,694
$ 2,350
$ 3,203
$ 3,405
Free Cash Flow Dividend Payout Ratio
42.3 %
46.5 %
55.4 %
54.8 %
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
Second Quarter
Six-Month Period
2026
2025
2026
2025
Capital expenditures
$ (5,700)
$ (4,897)
$ (10,577)
$ (9,174)
Payment of vendor financing
(431)
(220)
(643)
(423)
Cash paid for Capital Investment
$ (6,131)
$ (5,117)
$ (11,220)
$ (9,597)
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
Second Quarter
Six-Month Period
2026
2025
2026
2025
Income from Continuing Operations
$ 5,038
$ 4,861
$ 9,257
$ 9,553
Additions:
Income Tax Expense
784
1,237
1,963
2,536
Interest Expense
1,883
1,655
3,696
3,313
Equity in Net (Income) Loss of Affiliates
29
(485)
70
(1,925)
Other (Income) Expense - Net
(696)
(767)
(1,290)
(1,222)
Depreciation and amortization
4,966
5,251
9,932
10,441
EBITDA
12,004
11,752
23,628
22,696
Transaction, legal and other costs
149
49
295
128
Benefit-related (gain) loss
(101)
(70)
(76)
(64)
Asset impairments and abandonments and restructuring
286
—
286
504
Adjusted EBITDA1
$ 12,338
$ 11,731
$ 24,133
$ 23,264
1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items.
Segment EBITDA and EBITDA Margin
Dollars in millions
Second Quarter
Six-Month Period
2026
2025
2026
2025
Advanced Connectivity Segment
Operating Income
$ 7,345
$ 6,106
$ 14,198
$ 12,078
Add: Depreciation and amortization
4,687
5,035
9,392
10,008
EBITDA
$ 12,032
$ 11,141
$ 23,590
$ 22,086
Total Operating Revenues
$ 28,615
$ 27,497
$ 57,086
$ 54,689
Operating Income Margin
25.7
%
22.2
%
24.9
%
22.1
%
EBITDA Margin
42.0
%
40.5
%
41.3
%
40.4
%
Legacy Segment
Operating Income
$ 523
$ 959
$ 1,135
$ 1,978
Add: Depreciation and amortization
—
—
—
—
EBITDA
$ 523
$ 959
$ 1,135
$ 1,978
Total Operating Revenues
$ 1,632
$ 2,202
$ 3,400
$ 4,570
Operating Income Margin
32.0
%
43.6
%
33.4
%
43.3
%
EBITDA Margin
32.0
%
43.6
%
33.4
%
43.3
%
Latin America Segment
Operating Income
$ 38
$ 46
$ 58
$ 89
Add: Depreciation and amortization
189
155
389
305
EBITDA
$ 227
$ 201
$ 447
$ 394
Total Operating Revenues
$ 1,224
$ 1,054
$ 2,397
$ 2,025
Operating Income Margin
3.1
%
4.4
%
2.4
%
4.4
%
EBITDA Margin
18.5
%
19.1
%
18.6
%
19.5
%
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
Second Quarter
Six-Month Period
2026
2025
2026
2025
Operating Expenses
Transaction, legal and other costs1
$ 149
$ 49
$ 295
$ 128
Benefit-related (gain) loss
(101)
(70)
(76)
(64)
Asset impairments and abandonments and restructuring
286
—
286
504
Adjustments to Operations and Support Expenses
334
(21)
505
568
Amortization of intangible assets
84
9
141
18
Adjustments to Operating Expenses
418
(12)
646
586
Other
Equity in net income of DIRECTV
—
(503)
—
(1,926)
Benefit-related (gain) loss, impairments of investments and other
(89)
(189)
(61)
(125)
Adjustments to Income from Continuing Operations Before
Income Taxes
329
(704)
585
(1,465)
Tax impact of adjustments
81
(168)
140
(333)
Tax-related items
365
—
365
—
Adjustments to Income From Continuing Operations
$ (117)
$ (536)
$ 80
$ (1,132)
Preferred stock redemption gain
—
—
—
(90)
Adjustments to Income From Continuing Operations
Attributable to Common Stock
$ (117)
$ (536)
$ 80
$ (1,222)
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
Second Quarter
Six-Month Period
2026
2025
2026
2025
Operating Income
$ 7,038
$ 6,501
$ 13,696
$ 12,255
Adjustments to Operating Expenses
418
(12)
646
586
Adjusted Operating Income
$ 7,456
$ 6,489
$ 14,342
$ 12,841
EBITDA
$ 12,004
$ 11,752
$ 23,628
$ 22,696
Adjustments to Operations and Support Expenses
334
(21)
505
568
Adjusted EBITDA
$ 12,338
$ 11,731
$ 24,133
$ 23,264
Total Operating Revenues
$ 31,558
$ 30,847
$ 63,064
$ 61,473
Operating Income Margin
22.3 %
21.1 %
21.7 %
19.9 %
Adjusted Operating Income Margin
23.6 %
21.0 %
22.7 %
20.9 %
Adjusted EBITDA Margin
39.1 %
38.0 %
38.3 %
37.8 %
Adjusted Diluted EPS
Second Quarter
Six-Month Period
2026
2025
2026
2025
Diluted Earnings Per Share (EPS) From Continuing
Operations
$ 0.66
$ 0.62
$ 1.21
$ 1.22
Equity in net income of DIRECTV
—
(0.05)
—
(0.21)
Restructuring and impairments
0.03
—
0.03
0.05
Benefit-related, transaction, legal and other items
0.01
(0.03)
0.03
(0.01)
Tax-related items
(0.05)
—
(0.05)
—
Adjusted EPS
$ 0.65
$ 0.54
$ 1.22
$ 1.05
Year-over-year growth - Adjusted
20.4 %
16.2 %
Weighted Average Common Shares Outstanding with
Dilution (000,000)
6,946
7,219
6,987
7,221
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 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
