AT&T delivered a robust Q1'26 earnings report, beating estimates on strong broadband growth, aided by the Lumen Mass Market fiber acquisition. The telecom's net debt, however, rose to $126.4B in Q1'26, and leverage increased to 2.71X adjusted EBITDA, exceeding the long-term target of 2.5X. AT&T's free cash flow declined 19% year-over-year to $2.5B due to higher CapEx and acquisition costs, but FY 2026 guidance targets at least $18B FCF.
AT&T just posted a double beat with 12% EPS growth and strong broadband adds. However, there were also some concerning numbers showing up under the hood. I take a closer look at T's results and share what I believe will hold T back for the foreseeable future.
Boring may be better for investors who want a stock that offers steady income, without having to worry about surprises.
Total Revenue Growth: Up 2.9% year-over-year in Q1 2026.Service Revenue Growth: Increased by 1.4% year-over-year.Adjusted EBITDA: Up 2.3% year-over-year; margi
Today, April 22, 2026, investors weigh a Q1 revenue beat against the telecom giant's disappointing wireless revenue.
AT&T posted a Q1 double beat, yet shares declined ~3% as investors focused on legacy business headwinds. T's advanced connectivity segment drove 3% revenue growth and strong net additions, offsetting legacy copper business declines. Free cash flow is projected to exceed $18 billion in 2026 and $21 billion by 2028, supporting debt reduction and a well-covered 4.5% dividend yield.
U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining more than 300 points on Wednesday.
AT&T (NYSE: T) is seeing pressure on Wednesday morning despite posting Q1 earnings that many would describe as “fired on all cylinders”. The telecommunications giant delivered a clean sweep: earnings were better than expected, revenue landed ahead of estimates, and the operating margin improved significantly to 21.1%.
The headline numbers for AT&T (T) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
AT&T Inc. (T) Q1 2026 Earnings Call Transcript
T tops Q1 estimates as wireless and fiber demand lifts revenue, EBITDA and cash flow despite heavier capex.
AT&T Inc (NYSE:T, XETRA:SOBA) added more wireless subscribers than expected in the first quarter, as its strategy of bundling mobile and high-speed internet services continued to attract customers, sending revenue slightly above Wall Street estimates. The telecommunications giant reported postpaid phone net additions of 294,000 for the quarter, ahead of analyst expectations of about 262,200 additions.