Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Consolidated service revenue growth | 3.8% | Year-over-year |
| Adjusted EBITDA growth | 5.4% | Year-over-year |
| Adjusted EPS | $0.65 | Up 20% from $0.54 in Q3 2025 |
| Advanced Home Internet net adds | 696,000 | Not stated |
| Postpaid phone net adds | 379,000 | Not stated |
Guidance and outlook
- Full-year consolidated service revenue growth is expected in the low single-digit range.
- Full-year consolidated adjusted EBITDA growth is expected in the upper portion of the 3% to 4% range.
- Full-year adjusted EPS is expected in the $2.40 range.
- Full-year free cash flow is expected to be $18 billion plus.
- Full-year capital investment is expected to be $23 billion to $24 billion.
- Fourth-quarter free cash flow is expected to be approximately $6 billion.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record subscriber momentum and raised full-year adjusted EPS guidance to $2.40. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Fiber Penetration
Asked: What are the goals for fiber penetration and potential for wholesale?
Answer: Management targets 40% to 50% penetration and noted that wholesale could be considered in specific markets over the long term.
Wireless Competition
Asked: How does the company view the threat of LEO satellite constellations?
Answer: Management emphasized the durability of their converged fiber and wireless network, noting that LEO technology may serve niche or rural areas rather than replacing scaled networks.
AI and Enterprise
Asked: How is AI impacting enterprise connectivity demand?
Answer: Enterprises are increasing demand for high-capacity, low-latency connectivity to support hybrid cloud and AI workloads, which AT&T is addressing through its fiber-fed infrastructure.
Working Capital
Asked: Why is there a focus on working capital investment?
Answer: Management explained that they are investing upfront in devices and customer acquisition costs, which are recovered over the life of the customer.
What to watch before the next call
- The transition of CFO duties to Jennifer Biry after the new year.
- The impact of unfavorable vendor dispute settlements on fourth-quarter legacy segment results.
- The progress of the fiber joint venture and the sale of the Mexico wireless business.
