US Telecom: Strategy holds - five key takeaways from the quarter

Research evidence excerpt

US Telecom: Strategy holds - five key takeaways from the quarter

27 July 2026

US Media & Telecom

Busy Telco/Cable earnings week is now under wraps. Amid the usual current of beats and Laurent Yoon

+1 917 344 8502 misses that move near-term value, the broader industry narrative remains largely intact—if

laurent.yoon@bernsteinsg.com anything, Q2 reinforced existing trends. 5 key takeaways from the quarter for the sector.

Martin Boruchowicz Strategy holds. Each player had puts and takes, but overall strategies remain on track.

+1 917 344 8564

martin.boruchowicz@bernsteinsg.com

AT&T’s fiber/BB-led bundling strategy continues to deliver. Fiber remains the center of their

narrative, and the combination with wireless focused on underpenetrated segment drives Andrew Chung

+1 917 344 8302 up wireless net adds as well.

andrew.chung@bernsteinsg.com

Verizon’s strategy looks increasingly similar. Its focus on convergence, reducing churn,

and maintaining operating discipline is showing up in the numbers. The company delivered

its best consumer Q2 PPPNA performance in recent history, raised guidance again, and

highlighted improving subscriber retention and unit economics.

T-Mobile remains focused on quality over quantity. While customer metrics have evolved

with new reporting, postpaid ARPA increased 2%, service revenue increased ~13%,

and management raised FCF guidance. The strategy continues to prioritize higher-value

customers and account economics rather than maximizing gross additions.

Meanwhile, CableCos continue to face challenges as they lose subs while leaning harder

into wireless bundles. Free-line promos may support subscriber metrics, but they come at

the expense of ARPU and margin. None of this is surprising. As CableCos’ market position