T · Earnings call · 2026Q3T · Full report
Guidance and Outlook
AT&T INC. · 2026-10-21 · Importance 66 · Surprise 50 · From source text
For full-year 2026, AT&T expects consolidated service revenue growth in the low single digits and adjusted EBITDA growth in the upper part of the 3%–4% range; adjusted EPS is now expected to be around $2.40. The company expects more than $18 billion of free cash flow and $23 billion–$24 billion of capital investment in 2026, and approximately $6 billion of free cash flow in the fourth quarter. For 2027 and 2028, annual capital investment is expected to be $22 billion–$23 billion, about $1 billion lower than previously planned, while the company reiterated its long-term growth outlook through 2028 and expects more than $19 billion of free cash flow in 2027.
Key facts
- AT&T expects full-year free cash flow of $18 billion+ and capital investment of $23 billion to $24 billion.
- AT&T expects free cash flow of $19 billion+ in 2027 and plans to provide more detail with its fourth-quarter earnings report early next year.
- AT&T expects Q4 2026 free cash flow of approximately $6 billion, compared with $4.2 billion in Q4 2025.
- AT&T expects full-year consolidated service revenue growth in the low single-digit range and consolidated adjusted EBITDA growth in the upper portion of the 3%-4% range.
- AT&T expects full-year Advanced Connectivity service revenue growth of 5%+ and EBITDA growth of 6%+.
- AT&T now expects full-year adjusted EPS of approximately $2.40, versus its prior outlook of $2.25-$2.35, primarily due to lower depreciation expense related to held-for-sale accounting for AT&T Mexico.
- AT&T expects Q4 adjusted EBITDA growth to be affected by higher marketing and customer acquisition costs due to an extended device launch cycle and expanded fiber go-to-market opportunity, and by approximately $100 million of unfavorable vendor dispute settlements primarily impacting its legacy segment.
- AT&T expects fiber ARPU to continue to be affected by these factors in the near term, including Q4 2026, when it anticipates a similar year-over-year decline to Q3.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -0.3% | AT&T expects Q4 adjusted EBITDA growth to be affected by higher marketing and customer acquisition costs due to an extended device launch… |
| cash | positive | committed | — | AT&T expects full-year free cash flow of $18 billion+ and capital investment of $23 billion to $24 billion. |
| cash | negative | committed | — | AT&T expects full-year free cash flow of $18 billion+ and capital investment of $23 billion to $24 billion. |
| cash | positive | committed | — | AT&T expects free cash flow of $19 billion+ in 2027 and plans to provide more detail with its fourth-quarter earnings report early next… |
| cash | positive | committed | — | AT&T expects Q4 2026 free cash flow of approximately $6 billion, compared with $4.2 billion in Q4 2025. |
| revenue | positive | committed | — | AT&T expects full-year consolidated service revenue growth in the low single-digit range and consolidated adjusted EBITDA growth in the… |
| operating_income | positive | committed | — | AT&T expects full-year consolidated service revenue growth in the low single-digit range and consolidated adjusted EBITDA growth in the… |
| net_income | positive | committed | — | AT&T now expects full-year adjusted EPS of approximately $2.40, versus its prior outlook of $2.25-$2.35, primarily due to lower… |
| operating_income | negative | committed | — | AT&T expects Q4 adjusted EBITDA growth to be affected by higher marketing and customer acquisition costs due to an extended device launch… |