NEW YORK, July 22, 2026, 19:06 EDT — U.S. cash markets have ended trading.
- AT&T ended the session at $23.04, rising 3.5%. The stock advanced 7.5% across five sessions.
- The number of postpaid phone additions totaled 432,000, surpassing consensus by roughly 28%.
- Average buyback price in the first half was about $25.49 per share, higher than Wednesday’s closing price.
AT&T Inc. NYSE:T posted better-than-expected subscriber numbers and reported robust quarterly cash flow. Shares rose 3.5%. The S&P 500 edged down 0.1%.
The surge failed to eliminate the company’s buyback discount. AT&T invested $4.435 billion to repurchase 174 million shares over the first half, suggesting an average cost of about $25.49 per share.
The closing price on Wednesday was 9.6% lower than that average. The difference is significant after AT&T said it would raise its planned 2026 share buybacks to about $10 billion.
The company reaffirmed its forecast for free cash flow to be no less than $18 billion. It continues to project yearly capital expenditures in the $23 billion to $24 billion range.
Initial estimate: AT&T reported 6.852 billion shares outstanding as of July 16. Based on that figure, the annualized dividend of $1.11 equates to around $7.6 billion. Including expected share repurchases, total capital returned is projected to approach $17.6 billion.
The amount is approximately 11.2% of the implied equity value on Wednesday. It accounts for nearly 98% of the company’s stated minimum free-cash-flow goal. The final payout will fluctuate depending on share buybacks and dividend declarations.
Based on the same preliminary figures, approximately $5.6 billion is left after share buybacks in the first half. At a price of $23.04 per share, this could buy back about 242 million shares, representing 3.5% of the outstanding shares as of July 16. The outcome will depend on market pricing.
Chief Executive John Stankey said, “We are accelerating the pace of our planned share repurchases this year to approximately $10 billion.” He attributed the move to confidence in AT&T’s market strength. AT&T Newsroom
The quarter outperformed in most operating metrics most closely linked to the cash-return thesis. Revenue was the only exception.
| Metric | Second-quarter actual | Consensus | Surprise |
|---|---|---|---|
| Postpaid phone net gains | 432,000 | 338,500 | +27.6% |
| Adjusted EPS | $0.65 | $0.59 | +10.2% |
| Free cash flow | $4.70 billion | $4.43 billion | +6.1% |
| Revenue | $31.56 billion | $31.80 billion | -0.8% |
*Adjusted EPS and free cash flow represent non-GAAP metrics. Surprise percentages are determined based on the difference between published actuals and consensus estimates.
The business mix outperformed what the headline revenue indicated. Advanced Connectivity service revenue increased by 5.1%. Operating income for this segment rose 20.3%, and the operating margin widened by 350 basis points. Meanwhile, legacy revenue dropped 25.9%.
AT&T reported 367,000 net fiber customer additions and 279,000 new fixed-wireless connections. The company noted approximately 42.5% of homes using advanced internet services also subscribed to AT&T wireless. AT&T said this convergence figure could still be revised.
“The cross-selling they have been working on is now evident in the numbers,” said David Wagner, head of equity at Aptus Capital Advisors. Wagner noted that the data pointed to increases in market share. Reuters
The stock rose 7.5% over the five sessions ending Wednesday. Further challenges are expected soon.
T-Mobile US NASDAQ:TMUS is scheduled to announce results Thursday before markets open, with its earnings call set for 7:30 a.m. EDT. Verizon Communications NYSE:VZ will post its results Friday, followed by a webcast at 8:30 a.m. Subscriber numbers from both companies may reveal whether AT&T’s growth was unique to the company.
Risks: The capital-return program offers limited cash-flow flexibility. Net debt was $126.4 billion, and quarterly interest expense increased by 13.8%. Regulatory hold-ups may further delay phasing out legacy copper-network expenses.
Related articles: NYSE:T
