AT&T reported third-quarter 2026 revenue of $32.3 billion, up 5.3 percent year over year, supported by expanding fiber broadband, wireless services and customer additions. The US telecom operator recorded more than one million advanced connectivity customer additions for the second consecutive quarter, while increasing investment in its 5G and fiber infrastructure.
AT&T’s Q3 2026 financial results indicated that its adjusted EBITDA rose 5.4 percent to $12.5 billion, and adjusted earnings per share rose to $0.65 from $0.54. However, reported operating income declined to $4.1 billion, partly reflecting a $2.6 billion non-cash impairment related to the planned sale of its Mexico wireless business.
AT&T Q3 2026 Financial Performance
| Financial indicator | Q3 2026 | YoY change |
| Total revenue | $32.32 billion | +5.3% |
| Service revenue | $26.30 billion | +3.8% |
| Equipment revenue | $6.02 billion | +12.1% |
| Operating expenses | $28.23 billion | +14.8% |
| Operating income | $4.10 billion | −33.1% |
| Adjusted operating income | $7.6 billion | Increased |
| Adjusted EBITDA | $12.5 billion | +5.4% |
Operating expenses increased from $24.6 billion to $28.2 billion, reflecting impairment and restructuring charges, higher wireless equipment costs, advertising, bad debt expenses and acquired fiber customer costs.
The company recorded adjusted operating income of $7.6 billion, compared with $6.6 billion a year earlier, indicating stronger underlying operating performance despite the decline in reported profit.
AT&T Fiber and Broadband Add 769,000 Internet Customers
AT&T achieved a record 769,000 advanced connectivity internet net additions, comprising 442,000 fiber customers and 327,000 fixed wireless customers.
Advanced home internet revenue increased 23.4 percent to $2.98 billion, supported by fiber expansion, AT&T Internet Air growth and the acquisition of Lumen’s mass-market fiber business.
AT&T’s fiber network reached more than 39 million consumer and business locations. The company expects to exceed 40 million locations by the end of 2026 and 60 million by 2030.
Its broadband strategy increasingly combines owned fiber networks, fiber ventures and fixed wireless access to expand coverage and customer relationships.
AT&T 5G and Wireless Business
Wireless service revenue in the Advanced Connectivity segment increased 5 percent to $17.76 billion.
AT&T added 379,000 postpaid phone subscribers during the quarter, while postpaid phone churn stood at 0.92 percent.
The company reported that 42.8 percent of households subscribing to its advanced home internet services also used AT&T wireless, demonstrating the growing importance of converged mobile and broadband subscriptions.
Advanced Connectivity service revenue reached $23.9 billion, up 6.1 percent, while segment operating income rose 18.9 percent to $7.63 billion.
These figures indicate that wireless and fiber growth are contributing to both revenue expansion and improved segment profitability.
AT&T Subscribers: 110.2 Million Wireless and 16.2 Million Internet Connections
AT&T ended September 2026 with 110.24 million US retail wireless subscribers, up 1.3 percent year over year. Postpaid phone subscriptions reached 75.28 million, increasing 2 percent, while prepaid phone subscriptions declined 3 percent to 16.45 million.
| Subscriber category | September 2026 | YoY growth |
| Retail wireless | 110.24 million | +1.3% |
| Postpaid phone | 75.28 million | +2.0% |
| Prepaid phone | 16.45 million | −3.0% |
| Total internet connections | 16.25 million | +29.3% |
| Fiber connections | 13.31 million | +23.4% |
| Fixed wireless connections | 2.94 million | +65.4% |
| AT&T Internet Air | 2.23 million | +74.8% |
The rapid growth of AT&T Internet Air demonstrates the expanding role of 5G fixed wireless access in broadband customer acquisition.
The company also added approximately 350,000 converged customer relationships during the quarter, strengthening its strategy of combining mobile and home broadband services.
AT&T ARPU and Customer Retention
AT&T’s third-quarter postpaid phone churn remained at 0.92 percent, unchanged year over year, while overall phone churn improved from 1.24 percent to 1.19 percent.
AT&T Capex Reaches $5.1 Billion as Fiber and 5G Investments Continue
AT&T reported third-quarter capital expenditure of $5.06 billion, up 3.6 percent from $4.89 billion a year earlier.
Capital investment, including vendor financing payments, reached $5.6 billion, compared with $5.3 billion in Q3 2025.
For the first nine months of 2026, capital expenditure increased 11.2 percent to $15.64 billion.
AT&T also completed substantial spectrum acquisitions during the quarter, reporting $22.84 billion in spectrum acquisition expenditure, principally reflecting its EchoStar transaction.
The company updated its capital investment outlook:
| Period | Capital investment outlook |
| 2026 | $23–24 billion |
| 2027 | $22–23 billion |
| 2028 | $22–23 billion |
The revised outlook indicates that AT&T expects to continue expanding fiber and wireless connectivity while reducing its previously anticipated longer-term capital investment requirements.
AT&T Opex, Digital Transformation and AI Strategy
AT&T’s Advanced Connectivity operating expenses increased 3.6 percent to $21.85 billion, considerably slower than the segment’s 7.2 percent revenue growth.
As a result, Advanced Connectivity operating margin improved from 23.3 percent to 25.9 percent.
The company’s legacy business recorded a 24.5 percent revenue decline to $1.52 billion, while direct operating expenses fell 23.5 percent to $1.02 billion.
AT&T plans to decommission most of its copper-based network by the end of 2029, subject to customer migration and regulatory approvals. Removing legacy infrastructure and associated costs is central to its operating-efficiency strategy.
AT&T also identified fiber and 5G infrastructure as important assets for the AI era. However, the quarterly filing does not separately quantify AI revenue, AI investment, AI-related operating savings or AI customer subscriptions.
AT&T Financial Outlook for 2026–2028
AT&T expects adjusted earnings per share of approximately $2.40 in 2026, with double-digit compound annual growth through 2028.
The operator forecasts adjusted EBITDA growth toward the upper end of 3–4 percent in 2026, accelerating to at least 5 percent by 2028.
The company’s financial priorities combine expansion of fiber and 5G services, improved operating efficiency, reduced legacy network costs and disciplined capital allocation.
AT&T’s third-quarter results demonstrate how broadband and wireless convergence is becoming an increasingly important driver of telecom revenue and profitability, even as restructuring charges and spectrum investments place pressure on reported earnings and debt.
BABURAJAN KIZHAKEDATH