Sept. 30,
Dec. 31,
March 31,
June 30,
Four
Quarters
20251
20251
20261
2026
Adjusted EBITDA
$ 11,861
$ 11,236
$ 11,795
$ 12,338
$ 47,230
End-of-period current debt
9,323
End-of-period long-term debt
134,631
Total End-of-Period Debt
143,954
Less: Cash and Cash Equivalents
17,570
Net Debt Balance
126,384
Annualized Net Debt to Adjusted EBITDA Ratio
2.68
1 As reported in AT&T's Form 8-K filed April 22, 2026.
Net Debt to Adjusted EBITDA - 2025
Dollars in millions
Three Months Ended
Sept. 30,
Dec. 31,
March 31,
June 30,
Four
Quarters
20241
20241
20251
20251
Adjusted EBITDA
$ 11,586
$ 10,791
$ 11,533
$ 11,731
$ 45,641
End-of-period current debt
9,254
End-of-period long-term debt
123,057
Total End-of-Period Debt
132,311
Less: Cash and Cash Equivalents
10,499
Less: Time Deposits
1,500
Net Debt Balance
120,312
Annualized Net Debt to Adjusted EBITDA Ratio
2.64
1 As reported in AT&T's Form 8-K filed April 22, 2026.
Small toy figures with laptops and smartphones are seen in front of displayed AT&T logo, in this illustration taken December 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
July 22 (Reuters) - AT&T (T.N), opens new tab added more wireless subscribers than expected in the second quarter, as its revamped low-cost, unlimited plans along with bundled mobile and broadband offerings attracted value-conscious customers.
Shares of the company jumped 5% in premarket trading on Wednesday.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
The gains build on AT&T's broader convergence strategy of selling multiple connectivity services to the same household to reduce churn and increase customer lifetime value as U.S. telecom providers chase the same finite pool of users.
AT&T in March launched OneConnect, a single subscription that bundles unlimited wireless service with home internet under one monthly bill.
It has also rolled out customizable Build-A-Plan options and new entry-level wireless plans with more high-speed data, while continuing to invest aggressively in expanding its fiber network.
AT&T added 432,000 net monthly bill-paying wireless subscribers during the April to June period, flying past estimates of 338,500 additions, according to FactSet.
The bundled offerings also helped the company post record broadband additions, with 367,000 new fiber internet users and 279,000 fixed wireless subscribers.
About 42.5% of homes using AT&T's advanced internet services are also subscribing to its wireless.
For the second quarter, total revenue stood at $31.6 billion, compared with estimates of $31.80 billion, according to data compiled by LSEG.
Adjusted earnings per share came in at 65 cents, compared with analysts' average estimate of 59 cents.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HomeIndustriesTelecommunicationsEarnings ResultsEarnings ResultsThe telecommunications company beat expectations on subscriber growth, free cash flow and profitJuly 22, 2026, 6:42 a.m. ET
AT&T’s stock was rising in premarket action on Wednesday as the company showed further progress with its strategy of selling customers both internet and mobile service.
The company reported 432,000 postpaid phone net additions for the second quarter, with the figure tracking customers who pay for phone service after each cycle is complete. Analysts tracked by FactSet had been expecting 338,500 postpaid phone net adds.
Americký telekomunikační operátor AT&T zveřejnil hospodářské výsledky za druhé čtvrtletí roku 2026. Čistý přírůstek postpaid mobilních zákazníků překonal průměrný odhad analytiků. Nad očekáváním byly rovněž očištěný zisk na akcii a očištěná EBITDA.
Výsledky společnosti AT&T (T) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Výnosy (mld. USD) 31,56 31,77 30,85 Čistý zisk (mld. USD) 4,59 -- 4,46 Očištěný zisk na akcii (EPS, USD/akcie) 0,65 0,59 0,54 Výsledky za 2Q Výnosy meziročně vzrostly o 2,6 % na 31,56 mld. USD.
Čistý přírůstek postpaid mobilních zákazníků dosáhl 432 000, nad odhadem 325 264. Míra odchodovosti (churn) u postpaid zákazníků s pouze mobilním tarifem činila 0,86 %.
Očištěná EBITDA vzrostla meziročně o 5,1 % na 12,3 mld. USD, nad odhadem 12,1 mld. USD.
Volný hotovostní tok dosáhl 4,7 mld. USD.
Výhled na FY 2026 Firma potvrzuje celoroční výhled pro rok 2026:
Volný hotovostní tok alespoň 18 mld. USD (konsensus: 18,17 mld. USD). Očištěný zisk na akcii 2,25–2,35 USD (konsensus: 2,32 USD). Růst očištěné EBITDA o 3 % až 4 %. Komentář vedení John Stankey, předseda představenstva a generální ředitel AT&T, uvedl: „Zrychlený růst, kterého jsme dosáhli v tomto čtvrtletí, ukazuje naše strukturální výhody vést další éru konektivity. Zrychlujeme tempo plánovaných zpětných odkupů akcií na letošní rok na přibližně 10 mld. USD, což odráží naši důvěru v naši tržní pozici. Díky vedoucímu postavení ve vláknové optice – nejlepší dostupné konektivní technologii – věříme, že náš výkon sítě a provozní rozsah nemají konkurenci.“
Návrat kapitálu akcionářům Společnost za čtvrtletí vrátila akcionářům 4,1 mld. USD, z toho přibližně 2,2 mld. USD formou zpětného odkupu akcií v rámci programu z roku 2024.
