AT&T (NYSE: T) Posts Q2 2026 Adjusted EPS of $0.65, Adds Over 1 Million Connectivity Customers

AT&T (NYSE: T) reported second-quarter 2026 adjusted EPS of $0.65, topping the analyst consensus estimate of $0.59, as the company added more than 1 million Advanced Connectivity customers and posted record combined fiber and fixed wireless net additions. Total revenues reached $31.6 billion, up 2.3% year over year from $30.8 billion in the prior-year quarter.

Q2 2026 Results

• Adjusted EPS: $0.65, up from $0.54 in Q2 2025, beating the $0.59 consensus estimate; GAAP diluted EPS from continuing operations was $0.66, versus $0.62 a year ago
• Total revenues: $31.6 billion, up 2.3% year over year
• Adjusted EBITDA: $12.3 billion, up 5.2% year over year
• Free cash flow: $4.7 billion, versus $4.4 billion in the year-ago quarter
• Cash from operating activities: $10.8 billion, versus $9.8 billion a year ago
• Capital expenditures: $5.7 billion; capital investment totaled $6.1 billion

What Drove the Results

Adjusted EPS of $0.65 beat the $0.59 consensus by approximately 10%, though total revenues of $31.6 billion came in slightly below some analyst forecasts. The primary growth engine was the Advanced Connectivity segment, where service revenue reached $23.5 billion, up 5.1% year over year, and operating income surged 20.3% to $7.3 billion.

Subscriber additions were a standout metric. AT&T posted 646,000 total consumer and business Advanced Connectivity internet net adds, comprising 367,000 fiber additions and 279,000 fixed wireless additions. Postpaid phone net adds came in at 432,000 with postpaid phone churn of 0.86%, which the company described as its strongest consumer postpaid wireless account growth in more than three years. The company also added more than 1 million total fiber locations in the quarter, bringing its total fiber footprint to 38.6 million locations, keeping it on pace to exceed 40 million by year-end 2026.

Revenue growth was partially offset by continued declines in legacy copper-based services, higher advertising expenses, an asset abandonment charge related to a spectrum strategy reprioritization, and elevated bad debt expense tied to subscriber volume. Operating income for the quarter was $7.0 billion, versus $6.5 billion a year ago, with adjusted operating income rising to $7.5 billion from $6.5 billion.

CEO John Stankey noted in the company's press release that AT&T is accelerating its planned 2026 share repurchases to approximately $10 billion, up from prior pacing, citing confidence in the company's market position. The company returned $4.1 billion to shareholders in the quarter, including approximately $2.2 billion in common share repurchases.

Full-Year Guidance Reiterated

AT&T reiterated all of its consolidated full-year 2026 and multi-year financial guidance. Key targets include adjusted EPS of $2.25 to $2.35 for 2026, free cash flow of $18 billion or more in 2026, and Advanced Connectivity service revenue growth of 5% or better for the year. The company also reaffirmed its plan to return more than $45 billion to shareholders during 2026 through 2028 via dividends and buybacks, and maintained its annualized common dividend of $1.11 per share.

Wall Street View

Wall Street's overall posture on AT&T heading into the report leaned constructive, with the most recent consensus reflecting 20 Buy or Strong Buy recommendations against 15 Hold ratings and no Sell recommendations as of July 1, 2026. The Q2 beat on adjusted EPS and the acceleration of share repurchases to approximately $10 billion in 2026 provide concrete catalysts for analysts to reassess near-term targets.

Investor Takeaway

The combination of a record fiber and fixed wireless quarter, an EPS beat driven by Advanced Connectivity operating income growth of 20.3%, and an accelerated buyback program positions AT&T's investment thesis squarely around execution on its network expansion strategy. With total fiber locations now at 38.6 million and a stated target of more than 60 million by 2030, the pace of subscriber conversion, currently at 42.5% of advanced internet customers also taking AT&T wireless, will be a critical metric to monitor in coming quarters as the company deploys its $23 billion to $24 billion annual capital investment plan.