AT&T Lifts Earnings Guidance Following Quarterly Beat; Mobile Subscriber Growth Misses Views

11:03 AM EDT, 10/21/2026 (MT Newswires) -- AT&T (T) on Wednesday raised its full-year earnings outlook following stronger-than-expected third-quarter results, though its postpaid phone subscriber growth missed projections. The telecommunications giant now expects 2026 adjusted per-share earnings "in the $2.40 range," higher than its previous guidance of $2.25 to $2.35 and the FactSet-polled consensus of $2.34. For the September quarter, adjusted EPS rose to $0.65 from $0.54 a year earlier, while Wall Street expected $0.60. Operating revenue grew 5.3% to $32.32 billion, surpassing analysts' expectations for $31.69 billion. "During the quarter, we added over 1 million advanced connectivity subscribers from fiber, fixed wireless and postpaid phone, our best quarter in more than four years, and our second consecutive quarter with more than 1 million net adds across these services," Chief Executive John Stankey said during an earnings conference call, according to a FactSet transcript. AT&T added 379,000 net postpaid phone subscribers in what Chief Financial Officer Pascal Desroches described as "a competitive third quarter." That missed the consensus on FactSet for 379,300 additions. The company added 405,000 net subscribers a year earlier and 432,000 in the second quarter. "We remain focused on adding the right customers on the right plans with the right offers," Desroches told analysts. The company's shares were down 5.9% in Wednesday trade. The stock has fallen 11% this year. Revenue in the advanced connectivity segment rose 7.2% to $29.48 billion in the third quarter, with service revenue up 6.1%. Wireless service revenue grew 5%, driven by growth in retail subscribers in underpenetrated categories and converged accounts, as well as pricing actions, AT&T said. The company added a net 769,000 internet users in the quarter, including 442,000 fiber and 327,000 fixed wireless subscribers. Last month, UBS Securities said the US broadband market remained highly competitive due to factors including the expanding fiber footprint and increased emphasis on converged telecom bundles. In addition, there is looming satellite competition as Starlink begins deployment of its Version 3 satellites. Earlier this month, Starlink parent SpaceX agreed to acquire a nationwide low-band spectrum portfolio from investment firm Grain Management as it seeks to establish Starlink Mobile as a major US mobile carrier. AT&T, however, is "the best positioned operator with the largest fiber footprint and upside to estimates as it executes on its convergence strategy," UBS analysts. Elon Musk-controlled SpaceX swung to third-quarter earnings year on year on Tuesday as revenue surged past Wall Street's expectations, driven by sharp gains in its artificial intelligence and connectivity divisions. Verizon Communications (VZ) is scheduled to release its third-quarter results on Oct. 26, followed by T-Mobile US (TMUS) on Oct. 28. Price: 22.00, Change: -1.43, Percent Change: -6.08