AT&T (NYSE:T) Announces Earnings Results

AT&T (NYSE:T) issued its quarterly earnings results on Wednesday. The technology company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.06, FiscalAI reports. The company had revenue of $31.56 billion during the quarter, compared to analysts’ expectations of $31.80 billion. AT&T had a net margin of 16.94% and a return on equity of 12.49%. The business’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period last year, the business earned $0.54 EPS. AT&T updated its FY 2026 guidance to 2.250-2.350 EPS.

Here are the key takeaways from AT&T’s conference call:

• AT&T said second-quarter results showed accelerating growth, with more than 1 million Advanced Connectivity subscriber additions across fiber, fixed wireless, and postpaid phones, plus record fiber and combined fiber/fixed wireless net adds.
• The company posted strong financial performance, including 2.3% revenue growth, 5.2% adjusted EBITDA growth, a 110 bps margin expansion to 39.1%, and adjusted EPS of $0.65, up more than 20% year over year.
• AT&T raised its share repurchase plan to about $10 billion in 2026, up from $8 billion previously, citing strong free cash flow and a view that the stock is undervalued.
• The company reaffirmed full-year guidance, including low-single-digit service revenue growth, 3%-4% adjusted EBITDA growth, $2.25-$2.35 adjusted EPS, and more than $18 billion in free cash flow.
• Management highlighted continued investment in fiber expansion and convergence, including plans to reach 8 million new locations this year, while also accelerating the shutdown of legacy copper services to reduce costs.

AT&T Trading Up 3.5%

Shares of T stock opened at $23.04 on Thursday. AT&T has a 12-month low of $19.89 and a 12-month high of $29.79. The company has a market capitalization of $160.06 billion, a PE ratio of 7.73, a price-to-earnings-growth ratio of 0.88 and a beta of 0.24. The firm has a 50 day moving average price of $22.83 and a two-hundred day moving average price of $25.25. The company has a quick ratio of 0.87, a current ratio of 0.92 and a debt-to-equity ratio of 1.05.

AT&T Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $0.2775 dividend. This represents a $1.11 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend is Friday, July 10th. AT&T’s dividend payout ratio is currently 37.25%.

Institutional Trading of AT&T

Several hedge funds have recently added to or reduced their stakes in the company. Safe Harbor Fiduciary LLC bought a new position in AT&T during the 4th quarter worth $25,000. Birchwood Financial Partners Inc. bought a new stake in shares of AT&T in the fourth quarter valued at about $32,000. Redwood Park Advisors LLC grew its stake in shares of AT&T by 336.6% in the fourth quarter. Redwood Park Advisors LLC now owns 1,323 shares of the technology company’s stock valued at $33,000 after acquiring an additional 1,020 shares in the last quarter. Gilpin Wealth Management LLC acquired a new position in shares of AT&T in the fourth quarter valued at about $35,000. Finally, Ankerstar Wealth LLC bought a new position in AT&T during the fourth quarter worth about $35,000. 57.10% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have issued reports on T shares. Oppenheimer lowered shares of AT&T from an “outperform” rating to a “market perform” rating in a research report on Wednesday, June 3rd. Wells Fargo & Company began coverage on shares of AT&T in a research note on Wednesday, July 8th. They set an “underweight” rating and a $18.00 price objective on the stock. Barclays cut their target price on shares of AT&T from $26.00 to $24.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 8th. Wall Street Zen upgraded AT&T from a “sell” rating to a “hold” rating in a report on Saturday, June 20th. Finally, BNP Paribas Exane lowered their price target on AT&T from $28.00 to $26.00 and set a “neutral” rating on the stock in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $29.18.

Key Headlines Impacting AT&T

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T beat Q2 adjusted EPS estimates, posting $0.65 per share versus expectations of about $0.59-$0.60, signaling stronger-than-expected profitability. AT&T tops targets for wireless subscriber additions as bundle offers gain traction
• Positive Sentiment: The company added more than 1 million advanced connectivity customers, including strong postpaid wireless and fiber net additions, showing healthy demand for its bundled telecom offerings. AT&T Delivers Strong Second-Quarter Results as Investment-Led Strategy Gains Momentum
• Positive Sentiment: Free cash flow improved year over year, and AT&T reiterated full-year 2026 guidance while saying it plans to accelerate share repurchases, which supports the dividend and shareholder returns. AT&T ($T) Releases Q2 2026 Earnings
• Neutral Sentiment: Revenue came in a bit below Wall Street expectations, so the quarter was not a clean beat across all metrics. AT&T (NYSE:T) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings
• Neutral Sentiment: Management pushed back on concerns that Starlink or other satellite services pose an immediate threat, helping ease an overhang, but investors are still watching the competitive risk closely. Why AT&T Stock Rallied Today
• Negative Sentiment: AT&T still faces a leveraged balance sheet and slower revenue growth, which could cap upside if subscriber momentum or cash generation cools. AT&T: Buybacks Support The Bull Case Even Though Leverage Remains A Bit High

About AT&T

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.