Návrat kapitálu akcionářům, zdroj: AT&T
Akcie AT&T Akcie AT&T (T) v předburzovní fázi obchodování rostou o 3,23 % na 22,98 USD.
Akcie AT&T Inc (T) před výsledky uzavřely na 22,26 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 154,7 P/E 12,4 Vývoj za letošní rok (%) -10,4 Očekávané P/E 9,6 52týdenní minimum (USD) 19,9 Prům. cílová cena (USD) 29,2 52týdenní maximum (USD) 29,8 Dividendový výnos (%) 5,0 Zdroj: AT&T, Bloomberg
AT&T Inc. (NYSE:T) will release its second quarter earnings report before the opening bell on Wednesday, July 22.
Analysts expect the Dallas, Texas-based company to report quarterly earnings of 59 cents per share, up from 54 cents per share in the year-ago period. The consensus estimate for AT&T’s quarterly revenue is $31.82 billion. It reported $30.85 billion last year, according to Benzinga Pro.
On July 7, AT&T, Ericsson and MediaTek completed North America’s first in-field trial of enhanced mobility features tied to Ericsson’s 5G Advanced Critical IoT subscription.
Shares of AT&T rose 1.4% to close at $22.26 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying T stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Andra AP fonden reduced its position in shares of AT&T Inc. (NYSE:T – Free Report) by 40.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 728,787 shares of the technology company’s stock after selling 491,513 shares during the quarter. Andra AP fonden’s holdings in AT&T were worth $21,128,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also modified their holdings of the company. Norges Bank acquired a new stake in shares of AT&T during the fourth quarter worth approximately $2,181,977,000. Amundi boosted its stake in shares of AT&T by 67.5% during the 3rd quarter. Amundi now owns 42,295,492 shares of the technology company’s stock valued at $1,094,184,000 after buying an additional 17,040,328 shares during the period. Alyeska Investment Group L.P. grew its holdings in shares of AT&T by 620.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 11,891,778 shares of the technology company’s stock valued at $295,392,000 after acquiring an additional 10,241,949 shares in the last quarter. State Street Corp grew its holdings in shares of AT&T by 2.6% during the 4th quarter. State Street Corp now owns 332,089,723 shares of the technology company’s stock valued at $8,249,109,000 after acquiring an additional 8,314,678 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of AT&T by 49.2% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 25,155,597 shares of the technology company’s stock worth $624,865,000 after acquiring an additional 8,297,201 shares during the last quarter. Hedge funds and other institutional investors own 57.10% of the company’s stock.
Analysts Set New Price Targets A number of equities research analysts have recently weighed in on the company. Citigroup raised their price target on AT&T from $29.00 to $31.50 and gave the stock a “buy” rating in a research note on Monday, March 23rd. Barclays dropped their price objective on AT&T from $26.00 to $24.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 8th. KeyCorp raised their price objective on shares of AT&T from $30.00 to $36.00 and gave the company an “overweight” rating in a research report on Wednesday, March 25th. Weiss Ratings downgraded shares of AT&T from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, May 29th. Finally, Wells Fargo & Company initiated coverage on shares of AT&T in a research note on Wednesday, July 8th. They set an “underweight” rating and a $18.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $29.14.
Get Our Latest Stock Analysis on T
Trending Headlines about AT&T Here are the key news stories impacting AT&T this week:
Positive Sentiment: AT&T is set to raise some home internet plan prices by $5, which could lift average revenue per user and improve near-term margins. These AT&T home internet plans are getting a $5 price hike Positive Sentiment: EDO said AT&T had one of the most engaging ads during FIFA World Cup 2026™, suggesting its marketing is resonating with viewers and potentially supporting brand strength. Kalshi, Oura Ring, and AT&T Score the Most Engaging Ads of the FIFA World Cup 2026™, ranked by TV outcomes data on edo.com/worldcup Neutral Sentiment: AT&T is working with major peers on a network-level tool to fight AI-driven identity fraud and is also testing low-latency 5G mobility technology, highlighting ongoing innovation but no immediate financial impact. AT&T (T) Takes On Identity Fraud While Testing Real Time 5G Mobility Neutral Sentiment: AT&T disclosed $2.65 million in Q2 lobbying spending, focused on broadband, spectrum, cybersecurity, and telecom policy issues that are important to the business but unlikely to move the stock on their own. Lobbying Update: $2,650,000 of AT&T SERVICES INC AND ITS AFFILIATES lobbying was just disclosed Neutral Sentiment: RBC Capital lowered its price target on AT&T to $27 from $31 while keeping an outperform rating, which is mildly positive overall but signals a slightly less optimistic valuation view. AT&T had its price target lowered by Royal Bank Of Canada from $31.00 to $27.00. Negative Sentiment: News that AT&T may raise home internet prices for lower-income customers could trigger churn concerns and political backlash, partially offsetting the benefit of higher pricing. AT&T is raising prices again, and this time low-income customers won’t be spared AT&T Stock Performance Shares of NYSE T opened at $22.00 on Tuesday. The business’s 50-day simple moving average is $22.92 and its 200-day simple moving average is $25.28. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.87 and a current ratio of 0.92. AT&T Inc. has a 52 week low of $19.89 and a 52 week high of $29.79. The firm has a market cap of $152.83 billion, a price-to-earnings ratio of 7.38, a P/E/G ratio of 0.86 and a beta of 0.24.
