NEW YORK, July 23, 2026, 05:05 EDT
- U.S. cash markets were shut. In premarket activity, AT&T was quoted up 0.9% following a 3.5% rise on Wednesday.
- Postpaid phone net adds surpassed expectations by 28%. Adjusted earnings exceeded estimates by 10%, but revenue fell short by 0.6%.
- AT&T expects to return approximately $18 billion through buybacks and dividends in 2026, a figure that is in line with its free cash flow projection.
AT&T Inc. NYSE:T climbed further in premarket trade on Thursday, following its recent earnings report. The stock was set at $23.24 just before 5 a.m. EDT, after finishing Wednesday’s session at $23.04.
The clearest indication was not revenue, but rather management’s readiness to give back almost all anticipated cash to shareholders.
Chief Financial Officer Pascal Desroches stated that combined dividends and buybacks are expected to reach approximately $18 billion this year. He commented this figure represents “essentially 100% of our outlook for free cash flow.” TradingView
As of the close on Wednesday, the proposed $10 billion share repurchase accounted for 6.2% of AT&T’s market capitalization. The annual dividend of $1.11 amounted to a further 4.8%. This suggests a projected gross return to shareholders of nearly 11%, prior to implementation and price movements.
| Q2 measure | Reported | Consensus | Variance |
|---|---|---|---|
| Postpaid phone net additions | 432,000 | 338,500 | +27.6% |
| Adjusted EPS | $0.65 | $0.59 | +10.2% |
| Revenue | $31.6 billion | $31.8 billion | -0.6% |
| Free cash flow | $4.70 billion | $4.43 billion | +6.1% |
Reuters provided the consensus estimates. All variances are based on these numbers.
The stock gained even though sales slightly missed expectations. Investors focused on better-than-expected subscriber numbers, earnings, and cash flow.
AT&T reported an increase of 432,000 postpaid phone subscribers, along with 646,000 new fiber and fixed-wireless connections. Together, these segments accounted for net additions totaling 1.078 million.
The composition of customers saw gains. Postpaid phone churn declined to 0.86%, down from 0.89% during the first quarter. Additionally, the proportion of advanced-internet households with AT&T wireless increased to 42.5%, up from 42.0%.
This alignment is driving profit growth outpacing that of sales. Advanced Connectivity’s revenue increased by 4.1%, as operating income surged 20.3%. The division’s operating margin expanded by 350 basis points to reach 25.7%.
David Wagner, who leads equities at Aptus Capital Advisors, noted the development. “The cross-selling that they’ve been building towards, it’s actually showing up in the numbers right now,” he said. Reuters
AT&T is speeding up its buyback activity. The company increased its 2026 share repurchase target to approximately $10 billion, up from the previous $8 billion. In the most recent quarter, it distributed $4.1 billion, with $2.2 billion attributed to buybacks.
The investment load is still significant. Capital expenditures increased to $6.1 billion compared to $5.1 billion in the previous year. Net debt totaled $126.4 billion, representing 2.68 times adjusted EBITDA.
Trading volume on Wednesday totaled 187.3 million shares, exceeding the 65-day average by more than three times. Shares in AT&T advanced 4.8% across the five sessions ending Wednesday.
Upcoming sector updates will be released soon. T-Mobile US Inc. NASDAQ:TMUS is set to report on Thursday, with a call at 7:30 a.m. EDT. Verizon Communications Inc. NYSE:VZ will follow on Friday, holding a webcast at 8:30 a.m. The subscriber and churn statistics will indicate if AT&T managed to gain market share.
Risks persist. Legacy revenue declined by 25.9%, and overall revenue came in below forecasts. Increased capital expenditure or more challenging pricing conditions could impact cash conversion. The level of debt reduces the margin for mistakes.
AT&T reaffirmed its forecast for 2026, projecting adjusted earnings between $2.25 and $2.35 per share and free cash flow of no less than $18 billion. Achieving additional progress will rely on generating that cash while keeping up subscriber growth.
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