AT&T boosts 2026 adjusted EPS outlook after record internet net adds

AT&T increased its outlook for 2026 earnings after reporting results that beat on both revenue and adjusted earnings, a move that indicates management expects strength to persist in its consumer and business connectivity business. In a market update highlighted by Yahoo Finance, the company also pointed to unusually strong growth in internet connections, including what it described as a record 769,000 internet net adds.

The company’s raised guidance for 2026 focused on adjusted earnings per share, a common metric used in telecom to reflect profit after certain items. AT&T now expects 2026 adjusted EPS of about $2.40, according to the report. The update presented the guidance change alongside the company’s recent performance, linking the higher target to better-than-expected results and momentum in its internet customer base.

While AT&T did not provide the full detail of its income statement in the cited market post, the report characterized the quarter as a beat on revenue and adjusted EPS. Adjusted EPS typically includes management’s view of underlying performance, excluding select costs and gains that are not expected to recur in the same way. The update suggests that AT&T’s cost discipline and revenue performance were strong enough to justify a higher annual earnings target.

A key operational datapoint in the update was internet net adds of 769,000, described as a record. Net adds refer to the number of new internet subscriptions acquired minus subscriptions that were lost during the period. In practice, a higher net-add figure can indicate improved service appeal, better sales execution, or churn that is trending lower, and it can also support revenue growth expectations for the coming year.

The internet net-add figure matters for AT&T’s broader strategy because fixed broadband is a platform business. It can bundle with other services and it tends to generate recurring revenue, which telecom companies rely on to offset the capital intensity of network spending. Strong net adds also give management more confidence in the sustainability of monthly service revenues, which feed into long-term cash flow.

In the industry context, competition among U.S. broadband providers continues to center on coverage, speed tiers, and promotional offers, all of which influence churn and acquisition. AT&T’s reported record net adds, if sustained, can help the company defend market share and limit the need for aggressive pricing simply to maintain customers. Still, telecom earnings are also sensitive to labor, marketing, maintenance, and capital expenditure levels, factors that can move the gap between subscriber trends and reported profit.

Notably, the market post does not outline the specific drivers behind the record net adds, such as whether growth was concentrated in particular geographies, service tiers, or customer segments, nor does it break out how much of the quarterly revenue and adjusted EPS beat came from broadband versus other lines. It also does not provide the company’s detailed sensitivity assumptions behind the $2.40 2026 adjusted EPS estimate.

Going forward, investors will likely watch whether AT&T can sustain strong internet net adds into subsequent quarters and whether the company’s adjusted EPS outlook remains on track as costs and network investment plans come into focus. A key question will be whether the record 769,000 net adds reflect a one-time step-up or a durable improvement in subscriber trends that can continue to support the higher 2026 guidance.