AT&T (NYSE:T – Get Free Report) last announced its earnings results on Wednesday, April 22nd. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.02. AT&T had a return on equity of 12.49% and a net margin of 16.94%.The firm had revenue of $31.51 billion during the quarter, compared to analysts’ expectations of $31.29 billion. During the same quarter in the prior year, the business earned $0.51 earnings per share. The company’s revenue was up 2.9% on a year-over-year basis. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, equities research analysts expect that AT&T Inc. will post 2.32 earnings per share for the current fiscal year.
AT&T Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a $0.2775 dividend. The ex-dividend date is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 5.0%. AT&T’s payout ratio is presently 37.25%.
AT&T Profile (Free Report)
AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
Read More Five stocks we like better than AT&T The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for AT&T Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINELowe’s Companies, Inc. $LOW Shares Sold by Andra AP fonden
NEXT HEADLINE »iShares MSCI EAFE Value ETF $EFV Stock Holdings Trimmed by Assetmark Inc.
In its upcoming report, AT&T (T - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.59 per share, reflecting an increase of 9.3% compared to the same period last year. Revenues are forecasted to be $32.04 billion, representing a year-over-year increase of 3.9%.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
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 investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain AT&T metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenues- Corporate and Other' of $90.93 million. The estimate indicates a change of -3.3% from the prior-year quarter.
Analysts forecast 'Revenues- Latin America' to reach $1.13 billion. The estimate indicates a change of +7.1% from the prior-year quarter.
Analysts expect 'Revenues- Latin America- Wireless equipment' to come in at $427.92 million. The estimate indicates a change of +9.2% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenues- Latin America- Wireless service' should come in at $678.12 million. The estimate points to a change of +2.4% from the year-ago quarter.
Based on the collective assessment of analysts, 'Consumer Wireline - Broadband Connections - Fiber Broadband Connections' should arrive at 12.81 million. The estimate is in contrast to the year-ago figure of 9.84 million.
Analysts' assessment points toward 'Consumer Wireline - Internet Air' reaching 255.00 thousand. Compared to the current estimate, the company reported 203.00 thousand in the same quarter of the previous year.
It is projected by analysts that the 'Consumer Wireline - Broadband Connections - Non Fiber Broadband Connections' will reach 2.63 million. The estimate is in contrast to the year-ago figure of 4.43 million.
The average prediction of analysts places 'Consumer Wireline - Fiber Broadband Net Additions' at 311.67 thousand. Compared to the present estimate, the company reported 243.00 thousand in the same quarter last year.
The consensus estimate for 'Latin America - Total Mexico Wireless Net Additions' stands at 241.09 thousand. The estimate is in contrast to the year-ago figure of 235.00 thousand.
Analysts predict that the 'Mobility Subscribers - Postpaid phone' will reach 91.32 million. The estimate is in contrast to the year-ago figure of 73.41 million.
The combined assessment of analysts suggests that 'Latin America - Total Mexico Wireless Subscribers' will likely reach 24.34 million. Compared to the present estimate, the company reported 23.84 million in the same quarter last year.
The consensus among analysts is that 'Mobility Net Additions - Postpaid' will reach 308.54 thousand. Compared to the present estimate, the company reported 479.00 thousand in the same quarter last year.
View all Key Company Metrics for AT&T here>>>
Over the past month, AT&T shares have recorded returns of -0.9% versus the Zacks S&P 500 composite's +0.6% 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 >>>> .
Bessemer Group Inc. grew its stake in shares of AT&T Inc. (NYSE:T – Free Report) by 71.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 217,768 shares of the technology company’s stock after purchasing an additional 90,417 shares during the quarter. Bessemer Group Inc.’s holdings in AT&T were worth $6,314,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently modified their holdings of T. Brighton Jones LLC raised its stake in shares of AT&T by 26.5% during the fourth quarter. Brighton Jones LLC now owns 48,579 shares of the technology company’s stock valued at $1,106,000 after purchasing an additional 10,188 shares during the period. Osterweis Capital Management Inc. boosted its stake in shares of AT&T by 4,352.9% in the second quarter. Osterweis Capital Management Inc. now owns 6,234 shares of the technology company’s stock valued at $180,000 after purchasing an additional 6,094 shares during the period. Main Street Financial Solutions LLC boosted its stake in shares of AT&T by 4.0% in the second quarter. Main Street Financial Solutions LLC now owns 26,796 shares of the technology company’s stock valued at $775,000 after purchasing an additional 1,022 shares during the period. HUB Investment Partners LLC grew its holdings in AT&T by 19.6% during the 2nd quarter. HUB Investment Partners LLC now owns 55,730 shares of the technology company’s stock valued at $1,613,000 after purchasing an additional 9,115 shares in the last quarter. Finally, Peapack Gladstone Financial Corp grew its holdings in AT&T by 1.8% during the 2nd quarter. Peapack Gladstone Financial Corp now owns 207,063 shares of the technology company’s stock valued at $5,992,000 after purchasing an additional 3,677 shares in the last quarter. Institutional investors and hedge funds own 57.10% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities analysts have commented on the stock. Scotiabank cut their price objective on shares of AT&T from $31.00 to $29.25 and set a “sector perform” rating on the stock in a report on Wednesday, July 15th. Oppenheimer cut shares of AT&T from an “outperform” rating to a “market perform” rating in a research report on Wednesday, June 3rd. BNP Paribas Exane lowered their target price on AT&T from $28.00 to $26.00 and set a “neutral” rating for the company in a research note on Thursday, April 23rd. Wells Fargo & Company initiated coverage on AT&T in a research report on Wednesday, July 8th. They set an “underweight” rating and a $18.00 target price on the stock. Finally, Morgan Stanley cut their price target on AT&T from $30.00 to $25.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, AT&T has an average rating of “Moderate Buy” and an average target price of $29.34.
