Shares of AT&T Inc. (NYSE:T) edged 0.8% higher after the telecom group reported first-quarter results that came in ahead of market expectations, driven by solid revenue growth and continued subscriber additions.
Adjusted earnings per share were $0.57, beating the consensus estimate of $0.55, while revenue rose 2.9% year-on-year to $31.5 billion, also exceeding forecasts of $31.25 billion.
AT&T reported 294,000 postpaid phone net additions during the quarter, ahead of expectations for 270,000. The company also added 584,000 broadband customers, split evenly between 292,000 fiber users and 292,000 fixed wireless subscribers.
Revenue from its Advanced Connectivity segment increased 3.6% year-on-year to $22.9 billion, while operating income in the division climbed 14.8% to $6.9 billion. The company noted that nearly 45% of its advanced home internet customers also subscribe to its wireless services.
“We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built,” said John Stankey, chairman and CEO. “We’re uniquely positioned to deliver more of what customers want — fiber and 5G all from one provider on the nation’s largest advanced converged network, backed by the AT&T Guarantee.”
Free cash flow came in at $2.5 billion, down from $3.1 billion a year earlier, reflecting increased capital spending as the company accelerates its fiber rollout. Capital expenditures for continuing operations totaled $4.9 billion, up from $4.3 billion in the same period last year.
AT&T reaffirmed its full-year 2026 outlook, guiding for adjusted EPS of $2.25 to $2.35, EBITDA growth of 3% to 4%, and free cash flow of at least $18 billion. The company also confirmed plans to repurchase around $8 billion of shares during 2026.