Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $34.3 billion | up 1.5% year-over-year |
| Adjusted EBITDA | $13.8 billion | up 8% year-over-year |
| Adjusted EPS | $1.31 | up 8.3% year-over-year |
| Postpaid phone net additions | 406,000 | up 820% year-over-year |
| Free cash flow | $7.8 billion | up more than 12% year-over-year |
Guidance and outlook
- We now expect our postpaid phone net adds for 2026 to be 1.1 million to 1.2 million.
- We now expect our 2026 full year adjusted EPS growth to be 7% to 7.5%.
- We are raising our full year guidance for free cash flow growth to approach 12%.
- We expect that Q4 mobility and broadband service revenue growth will accelerate to approximately 4%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year guidance for EPS and free cash flow while highlighting record-high margins and successful execution of their transformation program. 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
Pricing and Volume
Asked: Can the volume momentum continue and what is the view on pricing power?
Answer: Management noted that they are winning customers without relying on free lines or heavy promotions and believes there is room to adjust pricing as they add value.
AI Connect
Asked: What is the pipeline and opportunity for hyperscale and neocloud deals?
Answer: Demand is strong across dark fiber, lit fiber, and edge compute, with $4 billion in signed contracts and significant growth potential in 2027.
LEO/Starlink Competition
Asked: What is the impact of potential LEO entry and will you offer an MVNO?
Answer: Management believes their terrestrial network is significantly more efficient and sees no benefit to extending an MVNO deal to satellite providers.
Fixed Wireless Access
Asked: How does FWA fit into the strategy and what are the speed standard issues?
Answer: The company is implementing a more sophisticated, segmented approach and launching a 1 gig FWA product in metro areas to increase their high-speed footprint.
What to watch before the next call
- The rollout of the new high-speed FWA service in metro areas throughout 2027.
- The impact of AI Connect revenue on financial results starting in 2027.
- The progress of the $9 billion cost reduction program.