Read Our Latest Stock Analysis on T
Key Headlines Impacting AT&T Here are the key news stories impacting AT&T this week:
Positive Sentiment: Analysts have recently raised earnings estimates for AT&T, and several firms maintain price targets well above the current share price, including a new $29.25 target from Scotiabank and a median target around $25.50. This suggests Wall Street still sees upside if execution stays on track. Analysts Set AT&T Inc. (NYSE:T) Target Price at $29.68 Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 EPS estimates for AT&T, reinforcing expectations that earnings remain stable and could support valuation ahead of the report. Positive Sentiment: AT&T said its AI-based network outage prevention system cut customer downtime by more than 12 million hours, highlighting improving network reliability and a potential operational advantage. AT&T built an AI system to prevent network outages. It reduced customer downtime by more than 12 million hours Positive Sentiment: Recent commentary ahead of earnings points to continued expansion in fiber, enterprise connectivity, and connected-car offerings, which could help offset slower growth in wireless. Neutral Sentiment: Investor and hedge-fund activity appears mixed: some large funds have added to AT&T, while others reduced exposure, suggesting the name remains widely watched but not universally favored. Neutral Sentiment: AT&T also disclosed modest lobbying activity tied to telecom regulation, broadband support, and spectrum issues. That is important for the business, but it is not a near-term earnings catalyst. Negative Sentiment: Competition in telecom remains intense, and several recent articles emphasize that AT&T still has questions to answer on growth and execution heading into earnings. That uncertainty is likely weighing on shares. Negative Sentiment: Some analyst targets remain below the current trading range, including recent calls from Wells Fargo and Scotiabank in the high teens to low $20s, showing that not all analysts believe the rally is fully justified. AT&T Stock Down 0.1% T stock opened at $21.79 on Monday. The company has a current ratio of 0.92, a quick ratio of 0.87 and a debt-to-equity ratio of 1.05. The firm has a 50 day simple moving average of $22.98 and a 200-day simple moving average of $25.30. The company has a market capitalization of $151.38 billion, a P/E ratio of 7.31, a PEG ratio of 0.86 and a beta of 0.24. AT&T Inc. has a twelve month low of $19.89 and a twelve month high of $29.79.
AT&T (NYSE:T – Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The technology company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.02. The firm had revenue of $31.51 billion for the quarter, compared to the consensus estimate of $31.29 billion. AT&T had a net margin of 16.94% and a return on equity of 12.49%. The firm’s revenue was up 2.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.51 EPS. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, equities research analysts predict that AT&T Inc. will post 2.32 earnings per share for the current fiscal year.
AT&T Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a $0.2775 dividend. This represents a $1.11 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Friday, July 10th. AT&T’s dividend payout ratio is 37.25%.
AT&T Profile (Free Report)
AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
Recommended Stories Five stocks we like better than AT&T Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks 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).
Receive News & Ratings for AT&T Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINESteppe Cement (LON:STCM) Insider Javier del Ser Perez Buys 122,000 Shares
NEXT HEADLINE »Western Forest Products (TSE:WEF) Director Sells C$34,290.00 in Stock
Dimensional Fund Advisors LP grew its position in shares of AT&T Inc. (NYSE:T – Free Report) by 0.1% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 50,056,268 shares of the technology company’s stock after purchasing an additional 54,362 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.72% of AT&T worth $1,451,033,000 as of its most recent SEC filing.
Several other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. lifted its position in AT&T by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 664,055,700 shares of the technology company’s stock worth $16,495,144,000 after buying an additional 3,585,661 shares during the last quarter. State Street Corp grew its position in AT&T by 2.6% during the fourth quarter. State Street Corp now owns 332,089,723 shares of the technology company’s stock valued at $8,249,109,000 after acquiring an additional 8,314,678 shares during the last quarter. Bank of America Corp DE grew its position in AT&T by 3.5% during the fourth quarter. Bank of America Corp DE now owns 119,742,478 shares of the technology company’s stock valued at $2,974,403,000 after acquiring an additional 4,079,062 shares during the last quarter. Norges Bank purchased a new position in shares of AT&T during the fourth quarter worth approximately $2,181,977,000. Finally, Bank of New York Mellon Corp raised its stake in shares of AT&T by 12.7% during 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 acquiring an additional 8,197,935 shares in the last quarter. 57.10% of the stock is currently owned by institutional investors.
AT&T Stock Down 0.1% Shares of AT&T stock opened at $21.79 on Monday. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.87 and a current ratio of 0.92. AT&T Inc. has a 52-week low of $19.89 and a 52-week high of $29.79. The company’s 50 day moving average price is $22.98 and its 200-day moving average price is $25.30. The stock has a market capitalization of $151.38 billion, a price-to-earnings ratio of 7.31, a P/E/G ratio of 0.86 and a beta of 0.24.
