AT&T raises adjusted EPS forecast to about $2.40 after record internet additions

Revenue reaches $32.3 billion as third-quarter results exceed estimates

AT&T raised its full-year adjusted earnings outlook to about $2.40 per share after adding postpaid phone and internet customers in the third quarter. The company reported adjusted earnings of 65 cents per share, above FactSet’s 60-cent estimate, and revenue of $32.3 billion, above an analyst estimate of $31.69 billion.

Subscriber gains and segment results

AT&T added 379,000 net subscribers for its postpaid phone service in the quarter, compared with an analyst estimate of about 379,300. Postpaid phone churn was 0.9%. The company also added 769,000 total consumer and business customers for its internet service, marking a record quarter, including 442,000 for its fiber-optic network and 327,000 for fixed wireless. The customer gains helped AT&T’s quarterly adjusted earnings per share and revenue top Wall Street’s estimates, while further postpaid-phone subscriber additions boosted its full-year profit outlook, The Wall Street Journal reported.

Adjusted earnings of 65 cents per share exceeded the 60-cent FactSet estimate. Revenue rose 5.3% to $32.3 billion, above the $31.69 billion analyst estimate. AT&T’s advanced connectivity segment, which makes up the bulk of its revenue, increased sales 7.2% to $29.48 billion. AT&T attributed the advanced connectivity increase to growth in retail wireless subscribers in underpenetrated categories, converged accounts and higher prices that were partially offset by discounts.

Profitability and asset transition

Legacy sales fell 25% to $1.52 billion as demand declined while AT&T continued to decommission its copper-based network. Earnings from continuing operations were 13 cents per share, compared with $1.29 a share a year earlier. The latest figure was reduced by a non-cash impairment charge tied to the Mexico wireless business AT&T plans to sell and employee separation charges. The year-earlier result included a gain recognized from the sale of a stake in DirecTV.

Latin America revenue rose 13% to $1.24 billion. AT&T said last week that it had reached a deal to sell its Mexico wireless business, which comprises its entire Latin America segment, to Grupo Televisa and Fintech Holdings. Under the deal, AT&T will receive $2 billion in cash at closing.

Capital plan and full-year guidance

For the full year, AT&T now expects adjusted earnings of about $2.40 per share, compared with its previous forecast of $2.25 to $2.35. Analysts polled by FactSet projected $2.34. AT&T backed its capital investment outlook of $23 billion to $24 billion for the year but expects spending to come down over the longer term. The company guided for capital investments of $22 billion to $23 billion annually in 2027 and 2028.

“We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless,” Chief Executive John Stankey said. Stankey also said AT&T was well-positioned for the rise of artificial intelligence given its leadership in fiber.

SpaceX expands into wireless

The results came as The Wall Street Journal assessed SpaceX as a potential competitor to the leading wireless carriers. In September 2026, the Elon Musk-led company signed an $8 billion deal to buy cellular spectrum licenses from investment firm Grain Management. SpaceX has said it wants to move its Starlink satellite service beyond broadband, and The Wall Street Journal said the spectrum acquisition could make SpaceX a more serious threat to AT&T, Verizon and T-Mobile.

AT&T shares rose 0.95%.

Kelly Cloonan covers corporate breaking news at The Wall Street Journal in New York. She previously wrote for Sherwood News, Business Insider and Fast Company. Kelly is a graduate of Northwestern University’s Medill School of Journalism.