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AT&T Beats Q1 Estimates on Wireless and Internet Growth

Bundled wireless and home internet offers powered the gains, supporting a reaffirmed 2026 outlook.

Overview

  • AT&T, which reported results Wednesday, posted adjusted earnings of $0.57 on $31.5 billion in revenue, topping Wall Street forecasts.
  • The carrier added 294,000 postpaid phone subscribers and 584,000 internet customers, with fiber and fixed wireless each contributing 292,000 additions.
  • Bundling is lifting retention and spending, with roughly 42% to 45% of home internet households also taking AT&T wireless service.
  • Competition stayed intense as AT&T and T-Mobile extended iPhone subsidies, and AT&T raised prices on its lowest and highest tiers to steer customers to mid‑range plans.
  • Heavy network investment lowered free cash flow to $2.5 billion on $4.9 billion in capital spending, while management maintained guidance for at least $18 billion in 2026 free cash flow and highlighted about 5% revenue growth in its new Advanced Connectivity segment.