AT&T Earnings Beat, Starlink Concerns Linger
AT&T earnings topped forecasts as EPS and cash generation surprised; traders will watch management comments on Starlink competition and guidance.
KEY TAKEAWAYS
- Q2 EPS beat with adjusted EPS $0.65 and consolidated revenue $31.6 billion, driven by postpaid and internet growth.
- Adjusted EBITDA rose to $12.3 billion while revenue slightly missed Street consensus.
- Management reiterated full-year EPS guidance $2.25-$2.35 and faces investor questions on Starlink competition.
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AT&T Inc. (T) reported Q2 2026 earnings on July 22, topping expectations for earnings and cash generation as growth in postpaid phone and internet customers supported results. Investors are focused on management’s comments about Starlink competition and the company’s full-year guidance during the scheduled conference call.
Q2 Financial Results
AT&T said in a pre-market press release that consolidated revenue for the quarter ended June 30, 2026, reached $31.6 billion, up 2.3% year over year. Adjusted EBITDA, a proxy for operating profit, rose to $12.3 billion from $11.7 billion a year earlier. Diluted earnings per share from continuing operations were $0.66, with adjusted EPS at $0.65. The company reported strong free cash flow and delivered an EPS beat despite revenue falling short of Street consensus.
Revenue growth was driven by additions in postpaid phone and internet customers, including fiber and fixed wireless services. The company’s investment-led strategy in fiber and 5G continues to support revenue and cash generation.
Investor Focus and Outlook
Management reiterated full-year 2026 EPS guidance of $2.25 to $2.35 per share. On the prior quarter’s earnings call, executives said they expected service revenues and EBITDA to accelerate gradually through the year.
Investor attention centers on the competitive threat posed by SpaceX’s Starlink wireless service. AT&T’s shares have declined about 12% year to date in 2026 amid broader skepticism about long-term wireless economics. The company’s upcoming conference call is expected to address how Starlink fits into the U.S. wireless market and plans to deploy cash toward fiber and 5G while maintaining returns.
