T-PA · AT&T Inc.

AT&T's first-quarter 2026 results demonstrate consistent execution of its investment-led strategy, highlighted by strong performance in the Advanced Connectivity segment. Revenues grew 2.9% year-over-year to $31.5 billion, primarily driven by growth in wireless and fiber revenues, including the contribution from the acquired Lumen Mass Markets fiber business. The Advanced Connectivity segment, which encompasses 5G and fiber services, reported a 14.8% increase in operating income to $6.9 billion and a 5.6% rise in EBITDA to $11.6 billion. This growth was supported by 294,000 postpaid phone net additions and 584,000 total internet net adds, split evenly between fiber and fixed wireless. The company noted its fastest-ever organic growth in advanced home internet convergence rate, with nearly 45% of subscribers bundling services. GAAP diluted EPS was $0.54, down from $0.61 in the prior year, which had benefited from equity income related to the DIRECTV investment. However, adjusted EPS rose to $0.57 from $0.51, reflecting operational improvements. Free cash flow was $2.5 billion, down from $3.1 billion, due to accelerated capital deployment in fiber networks. The company repurchased $2.3 billion in shares during the quarter. Management reiterated its full-year 2026 outlook, projecting adjusted EPS of $2.25 to $2.35, adjusted EBITDA growth of 3% to 4%, and free cash flow of $18 billion or more, signaling confidence in sustained financial momentum.