SerpApi.Org
When AT&TT kicks off earnings reports for telecom stocks on Wednesday morning, Wall Street analysts will look for management commentary on the wireless ambitions of Elon Musk's Starlink, part of tech conglomerate Space Explorations TechnologiesSPCX, better known as SpaceX. Heading into the AT&T earnings report, shares in the company are down about 12% in 2026.
For AT&T's Q2 earnings report, analysts predict adjusted profit of 59 cents per share, up 9% from a year earlier, with revenue rising 3% to $31.82 billion.
Further, analysts predict AT&T will add 287,000 wireless postpaid phone subscribers, down from 401,000 a year earlier. AT&T will add 287,000 consumer fiber network broadband subscribers, analysts forecast.
Meanwhile, Musk aims to turn Starlink from a rural broadband provider into a broader global connectivity platform spanning broadband, mobile and hybrid satellite-terrestrial networks. But SpaceX does not yet own terrestrial spectrum.
One big question is whether any of the three big wireless firms would forge within the industry a wholesale network leasing agreement, called an "MVNO," with Starlink. T-MobileTMUS reports Q2 earnings on Thursday, followed by Verizon CommunicationsVZ on Friday.
Will One Wireless Firm Cut A Deal?
"We believe there are no intentions of signing an MVNO agreement to a potentially highly disruptive player such as SpaceX as wireless is already suffering from the cable MVNO and learning a tough lesson," said TD Cowen analyst Gregory Williams in a report. "However, the hypothetical argument for 'who would cave' is interesting as perhaps AT&T could sign an agreement given its dominating (fiber network) convergence position and could 'lose the least' among the three carriers."
Further, some analysts have speculated that Starlink could buy radio spectrum in a government auction in 2027, then build out its own wireless network. There's also another possibility if SpaceX buys spectrum in the 2027 auction, speculates Craig Moffett, analyst at MoffettNathanson.
In a report, Moffett said SpaceX could use the newly acquired spectrum as leverage to forge a wholesale network deal with one of the wireless firms.
Further, Starlink has partnered with T-Mobile and other wireless firms globally to develop satellite-based, direct-to-device (D2D) technology to eliminate rural "dead zones" where cellphone service is not available.
At J.P. Morgan, analyst Sebastiano Petti expects Musk to pursue a wireless network buildout.
"We see Starlink as more of a lingering overhang on U.S. wireless than a near-term fundamental threat, with limited expected pressure on the roughly $240 billion U.S. mobile service revenue ecosystem over our forecast horizon," Petti said in a report. "We model SpaceX beginning its U.S. terrestrial build in 2028 and launching a U.S. direct-to-consumer service in 2029."
AT&T Stock: Technical Ratings
Another option for SpaceX would be acquiring a wireless phone company, with T-Mobile the most likely target, analysts say.
In the broadband market, Starlink had about 9 million subscribers globally at the end of 2025, with 2.7 million in the U.S.
Further, AT&T stock holds an Accumulation/Distribution Rating of D. 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.
AT&T shares hold an IBD Composite Rating of 30 out of a best-possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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