AT&T (NYSE:T – Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.02. The company had revenue of $31.51 billion during the quarter, compared to analyst estimates of $31.29 billion. AT&T had a net margin of 16.94% and a return on equity of 12.49%. The firm’s revenue was up 2.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.51 EPS. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Equities research analysts forecast that AT&T Inc. will post 2.32 EPS for the current year.
AT&T Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a $0.2775 dividend. The ex-dividend date is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 5.1%. AT&T’s payout ratio is presently 37.25%.
Analysts Set New Price Targets Several research firms recently commented on T. BNP Paribas Exane reduced their target price on shares of AT&T from $28.00 to $26.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. Wells Fargo & Company initiated coverage on shares of AT&T in a research note on Wednesday, July 8th. They issued an “underweight” rating and a $18.00 price target for the company. Morgan Stanley cut their price target on shares of AT&T from $30.00 to $25.00 and set an “overweight” rating for the company in a research report on Tuesday, July 7th. Citigroup raised their price objective on AT&T from $29.00 to $31.50 and gave the company a “buy” rating in a research note on Monday, March 23rd. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $31.00 price objective on shares of AT&T in a report on Wednesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $29.34.
Get Our Latest Report on T
AT&T News Summary Here are the key news stories impacting AT&T this week:
Positive Sentiment: Analysts have recently raised earnings estimates for AT&T, and several firms maintain price targets well above the current share price, including a new $29.25 target from Scotiabank and a median target around $25.50. This suggests Wall Street still sees upside if execution stays on track. Analysts Set AT&T Inc. (NYSE:T) Target Price at $29.68 Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 EPS estimates for AT&T, reinforcing expectations that earnings remain stable and could support valuation ahead of the report. Positive Sentiment: AT&T said its AI-based network outage prevention system cut customer downtime by more than 12 million hours, highlighting improving network reliability and a potential operational advantage. AT&T built an AI system to prevent network outages. It reduced customer downtime by more than 12 million hours Positive Sentiment: Recent commentary ahead of earnings points to continued expansion in fiber, enterprise connectivity, and connected-car offerings, which could help offset slower growth in wireless. Neutral Sentiment: Investor and hedge-fund activity appears mixed: some large funds have added to AT&T, while others reduced exposure, suggesting the name remains widely watched but not universally favored. Neutral Sentiment: AT&T also disclosed modest lobbying activity tied to telecom regulation, broadband support, and spectrum issues. That is important for the business, but it is not a near-term earnings catalyst. Negative Sentiment: Competition in telecom remains intense, and several recent articles emphasize that AT&T still has questions to answer on growth and execution heading into earnings. That uncertainty is likely weighing on shares. Negative Sentiment: Some analyst targets remain below the current trading range, including recent calls from Wells Fargo and Scotiabank in the high teens to low $20s, showing that not all analysts believe the rally is fully justified. AT&T Profile (Free Report)
AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.
AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.
Read More Five stocks we like better than AT&T Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks 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).
Receive News & Ratings for AT&T Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEDimensional Fund Advisors LP Raises Stake in Pfizer Inc. $PFE
NEXT HEADLINE »Dimensional Fund Advisors LP Increases Position in ConocoPhillips $COP
Key Takeaways AT&T reports Q2 earnings on July 22, with the model indicating a likely earnings beat.T expanded enterprise connectivity, connected car services and flexible consumer wireless offerings.AT&T is investing in fiber expansion, but intense telecom remain a challenge. AT&T Inc. (T - Free Report) is scheduled to report second-quarter 2026 earnings on July 22, before the opening bell. The Zacks Consensus Estimate for revenues and earnings is pegged at $32.04 billion and 59 cents per share, respectively. The earnings estimate for AT&T for 2026 has increased 0.43% to $2.32 per share over the past 60 days, while the same for 2027 has increased 0.79% to $2.55 per share.
Image Source: Zacks Investment Research
Earnings Surprise HistoryThe communications service provider delivered a trailing four-quarter earnings surprise of 5.19%, on average.
Image Source: Zacks Investment Research
Earnings WhispersOur proven model predicts a likely earnings beat for AT&T for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. AT&T currently has an ESP of +4.83% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping the Upcoming ResultsDuring the quarter, AT&T strengthened its enterprise connectivity portfolio with several strategic initiatives. The company launched North America's first Post-Quantum Cryptography (PQC)-enabled Software-Defined Wide Area Network (SD-WAN) service in collaboration with Cisco. The solution is designed to help enterprises protect sensitive data against emerging quantum computing-related cyber threats.
The company also expanded its connected vehicle ecosystem by extending its collaboration with Cisco and LiveOne. The enhanced Connected Car platform integrates in-vehicle connectivity with digital entertainment services. Such innovative product launches are expected to have a positive impact on upcoming results.
In the to be reported quarter, the company continued to expand its consumer connectivity offerings by introducing the Unlimited Day Pass for eligible iPad users. The on-demand service provides flexible wireless connectivity without requiring a long-term subscription.
AT&T also reaffirmed its long-term commitment to fiber and wireless expansion by announcing a $19 billion investment in California through 2030. The initiative aims to extend fiber connectivity to more than 4 million additional households and businesses.
