AT&T beats analysts estimates on new mobile and internet subscribers amid heavy promotions, share trades at $25.68

United States telecom major AT&T Inc on October 22 reported addition of over 4,05,000 (4.05 lakh) new mobile phone subscribers in Q3FY26, both higher than analysts' estimates of 3,38,500 (3.38 lakh), Bloomberg reported.

Further, the ‘Big Three’ wireless provider also reported addition of 2,88,000 (2.88 lakh) new fibre internet customers, exceeding projection of 2,73,747 (2.73 lakh) new users, as per the report.

The new mobile phone and home internet subscribers this summer comes amid a a heavy promotional push to keep competitive pressure on its two main rivals — Verizon and T-Mobile.

The shares rose about 1.3 per cent in pre-market trading in New York. At time of writing, the shares were trading at $25.68 apiece, down 1.42 per cent from the previous close of $26.05, with a market cap of $186.27 billion. Year-to-date (YTD) the AT&T stock is up 12.39 per cent.

AT&T promotions pay off?

AT&T has gained ground with a new “customer guarantee” introduced in January, promising better network reliability and customer service and pledging to offer the best smartphone deals at a time when consumers are particularly attuned to inflation.

As competition for new mobile phone users remains stiff with Verizon Communications Inc. and T-Mobile US Inc., AT&T has been building up its home internet service, offering fiber and fixed-wireless options. The fixed-wireless offering, known as Internet Air, uses AT&T’s 5G mobile network to provide internet across 47 states. The service picked up 270,000 new customers in the quarter, beating Wall Street expectations.

“We continue to add highly profitable customers that are choosing AT&T for all their connectivity needs,” Chief Executive Officer John Stankey said in the statement.

AT&T Q3 performance: $30.7 billion revenue below projections

• The Dallas-based carrier reported revenue of $30.7 billion, falling just short of Wall Street’s projected $30.86 billion.
• Adjusted earnings per share were 54 cents, in line with estimates.
• The company said full-year earnings per share are likely to land in the upper range of its previous guidance of $1.97 to $2.07. Analysts were looking for $2.06 on average.
• AT&T made a hefty investment in its network during the quarter, agreeing to buy key airwave licenses from EchoStar Corp. for $23 billion, which will allow it to add more capacity for fixed-wireless customers.
• It’s also in the process of acquiring Lumen Technologies Inc.’s consumer fibre unit, which is expected to add 5 million locations to the network when the transaction closes in early 2026.

AT&T faring better than rivals Verizon and T-Mobile?

AT&T is the first of the major telecom providers to report financial results. T-Mobile will report its Q3 earnings tomorrow on October 23, and Verizon follows the week after.

Notably, both Verizon and T-Mobile replaced their CEOs last month and the results report will likely offer their first public articulation on strategy, as per the report.

Verizon’s Hans Vestberg was succeeded by former PayPal CEO Dan Schulman after a particularly brutal period of mobile subscriber losses, and at T-Mobile, Chief Operating Officer Srini Gopalan took the reins from Mike Sievert.

AT&T is the best stock-market performer among the Big Three, with shares up 14.4 per cent this year, compared with a 3.8 per cent gain for T-Mobile and less than 1 per cent for Verizon.

(With inputs from Bloomberg)