AT&T Beats Q3, Lifts 2026 EPS Outlook to ~$2.40 and Cuts Capex Plan
T is trading near its 52-week low of $19.89 (12% above the low).
Summary
AT&T beat on both lines: Q3 revenue rose 5.3% to $32.30B versus $31.69B consensus, and adjusted EPS came in at $0.65 against $0.60 expected, though the company reported a fall in its Q3 bottom line. The bigger news is guidance — management raised 2026 adjusted EPS to about $2.40 and now expects 2026 free cash flow of $18B or more, climbing to $21B+ by 2028, while cutting long-term capex to $23-24B in 2026 and $22-23B in 2027-2028. Growth came from Advanced Connectivity wireless and fiber, including the acquired Lumen mass-market fiber business, with a record 769,000 internet net adds (442,000 fiber, 327,000 fixed wireless) and 379,000 postpaid phone net adds, and its converged customer strategy is gaining traction as 42.8% of internet subscribers bundle wireless. Operating expenses rose on a non-cash impairment tied to the Mexico wireless business held for sale, employee separation charges, higher equipment and advertising costs, and worse bad debt. This follows the $23B EchoStar spectrum close in July, the BlackRock/CPP fiber JV announced October 6, and the $2B AT&T Mexico sale to Televisa — the company is reshaping the portfolio while cash flow inflects. The stock closed at $23.42 on October 20; the $28 median price target sits about 20% above that.
At the time of this announcement, T was trading at $22.35 on NYSE in the Trade & Services sector, with a market capitalization of approximately $160.5B. The 52-week trading range was $19.89 to $29.44. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.