At&t Stock Earnings Reports

AT&T reported a strong start to 2026 driven by its investment-led strategy in fiber and 5G. Key operational highlights include 584,000 advanced Internet (fiber + fixed wireless) net additions in Q1 — the best-ever first quarter and sixth consecutive quarter with >0.5 million consumer/business net adds — and continued acceleration in customer convergence (42% of advanced home Internet customers also choose AT&T Wireless; ~45% organically). AT&T closed the Lumen transaction (adding ~1.1 million fiber customers and >4 million locations), is ramping integration and expects improved fiber/wireless growth in the back half of the year. Advanced Connectivity now represents >90% of consolidated revenue; advanced home Internet revenues grew 27.3% YoY (including two months of acquired revenue). Consolidated revenue was up 2.9% YoY; adjusted EBITDA up 2.3% with margin modestly down. Free cash flow was $2.5B (high end of guidance); full-year FCF expected to be $18B+. Management reiterated full-year guidance (service revenues growing low-single digits; consolidated adjusted EBITDA growth ~3–4%; adjusted EPS $2.25–$2.35). Capital allocation remains balanced: $4.3B returned to shareholders in Q1, continued buybacks with a plan to return $45B+ through 2028. Net debt/EBITDA rose to 2.71x after Lumen close; expected to peak ~3.2x post-EchoStar then decline toward target ~2.5x over a few years. Management emphasized AT&T’s structural advantage from dense metro fiber and nationwide spectrum, an AI-ready converged network approach, ongoing copper retirement programs to reduce costs, and the strategic role of fixed wireless (Internet Air) and potential wholesale/partnerships with LEO/satellite providers. Overall, the company expects accelerating operating momentum through 2026 as fiber reach expands (~+8M locations expected in 2026) and integration of acquisitions scales.