AT&T Lifts 2026 EPS Outlook to ~$2.40, but Shares Slide 6% on Weak Subscriber Adds and Rising Costs
T is trading near its 52-week low of $19.89 (13% above the low).
Summary
AT&T raised full-year adjusted EPS guidance to about $2.40 from $2.25-$2.35, ahead of the $2.34 consensus, after Q3 adjusted EPS of 65 cents beat the 60-cent estimate on revenue up 5.3% to $32.3 billion. The stock still fell as much as 6% in morning trading. The problem is the details: postpaid phone net adds of 379,000 came in just shy of the ~379,300 expected, and operating expenses rose 3.6% on higher equipment and advertising costs. Continuing-operations EPS of 13 cents was crushed by a noncash impairment tied to the Mexico wireless business being sold to Grupo Televisa and Fintech Holdings for $2 billion, plus employee separation charges. On the bright side, internet net adds hit a record 769,000 (442,000 fiber, 327,000 fixed wireless), and management said debt ratios return to target by 2029 while capex steps down to $22B-$23B annually in 2027-2028 from $23B-$24B this year. The guidance raise is real, but the market is pricing the subscriber miss and cost creep over it.
At the time of this announcement, T was trading at $22.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $153.5B. The 52-week trading range was $19.89 to $29.44. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.