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AT&T lifts 2026 profit outlook as record internet growth tests bundle economics
The carrier added a record 769,000 internet connections and raised adjusted-EPS guidance to about $2.40, while bundle discounts pushed average fiber revenue per user down 4%.
AT&T raised its 2026 adjusted earnings outlook to about $2.40 a share after third-quarter revenue increased 5.3% to $32.3 billion and adjusted earnings reached $0.65 a share. Reuters reported that both revenue and adjusted profit beat analyst estimates.
The operating story was the combination of 442,000 fiber additions and 327,000 fixed-wireless additions, a record 769,000 total internet net additions. AT&T also added 379,000 postpaid phone subscribers and said 42.8% of its fiber households now also take AT&T wireless service.
Revenue and adjusted profit beat expectations
Third-quarter revenue was $32.3 billion, up 5.3% from a year earlier. Adjusted earnings were $0.65 a share, up from $0.54 a year earlier. Reuters reported that both revenue and adjusted profit exceeded analyst estimates.
AT&T reported GAAP operating income of $4.1 billion and adjusted operating income of $7.6 billion. Adjusted EBITDA rose 5.4% to $12.5 billion, while free cash flow was $5.0 billion; those adjusted measures should not be treated as interchangeable with GAAP results.
Internet additions set a company record
AT&T recorded 769,000 total internet net additions: 442,000 fiber additions and 327,000 fixed-wireless additions. The company said its fiber network now passes more than 39 million locations.
The mix matters because fixed wireless extends AT&T Internet Air beyond the fiber footprint, while fiber remains the higher-capacity wired product. Net additions measure customer-account growth during the quarter, not the number of locations newly passed by the network.
Wireless growth remained positive
The carrier added 379,000 postpaid phone subscribers, essentially matching the 379,300 FactSet estimate cited by Reuters. Postpaid phone churn was 0.92%, up from 0.78% a year earlier.
AT&T said 42.8% of consumer fiber households also used AT&T wireless service. Reuters described that bundle as central to the company’s effort to build stickier customer relationships as competition intensifies.
Management raised the 2026 outlook
AT&T now expects 2026 adjusted earnings of about $2.40 a share, compared with its prior range of $2.25–$2.35. It continues to expect free cash flow above $18 billion and capital investment of $23–$24 billion for 2026.
The company expects capital investment to ease to $22–$23 billion in 2027 and 2028, while projecting at least 3% annual consolidated service-revenue growth and at least 5% annual adjusted EBITDA growth through 2028. These are management targets, not guaranteed outcomes.
Bundle growth comes with a revenue-per-customer trade-off
Reuters reported that average revenue per fiber customer fell 4% in the third quarter, reflecting bundle discounts, introductory pricing in new markets and lower-priced customers added with the Lumen fiber business. Management expects that pressure to continue into the fourth quarter.
About 43% of households taking AT&T internet also chose its wireless service. That convergence may improve retention and lifetime value, but the quarter shows why subscriber growth and average revenue per user must be read together rather than treated as the same signal.
