AT&T Inc. reported first‑quarter 2026 results that beat consensus estimates, with revenue of $31.5 billion, up 2.9% year‑over‑year, and adjusted diluted earnings per share of $0.57, exceeding the $0.55 consensus by $0.02. Adjusted EBITDA rose to $11.6 billion, a 5.6% increase, driven by a 27.3% jump in advanced home‑internet revenue and a 1.7% rise in wireless service revenue.
The company’s advanced connectivity segment delivered its best quarter on record for internet customer net additions, adding 584,000 advanced home‑internet customers—about 292,000 fiber and 292,000 fixed‑wireless—while the convergence rate climbed to 45%, meaning nearly half of advanced home‑internet subscribers also use AT&T wireless. Legacy services, however, continued to decline, with service revenues down 1.4% and operating income falling to $4.2 billion from $4.7 billion a year earlier. Latin America revenue grew 20.8% but operating income remained lower than the prior year.
AT&T’s fiber footprint now exceeds 37 million locations, and the company added 4 million fiber locations through the Lumen acquisition, while organic fiber additions in the quarter were 292,000. The firm remains on track to reach 60 million fiber locations by 2030, a milestone that underpins its long‑term growth strategy.
Capital expenditures for the quarter were $4.9 billion, reflecting continued investment in fiber and 5G infrastructure. Free cash flow fell to $2.5 billion from $3.1 billion a year earlier, a decline largely attributed to the $5.1 billion capital spend. Net debt rose to $126.4 billion, pushing the net debt‑to‑adjusted EBITDA ratio to 2.71×, but management expects the ratio to return to about 2.5× within three years after the EchoStar deal closes.
AT&T reaffirmed its full‑year 2026 guidance, maintaining an adjusted EPS range of $2.25 to $2.35 and a free‑cash‑flow target of at least $18 billion. The company also reiterated its commitment to cost discipline and strategic investments that support its fiber‑driven growth.
John Stankey, AT&T’s chairman and CEO, said, “We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built.” He added, “After years of industry‑leading investments in our fiber and wireless network, we believe that we have now established a structural advantage that others will not catch.” CFO Desroches noted that free cash flow declined by roughly $600 million compared to last year, driven primarily by higher capital investment as the company accelerates fiber deployment.
AT&T’s results come amid a competitive landscape dominated by Verizon and T‑Mobile, both expanding bundled offerings. The company’s focus on integrating Lumen’s fiber assets, launching AT&T OneConnect, and targeting cost savings by 2028 positions it to capitalize on the industry shift toward fiber and wireless while managing legacy decline and debt levels.
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