AT&T Reports Record First Quarter Performance Driven by Advanced Connectivity Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy T?
Source: Newsfilter
- Significant Revenue Growth: AT&T's total revenue for the first quarter reached $31.5 billion, a 2.9% increase year-over-year, primarily driven by strong performance in advanced connectivity services, showcasing the company's competitive edge and customer appeal in the market.
- Robust User Growth: The company added 584,000 internet subscribers in the first quarter, including 292,000 fiber users, indicating success in AT&T's strategy of integrating home internet and wireless services, further solidifying its market position.
- Capital Return Plans: AT&T plans to return over $45 billion to shareholders through dividends and share repurchases from 2026 to 2028, demonstrating confidence in future cash flows and commitment to shareholders.
- Stable Financial Outlook: The company maintains its 2026 financial guidance, expecting service revenue growth of over 5% and adjusted EPS between $2.25 and $2.35, reflecting a positive outlook for future growth.
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Analyst Views on T
Wall Street analysts forecast T stock price to rise
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 26.180
Low
20.00
Averages
28.27
High
33.00
Current: 26.180
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Subscriber Growth Surpasses Expectations: AT&T added 294,000 net monthly bill-paying wireless subscribers in Q1, exceeding analyst expectations of 272,000, indicating strong appeal of its bundled wireless and high-speed fiber packages, enhancing its competitive position in the market.
- Stable Revenue Growth: Total revenue for the quarter grew approximately 3% to $31.5 billion, surpassing analyst estimates of $31.25 billion, reflecting the company's ability to maintain stable financial performance amid fierce competition.
- Pricing Strategy Adjustment: AT&T raised prices on its lowest and highest wireless tiers to encourage customers to opt for mid-range plans, thereby lifting average revenue per user and alleviating market fears of a price war, showcasing its strategic pricing capabilities.
- Business Reorganization Focused on Growth: AT&T is reorganizing its business segments to highlight core growth areas, with the new advanced connectivity segment reporting about 5% revenue growth, driven by increased wireless device sales volumes and the impact of the acquired mass markets fiber business from Lumen.
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- Non-GAAP EPS: AT&T reported a non-GAAP EPS of $0.57 for Q1, beating expectations by $0.02, which reflects the company's stable profitability and helps bolster investor confidence.
- Revenue Performance: The company achieved revenues of $31.5 billion in Q1, exceeding market expectations by $260 million, indicating strong sales momentum that could influence future investment decisions.
- Investment Cycle Outlook: AT&T is locking in fixed yields ahead of a large investment cycle, a strategy that will lay the groundwork for future growth, particularly in the expansion of its fiber business.
- Subscriber and FCF Focus: As AT&T and Verizon prepare to release their Q1 earnings, the market will closely watch subscriber growth and free cash flow figures, which will directly impact investor expectations regarding the companies' future performance.
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- Strong Earnings: AT&T reported a Q1 non-GAAP EPS of $0.57, beating expectations by $0.02, indicating ongoing improvements in profitability that bolster investor confidence.
- Revenue Growth: The company achieved $31.5 billion in revenue for Q1, a 2.9% year-over-year increase, primarily driven by higher revenues from advanced connectivity wireless and fiber services, showcasing robust performance in emerging markets.
- Foreign Exchange Impact: Revenues in Mexico increased due to favorable foreign exchange effects, further enhancing overall performance and demonstrating the company's adaptability and growth potential in international markets.
- Legacy Revenue Decline: Despite overall revenue growth, lower legacy revenues due to the ongoing decommissioning of copper-based networks highlight the challenges and opportunities faced by the company during its transformation process.
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- Accelerated Organic Growth: AT&T achieved an organic growth rate nearing 45% in Q1, with nearly 45% of advanced home internet subscribers also opting for AT&T wireless services, demonstrating the effectiveness of the company's investment-led, customer-centric strategy, thereby enhancing its competitive edge in the market.
- Financial Guidance Reaffirmed: AT&T reiterated its financial guidance for 2026 and multi-year capital return plans, expecting to return over $45 billion to shareholders through dividends and share repurchases from 2026 to 2028, further boosting investor confidence.
- Significant EBITDA Growth: Q1 EBITDA reached $11.6 billion, reflecting a 5.6% year-over-year increase, with operating income rising 14.8% to $6.85 billion, showcasing the company's strong performance in advanced connectivity services and bolstering overall financial health.
- Successful Acquisition Integration: AT&T completed the acquisition of Lumen's Mass Markets fiber business in February 2026, enhancing its fiber network capabilities, and plans to sell a controlling interest to attract investment partners, further optimizing its capital structure and growth potential.
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