AT&T (T) Q3 2026 Financial Results Summary
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AT&T (T) Q3 2026: Revenue Growth and Adjusted EPS Increase — Positive Momentum
AT&T Inc. (NYSE: T) reported its third-quarter results, showcasing a revenue increase of $1.6 billion or +5.3% year over year, totaling $32.3 billion. This growth is attributed to strong performance in its Advanced Connectivity segment, which saw service revenue rise by $1.4 billion or +6.1% year over year. Additionally, adjusted EPS improved to $0.65 from $0.54 in the prior year.
This quarter is a positive outcome for shareholders, reflecting the effectiveness of AT&T's investment-led strategy and its ability to attract new customers, particularly in the fiber and wireless segments. The increase in adjusted EPS indicates improved profitability, despite challenges from non-cash impairment charges and employee separation costs.
Key Financial Metrics:
- Total Revenues: $32.3 billion, up $1.6 billion or +5.3% YoY
- Adjusted EPS: $0.65, up from $0.54 YoY
- Operating Income: $4.1 billion, down from $6.1 billion YoY
- Adjusted Operating Income: $7.6 billion, up from $6.6 billion YoY
- Adjusted EBITDA: $12.5 billion, up from $11.9 billion YoY
- Free Cash Flow: $5.0 billion, up from $4.9 billion YoY
- Advanced Connectivity Service Revenue: $23.9 billion, up $1.4 billion or +6.1% YoY
- Advanced Connectivity Operating Income: $7.6 billion, up 18.9% YoY
- Total Debt: $159.6 billion
Shareholder Returns and Guidance:
AT&T returned approximately $4.8 billion to shareholders, which included $2.8 billion in common share repurchases. The company has also updated its outlook for 2026, increasing its adjusted EPS forecast and lowering its long-term capital investment expectations. The annualized common stock dividend remains at $1.11 per share, with plans for over $24 billion in share repurchases through 2028.
Forward-Looking Catalysts:
Investors should watch for continued growth in Advanced Connectivity, particularly as AT&T aims to reach over 40 million fiber locations by the end of 2026 and over 60 million by 2030. The company’s focus on enhancing its fiber and 5G offerings positions it well for future growth, especially as demand for high-speed internet continues to rise. Additionally, the upcoming earnings conference call on October 21, 2026, will provide further insights into AT&T's strategic direction and performance expectations.
Note: All amounts in the following tables are in millions.
Condensed Consolidated Statements of Income
| Third Quarter 2026 | Third Quarter 2025 | Percent Change | |
|---|---|---|---|
| Revenues | $32,300 | $30,700 | 5.3% |
| Operating Expenses | $28,200 | $24,600 | 14.0% |
| Operating Income | $4,100 | $6,100 | -32.8% |
| Income from Continuing Operations | $1,300 | $9,700 | -86.6% |
| Diluted EPS | $0.13 | $1.29 | -89.9% |
| Adjusted EPS* | $0.65 | $0.54 | 20.4% |
| Adjusted EBITDA* | $12,500 | $11,900 | 5.0% |
| Free Cash Flow* | $5,000 | $4,900 | 2.0% |
Condensed Consolidated Balance Sheets
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| Total Assets | $408,800 | $405,900 |
| Total Liabilities | $164,300 | $162,200 |
| Long-term Debt | $159,600 | $157,000 |
| Total Shareholders' Equity | $244,500 | $243,700 |
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