At&t Stock Earnings Reports

AT&T reported strong operating and financial momentum in 2Q26 driven by Advanced Connectivity (fiber, fixed wireless, and postpaid wireless). Key operating highlights: +1M advanced connectivity net adds (best-ever Q2 fiber adds), record combined fiber and fixed wireless net adds, and improving convergence (42.5% of advanced home internet customers also have AT&T postpaid wireless; 45% excluding Lumen-acquired footprint). Management is accelerating fiber expansion (largest year ever, ~8M new locations including >4M from Lumen) and progressing integration of the Lumen footprint. They continue to decommission legacy copper (discontinuation approvals in >30% of wire centers) to lower costs. Management positions AT&T to capture AI-driven traffic growth by leveraging dense metro fiber + nationwide spectrum and growing edge/ uplink capabilities. Financials: consolidated revenues +2.3% YoY, service revenue +2.7%, adjusted EBITDA +5.2% with margin up 110 bps to 39.1%, adjusted EPS $0.65 (+20% YoY). Capital: 2Q capex $6.1B (driven by fiber), full-year expectations $23–24B capex and $18B+ free cash flow; 2Q FCF $4.7B (above guidance). Management increased planned 2026 share repurchases by ~25% to ~$10B (total shareholder returns ~ $18B including dividends, roughly equal to FCF guidance). Net debt/EBITDA was 2.68x; expected to rise to ~3.2x post-EchoStar spectrum deal and return toward ~2.5x within ~3 years. Guidance reiterated: full-year consolidated service revenue low single-digit growth, consolidated adjusted EBITDA growth 3–4%, Advanced Connectivity service revenue 5%+ and EBITDA 6%+. Strategy priorities: accelerate fiber builds, deepen converged customer penetration, continue cost transformation ($4B run-rate savings target by 2028), retire copper, selectively deploy spectrum and targeted densification to support AI-era upstream/edge demand.