Oct 21, 2026 earnings call — Fiber-led Advanced Connectivity focus
Added over one million Advanced Connectivity subscribers; consolidated service revenue grew 3.8% year-over-year.
Revenue $32.3B (est $31.7B) · EPS $0.65 (est $0.60)
Key quotes
"During the quarter, we added over one million Advanced Connectivity subscribers from fiber, fixed wireless and postpaid phone, our best quarter in more than four years and our second consecutive quarter with more than 1 million net adds across these services."
"We added approximately 350,000 customer relationships to our base of converged accounts in the third quarter, which is a faster pace of sequential growth than we achieved in the second quarter."
"Adjusted EPS of $0.65 was up 20% from $0.54 in the third quarter of 2025, driven primarily by growth in adjusted EBITDA and lower depreciation expense."
Analyst Q&A 6
fiber penetration and satellite mobile service
Q (John Hodulik · UBS): Analyst asked about fiber penetration targets (40% to 50%) and whether 50% is still expected. He also asked high-level thoughts on using a LEO constellation (Starlink) for mobile and what terrestrial build would be needed to match AT&T.
A: Management said they plan investments assuming a 40% terminal penetration but believe they can exceed that and work toward 50% and beyond. They may open networks to wholesale in some markets if retail penetration tops out. On LEO/mobile, they see LEOs as helpful at the edges and in low-density areas, but emphasized the large indoor traffic and the years and investment required to match incumbent mobile performance.
"My fiber goals would be to have 100% penetration, but it may take a little while to get there." — John Stankey (CEO·CHAIR)
broadband ARPU and AI-driven traffic
Q (Michael Rollins · Citi): Analyst asked how broadband ARPU and revenue are performing in mature fiber markets versus expansion markets, and whether pricing power will return. He also asked what signals AT&T is seeing from enterprises, hyperscalers, and consumers around AI-driven data traffic and connectivity needs.
A: Management said they want to serve every customer segment at the right price and that mature markets skew toward higher price points while convergence work can lower average ARPU but drive strong service revenue growth and margins. On AI, they said enterprises are moving more workloads to the cloud in hybrid setups, need capacity and low-latency performance, and AT&T is investing at the edge and working with hyperscalers for end-to-end visibility and on-ramps.
"What we want to focus on is the fact that you're seeing great service revenue growth in our business." — John Stankey (CEO·CHAIR)
fixed wireless, LEO, and working capital use
Q (David Barden · New Street): Analyst asked whether LEOs and fixed wireless change AT&T's view of fixed wireless access and its role relative to fiber, and asked Pascal to explain the working capital investment and handset subsidy timing.
A: Management said the most durable customers are fiber broadband customers with a great wireless service on top, and that fixed wireless will serve certain segments but is unlikely to beat the combined fiber+wireless value proposition in denser markets. Pascal said promotions remain the same, device costs are paid upfront and recovered over time, creating the working capital drain; he also noted impacts from the Mexico disposition and higher cash interest.
"The most durable customer combination in our industry is a fiber-fed broadband customer with a great wireless service on top of it, bar none." — John Stankey (CEO·CHAIR)
AI agents impact and CapEx changes
Q (Sean Diffley · Morgan Stanley): Analyst asked how AI agents like Muse could affect connectivity (deflationary or switching) and AT&T, and asked for detail on the CapEx drop of about $1 billion and why free cash flow guidance stayed the same.
A: Management said they are studying agents and adjusting, but customers will control whether agents can manage accounts and large transactions will need authentication to prevent fraud. On CapEx, Pascal said total CapEx is down about $1 billion, with $300 million to $400 million from AT&T Mexico wireless CapEx and the balance from build efficiencies; absence of Mexico lowers cash flow about $400 million-$500 million and higher upfront device costs create working capital needs and interest impacts.
"But the important thing is that the customer will control." — John Stankey (CEO·CHAIR)
buying struggling fiber assets
Q (Craig Moffett · MoffettNathanson): Analyst asked if AT&T might buy attractively priced assets from smaller distressed fiber builders during a consolidation driven by higher rates.
A: Management said they will consider acquisitions if the price is right and the infrastructure meets their operating standards and bridges to other parts of their network to gain scale and efficiencies. They will not buy footprint just for its own sake; deals must fit geographically and operationally.
"Tell me the price and I'll give you the answer to the question." — John Stankey (CEO·CHAIR)
fiber ARPU Q4 outlook and wholesale terms
Q (Sam McHugh · BNP): Analyst asked if fiber ARPU will see a similar decline in Q4 and 2027 guidance, and whether AT&T would require reciprocal fiber access before wholesaling its network.
A: Pascal said he expects Q4 fiber ARPU to be down year-over-year at about the same rate as Q3 and reiterated that most growth over the period will come from customer additions rather than pricing, so ARPU should be relatively stable overall. John said wholesaling can be selective and strategic, not open to all comers, and decisions will be made on a local market basis after retail plays are exhausted; reciprocal or paired arrangements could be part of selective wholesale deals.
"The way to think about Q4 is, as I said, I expect Q4 to be down year-over-year around the same rate as we saw in Q3." — Pascal Desroches (CFO)