AT&T Beats Expectations in Q1 Earnings Report
AT&T reported stronger-than-expected first-quarter results, surpassing analyst forecasts on both earnings and revenue.
Adjusted earnings per share came in at $0.57, slightly above the consensus estimate of $0.55. Revenue reached $31.5 billion, marking a 2.9% year-over-year increase and exceeding expectations of $31.25 billion.
Subscriber Growth Remains Strong
The telecom giant delivered solid subscriber growth across key segments. Postpaid phone net additions totaled 294,000, beating estimates of 270,000.
AT&T also added 584,000 internet customers, evenly split between fiber (292,000) and fixed wireless (292,000) users. This growth highlights continued demand for high-speed connectivity services.
Advanced Connectivity Drives Revenue Expansion
The company’s Advanced Connectivity segment showed strong performance, with revenue rising 3.6% year-over-year to $22.9 billion. Operating income in this segment jumped 14.8% to $6.9 billion, reflecting improved efficiency and scale.
AT&T also noted that nearly 45% of its advanced home internet customers bundle their service with wireless plans, strengthening customer retention and cross-selling opportunities.
Market Reaction and Share Performance
Following the earnings release, AT&T shares moved higher, gaining 0.8% in early trading. The positive reaction reflects investor confidence in the company’s growth trajectory and operational performance.
CEO Highlights Strategic Positioning
CEO John Stankey emphasized the company’s strong momentum, pointing to record first-quarter net additions in Advanced Connectivity. He highlighted AT&T’s ability to deliver integrated fiber and 5G services through its nationwide network as a key competitive advantage.
Cash Flow and Investment Trends
Free cash flow totaled $2.5 billion, down from $3.1 billion a year earlier, primarily due to increased investment in network infrastructure. Capital expenditures rose to $4.9 billion, reflecting AT&T’s ongoing expansion of its fiber network.
Full-Year Outlook Remains Intact
AT&T reaffirmed its 2026 guidance, projecting adjusted earnings per share between $2.25 and $2.35, along with 3% to 4% EBITDA growth. The company also expects to generate at least $18 billion in free cash flow and plans to repurchase approximately $8 billion in shares during the year.
