AT&T beats Q2 estimates on strong wireless and broadband growth

AT&T Inc reported second-quarter adjusted earnings and profit growth that topped Wall Street estimates on Wednesday, driven by robust postpaid phone additions and broadband growth, sending shares up 4.3% at the open.

The telecom giant posted adjusted earnings per share of $0.65, up 20.4% from a year earlier and ahead of analyst estimates of $0.60.

Revenue rose 2.3% to $31.6 billion, just shy of the $31.7 billion analysts had expected.

AT&T added 432,000 postpaid phone subscribers in the quarter, well above the 338,500 additions analysts had forecast, while postpaid phone churn held at 0.9%.

Adjusted EBITDA climbed 5.2% to $12.3 billion, beating estimates of $12.11 billion, and free cash flow rose 7% to $4.7 billion, also topping expectations of $4.51 billion.

The company’s advanced connectivity segment, which includes its fiber and wireless businesses, generated revenue of $28.62 billion, up 4.1% from a year earlier.

AT&T added more than 1 million advanced connectivity customers in the quarter, including 646,000 internet net adds, split between 367,000 fiber additions and 279,000 fixed wireless additions. Fiber locations reached 38.6 million.

Legacy segment revenue continued to decline, falling 25.9% to $1.63 billion, while Latin America revenue rose 16.1% to $1.22 billion.

AT&T returned $4.1 billion to shareholders in the quarter, including roughly $2.2 billion in share buybacks. The company said it has accelerated its 2026 buyback program to approximately $10 billion, and reiterated a target of more than $45 billion in capital returns between 2026 and 2028.

The company affirmed its full-year guidance, projecting adjusted EBITDA growth of 3% to 4%, adjusted earnings per share of $2.25 to $2.35, capital investment of $23 billion to $24 billion, and free cash flow of more than $18 billion. Proactive