AT&T’s first quarter results for 2026 were met with a negative market reaction, as higher-than-expected revenues were offset by a slight miss on profit. Management highlighted that growth was largely driven by continued expansion in fiber and fixed wireless customers, with CEO John Stankey noting, “We reported 584,000 total fiber and fixed wireless advanced Internet customer net additions. This is our best ever first quarter.” The company also closed its Lumen acquisition ahead of schedule, integrating over a million new fiber customers and expanding its advanced connectivity footprint. However, rising investment costs and the ongoing transition from legacy services weighed on overall profitability.
Is now the time to buy T? Find out in our full research report (it’s free for active Edge members).
AT&T (T) Q1 CY2026 Highlights:
- Revenue: $31.51 billion vs analyst estimates of $31.22 billion (2.9% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.57 vs analyst estimates of $0.55 (3.4% beat)
- Adjusted EBITDA: $11.8 billion vs analyst estimates of $11.78 billion (37.4% margin, in line)
- Operating Margin: 21.1%, up from 18.8% in the same quarter last year
- Market Capitalization: $181.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AT&T’s Q1 Earnings Call
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John Hodulik (UBS): Asked about the rollout and market impact of OneConnect and whether it will drive new subscriber growth. CEO John Stankey stated OneConnect is being gradually introduced with targeted segments, expecting it to evolve and play a larger role in reducing churn and promoting convergence.
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Michael Rollins (Citi): Inquired about AT&T’s definition of an “open” network and how it informs partnerships or acquisitions. Stankey detailed that open refers to a reengineered, software-driven core network, enabling flexible customer and partner integration through APIs and supporting future AI applications.
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Sean Diffley (Morgan Stanley): Questioned the threat from satellite providers and whether AT&T would consider MVNO relationships. Stankey responded that while satellite innovation is promising, fiber remains superior for in-home connectivity, and partnerships will be pursued where they add value, but not as a primary channel for customer acquisition.
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David Barden (New Street Research): Asked about the impact of the EchoStar spectrum acquisition and progress in copper retirement. Stankey and Desroches outlined that new spectrum enhances wireless performance and supports Internet Air, while copper shutdown will deliver cost savings and operational focus.
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Michael Ng (Goldman Sachs): Asked if the shift away from device subsidies would accelerate and for color on EBITDA growth drivers. Stankey described a gradual portfolio shift toward network-centric value, and Desroches cited converged customer growth, pricing actions, and improved Lumen integration as key contributors to margin expansion.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of fiber and Internet Air adoption and whether AT&T can meaningfully increase converged account penetration; (2) progress on cost savings and copper network retirement, as these are fundamental to margin expansion; and (3) early signs of network and subscriber impact from the integration of EchoStar spectrum assets. Ongoing developments in new product offerings and competitive responses will also be important indicators of execution.
AT&T currently trades at $26.04, in line with $25.88 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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