Overview

• US telecom operator's Q2 revenue rose 2.3% yr/yr, slightly missing analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company to accelerate 2026 share repurchases to about $10 bln

Outlook

• AT&T reiterates all consolidated full-year 2026 and multi-year financial guidance

• Company expects 2026 adjusted EPS of $2.25 to $2.35

• AT&T sees 2026 free cash flow of $18 bln+, rising to $21 bln+ in 2028

Result Drivers

• ADVANCED CONNECTIVITY GROWTH - Co said Q2 results were driven by increases in fiber, fixed wireless, and postpaid phone subscribers, leading to record net adds in these categories

• FIBER ACQUISITION IMPACT - Growth in fiber revenues included the impact of the first-quarter acquisition of Lumen's mass markets fiber business

• LEGACY REVENUE DECLINE - Legacy segment revenues continued to fall as co decommissions its copper-based network

Company press release: ID:nPn5tg2pYa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Slight Miss*	$31.6 bln	$31.80 bln (18 Analysts)
Q2 Adjusted EPS	Beat	$0.65	$0.59 (18 Analysts)
Q2 Adjusted EBITDA		$12.3 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for AT&T Inc is $29.25, about 31.4% above its July 21 closing price of $22.26

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 21 - Mexico's America Movil posts 9% rise in Q2 profit

• July 20 - UK's BT Group shareholder sells substantial position in $224 million offering

• July 21 - Austria's EuroTeleSites Q2 revenue rises, helped by third-party tenant growth

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