10-Q · July 22, 2026
AT&T reported $31.558 billion of Q2 revenue, up 2.3% year over year and slightly above the prior quarter, while reported EPS of $0.65 exceeded the $0.54 recorded in 2026 Q1. Performance was led by Advanced Connectivity,…
Earnings analysis · 10-Q
T earnings analysis
Filed October 21, 2026 · Our reading of the company's report
The latest report
AT&T delivered a solid Q3, with $32.322 billion of revenue and $0.65 adjusted EPS beating consensus by 2.1% and $0.05, respectively. Free cash flow recovered to approximately $5.0 billion from $807 million in Q2, while…
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AT&T delivered a solid Q3, with $32.322 billion of revenue and $0.65 adjusted EPS beating consensus by 2.1% and $0.05, respectively. Free cash flow recovered to approximately $5.0 billion from $807 million in Q2, while management raised 2026 adjusted EPS outlook to approximately $2.40 and reduced longer-term annual capital investment guidance to $22 billion-$23 billion. The principal offset is the $2.6 billion Mexico impairment, which materially reduced reported GAAP earnings; current gross margin, operating margin and segment revenue details were not available in the supplied filing text.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.65
What stood out
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Revenue beat and improved sequentially
Q3 revenue was $32.322 billion, 2.1% above the $31.652 billion consensus estimate and approximately 2.4% above Q2 revenue of $31.56 billion.
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Adjusted EPS beat estimates
Adjusted EPS was $0.65 versus the $0.60 estimate, a $0.05 beat. EPS was down from $0.66 in Q2 2026 and from $1.29 in Q3 2025, with the prior-year comparison affected by unusually high Q3 2025 earnings.
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Cash flow rebounded sharply
Free cash flow was approximately $5.0 billion, up from $807 million in Q2 2026 and supporting management's expectation for at least $18 billion of 2026 free cash flow.
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EPS outlook raised; capex outlook lowered
Management raised 2026 adjusted EPS outlook to approximately $2.40 and lowered 2027-2028 annual capital investment guidance to $22 billion-$23 billion.
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Meaningful share repurchases continued
The company repurchased 117,551,731 shares during Q3 2026 at an average price of $23.84; $8,496 million remained available under the repurchase authorizations at September 30, 2026.
What to watch
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Mexico impairment distorts GAAP earnings
Reported GAAP EPS was reduced by a $2.6 billion Mexico impairment, creating a substantial gap between adjusted EPS of $0.65 and reported GAAP profitability.
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Large buybacks compete with capital needs
The company exhausted the December 2024 repurchase authorization during Q3 2026 while repurchasing 117,551,731 shares; continued buybacks could constrain liquidity alongside network and spectrum investment needs.
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Persistent regulatory and execution risks
The 10-Q states that there were no material risk-factor developments for the third quarter of 2026, but it continues to identify regulatory, spectrum, cybersecurity, competition and macroeconomic risks as factors that could materially affect results.
Management's outlook
Management raised 2026 adjusted EPS outlook to approximately $2.40, expects 2026 free cash flow of at least $18 billion, and lowered 2027-2028 annual capital investment guidance to $22 billion-$23 billion. The 10-Q itself does not provide a new detailed numeric outlook; these figures were disclosed with the quarterly results.
Earlier filings 2
10-Q · April 27, 2026
AT&T's 10-Q shows a modest revenue beat for Q1 with continued strength in the Advanced Connectivity business while Legacy and Latin America profitability weakened. Segment disclosures show Advanced Connectivity…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.