AT&T (NYSE:T) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• AT&T beat quarterly earnings estimates, reporting adjusted EPS of $0.65 versus the $0.60 consensus, while revenue increased 5.3% year over year to $32.3 billion. The company also raised its 2026 adjusted EPS outlook.
• Connectivity performance was strong, with 769,000 internet net additions, 379,000 postpaid phone additions and a 6.1% increase in Advanced Connectivity service revenue. AT&T also lowered its long-term capital-investment outlook and returned approximately $4.8 billion to shareholders.
• AT&T declared a quarterly dividend of $0.2775 per share, representing a 4.7% annualized yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $29.05.

AT&T (NYSE:T - Get Free Report) posted its earnings results on Wednesday. The technology company reported $0.65 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.05, FiscalAI reports. AT&T had a net margin of 16.94% and a return on equity of 12.86%.

AT&T Stock Performance

T opened at $23.41 on Wednesday. AT&T has a 52-week low of $19.89 and a 52-week high of $29.43. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06. The company has a market cap of $160.44 billion, a P/E ratio of 7.75, a price-to-earnings-growth ratio of 1.13 and a beta of 0.25. The firm's 50-day moving average price is $24.94 and its 200-day moving average price is $24.33.

AT&T Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be issued a dividend of $0.2775 per share. The ex-dividend date is Friday, October 9th. This represents a $1.11 annualized dividend and a dividend yield of 4.7%. AT&T's dividend payout ratio is 36.75%.

Analyst Ratings Changes

Several equities research analysts have weighed in on T shares. Argus lowered their target price on shares of AT&T from $33.00 to $30.00 and set a "buy" rating for the company in a research note on Thursday, July 23rd. Scotiabank reduced their price target on AT&T from $27.50 to $26.50 and set a "sector perform" rating on the stock in a research report on Friday, October 9th. TD Cowen upped their price target on AT&T from $32.00 to $33.00 and gave the stock a "hold" rating in a research report on Thursday, July 23rd. KeyCorp reiterated an "overweight" rating and set a $36.00 price objective on shares of AT&T in a report on Wednesday, October 7th. Finally, BNP Paribas Exane raised AT&T from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $26.00 to $30.00 in a research report on Monday, September 21st. Eleven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $29.05.

Key AT&T News

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: Revenue increased 5.3% year over year to $32.3 billion, while adjusted EPS of $0.65 exceeded the $0.60 analyst consensus. AT&T also raised its 2026 adjusted EPS outlook. AT&T raises annual profit forecast on strong demand for bundled plans
• Positive Sentiment: Advanced Connectivity produced record internet net additions of 769,000, including 442,000 fiber and 327,000 fixed-wireless additions. Postpaid phone net additions reached 379,000, and converged customer relationships grew by approximately 350,000. AT&T Delivers Strong Third-Quarter 2026 Results
• Positive Sentiment: Advanced Connectivity service revenue rose 6.1% to $23.9 billion, with operating income up 18.9% to $7.6 billion. AT&T also lowered its long-term capital-investment outlook, potentially improving future free-cash-flow generation, while returning about $4.8 billion to shareholders, including $2.8 billion in repurchases. AT&T Delivers Strong Third-Quarter 2026 Results
• Neutral Sentiment: Reported net income was $891 million, and diluted EPS from continuing operations was $0.13, substantially below the adjusted EPS figure. Investors will likely focus on the quality of earnings and cash flow behind the adjustment.
• Negative Sentiment: Elon Musk characterized Starlink as a disruptive threat to traditional telecom providers, keeping satellite broadband competition as a longer-term risk for AT&T, T-Mobile and Verizon. Starlink competition article

About AT&T

AT&T Inc NYSE: T is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.

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