AT&T shares slide nearly 6% as wireless subscriber gains lag earnings

what happened

Telecom operator AT&T raised its adjusted 2026 earnings forecast to about $2.40 per share, but the market wanted more. By 10:49 a.m. ET on Wednesday the shares had dropped roughly 5.9% to $22.04, according to GuruFocus, as attention shifted to wireless customer additions.

Quarterly figures showed revenue of $32.3 billion, adjusted EBITDA of $12.5 billion and free cash flow of $5 billion. The company signed up 379,000 postpaid phone customers, while fiber and fixed wireless internet connections rose by a combined 769,000.

Bundling internet with mobile plans gives AT&T more ways to package services, but converting those connections into durable, profitable relationships with customers will be the harder task.

why it matters

For investors the key questions are whether AT&T can grow its mobile base, control churn and deliver the higher profit target without weakening cash flow. Solid cash generation supports the business, though heavy promotions to win wireless customers could erode returns. GuruFocus puts its GF Value estimate at $24.64, a level the shares were trading 10.56% below.

market impact

Telecom stocks, AT&T: weak phone subscriber growth weighs on shares despite the raised profit outlook

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