AT&T Reports Earnings Beat and Announces $10 Billion Share Buyback
AT&T (NYSE: T) reported second-quarter earnings that beat expectations with non-GAAP EPS of $0.65, up 20% year over year despite only a modest 2.3% revenue increase to $31.6 billion. The company announced an expanded share repurchase plan for the remainder of 2026, raising it from $8 billion to $10 billion. AT&T also maintains a dividend yield of 4.6%, with its stock trading at around eight times earnings. The firm's free cash flow reached $4.7 billion in Q2 and is expected to exceed $18 billion for the year, which will be used almost entirely for shareholder returns—$7.6 billion in dividends and up to $10 billion in buybacks. Management anticipates continued growth in free cash flow through 2028, with plans to return over $45 billion to shareholders across those years. Despite these positive figures, AT&T's net debt remains high at $126.4 billion or 2.68 times adjusted EBITDA and is expected to rise further before declining gradually.
Topics: Buybacks Dividend Yield Earnings Financial Performance