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AT&T Q3 2026 Earnings Call
AT&T adds record 1 million subscribers, raises EPS outlook to $2.40 despite leverage spike.
In brief
AT&T adds record 1 million subscribers, raises EPS outlook to $2.40 despite leverage spike. AT&T reported third-quarter 2026 results with over 1 million Advanced Connectivity subscribers and raised full-year EPS guidance to $2.40, though net debt to adjusted EBITDA increased to 3.13x. Originally reported by BigGo…
AT&T Q3 2026 Results
![[AT&T Q3 2026 Earnings Call] AT&T Adds Record 1 Million-Plus Subscribers, Raises EPS Outlook to $2.40 Despite Leverage Spike to 3.13x](https://img.biggo.com/vR-Z-PDoxxCWiIeEBFkRRr3WDLGrG2GgcXP_RF_SUyo/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19UXzIwMjYtMTAtMjFfMTc5MjU5NTk0Mi53ZWJw.webp)
AT&T reported third-quarter 2026 results with over 1 million Advanced Connectivity subscribers, its best quarter in more than four years.
Record Subscriber Growth
The company added 696,000 advanced home internet net adds, including 416,000 fiber and 280,000 Internet Air customers.
Service Revenue Growth
Consolidated service revenue grew 3.8%, the best performance in over four years, driven by wireless and advanced home internet growth.
Record EBITDA Margin
Adjusted EBITDA margin hit a record 38.7% despite dilutive equipment revenue growth.
EPS Surge
Adjusted EPS surged 20% to $0.65, prompting management to raise full-year EPS guidance to $2.40 from $2.25-$2.35.
Spectrum Purchase Impact
The $23 billion EchoStar spectrum purchase pushed net debt to adjusted EBITDA to 3.13x, up from 2.68x.
Leverage Target
Management targets a return to 2.5x net debt to adjusted EBITDA by 2029 through EBITDA growth and fiber joint ventures.
CEO Statement
CEO John Stankey dismissed competitive threats from LEO satellite and fixed wireless, emphasizing converged fiber-wireless advantage.
CFO Transition
CFO Pascal Desroches, presiding over his final quarterly call before retirement, highlighted cost efficiencies for 2027-2028 capex.
Fiber Penetration Goals
Stankey stated AT&T aims for 100% fiber penetration but expects it to take time to reach that level.
Competitive Threats
Stankey dismissed LEO satellite providers like Starlink as threats to AT&T's core network, noting 40-45% of metro traffic originates indoors.
Fixed Wireless Outlook
Stankey predicted fixed wireless access will eventually peak and decline, with fiber-fed broadband being the most durable customer combination.
Capital Investment Reduction
2027-2028 annual capex is expected to drop $1 billion to $22-$23 billion annually through fiber build efficiencies.
Fourth Quarter Outlook
AT&T expects adjusted EBITDA to be pressured by higher marketing costs and approximately $100 million in unfavorable vendor disputes.
At a glance
AT&T reported third-quarter 2026 results with over 1 million Advanced Connectivity subscribers and raised full-year EPS guidance to $2.40, though net debt to adjusted EBITDA increased to 3.13x.
