AT&T Beats Earnings Estimates and Raises 2026 Profit Outlook Amid Fiber Growth
AT&T (T) reported third-quarter earnings and revenue that exceeded analyst estimates, driven by record internet net additions and strong performance in its fiber segment. The company also raised its profit outlook for 2026 while maintaining its existing free-cash-flow targets. Despite these positive fundamentals, the stock fell over 6% as investors reacted to high capital spending requirements. Market sentiment was further pressured by competitive threats from SpaceX, which is advancing toward nationwide direct-to-device coverage via a spectrum deal with Grain Management. Additionally, AT&T's recent $2 billion agreement to sell its Mexico wireless unit continues to shift investor focus toward the company's domestic capital allocation strategy.
Topics: earnings report free cash flow market competition stock price movement telecommunications