AT&T Shares Fall as Fiber Pricing and Costs Overshadow Earnings Beat
AT&T reported third-quarter adjusted earnings of $0.65 per share and revenue of $32.32 billion, beating estimates, and raised its 2026 EPS outlook. Shares fell more than 6% as investors focused on lower fiber revenue per customer, higher marketing costs, and charges including a $2.6 billion impairment. The company added over 1 million advanced connectivity customers and maintained its free cash flow targets.
AT&T's adjusted quarterly profit was $0.65 a share, versus $0.60 expected, and revenue reached $32.32 billion against a $31.65 billion consensus. It raised its 2026 adjusted EPS view to about $2.40, citing lower depreciation from the planned sale of its Mexico wireless unit.
The company added more than 1 million advanced connectivity customers for a second consecutive quarter, including 379,000 postpaid phone net adds, while advanced connectivity revenue rose 6.1% to $23.9 billion. It returned $4.8 billion to shareholders, including $2.8 billion in buybacks, and maintained its free cash flow targets.
The share decline may affect investors and retirees exposed to AT&T, while lower introductory fiber prices could help some households access broadband. Higher marketing and separation costs could pressure near-term profitability, and the employee charge suggests some workers may face transition effects. AT&T’s planned network spending could still support service quality and connectivity expansion, though the balance between customer growth and cost discipline may shape how consumers and communities experience pricing and coverage.