SerpApi.Org
AT&TT on Wednesday reported second-quarter adjusted earnings that topped Wall Street's targets while revenue missed for the second straight quarter. Wireless postpaid phone subscriber additions came in above expectations amid lower customer turnover. AT&T stock rose on the news.
AT&T earnings for the June quarter were 65 cents a share on an adjusted basis, up 20% from a year earlier. Revenue rose over 2% to $31.6 billion, the telecom company said. Results included the recently acquired consumer fiber-optic network business of Lumen Technologies.
Analysts had projected AT&T earnings of 59 cents a share on revenue of $31.8 billion, according to FactSet.
"AT&T reported an in-line-to-mostly-good quarter — light on revenue, perhaps, but long on margins," said Craig Moffett, analyst at MoffettNathanson in a reporrt.
Wireless Subscriber Additions Beat
Further, AT&T said it added 432,000 postpaid wireless phone customers vs. estimates for a gain of 338,000. In the year earlier period, AT&T added 401,000 postpaid phone subscribers.
AT&T has refocused on "convergence"— selling landline broadband and wireless services in product bundles. The telecom company said 45% of fiber network broadband customers also buy its wireless service. AT&T in March announced a new initiative for simplified, subscription-based billing for mobile and fiber broadband called OneConnect. The promotion targets new customers and offers price discounts.
On the stock market today, AT&T stock rose over 3% to near 23 in morning trading. Heading into the AT&T earnings report, shares were down about 10% in 2026 amid investor worries over the wireless ambitions of Elon Musk's SpaceX.
AT&T Chief Executive John Stankey, on the company's earnings call with Wall Street analysts, said it's not interested in a wholesale network deal with Musk's Starlink, the telecom subsidiary of tech conglomerate SpaceX. He also touted AT&T's convergence strategy.
"The motivation for a wholesale arrangement is always to get at a part of the market that you can't get at yourself," Stankey said. "And I don't necessarily need a wholesale arrangement to go and address that 2% of the traffic that I can't get at today, because I can get it 98% of the traffic. I'm not prone to look for a wholesale agreement to go solve a problem I don't have."
AT&T Stock Technical Ratings
In addition, AT&T reported Q2 free cash flow of $4.7 billion vs. estimates of $4.5 billion amid higher capital spending. Free cash flow growth supports AT&T's dividend. AT&T continues to expect $18 billion or more in free cash flow for the full year. For the full year 2026, AT&T reiterated guidance for adjusted earnings per share of $2.25 to $2.35.
AT&T stock owns an IBD Composite Rating of only 32 out of a possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Further, AT&T stock holds an Accumulation/Distribution Rating of C-. That rating gauges institutional buying and selling of the stock over the past 13 weeks. A+ signifies heavy institutional buying. E means heavy selling. Think of a C grade as neutral.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Why Corporate America Is Talking About AI Tokens
Monitor IBD's "Breaking Out Today" List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
