AT&T Q2 2026: Strong Revenue Growth, Fiber Expansion
AT&T (T) reported strong Q2 2026 results, driven by 3.5% service revenue growth and fiber expansion with 250K net additions. The company faced challenges in legacy segments and rising device costs.
Key Numbers
AT&T Inc (T) reported robust financial results for the second quarter of 2026, driven by 3.5% year-over-year growth in service revenue and significant fiber expansion. The company added 250,000 net fiber subscribers during the quarter, reflecting strong demand for high-speed internet. However, AT&T faced headwinds in legacy segments such as voice and messaging, along with higher device costs.
Key Financial Results
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $30.2B | $29.8B | +1.3% |
| Net Income | $4.5B | $4.2B | +7.1% |
| EPS | $0.63 | $0.58 | +8.6% |
| Service Revenue | $27.1B | $26.2B | +3.5% |
Highlights from the Call
- Fiber Growth: 250K net fiber additions, total fiber subscribers reached 8.5 million.
- Mobile Services: Added 400K prepaid mobile subscribers.
- Device Costs: Increased 5% due to higher smartphone sales.
- Legacy Segments: Voice and messaging revenue declined 8%.
Guidance
AT&T expects revenue growth to continue, supported by fiber and mobile services, with ongoing investment in 5G. The company plans to reduce debt by $5 billion this year.
Stock Impact
AT&T shares rose 1.2% in after-hours trading as investors reacted positively to the results.
What This Means for Investors
AT&T's results highlight strength in fiber and services, reinforcing its competitive position. However, cost pressures and legacy declines warrant monitoring. Investors should watch debt reduction progress and 5G investments.
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