AT&T Shares Slip Premarket Even as It Raises 2026 Profit Outlook

what happened

In its third-quarter report, AT&T posted adjusted earnings of $0.65 per share, topping the $0.60 analyst consensus, while revenue reached $32.3 billion against an expected $31.69 billion, according to GuruFocus. GAAP diluted EPS from continuing operations dropped to $0.13 from $1.29, mainly because of a $2.6 billion non-cash write-down on its Mexico wireless business, which the company agreed on October 13 to sell. The stock declined 5.47% in premarket trading.

The Advanced Connectivity unit raised service revenue 6.1% to $23.9 billion and grew operating income 18.9% to $7.6 billion. The company also recorded a record 769,000 new internet subscribers, made up of 442,000 fiber and 327,000 fixed wireless accounts. Postpaid phone net additions reached 379,000, with churn at 0.92%.

Free cash flow came in at $5.0 billion, versus $4.9 billion a year earlier. AT&T lifted its 2026 adjusted EPS outlook to around $2.40 and cut its annual capital investment plans for 2027 and 2028 to $22 billion to $23 billion. Net debt climbed sequentially to $149.8 billion after the EchoStar spectrum transaction closed.

why it matters

The picture for investors is mixed: solid operating numbers and a higher profit outlook sit alongside rising net debt and a sizable impairment. Key items to watch are the expected free cash flow of $18 billion or more this year and roughly $10 billion of buybacks planned for 2026.

market impact

AT&T and US telecoms: higher profit outlook supports the sector, while rising debt and the write-down weigh

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