AT&T has raised its 2026 annual profit forecast after reporting stronger-than-expected third-quarter revenue and earnings, driven by demand for bundled wireless and internet services.
The US telecommunications company now expects adjusted annual earnings of about $2.40 per share, up from its previous forecast of $2.25 to $2.35.
AT&T’s strategy of combining internet and wireless services is helping the company attract and retain customers amid growing competition. About 43% of households signing up for its internet services also subscribe to its wireless plans.
During the third quarter, AT&T added 379,000 postpaid wireless subscribers, 442,000 fiber internet customers and 327,000 fixed wireless subscribers, reflecting continued demand for connectivity services.
Revenue increased 5.3% year-on-year to $32.3 billion, beating analysts’ estimates of $31.69 billion. Adjusted earnings reached 65 cents per share, above the 60 cents expected by analysts.
The company is also investing heavily in fiber infrastructure to expand its broadband coverage and meet rising demand for high-speed internet. Its expansion strategy includes a multibillion-dollar supply agreement with Corning and its acquisition of Lumen’s consumer fiber business.
However, AT&T recorded a $2.6 billion non-cash impairment charge related to the planned $2 billion sale of its wireless business in Mexico. Despite the improved earnings outlook, its shares fell 3.8% in volatile premarket trading.
The results highlight AT&T’s focus on bundled services, customer retention and broadband expansion as key drivers of future growth.
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