AT&T posted better-than-expected second-quarter 2026 results, marked by a 2.3% rise in consolidated service revenue and record fiber and fixed wireless net additions. The company added over 1 million Advanced Connectivity customers and reaffirmed its financial outlook, including plans to return more than $45 billion to shareholders through 2028.
AT&T reported robust second-quarter 2026 financial results, underscoring the effectiveness of its investment-led growth strategy. Consolidated service revenue reached $31.6 billion, a 2.3% increase from $30.8 billion in the same quarter a year ago, driven primarily by strong growth in Advanced Connectivity revenues from fiber and fixed wireless services.
The inclusion of the Lumen mass markets fiber acquisition, completed in the first quarter, contributed to fiber revenue expansion. Additionally, higher revenues from the Mexico segment, aided by favorable foreign exchange movements, supported top-line growth. These gains were partially offset by declining Legacy revenues as the company continues its deliberate decommissioning of copper-based networks in response to shifting consumer demand. Operating performance showed notable improvement, with operating income rising to $7.0 billion from $6.5 billion year-over-year.
On an adjusted basis, operating income increased to $7.5 billion compared to $6.5 billion in the prior-year period, reflecting better profitability across core segments. Earnings from continuing operations grew to $5.0 billion from $4.9 billion, while net income from continuing operations climbed to $4.6 billion from $4.5 billion.
Consequently, earnings per diluted common share from continuing operations improved to $0.66 from $0.62. After adjusting for specific items, including a tax benefit partially offset by an asset abandonment charge and transaction-related costs, adjusted earnings per diluted common share was $0.65, up significantly from $0.54 a year earlier. A key highlight was the addition of over 1 million Advanced Connectivity customers, fueled by year-over-year growth in net adds across fiber, fixed wireless, and postpaid phone subscriber bases.
The company achieved a record quarter for combined fiber and fixed wireless net additions and saw its strongest consumer postpaid wireless account growth in more than three years. The fiber network expansion continues apace, with total consumer and business fiber locations now reaching 38.6 million. AT&T remains on track to exceed 40 million total fiber locations by the end of 2026 and aims to surpass 60 million by the close of 2030.
The company reaffirmed its full-year 2026 and multi-year financial guidance, projecting improved adjusted EBITDA and adjusted EPS along with higher free cash flow through 2028. It also reiterated its capital return plan to distribute over $45 billion to shareholders between 2026 and 2028 via dividends and share repurchases, with the pace of buybacks accelerated to approximately $10 billion in 2026.
The net debt-to-adjusted EBITDA ratio is expected to return to the targeted 2.5x range within about three years following the completion of the EchoStar transaction. The company maintains its annualized common stock dividend of $1.11 per share
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