AT&T Q1: record fiber/fixed-wireless adds, ~12% EPS growth, Lumen closed early

Transcript intelligence

What changed

After a strong Q4 2025 (1.5 million postpaid adds, 1 million fiber adds, $1 billion cost savings delivered in 2025), AT&T's first quarter of 2026 kept the momentum: record fiber and fixed-wireless net additions with 584,000 advanced Internet adds (best-ever first quarter), the Lumen transaction closed ahead of schedule adding 1.1 million fiber customers and 4 million-plus fiber locations, business service revenue flat year-over-year for the first time, and EPS up nearly 12%. The EchoStar spectrum acquisition was announced for closure ahead. Capex rose to $5.1 billion as fiber rollout accelerates, while free cash flow still hit the high end of guidance.

Guidance delta

Maintained. AT&T reaffirmed its low single-digit service-revenue growth outlook and its 3-4% full-year EBITDA growth guidance, unchanged from prior guidance.

Key takeaways

• Record fiber and fixed-wireless customer net adds drove higher convergence rates, led by 584,000 advanced Internet net adds in the quarter - the best-ever first quarter
• Advanced Connectivity segment stabilized, with business service revenues flat year-over-year for the first time
• Free cash flow hit the high end of guidance despite a roughly $600 million decline from higher capex
• EPS rose nearly 12% year-over-year
• Management reaffirmed low single-digit service-revenue growth and 3-4% full-year EBITDA growth

Management priorities

• Add roughly 8 million fiber locations in 2026, expanding metro coverage
• Iterate and expand OneConnect with new plan variants through the year
• Close the EchoStar spectrum transaction and integrate the spectrum into the network
• Complete the equity investment to acquire remaining Lumen fiber assets in H2 2026
• Return $45 billion-plus to shareholders via dividends and share repurchases through 2028