AT&T 8-K
EarningsGuidance raisedRestructuringImpairment / charge
Record Advanced Connectivity internet adds; 2026 adjusted EPS outlook rises to the $2.40 range and capital investment outlook falls to $23B–$24B.
Filed 2026-10-21 06:32 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with higher 2026 adjusted EPS and lower long-term capital investment outlook. Revenue grew 5.3% as Advanced Connectivity expanded, while GAAP earnings included a $2.6B non-cash impairment on the Mexico wireless business, now held for sale, and employee separation charges. AT&T reported a record 769,000 Advanced Connectivity internet net adds; it remains on track to pass more than 40 million fiber locations by year-end 2026 and 60 million by year-end 2030.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $32.3B, +5.3% Y/Y | $95.4B, +3.5% Y/Y |
| Operating income | $4.10B, -33.1% Y/Y | $17.8B, -3.2% Y/Y |
| Net income attributable to AT&T | $891M, vs $9.31B | $9.35B, -48.5% Y/Y |
| Diluted EPS from continuing operations | $0.13, vs $1.29 | $1.34, -46.6% Y/Y |
| Adjusted EPS, non-GAAP | $0.65, +20.4% Y/Y | $1.86, +16.3% Y/Y |
| Cash from operating activities from continuing operations | $10.5B, +3.6% Y/Y | $28.9B, -0.2% Y/Y |
| Free cash flow, non-GAAP | $4.95B, +1.8% Y/Y | $12.1B, -2.2% Y/Y |
- Advanced Connectivity service revenue rose 6.1%; growth in wireless service and equipment and fiber, including the Lumen mass-markets fiber acquisition, outweighed declining Legacy revenue. Internet net adds were 442,000 fiber and 327,000 fixed wireless; postpaid phone net adds were 379,000.
- Operating expenses included the $2.6B Mexico impairment; the company reported $3.37B in asset impairments, abandonments and restructuring for the quarter. The year-ago quarter’s diluted EPS included a DIRECTV-sale gain.
- AT&T returned $4.8B to shareholders, including $2.8B in share repurchases; common shares outstanding were 6.761B, down 4.9% Y/Y. Quarter-end total debt was $159.6B and net debt was $149.8B; cash and cash equivalents were $10.8B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted EPS, non-GAAP | 2026 | $2.40 range | — | Raised |
| Adjusted EPS growth, non-GAAP | Through 2028 | Double-digit 3-year CAGR | — | Long-term outlook maintained |
| Service revenue growth | Annually, 2026-2028 | Low-single-digit range | — | — |
| Advanced Connectivity service revenue growth | Annually, 2026-2028; 2026 | Mid-single-digit range; 5%+ in 2026 | — | — |
| Legacy service revenue | 2026; by end of 2029 | Decline of 20%+ in 2026; immaterial by end of 2029 | — | — |
| Adjusted EBITDA growth, non-GAAP | 2026; 2028 | Upper portion of 3%-4% range in 2026; 5% or better in 2028 | — | Long-term outlook maintained |
| Advanced Connectivity EBITDA growth, non-GAAP | Annually, 2026-2028; 2026 | Mid-to-high-single-digit range; 6%+ in 2026 | — | — |
| Legacy EBITDA, non-GAAP | After 2027 | Expected to turn negative | — | — |
| Capital investment, non-GAAP | 2026; annually in 2027-2028 | $23B-$24B in 2026; $22B-$23B annually in 2027-2028 | — | Lowered |
| Free cash flow, non-GAAP | 2026; 2027; 2028 | $18B+; $19B+; $21B+ | — | Long-term outlook maintained |
| Shareholder returns | 2026-2028 | $45B+ total; includes $24B+ in repurchases, with ≈$10B in 2026 | — | Plan maintained |
| Annualized common stock dividend | Current | $1.11 per share | — | — |
| Net debt-to-adjusted EBITDA ratio, non-GAAP | During 2029 | Return to target in the 2.5x range | — | — |
The long-term outlook is on a continuing-operations basis; 2027-2028 outlook excludes the Mexico wireless business.
Investor Takeaways
- Track 2026 adjusted EPS against the raised $2.40-range outlook and capital investment against the lower $23B-$24B range.
- Fiber-location progress toward more than 40 million by year-end 2026 and more than 60 million by year-end 2030 will show whether network expansion remains on plan.
- Completion of the agreed Mexico wireless business sale would remove that business from the 2027-2028 outlook basis.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-21 14:36:02Z