Business · NEWS EXPLAINER
AT&T lifts 2026 profit outlook after record fiber and fixed-wireless additions
AT&T now expects adjusted EPS around $2.40 for 2026, up from $2.25–$2.35. Third-quarter revenue rose 5.3%, while a Mexico impairment kept reported EPS far below adjusted EPS.
AT&T raised its 2026 adjusted earnings outlook to about $2.40 a share after reporting $32.3 billion in third-quarter revenue and $0.65 in adjusted EPS. Record internet additions and bundled home-and-mobile relationships supported the quarter, but reported EPS was only $0.13 after a large non-cash Mexico impairment and other adjustments.
The annual adjusted EPS outlook moved higher
AT&T now expects 2026 adjusted EPS in the $2.40 range, compared with its prior $2.25–$2.35 forecast. Reuters said the new figure topped the $2.34 analyst consensus. It remains a management forecast and a non-GAAP measure, not completed annual profit.
Revenue and adjusted EPS beat estimates
Quarterly revenue reached $32.3 billion, up 5.3% from a year earlier and above the $31.69 billion LSEG estimate cited by Reuters. Adjusted EPS was $0.65 versus $0.54 a year ago and a $0.60 analyst estimate.
Internet additions set a company record
AT&T reported 769,000 Advanced Connectivity internet net additions: 442,000 fiber and 327,000 fixed wireless. It also added 379,000 postpaid phone subscribers, essentially matching the 379,300 FactSet estimate reported by Reuters.
Bundling is visible in the customer mix
The company said 42.8% of households with its advanced home internet also used AT&T wireless, and it added about 350,000 converged relationships. The metric is company-defined and subject to revision; it does not mean 42.8% of all U.S. households use both services.
Reported and adjusted profit tell different stories
Reported diluted EPS from continuing operations was $0.13, versus adjusted EPS of $0.65. AT&T identified a $2.6 billion non-cash impairment tied to its held-for-sale Mexico business, employee separation charges and other items. Readers should keep the GAAP result and adjusted measure separate.
