AT&T Inc. (NYSE:T) Rises 10.6% in the Week as Fiber-Wireless Gains Offset Copper Drop

AT&T ended the latest regular session at $24.13 on July 24, gaining 5.1%. The stock advanced after the company reported both higher quarterly profit and a stronger subscriber tally. AT&T posted adjusted EPS of $0.65, topping forecasts of $0.59. Revenue came in at $31.6 billion, just under the $31.8 billion expected. Investors focused on the subscriber growth, as postpaid phone net additions hit 432,000, exceeding expectations by about 28%. Reuters

Shares are priced at $24.13, equating to roughly 10.3–10.7 times projected 2026 adjusted EPS, based on management’s $2.25–$2.35 guidance rather than analyst forecasts. The $18 billion free cash flow goal represents about 10.7% of current market capitalization. The company pays an annual dividend of $1.11, offering a yield of approximately 4.6% as of Friday’s close. These metrics remain relatively restrained and rest on the company achieving its cash flow and transaction objectives. AT&T Newsroom

AT&T reported a net gain of 432,000 postpaid phone subscribers, surpassing analysts’ forecast of 338,500. Postpaid phone churn came in at 0.86%, topping the anticipated 0.90%. Wireless service revenue increased 3.3% to $17.4 billion. Consumer postpaid account growth totaled 147,000, marking the best performance in over three years. Service revenue was lifted by pricing changes. Nonetheless, some of the pricing increases were offset by ongoing promotional discounts. Reuters

AT&T reported 646,000 new internet subscribers, which included 367,000 additions for its fiber service. The company’s fixed wireless segment saw an increase of 279,000 customers in the quarter. Revenue from advanced home internet climbed 27.3%, reaching $2.93 billion. By the end of the quarter, AT&T’s fiber network served 38.6 million consumer and business locations. Convergence reached 42.5%, though AT&T notes this number could still be revised. Average revenue per user for fiber decreased by 1.3%, partly due to Lumen customers joining and the effects of bundled discounts. AT&T Newsroom

AT&T reaffirmed its adjusted EPS outlook at $2.25–$2.35 for 2026 and maintained its free cash flow forecast at a minimum of $18 billion. The company continues to expect adjusted EBITDA growth of 3% to 4%. Capital investment guidance remains unchanged at $23 billion to $24 billion. Free cash flow for the second quarter was $4.7 billion, exceeding management’s projected range of $4.0–$4.5 billion. Guidance could incorporate a margin for error, but management stopped short of officially lifting it. AT&T Newsroom

AT&T increased its 2026 share buyback goal from $8 billion to about $10 billion. The company bought back $2.2 billion in common stock in the second quarter. Executives said July repurchases were nearing $1 billion. At $24.13 per share, $10 billion would represent around 414 million shares, though the final number will depend on market prices and the timing of purchases. The planned repurchases account for nearly 6% of AT&T’s current market capitalization. AT&T Newsroom

AT&T maintains its annual dividend at $1.11 per share, resulting in a yield of approximately 4.6%. The company forecasts total spending on dividends and share repurchases at about $18 billion for the year. Of that, around $10 billion is allocated for buybacks, suggesting nearly $8 billion would go to dividends—equivalent to about 44% of AT&T’s free-cash-flow target. This breakdown is an estimate and not an official dividend outlook. The next quarterly dividend of $0.2775 per share will be paid on August 3. AT&T Newsroom

As of June 30, net debt was reported at $126.4 billion, while total debt stood at $144.0 billion. Net leverage at quarter-end was 2.68 times adjusted EBITDA. Management projects this will rise to around 3.2 times following the EchoStar acquisition. The deal was anticipated by management to close before the end of July. The purchase, paid entirely in cash, is valued at about $23 billion for 50 MHz of spectrum. AT&T has set a target of reducing leverage to around 2.5 times in about three years. Achieving this deleveraging remains a key risk to execution. AT&T Newsroom

AT&T reported 432,000 postpaid phone net additions, ahead of Verizon’s 184,000. T-Mobile posted 277,000 postpaid net account additions, a metric that is broader than postpaid phone net adds, making direct comparisons less exact. Wolfe Research raised its AT&T rating to Outperform, setting a price target of $29. The analyst said a similar SpaceX mobile network could take years to develop. Starlink is seen as a potential risk over the long term, but is not causing an immediate impact on subscribers. AT&T Newsroom

EchoStar’s anticipated closing continues to be the main event for the company. Management most recently targeted completion by the end of July. The Federal Reserve’s decision set for Wednesday may significantly influence Treasury yields. Current pricing implies around a 31% probability of a 25 basis-point rate increase. Rising yields tend to weigh on income stocks offering a 4.6% dividend yield. AT&T’s schedule shows a common dividend payout on August 3. The record date determining eligibility was July 10.