AT&T's Q3 Revenue Surges 5.3%

By Ahmed Jamerson • Wednesday, October 21 13:08 • Permanent Link

AT&T reported third-quarter 2026 revenue of $32.3 billion, up 5.3% from $30.7 billion a year earlier, as the company posted its strongest consolidated service revenue growth in more than four years.

Adjusted earnings per share rose to $0.65 from $0.54 in the prior-year quarter. Revenue growth outpaced expense growth, with operating income at $4.1 billion versus $6.1 billion a year ago, while adjusted operating income increased to $7.6 billion from $6.6 billion. Adjusted EBITDA climbed 5.4% to $12.5 billion from $11.9 billion.

Cash from operating activities from continuing operations increased to $10.5 billion from $10.2 billion, and free cash flow edged up to $5.0 billion from $4.9 billion. Capital expenditures related to continuing operations rose to $5.1 billion from $4.9 billion, while capital investment increased to $5.6 billion from $5.3 billion.

AT&T added 769,000 total consumer and business advanced connectivity internet customers in the quarter, a record, including 442,000 fiber net adds and 327,000 fixed wireless net adds. Postpaid phone net adds totaled 379,000, with churn at 0.92%.

Advanced connectivity service revenue increased 6.1% to $23.9 billion from $22.5 billion. Segment operating income rose 18.9% to $7.6 billion from $6.4 billion, and EBITDA increased 7.3% to $12.3 billion from $11.5 billion.

Wireless service revenue in the advanced connectivity segment increased 5.0% to $17.8 billion from $16.9 billion. Advanced home internet revenue jumped 23.4% to $3.0 billion from $2.4 billion. Business fiber and advanced connectivity revenue rose 8.7% to $2.0 billion from $1.8 billion, while business transitional and other revenue fell 14.6% to $1.0 billion from $1.2 billion.

Legacy segment revenue dropped 24.5% to $1.5 billion from $2.0 billion. Operating income in legacy fell 26.7% to $498 million from $679 million.

Latin America revenue increased 13.2% to $1.24 billion from $1.10 billion. Operating income there rose to $45 million from $22 million, and EBITDA increased 18.6% to $236 million from $199 million.

AT&T ended the quarter with total debt of $159.6 billion and net debt of $149.8 billion, both higher sequentially after the EchoStar spectrum transaction closed. The company returned about $4.8 billion to shareholders in the quarter, including $2.8 billion in common share repurchases. Today the company's shares have moved 0.95% to a price of $23.42. For more information, read the company's full 8-K submission here.

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