AT&T 8-K
PositiveEarningsGuidance reaffirmed
Fiber and wireless growth offset Legacy copper declines; 2026 share repurchases accelerated to ≈$10B.
Filed 2026-07-22 06:33 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with reaffirmed FY2026 and 2026–2028 guidance. Revenue rose 2.3% Y/Y, supported by Advanced Connectivity growth and customer additions, partly offset by continued declines in Legacy copper services. AT&T accelerated its planned 2026 share repurchases to ≈$10B.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $31.6B | $30.8B | 2.3% |
| Operating income | $7.04B | $6.5B | 8.3% |
| Income from continuing operations | $5.04B | $4.86B | 3.6% |
| Adjusted EBITDA (non-GAAP) | $12.3B | $11.7B | 5.2% |
| Diluted EPS from continuing operations | $0.66 | $0.62 | 6.5% |
| Adjusted diluted EPS (non-GAAP) | $0.65 | $0.54 | 20.4% |
| Cash from operating activities from continuing operations | $10.8B | $9.76B | 10.6% |
| Free cash flow (non-GAAP) | $4.67B | $4.39B | 6.3% |
- Advanced Connectivity service revenue was $23.5B, up 5.1%; the segment added 646,000 internet connections (367,000 fiber, 279,000 fixed wireless) and 432,000 postpaid phones. Fiber and wireless growth drove results, while Legacy revenue fell 25.9% as AT&T continued copper-network decommissioning.
- AT&T returned $4.1B to shareholders, including ≈$2.2B in common share repurchases. End-of-period common shares outstanding fell 3.9% Y/Y to 6.879B.
- Total debt was $144.0B, net debt $126.4B and cash and cash equivalents $17.6B. AT&T expects 2026 reported diluted EPS adjustments to include ≈$0.3B of acquisition-related amortization, plus a non-cash benefit-plan mark-to-market gain or loss and other items.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Service revenue growth | 2026–2028 | Low-single-digit range annually | — | Reaffirmed |
| Advanced Connectivity service revenue growth | 2026–2028; FY2026 | Mid-single-digit range annually; 5%+ in FY2026 | — | Reaffirmed |
| Legacy service revenue | FY2026; end of 2029 | Decline of 20%+ in FY2026; immaterial by end of 2029 | — | Reaffirmed |
| Adjusted EBITDA growth (non-GAAP) | FY2026; 2028 | 3%–4% in FY2026; 5% or better in 2028 | — | Reaffirmed |
| Advanced Connectivity EBITDA growth (non-GAAP) | 2026–2028; FY2026 | Mid-to-high-single-digit range annually; 6%+ in FY2026 | — | Reaffirmed |
| Legacy EBITDA (non-GAAP) | After 2027 | Expected to turn negative until direct copper-network costs are substantially eliminated | — | Reaffirmed |
| Adjusted EPS (non-GAAP) | FY2026; through 2028 | $2.25–$2.35 in FY2026; double-digit three-year CAGR through 2028 | — | Reaffirmed |
| Capital investment (non-GAAP) | 2026–2028 | $23B–$24B annually | — | Reaffirmed |
| Free cash flow (non-GAAP) | FY2026–FY2028 | $18B+ in 2026; $19B+ in 2027; $21B+ in 2028 | — | Reaffirmed |
| Capital returns | 2026–2028 | $45B+ to shareholders; ≈$24B in share repurchases, including ≈$10B in 2026; maintain $1.11 annualized common dividend per share | — | Reaffirmed |
| Net debt-to-adjusted EBITDA ratio (non-GAAP) | Within ≈3 years after EchoStar transaction closes | Return to a level consistent with the 2.5x target range | — | Reaffirmed |
Investor Takeaways
- AT&T is targeting more than 40 million consumer and business fiber locations by the end of 2026, from 38.6 million currently; progress toward the longer-term 60 million-plus target by the end of 2030 is another execution marker.
- Watch for the EchoStar transaction closing and the company’s progress toward returning its net debt-to-adjusted EBITDA ratio to the 2.5x target range within about three years afterward.
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