AT&T’s 5G Expansion Outpaces Ericsson Amidst Financial Divergence
In August 2026, AT&T (T) announced a partnership with Telefonaktiebolaget LM Ericsson (publ) (ERIC), selecting the latter to supply radios for its new spectrum acquisition from EchoStar. This collaboration supports AT&T’s network modernization and reinforces Ericsson's role in U.S. carrier infrastructure. Financially, AT&T outperformed Ericsson during Q2 2026 with a revenue increase of $31.6 billion (up 2.3% YoY), driven by higher Advanced Connectivity service revenue. Adjusted EPS rose to $0.65 and free cash flow reached $4.7 billion, allowing AT&T to raise its share buyback target. In contrast, Ericsson reported a sales decline of 6% ($5.0 billion) due to lower IPR licensing income and uneven carrier spending. Institutional ownership data shows mixed activity for both companies in Q2 2026. Hedge funds reduced their stake in AT&T while maintaining stable positions in Ericsson.
Topics: 5G deployment AT&T Ericsson financial performance network modernization