AT&T’s Strong Quarter and Raised Guidance Aren’t Enough to Boost the Stock

AT&T raised its profit guidance for 2026 after strong third-quarter results. (Carl de Souza / AFP via Getty Images)

Key Points

• AT&T stock fell in premarket trading on Wednesday despite the company reporting third-quarter results that beat analyst estimates.
• Third-quarter revenue of $32.3 billion and adjusted earnings per share of 65 cents both topped analyst expectations.
• AT&T raised its 2026 adjusted earnings per share guidance to the $2.40 range and plans to accelerate share repurchases to about $10 billion.

It seems an earnings beat, raised profit guidance, and bigger stock buybacks aren’t quite enough for AT&T investors on Wednesday.

AT&T stock fell more than 5% in premarket trading after the telecommunications giant reported third-quarter results.

Revenue rose 5.3% to $32.3 billion, beating estimates of $31.69 billion, according to analysts surveyed by FactSet. Adjusted earnings per share of 65 cents also topped analysts’ estimates of 60 cents.

AT&T said it sees adjusted EPS in the $2.40 range for 2026, ahead of the $2.25 to $2.35 range it guided in July.

The Barron’s Daily

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.

Email addressSubscribe

I agree to the Terms of Use, Privacy Notice and Cookie Notice.

I would like to receive updates and special offers from Dow Jones and affiliates.

There’s more for investors to be happy about, too, including stock buybacks.

“The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity,” CEO John Stankey said in a statement. “We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position.”

So why is AT&T stock dropping after earnings? The answer is likely underwhelming postpaid phone net adds. The company said it added 379,000 postpaid subscribers in the quarter, which was just shy of the 379,300 expected by analysts.

However, that’s considerably down on the 432,000 postpaid phone subscribers added in the second quarter, which crushed estimates.

Postpaid phone subscriptions, referring to customers who pay monthly, are critical for wireless companies because they represent predictable and long-term recurring revenue.

Reading into the tea leaves of postpaid subscribers is also how investors can see into the price wars—and potential competition from entrants like SpaceX —that have hit telecom stocks.

Write to Jack Denton at jack.denton@barrons.com

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8