AT&T Beats Q1 Estimates As Subscriber Growth And Connectivity Revenues Strengthen

AT&T Inc. (NYSE:T) reported first-quarter results that exceeded analyst expectations, driven by solid subscriber additions and growth in its connectivity business.

The company posted adjusted earnings per share of $0.57, surpassing the consensus estimate of $0.55. Revenue totaled $31.5 billion, representing a 2.9% increase year-over-year and exceeding the $31.25 billion forecast.

AT&T reported postpaid phone net additions of 294,000, ahead of the estimated 270,000. The company added 584,000 total internet customers, including 292,000 fiber subscribers and 292,000 fixed wireless users. Advanced Connectivity service revenue rose 3.6% year-over-year to $22.9 billion, while operating income in that segment increased 14.8% to $6.9 billion. Approximately 45% of advanced home internet customers were also wireless subscribers.

Free cash flow totaled $2.5 billion, declining from $3.1 billion in the prior-year period due to increased capital investment related to accelerated fiber deployment. Capital expenditures for continuing operations rose to $4.9 billion from $4.3 billion a year earlier.

The company reaffirmed its full-year 2026 guidance, expecting adjusted EPS of $2.25 to $2.35, EBITDA growth of 3%–4%, and free cash flow of at least $18 billion. AT&T also maintained plans to repurchase approximately $8 billion in shares during 2026.