The adjusted EPS beat and raised guidance signal strong operational momentum in the core Advanced Connectivity segment, but the $2.6B Mexico impairment and net debt spike to 3.13x from spectrum spending are overhangs. Watch for Mexico sale closing and net debt trajectory toward the 2.5x target by 2029.
Price Chart
Executive Summary
AT&T reported Q3 2026 revenue of $32.3B (+5.3% YoY) and adjusted EPS of $0.65, beating consensus of $0.54 by 20.4%. GAAP EPS was $0.13 due to a $2.6B non-cash impairment on the held-for-sale Mexico wireless business and employee separation charges. The company raised its 2026 adjusted EPS outlook and guided to $18B+ free cash flow, while maintaining its fiber build and capital return plans.
Key Financial Metrics
Key Facts
- Revenue $32.3B, up 5.3% YoY, driven by 6.1% growth in Advanced Connectivity service revenue
- Adjusted EPS $0.65 vs consensus $0.54, a 20.4% beat; GAAP EPS $0.13 (includes $2.6B Mexico impairment)
- Adjusted EBITDA $12.5B, up 5.4% YoY; free cash flow $5.0B, up from $4.9B
- Record 769,000 Advanced Connectivity internet net adds (442K fiber, 327K fixed wireless); 379K postpaid phone net adds
- Raised 2026 adjusted EPS outlook to ~$2.40; maintained $18B+ FCF, $10B+ buyback, and $1.11 annual dividend guidance
- Net debt-to-adjusted EBITDA rose to 3.13x from 2.59x due to EchoStar spectrum deal; target 2.5x by 2029
Financial Impact
Adjusted EPS beat consensus by $0.11 (20.4%); revenue beat consensus by $2.3B (6.7%); free cash flow $5.0B vs $4.9B prior year
Risk Factors
- Net debt-to-adjusted EBITDA at 3.13x, up from 2.59x, due to EchoStar spectrum acquisition
- Legacy segment revenue declining 24.5% YoY; EBITDA expected to turn negative after 2027
- Mexico wireless business held-for-sale with $2.6B impairment; sale to Grupo Televisa/Fintech pending
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000732717-26-000370 |
| Document: t-3q2026exhibit993.htm | 0000732717-26-000370 |
| Document: t-3q2026exhibit991.htm | 0000732717-26-000370 |
| Document: t-20261021.htm | 0000732717-26-000370 |
| Document: 0000732717-26-000370-index-headers.html | 0000732717-26-000370 |
| Document: 0000732717-26-000370-index.html | 0000732717-26-000370 |
| Document: 0000732717-26-000370.txt | 0000732717-26-000370 |
| 8-K Data (Synthetic) | 0000732717-26-000370 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $21.91 $22.74 | ▲ +3.79% | ▲ +4.97% | $20.85 (−4.84%) |
Oct 16, 2026 10d ago | 8-K | $23.20 $23.42 | ▲ +0.95% | ▲ +0.61% | $20.85 (−10.13%) |
Oct 1, 2026 26d ago | GOVT-CONTRACT | $24.30 $24.24 | ▼ −0.25% | ▼ −0.92% | $20.85 (−14.20%) |
Aug 12, 2026 10w ago | GOVT-CONTRACT | $24.58 $24.89 | ▲ +1.26% | ▲ +1.46% | $20.85 (−15.17%) |
Jul 22, 2026 13w ago | 8-K | $23.04 $22.96 | ▼ −0.35% | ▲ +0.89% | $20.85 (−9.51%) |
Jun 16, 2026 18w ago | 8-K | $22.44 $22.01 | ▼ −1.92% | ▼ −2.70% | $20.85 (−7.09%) |
Mar 23, 2026 31w ago | DEFA14A | $28.87 $28.83 | ▼ −0.14% | ▼ −0.70% | $20.85 (−27.77%) |
Feb 28, 2026 34w ago | Institutional Cluster | $28.00 $28.68 | ▲ +2.43% | ▲ +3.34% | $20.85 (−25.53%) |
US Market Status
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