However, AT&T continues to face intense competition in the U.S. telecom market from Verizon Communications, Inc. (VZ - Free Report) and Charter Communications (CHTR - Free Report) . This could limit subscriber additions and weigh on revenue growth.
Price PerformanceOver the past year, AT&T has declined 17.5% against the industry’s growth of 83.2%, outperforming its peers like Charter but underperforming Verizon. Charter has declined 65%, while Verizon has improved 8.8% during this period.
Image Source: Zacks Investment Research
Key Valuation MetricFrom a valuation standpoint, AT&T appears to be trading relatively cheaper than the industry and below its mean. Going by the price/earnings ratio, the company shares currently trade at 9.03 forward earnings, lower than 44.18 for the industry and the stock’s mean of 11.4
Image Source: Zacks Investment Research
Investment ConsiderationsAT&T is aggressively expanding its fiber footprint. The company has reached more than 37 million fiber locations, the highest in America. It is aiming to expand this footprint to more than 60 million locations by the end of the decade. Fiber is emerging as a critical component for AI native connectivity, cloud applications, streaming, gaming, enterprise workloads and next-generation digital experiences. Amid this backdrop, AT&T’s continuous investment in developing a robust fiber architecture nationwide will likely bring long-term benefits.
However, the U.S. telecom market is highly competitive. Major rivals like Verizon and Charter are also aggressively investing in fiber, fixed wireless access, and customer acquisition. T must continue offering attractive pricing, bundled services and network improvements to maintain subscriber growth. In the wireless domain, T-Mobile is also rapidly expanding its 5G network. This could pose a threat to AT&T’s wireless subscriber growth.
It has been implementing several initiatives to drive customer retention over the past several quarters. Its convergence strategy has become one of the central pillars of these retention efforts. The company is focused on increasing the number of households that subscribe to both AT&T wireless and broadband services, including AT&T Fiber and AT&T Internet Air.
When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. From a user’s point of view, opting for fiber and wireless services from a single vendor reduces complexity for them as well. This trend improves customer retention, lowers churn and increases long-term customer value.
AT&T continues to experience steep declines in legacy wireline and copper-based services as customers migrate to newer technologies. The company's long-term growth story relies on massive investments in fiber and wireless infrastructure. It is accelerating fiber deployment, investing $19 billion in California alone through 2030, which places pressure on free cash flow.
End NoteAT&T continues to invest in fiber and 5G to expand advanced Internet reach and drive more households to buy wireless and home Internet together. Management expects fiber reach to grow by about 8 million locations in 2026, including over 4 million locations acquired from Lumen, and remains on track to reach over 40 million total fiber locations by the end of 2026. The effort of portfolio expansion and venture into new high-growth markets, such as network security and automotive, is a positive.
However, the U.S. wireless market remains saturated. This makes the market highly price sensitive and limits average revenue per user growth. Amid stiff competition from other major players, the company has to continuously invest in network upgrades and improve customer experience to maintain its market share, which impacts profitability. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and new investors could be better off if they trade with caution.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TMUS, VZ 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.
AT&T is helping fans compete, collect, and connect through experiences built around the passions, personalities, and moments driving modern fandom.
Key Takeaways:
Game on. Hosted by Nate Burleson, the AT&T Connection Cup gives fans the chance to compete in fan and celebrity matchups for exclusive memorabilia, Fanatics FanCash, and ultimate bragging rights. Celebrity appearances. Fourteen athletes and celebrity captains will join special Connection Cup competitions throughout the weekend, drafting everyday fans onto their squad to battle it out on the floor. VIP treatment. Eligible AT&T customers receive exclusive access to the AT&T Customer Lounge with charging stations, limited-edition merch drops, complimentary Screen Skinz, and more. Network powered by AT&T. From pack rips to grail pulls, AT&T is keeping fans connected across Fanatics Fest NYC. , /PRNewswire/ -- AT&T is bringing fans into the moments that shape sports culture at Fanatics Fest NYC. Taking over Javits Center July 16-19, AT&T is creating new ways for fans to play, collect, and connect through immersive experiences, celebrity moments, and exclusive customer benefits. And behind every pack rip, card trade, and pull is the AT&T network making it all possible.
"Fanatics Fest is where the biggest personalities, stories, and viral moments in sports come to life," said Kellyn Smith Kenny, chief marketing & growth officer at AT&T. "From headline-making reveals to unforgettable fan experiences, sports culture moves in real time. AT&T is proud to keep fans connected to the moments everyone is talking about as they happen."
Bringing Fans into the Action
At the center of AT&T's on-site experience is the AT&T Connection Cup, a live fan competition hosted by studio host-analyst Nate Burleson that puts sports knowledge, fandom, and on-the-spot skills to the test. Throughout all four days of Fanatics Fest, attendees will have opportunities to compete in both fan-only and celebrity-led versions of the Connection Cup for prizes, exclusive memorabilia, and bragging rights. Eligible AT&T customers will receive priority access for participation across all Connection Cup experiences.
"Hosting the AT&T Connection Cup means I get to pull fans out of the crowd and put them on the mic, in the game, and shoulder-to-shoulder with the celebrity captains they came to see," said Nate Burleson, Emmy Award winning studio host-analyst and media personality. "And with the power of AT&T's connection, those fan moments will travel far beyond the floor."
