Can AT&T’s massive wireless subscriber surge sustain this stock rally, or will legacy network declines drag the telecom giant down?
How Did AT&T Earnings Perform Against Wall Street Expectations?
For the second quarter of 2026, the company reported adjusted earnings of $0.65 per share, comfortably beating the consensus analyst estimate of $0.59. This represents a substantial 20.37% increase compared to the adjusted EPS of $0.54 recorded in the same period last year. On a GAAP basis, earnings per share from continuing operations came in at $0.66, up from $0.62 a year earlier.
However, top-line growth was slightly more mixed. Total quarterly revenue rose 2.3% year-over-year to $31.56 billion, coming in just below the Wall Street consensus estimate of $31.80 billion. This minor revenue miss was primarily driven by the ongoing contraction of the company’s Legacy segment. Legacy revenues plummeted 25.9% to $1.63 billion as the company continues to decommission its older copper-based network infrastructure. Conversely, the core Advanced Connectivity segment grew 4.1% to $28.62 billion, while Latin America revenue rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates.
Why Are Investors Cheering the New Subscriber Data?
The standout highlight of this **AT&T Earnings** release was the massive beat in wireless subscriber additions. The company added 432,000 net postpaid phone subscribers during the quarter, flying past the average analyst estimate of 338,500. Furthermore, the postpaid phone churn rate—a key metric for customer retention—remained highly favorable at a low 0.86%.
Broadband expansion also showed impressive momentum. The company added 646,000 total high-speed internet subscribers across consumer and business accounts. This included 367,000 fiber-optic net additions and 279,000 fixed wireless subscribers, marking a record combined performance for these categories.
CEO John Stankey highlighted the success of the company’s convergence strategy. Currently, 42.5% of households using AT&T’s advanced broadband services also subscribe to an AT&T wireless plan. This bundling strategy, including the recently launched OneConnect subscription, has proven highly effective at reducing customer churn and maximizing lifetime value. It also helps the company maintain its competitive edge against main rivals Verizon Communications and T-Mobile US.
What Is the Long-Term Outlook for AT&T?
Following the strong **AT&T Earnings** results, management reaffirmed its full-year 2026 financial guidance. The company continues to expect adjusted EPS to land between $2.25 and $2.35, aligning with the current consensus analyst estimate of $2.32. Additionally, the company expects full-year free cash flow of at least $18 billion, improving to over $19 billion in 2027 and $21 billion by 2028.
Crucially for long-term shareholders, AT&T maintained its commitment to return $45 billion or more to investors through 2028 via dividends and share repurchases. Backed by strong cash generation, the company is accelerating its 2026 share buyback program to approximately $10 billion, up from the previously indicated $8 billion. Capital expenditures for the quarter reached $5.7 billion, keeping the company on track to expand its fiber network to over 40 million locations by the end of 2026 and more than 60 million by 2030.
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We believe our network performance and operating scale can’t be matched.— John Stankey, CEO of AT&T
For more context on how the company is upgrading its infrastructure, read our coverage on how the AT&T AI System Drives Stock Up +2.6% as Network Tech Prevents Outages. This innovative technology is designed to shield the telecom giant from expensive network outages and regulatory fines.
