AT&T raises 2026 profit outlook after best service revenue growth in more than four years

AT&T lifted its 2026 earnings forecast on Wednesday after a third quarter in which it posted its best consolidated service revenue growth in more than four years and added more than 1 million Advanced Connectivity customers for a second straight quarter.

The telecom company now expects 2026 adjusted earnings in the $2.40-a-share range, according to its earnings release filed with an 8-K. It also cut its long-term capital investment outlook to $22 billion to $23 billion a year in 2027 and 2028, while keeping its plan to reach more than 60 million fiber locations by the end of 2030.

Third-quarter revenue rose 5.3% to $32.3 billion from $30.7 billion. Adjusted earnings, a non-GAAP measure, were $0.65 a share, up from $0.54.

Reported diluted EPS from continuing operations dropped to $0.13 from $1.29. The latest quarter included a non-cash impairment tied to AT&T's held-for-sale Mexico wireless business and employee separation charges, while the year-ago period included a gain on the sale of its DIRECTV investment, the company said.

Fiber and wireless

AT&T reported a record 769,000 consumer and business internet net adds, including 442,000 fiber and 327,000 fixed wireless customers. It added 379,000 postpaid phone subscribers, with postpaid phone churn of 0.92%.

Advanced Connectivity service revenue grew 6.1% to $23.9 billion, and operating income in that business rose 18.9% to $7.6 billion. AT&T said it now reaches more than 39 million consumer and business locations with fiber.

Cash and buybacks

Free cash flow, a non-GAAP measure, was $5.0 billion, compared with $4.9 billion a year earlier. AT&T returned about $4.8 billion to shareholders in the quarter, including $2.8 billion of share repurchases.

The company reiterated plans to return more than $45 billion to shareholders from 2026 through 2028 and to keep its annualized dividend at $1.11 a share. It expects free cash flow of more than $18 billion in 2026.

By the numbers

• Revenue: $32.3 billion, up 5.3%
• Adjusted EPS: $0.65, vs. $0.54
• GAAP diluted EPS from continuing operations: $0.13, vs. $1.29
• Fiber net adds: 442,000; postpaid phone net adds: 379,000
• 2026 adjusted EPS outlook: $2.40 range

Sources

1. AT&T Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release, filed Oct. 21, 2026, accession 0000732717-26-000370

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