• AT&T (T) reported Q3 revenue of $32.3B and adjusted EPS of $0.65, both above consensus.
  • The company raised its 2026 adjusted EPS guidance to $2.40, exceeding analyst expectations.
  • Postpaid phone additions came in at 379,000, roughly in line with forecasts.

Strong Quarter Despite Subscriber Growth in Line

AT&T ($T) delivered a double beat for its third quarter, reporting revenue of $32.3 billion versus the $31.69 billion consensus and adjusted earnings per share of $0.65 against expectations of $0.60. Adjusted EBITDA came in at $12.5 billion. The company also added 379,000 postpaid phone subscribers, broadly in line with forecasts, according to the reported figures. The results, released Thursday morning, underscored the telecom giant’s ability to grow profitability even as subscriber growth matures.

The headline numbers, if confirmed, would represent a revenue beat of approximately 1.9% and an EPS beat of 8.3%. AT&T’s shares have yet to react as the market digests the news. Management is scheduled to host an earnings call at 8:30 a.m. ET to discuss the results.

Guidance Raised on Confidence in Strategy

AT&T now guides for 2026 adjusted EPS of $2.40, up from the previous range of $2.25–$2.35 and above the $2.34 consensus. The new midpoint implies roughly 2.6% upside to analyst estimates. The raise signals management’s confidence in the company’s fiber-and-5G investment strategy, which has been the centerpiece of its growth narrative. The improved outlook follows a strong second quarter, when revenue rose 2.3% to $31.6 billion and adjusted EPS increased to $0.65 from $0.54, partly driven by EBITDA growth and lower depreciation.

The company has been aggressively expanding its fiber footprint and wireless capacity. In February, AT&T completed its acquisition of Lumen (LUMN)’s mass-market fiber business, adding more than 4 million fiber locations. In July, it closed a roughly $23 billion purchase of EchoStar (ECHO) spectrum, bolstering its 5G network. These moves are part of a broader industry trend of convergence between mobile and home internet services, with AT&T aiming to bundle wireless and broadband offerings.

Operational Shifts and Financial Considerations

Beginning in the first quarter of 2026, AT&T reorganized its reporting segments around Advanced Connectivity, Legacy, and Latin America, reflecting its shift away from copper-based services. The company has been retiring legacy copper networks, with FCC approvals allowing discontinuations across more than 30% of its wire centers. While this reduces maintenance costs, it requires customers to transition to replacement services.

AT&T’s capital investment plan for 2026 calls for $23–24 billion and more than $18 billion in free cash flow. As of March 31, total debt stood at $138.4 billion. The company has also pledged more than $45 billion in shareholder returns for 2026–2028, though dividends and buybacks depend on sustained cash generation.

Analysts will be watching for further details on the earnings call, particularly around free cash flow, debt reduction, and the integration of recent acquisitions. The reported guidance raise, if confirmed, would exceed the upper end of AT&T’s previous range by $0.05, reinforcing the narrative that its connectivity strategy is delivering results. However, the figures have not been independently verified in an accessible company release as of this writing; the latest verified guidance was $2.25–$2.35. AT&T did not immediately respond to a request for comment.

Correction: An earlier version of this article misstated the previous guidance range for 2026 adjusted EPS. It is $2.25–$2.35, not $2.25–$2.45.