AT&T Q1 2026 Results Show Subscriber Growth

AT&T reported Q1 2026 results on April 22, 2026, with record organic subscriber additions and increased bundling of internet and wireless services. These trends support management’s reiterated 2026 outlook and the company’s multi-year capital-return plan.

Results and Subscriber Momentum

Consolidated revenues reached $31.5 billion, up 2.9% year over year, driven by growth in Advanced Connectivity and a two-month contribution from AT&T’s Lumen mass-markets fiber acquisition. Latin America revenue rose 20.8%, while the Legacy segment declined 25.3%, with operating expenses falling 14.3% to $1.2 billion. These shifts reflect AT&T’s pivot toward fiber and converged offerings offsetting pressure in legacy businesses.

GAAP diluted earnings per share (EPS) from continuing operations was $0.54, down from $0.61 a year earlier, while adjusted EPS rose to $0.57 from $0.51. The divergence reflects improved adjusted operating metrics despite other items affecting GAAP results.

The Advanced Connectivity unit generated $22.9 billion in service revenue, up 3.6% year over year. Operating income increased 14.8% to $6.9 billion, and segment EBITDA rose 5.6% to $11.6 billion. The company revised its operating segments this quarter to emphasize converged advanced connectivity, noting that results reflect consistent execution of its investment-led, customer-centric strategy to scale this business.

Internet net additions totaled 584,000, evenly split between 292,000 fiber and 292,000 fixed wireless. Consumer advanced home internet net adds reached 512,000, with 273,000 from AT&T Fiber and 239,000 from AT&T Internet Air. Postpaid phone net adds were 294,000, and postpaid churn stood at 0.9%. Approximately 45% of advanced home internet subscribers also take AT&T wireless, marking the fastest year-over-year organic convergence growth in the company’s history and highlighting the traction of bundling.

Cash Flow, Debt, and Guidance

Adjusted EBITDA rose to $11.8 billion from $11.5 billion a year earlier. Operating income improved to $6.7 billion, and adjusted operating income increased to $6.9 billion from $6.4 billion. Margin gains were concentrated in the connectivity business, which contributed a larger share of operating profit.

Free cash flow declined to $2.5 billion from $3.1 billion, while cash from operating activities was $7.6 billion, down from $9.0 billion in the prior period, which included $1.4 billion of DIRECTV distributions. AT&T ended the quarter with net debt of $126.4 billion and total debt of $138.4 billion.

The company reiterated full-year 2026 guidance calling for adjusted EPS of $2.25 to $2.35, capital investment of $23 billion to $24 billion, and free cash flow exceeding $18 billion, assuming cash taxes of $1.0 billion to $1.5 billion and pension contributions around $350 million. Management expects low-single-digit service-revenue growth overall, with more than 5% growth in the connectivity unit and a decline of over 20% in Legacy revenues. Adjusted EBITDA is forecast to grow about 3% to 4%, with the connectivity segment expanding more than 6%.

Through 2028, AT&T reaffirmed plans to increase adjusted EBITDA and EPS, boost free cash flow, and return at least $45 billion to shareholders via a $1.11-per-share annual dividend and roughly $8 billion in share repurchases. The company targets a net-debt-to-adjusted-EBITDA ratio of about 2.5 times within roughly three years after the EchoStar transaction. It also plans to power down most of its domestic copper network by the end of 2029. This capital-return package aligns with the company’s deleveraging timetable and earnings-growth assumptions.

AT&T filed an 8-K with the Securities and Exchange Commission disclosing the quarter’s figures. Together with operational results, the disclosures reinforce that converged home-internet and wireless offerings are central to near-term revenue growth and the foundation for the multi-year capital-return agenda.