# AT&T Q3 2026 Earnings Call

> AT&T adds record 1 million subscribers, raises EPS outlook to $2.40 despite leverage spike.
- Title: AT&T Q3 2026 Earnings Call · BigGo Finance | Shortify
- Summary: 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…
- Keywords: at&t, q3 2026, advanced connectivity, eps, leverage, net debt, echostar, spectrum, fiber, wireless, converged customers, capital investment
- Source: BigGo Finance — https://finance.biggo.com/news/US_T_2026-10-21
- Author: BigGo Finance
- Published: 2026-10-21T15:14:28+00:00
- Read time: 2 min
- Topics: at&t, q3 2026, advanced connectivity, eps, leverage, net debt, echostar, spectrum, fiber, wireless, converged customers, capital investment
## AT&T Q3 2026 Results
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.
## Key takeaway

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.