AT&T Q1 Churn Rises to 0.89% as Fiber Adds 292,000 Customers
AT&T’s wireless business saw Q1 postpaid adds decelerate to 294,000 with churn up to 0.89%, contributing to its 11x forward earnings valuation versus T-Mobile’s 18x. The company added 292,000 fiber customers with 40% bundling uptake and saw a 5.6% rise in Advanced Connectivity EBITDA as it pivots to fiber.
1. Wireless Segment Under Pressure
In Q1 2026, AT&T’s wireless segment saw postpaid phone net additions decelerate to 294,000 while churn rose to 0.89%, up from 0.83% a year earlier, limiting average revenue per user growth and pressuring margins as cable companies undercut pricing with bundled offerings.
2. Strategic Fiber Pivot
To counteract wireless pressure, AT&T added 292,000 fiber subscribers in the quarter, with over 40% of those new customers adopting wireless services through its OneConnect bundle, driving a 5.6% increase in Advanced Connectivity EBITDA.
3. Valuation Comparison
The company trades at 11x forward earnings compared to T-Mobile’s 18x multiple, reflecting investor concerns over the pace at which fiber expansion can offset wireless revenue erosion and justify a valuation premium.