AT&T Drives 2.9% Q1 Revenue Growth, Adds 1.1M Fiber Customers
AT&T reported 2.9% total revenue growth and 12% adjusted EPS increase to $0.57 in Q1, with free cash flow reaching $2.5 billion. The company added 584,000 advanced internet customers, closed the Lumen transaction adding 1.1 million fiber customers, and expanded fiber reach to 37 million locations.
1. Q1 Financial Performance
AT&T’s total revenue rose 2.9% year-over-year in Q1 2026, driven by a 1.4% increase in service revenues. Adjusted EBITDA climbed 2.3% to a 37.4% margin despite a 30-basis-point decline, while adjusted EPS reached $0.57, up nearly 12%, and free cash flow hit $2.5 billion.
2. Fiber Network Expansion and Lumen Acquisition
The company closed its Lumen deal early, adding 1.1 million fiber customers and over 4 million locations. Total advanced internet net adds of 584,000 in the quarter brought fiber reach to 37 million customer locations, with a goal of exceeding 60 million by 2030.
3. OneConnect Launch and Strategic Outlook
AT&T introduced OneConnect, the first single subscription for fiber and wireless at a flat monthly price, targeting segments such as BYOD customers. Management expects converged connectivity to boost loyalty, improve phone churn trends, and drive long-term ARPU growth.
4. Balance Sheet and Legacy Business Trends
Net debt to adjusted EBITDA rose to 2.71 times from 2.53 times on higher leverage from the Lumen transaction. Legacy service revenues declined about 25%, and the company anticipates continued legacy EBITDA declines as it winds down older infrastructure operations.