AT&T's 2.0 plans are mostly an upgrade, but the new flagship overshoots on both price and features.
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AT&T (T) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
AT&T offers an attractive >4% dividend yield and reasonable valuation, but near-term upside is limited amid economic uncertainty and rising leverage. T posted a Q1 double-beat, with EPS up 12% and revenue up 3%, driven by strong Fiber and Advanced Connectivity growth and the Lumen acquisition. Management projects low single-digit service revenue growth, 3–4% EBITDA growth, and double-digit EPS growth through 2028, supporting long-term upside potential.
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%.