AT&T Boosts Revenue on Strong Postpaid Phone, Internet Customer Growth

AT&T Inc. (NYSE: T), a prominent player in the telecommunications sector, announced robust second-quarter financial results, reporting increased revenue and profitability driven by growth in postpaid phone and internet customer numbers. The company's diluted earnings per share (EPS) from continuing operations rose to $0.66, up from $0.62 in the prior year, surpassing market expectations, while total revenue increased by 2.3% to $31.6 billion. This performance underscores the success of AT&T's investment-led strategy focused on 5G and fiber expansion.

The company achieved significant growth during the quarter, adding over 1 million Advanced Connectivity customers. This surge was primarily fueled by 432,000 new postpaid phone subscribers and 646,000 internet subscribers, which included 367,000 fiber and 279,000 fixed wireless customers. Advanced Connectivity service revenues saw a 5.1% year-over-year increase, reaching $23.5 billion, while operating income surged by 20.3% to $7.3 billion. AT&T continued its aggressive fiber network expansion, adding over 1 million new fiber locations during the quarter, bringing the total to 38.6 million.

AT&T's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbed by 5.2% year-over-year to $12.3 billion. Free cash flow also improved to $4.7 billion, up from $4.4 billion in the same quarter last year. John Stankey, AT&T CEO, highlighted that the accelerated growth this quarter reinforced AT&T's structural advantages in connectivity and its position to lead in converged 5G and fiber services. Stankey also announced plans to execute approximately $10 billion in share repurchases in 2026, reflecting confidence in their market position.

These positive financial outcomes demonstrate the effectiveness of AT&T's strategy in a competitive telecommunications landscape. Investments in high-value connectivity services like fiber and 5G have enabled the company to expand its subscriber base and boost service revenues. The acquisition of Lumen's mass markets fiber business in the first quarter also contributed positively to fiber revenues. The company continues to decommission its legacy copper-based network, with growth predominantly driven by fiber and fixed wireless internet services.

Market analysts are viewing AT&T's accelerating growth momentum and its consistently executed investment-focused strategy favorably. The company reaffirmed its 2026 adjusted EPS guidance of $2.25 to $2.35 per share, with a target of double-digit compound annual growth rate (CAGR) through 2028. AT&T expects free cash flow to exceed $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028. The company remains on track to reach over 40 million fiber locations by the end of 2026 and more than 60 million by the end of 2030, reflecting strong confidence in its future growth potential.