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AT&T Reports Strong Third-Quarter 2026 Results

AT&T Inc. continues to make impressive strides in the telecommunications industry, showcasing a strong performance in its third-quarter results for 2026. The company, listed under NYSE: T, reported revenues of $32.3 billion, reflecting a 5.3% increase year-over-year. This growth is driven largely by the successful rollout of its Advanced Connectivity services, which include fiber, fixed wireless, and postpaid phone segments.

Key Highlights of the Third Quarter

Advanced Connectivity Growth

A major highlight of AT&T’s third-quarter report is the addition of over 1 million new Advanced Connectivity customers for the second consecutive quarter. This surge is a testament to AT&T's effective investment strategy in expanding its network capabilities. In particular, the company has seen remarkable gains in its high-value converged relationships, adding approximately 350,000 new customers.

Company CEO John Stankey emphasized the importance of delivering robust connectivity solutions for both consumers and enterprises, stating, "More homes and businesses are recognizing the value of AT&T for their connectivity needs across both internet and mobile services. Our asset base positions us well for the AI era, backed by America’s finest fiber technology."

Financial Performance Breakdown

• - Total Revenues: $32.3 billion (up 5.3% from the previous year)
• - Diluted Earnings Per Share: $0.13, impacted by a non-cash impairment charge related to AT&T's Mexico wireless business and employee separation costs, compared to $1.29 in Q3 2025.
• - Adjusted Earnings Per Share: $0.65, up from $0.54 year-over-year, indicating a positive trajectory in operational efficiency.

Operating income for the quarter reached $4.1 billion, while adjusted operating income stood at $7.6 billion, showcasing growth aligned with the company’s strategic focus on high-margin services. AT&T’s cash from operating activities amounted to $10.5 billion, a slight rise from $10.2 billion previously reported.

Total capital expenditures for continuing operations were reported at $5.1 billion, contributing to a free cash flow of $5.0 billion, slightly higher than in the preceding quarter.

Strategic Investments and Outlook

AT&T’s strategic investment in network infrastructure is aimed at maintaining its competitive edge in advanced connectivity. The company has revised its long-term outlook, indicating improved expectations for adjusted EPS and adjusted EBITDA growth in the coming years. Their goal is to reach over 60 million fiber locations by the end of 2030, with current expansions already covering over 39 million locations.

The company plans to return over $45 billion to shareholders between 2026 and 2028 through dividends and share repurchases, reflecting a commitment to delivering value to its investors.

Future Projections

Looking ahead, AT&T anticipates:

• - Continued service revenue growth in the low-single-digit range annually.
• - Mid-single-digit growth for its Advanced Connectivity services, with expectations of over 5% for 2026.
• - An adjusted EBITDA growth of around 3% to 4% and an adjusted EPS expected to reach approximately $2.40 in 2026.

In conclusion, AT&T’s third-quarter results for 2026 are a clear indication of its successful strategy to enhance connectivity services, drive customer growth, and deliver continual returns to shareholders. As the company navigates through the AI revolution and an increasing demand for high-speed connectivity, it remains well-positioned for future growth and innovation in the telecommunications sector.