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Earnings outperform as customer additions gather pace
AT&T (NYSE:T) shares climbed 2.5% in premarket trading on Wednesday after the telecommunications company reported second-quarter results that exceeded earnings expectations, supported by continued momentum in broadband and wireless customer growth.
The company posted earnings per share of $0.65, ahead of analysts’ consensus estimate of $0.59.
Quarterly revenue increased 2.3% from a year earlier to $31.6 billion, broadly matching Wall Street expectations of approximately $31.8 billion.
Adjusted EBITDA rose 5.2% year over year to $12.3 billion, while free cash flow improved to $4.7 billion from $4.4 billion in the second quarter of 2025.
Fiber and wireless businesses continue to drive growth
AT&T added more than one million Advanced Connectivity customers during the quarter as demand remained strong across its fiber, fixed wireless and postpaid wireless services.
Advanced Connectivity service revenue increased 5.1% to $23.5 billion. Operating income for the segment climbed 20.3% to $7.3 billion, while EBITDA advanced 8.0% to $12.0 billion.
The company also added a total of 646,000 consumer and business Advanced Connectivity internet subscribers, including 367,000 fiber customers and 279,000 fixed wireless subscribers.
In wireless, AT&T recorded 432,000 postpaid phone net additions, while postpaid phone churn remained low at 0.86%.
Management also noted that 42.5% of households using its advanced home internet services now also subscribe to an AT&T wireless plan, highlighting continued success in cross-selling its connectivity offerings.
Fiber expansion remains on schedule
AT&T expanded its fiber network by more than one million locations during the quarter, bringing its total footprint to 38.6 million locations.
The company said it remains on track to exceed 40 million fiber locations by the end of 2026 and plans to grow that figure to more than 60 million by the end of the decade.
Capital expenditures related to continuing operations totaled $5.7 billion during the quarter, while overall capital investment reached $6.1 billion.
Full-year outlook unchanged
Looking ahead, AT&T reaffirmed its guidance for fiscal 2026.
The company continues to expect full-year earnings per share of between $2.25 and $2.35, compared with the current analyst consensus of $2.32.
Management also maintained its expectation of delivering a double-digit compound annual growth rate in earnings over the three years through 2028.
AT&T stock price
