AT&T (T) Stock Surges Following Strong Q2 Results and Subscriber Growth

Key Highlights

• AT&T shares surged 2.5% in early trading following stronger-than-anticipated Q2 financial results
• Earnings per share reached $0.65, surpassing the Wall Street consensus of $0.59
• Total revenue increased 2.3% from the prior year to $31.6 billion
• The company secured 432,000 net postpaid phone subscribers, significantly exceeding the ~338,500 projection
• Management reaffirmed full-year 2026 EPS outlook of $2.25–$2.35

Shares of AT&T (T) advanced 2.5% during Wednesday’s premarket session following the telecommunications giant’s announcement of second-quarter financial results that exceeded Wall Street’s projections for both profitability and customer acquisition.

AT&T Inc., T

The company reported adjusted earnings per share of $0.65, surpassing analyst expectations of $0.59. Total revenue climbed 2.3% on a year-over-year basis to $31.6 billion, falling marginally short of the anticipated $31.8 billion.

Adjusted earnings before interest, taxes, depreciation, and amortization expanded 5.2% to reach $12.3 billion. Free cash flow improved to $4.7 billion, compared to $4.4 billion during the corresponding quarter of the previous year.

The three-month period represented a milestone performance for combined fiber and fixed wireless customer additions. The results also showcased AT&T’s strongest consumer postpaid wireless account expansion in over three years.

The telecommunications provider secured 432,000 net postpaid phone subscribers, substantially outperforming the Street’s estimate of approximately 338,500. Postpaid phone churn registered at 0.86%.

Regarding broadband services, the company attracted 646,000 total consumer and business internet customers. This figure encompassed 367,000 fiber net additions alongside 279,000 fixed wireless net additions.

Fiber Network Expansion Progressing as Planned

AT&T expanded its fiber footprint by over 1 million locations during the quarter, elevating its cumulative total to 38.6 million. Management confirmed the company maintains its trajectory to reach 40 million fiber locations by the conclusion of 2026 and exceed 60 million by 2030.

Advanced Connectivity service revenue grew 5.1% to $23.5 billion. Operating income within this segment soared 20.3% to $7.3 billion.

Legacy business revenues decreased 26% as the company continues phasing out its copper-based network infrastructure. Revenue from Latin American operations climbed 16%.

Capital expenditures from ongoing operations totaled $5.7 billion, while overall capital investment reached $6.1 billion.

Stock Repurchase Program Expanded

Chief Executive Officer John Stankey announced that AT&T is increasing its planned share repurchase activity for the current year to approximately $10 billion, reflecting management’s confidence in the company’s competitive positioning.

“We believe our network performance and operating scale can’t be matched,” Stankey said.

The telecommunications company also preserved its commitment to distribute $45 billion or more to shareholders through 2028 through a combination of dividend payments and stock buybacks.

The company disclosed that 42.5% of households utilizing AT&T’s advanced home internet services also maintain AT&T wireless subscriptions.

Full-year 2026 adjusted earnings per share guidance remained unchanged at $2.25 to $2.35, compared to the analyst consensus of $2.32. Management is targeting a double-digit three-year compound annual growth rate extending through 2028.

This past May, AT&T introduced a new pricing plan beginning at $15 per line monthly, strategically designed to appeal to single adults currently enrolled in family plan arrangements.

The post AT&T (T) Stock Surges Following Strong Q2 Results and Subscriber Growth appeared first on Blockonomi.