Fourteen athletes and celebrity captains will face off two at a time, drafting fans onto their squads to battle through sports trivia, memorabilia challenges and unexpected physical competitions. Expect dynamic duos, on-court rivals turned weekend frenemies and pairings fans didn't see coming including Nikki and Brie Bella, Amon-Ra St. Brown and Jahmyr Gibbs, Alex Morgan and Candace Parker, David Wright and Don Mattingly, Folarin Balogun and Jared McCain, Jose Alvarado and Josh Hart, and Noah Lyles and Jordan Chiles.
As presenting partner of the Fanatics Collect Card Combine, AT&T is also helping bring the card-collecting hobby to life through an immersive experience designed to connect longtime collectors and first-time fans alike. From opening a first pack and trading cards to learning about grading and discovering the stories behind iconic collectibles, fans can explore every stage of the collecting journey through hands-on activities throughout the experience. Eligible AT&T customers will receive elevated card packs during the "First Pack" moment, marking the culmination of the Card Combine.
More for AT&T Customers
AT&T customers will get even closer to the action at Fanatics Fest NYC through exclusive perks designed to make the weekend easier and even more memorable.
On-site, eligible AT&T customers will have access to the AT&T Customer Lounge, a dedicated space to recharge, reset, and stay connected between sessions. Inside, customers can take advantage of:
Charging stations to keep devices ready for every moment Custom giveaways and limited-edition Fanatics Fest merch Complimentary Screen Skinz and live sneaker cleaning Priority access to participate in AT&T Connection Cup experiences throughout the weekend AT&T's presence at Fanatics Fest builds on a broader partnership with Fanatics that delivers for customers all year long. Eligible AT&T customers will be able to jump straight to Fanatics ONE Member Pro status in the coming months – no points required. This will bring them closer to the drops, special offers, FanCash opportunities, and one-of-a-kind moments that fuel modern fandom.
Powering The Fan Experience
AT&T is supporting connectivity throughout the Javits Center to meet the demands of hundreds of thousands of expected fans, with enhanced 5G coverage and capacity designed to support how attendees capture, share, and experience the action across Fanatics Fest.
Behind the scenes, AT&T engineers will be on site monitoring performance and supporting network reliability throughout the event to ensure that fans, partners, and Fanatics operations stay connected during one of the busiest sports weekends of the year.
Frequently Asked Questions
When is Fanatics Fest and where is it held? Fanatics Fest takes place July 16-19, 2026 at the Jacob K. Javits Convention Center in New York City. AT&T's activation runs across all four days of the event. What is AT&T doing at Fanatics Fest? As the Official Connectivity Provider of the Fan, AT&T is bringing three headline experiences to Fanatics Fest: the AT&T Connection Cup live game show hosted by Nate Burleson, the AT&T Customer Lounge for eligible customers, and presenting partnership of the Fanatics Collect Card Combine. What is the AT&T Connection Cup? The AT&T Connection Cup is a live fan competition inside the Javits Center hosted by Nate Burleson. Fans compete alongside celebrity captains in sports trivia, memorabilia challenges, and on-the-spot physical competitions for exclusive memorabilia, Fanatics FanCash, and bragging rights. Which celebrity captains and athletes are appearing at the AT&T Connection Cup? Fourteen athletes and celebrity captains will face off across the weekend, including Nikki Bella, Brie Bella, Amon-Ra St. Brown, Jahmyr Gibbs, Alex Morgan, Candace Parker, David Wright, Don Mattingly, Folarin Balogun, Jared McCain, Jose Alvarado, Josh Hart, Noah Lyles and Jordan Chiles. What perks do AT&T customers get at Fanatics Fest NYC? Eligible AT&T wireless and internet customers with the AT&T app or Smart Home Manager app get access to the AT&T Customer Lounge with charging stations, custom giveaways, limited-edition Fanatics Fest merch, complimentary Screen Skinz, and live sneaker cleaning. Customers also get priority access to the AT&T Connection Cup and elevated card packs at the "First Pack" moment inside the Fanatics Collect Card Combine. How is AT&T powering connectivity at Fanatics Fest NYC? AT&T is supporting connectivity throughout the Javits Center to meet the demands of hundreds of thousands of expected fans, with enhanced 5G coverage and capacity designed to support how attendees experience Fanatics Fest. AT&T engineers will be on site throughout the weekend monitoring network performance and supporting reliability for fans, partners, and Fanatics operations. Beyond this event, AT&T shows up for New Yorkers every day, delivering reliable mobile coverage and internet through AT&T Internet Air, our 5G home internet service. 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
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? AT&T (T - Free Report) , which belongs to the Zacks Wireless National industry, could be a great candidate to consider.
This telecommunications company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.34%.
For the most recent quarter, AT&T was expected to post earnings of $0.55 per share, but it reported $0.57 per share instead, representing a surprise of 3.64%. For the previous quarter, the consensus estimate was $0.46 per share, while it actually produced $0.52 per share, a surprise of 13.04%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for AT&T. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
AT&T currently has an Earnings ESP of +4.83%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 22, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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 June 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 July 22, 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 $0.59 per share in its upcoming report, which represents a year-over-year change of +9.3%.
Revenues are expected to be $32.1 billion, up 4.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.28% higher 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
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 +4.83%.
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?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. 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 $0.55 per share when it actually produced earnings of $0.57, delivering a surprise of +3.64%.
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.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Wireless National industry, AT&T (T - Free Report) , is soon expected to post earnings of $0.59 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +9.3%. This quarter's revenue is expected to be $32.1 billion, up 4.1% from the year-ago quarter.
The consensus EPS estimate for AT&T has been revised 1.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.83%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that AT&T will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
