At&t Stock Earnings Reports

AT&T delivered a mostly on-plan Q1 2026 with strong momentum in fiber and converged (wireless + home Internet) customers. Key operational results: 584k advanced Internet (fiber + Internet Air) net adds (best-ever Q1), 512k organic advanced home Internet net adds plus 1.1M fiber customers acquired via the Lumen deal, 294k postpaid phone net adds, and 42–45% convergence (share of advanced home Internet customers also taking AT&T Wireless). Financial highlights and guidance: consolidated revenue +2.9% y/y, service revenue +1.4% y/y; adjusted EBITDA +2.3% and margin 37.4%; adjusted EPS $0.57 (+~12%) with full-year adjusted EPS guide $2.25–$2.35; free cash flow $2.5B in Q1 (at the high end of the Q1 outlook) and continued full-year free cash flow target of $18B+; full-year consolidated adjusted EBITDA growth expected ~3–4%. Advanced Connectivity (the core business) is making the company more than 90% of revenue and nearly all adjusted EBITDA: Advanced Connectivity service revenue +3.6% y/y, advanced home Internet service revenue +27.3% (includes Lumen contribution), Advanced Connectivity EBITDA +5.6% with margin improvement; management expects Advanced Connectivity service revenue growth of 5%+ and EBITDA growth of 6%+ for 2026. Strategic execution and investments: AT&T is accelerating fiber rollout (now ~37M fiber locations; target 60M+ by 2030, ~8M new locations in 2026 including Lumen additions), rolling out OneConnect (a converged fiber+wireless subscription product), expanding Internet Air (fixed wireless) and preparing to integrate EchoStar spectrum to improve wireless capacity and fixed wireless reach. Capital allocation and balance sheet: closed Lumen transaction increased net leverage to 2.71x (Q1), expected to rise to ~3.2x after EchoStar then decline toward ~3.0x by year-end and back to ~2.5x over ~3 years; $12B cash + $19B available term loan capacity; returned $4.3B to shareholders in Q1 and reiterated plan to return $45B+ to shareholders through 2028 (ongoing buybacks). Transformation and cost program: pursuing $4B annual cost savings by end of 2028 through workforce optimization, AI enablement, digitalization and legacy cost reductions; continuing copper retirement program with regulatory support to accelerate legacy cost takeout and operational simplification. Management message: company is shifting toward a network-first, investment-led strategy emphasizing converged customers, volume growth in fiber and 5G/fixed wireless, and software/open-network capabilities to position AT&T as the AI-ready connectivity leader.