Key Highlights

● Revenue was about $32.3 billion, up roughly 5% from a year earlier.

● AT&T reported a record 769,000 total internet net additions.

● A $2.6 billion non-cash Impairment on Mexico wireless cut reported earnings per share.

● Management raised its 2026 adjusted earnings outlook to approximately $2.40 per share.

AT&T Inc. (NYSE:T), a member of the S&P 500 and a major U.S. wireless and fiber provider, reported third-quarter 2026 results on October 21, 2026. The headline numbers showed adjusted earnings ahead of Wall Street estimates and a record quarter for internet customer additions, while reported GAAP earnings fell sharply because of a non-cash charge tied to the planned sale of its Mexico business. That contrast between operating strength and accounting noise may be why investors continue to discuss the stock.

Latest Company Context

According to market data on the October 21 release, AT&T posted Revenue of about $32.3 billion, up roughly 5% from a year earlier, and adjusted earnings of $0.65 per share, compared with analyst consensus of roughly $0.60. Reported diluted Earnings Per Share from continuing operations were $0.13, versus $1.29 a year ago, reflecting a $2.6 billion non-cash impairment on Mexico wireless. AT&T has agreed to sell that unit to Grupo Televisa (NYSE:TV), with closing expected in early 2027.

Operationally, AT&T reported 379,000 postpaid phone net additions, 442,000 fiber net additions and a record 769,000 total internet net additions, including 327,000 fixed wireless. Free Cash Flow was about $4.95 billion for the quarter, and service revenue rose 3.8% to roughly $26.3 billion. Adjusted EBITDA was about $12.5 billion, up 5.4%, according to the same market data.

Key Business and index Drivers

AT&T is listed among S&P 500 constituents, so it may be held by funds that track that benchmark. Beyond index exposure, several company-level drivers stand out. Management raised its 2026 adjusted earnings outlook to approximately $2.40 per share and kept its full-year free cash flow target, according to market data. The company continues to describe a path toward about 40 million fiber locations by the end of 2026 and maintains a share repurchase program running through 2028. The annualized common Dividend was reported as unchanged at $1.11 per share.

The Balance Sheet is the counterweight. Net Debt to adjusted EBITDA was about 3.13 times, above the company's long-term target, and management has indicated a return to the target range by 2029. Higher Leverage can limit flexibility if business conditions soften.

What Investors Should Watch

Investors may watch whether fiber and fixed wireless additions stay elevated as competition for home internet intensifies. Postpaid phone churn, reported at 0.92%, could indicate how well AT&T retains wireless customers. The pace of leverage reduction is another area of focus, particularly given Buybacks and the dividend. Free cash flow conversion may matter as the company continues its network investment. The closing of the Mexico sale, expected in early 2027, may also affect reported results. Finally, the fourth-quarter report, when it arrives, could show whether the raised earnings outlook is being met.

Strong Subscribers, Heavy Balance Sheet

AT&T's third quarter combined solid subscriber growth and a raised earnings outlook with a large accounting charge and elevated leverage. For readers following the telecom sector, the key questions may revolve around fiber economics, debt reduction and cash returns.