AT&T Q1 Adds 294K Postpaid Subscribers, Revenue Climbs 3% to $31.5B
AT&T added 294,000 postpaid phone subscribers in Q1, topping the 272,000 forecast and boosting wireless-fiber convergence to nearly 45%. Revenue rose 3% year-over-year to $31.5 billion with adjusted EPS of $0.57, and AT&T reaffirmed its 2026 guidance including $2.25–$2.35 EPS, $18 billion free cash flow and ~$8 billion in buybacks.
1. Subscriber Growth Exceeds Estimates
AT&T reported 294,000 net additions of postpaid phone subscribers in Q1, surpassing the 272,000 analyst projection. Wireless plan adoption among its home internet customers reached 42%, rising to nearly 45% when excluding Lumen-acquired customers, marking the fastest organic convergence rate gain year-over-year.
2. Financial Performance and Guidance
First-quarter revenue increased approximately 3% to $31.5 billion, and adjusted EPS came in at $0.57, above the $0.55 consensus. Adjusted EBITDA rose to $11.8 billion while free cash flow totaled $2.5 billion. The company reaffirmed full-year 2026 targets of $2.25–$2.35 EPS, at least $18 billion in free cash flow, and $23–$24 billion in capital spending, plus roughly $8 billion in share repurchases and a $1.11 annual dividend.
3. Fiber Deployment and Convergence Strategy
AT&T added 584,000 total internet net subscribers, evenly split between 292,000 fiber and 292,000 fixed wireless connections. Its fiber network now covers over 37 million locations, including 4 million from the Lumen acquisition, and remains on track to surpass 40 million by year-end 2026. Postpaid phone churn was 0.89%, while the advanced connectivity segment saw approximately 5% revenue growth.