Results Read-Across and Call Backs (Post #241): Latest AT&T Positive Price Action in 3Q Gives Us More Confidence in C2Q Results

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Results Read-Across and Call Backs (Post #241): Latest AT&T Positive Price Action in 3Q Gives Us More Confidence in C2Q Results

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13 Jul 2026 14:17:44 ET │ 11 pages

Results Read-Across and Call Backs (Post #241)

Latest AT&T Positive Price Action in 3Q Gives Us More Confidence in

C2Q Results

AT&T announced (link) another price increase on select retired unlimited wireless

plans, this time affecting customers whose plans were activated between July 24,

2025, and November 1, 2025. We believe this development reinforces our prior view

(link) that the March back-book pricing action impacted a larger portion of the

postpaid phone base than investors initially assumed. At the time, we viewed the Michael Rollins, CFAAC

previously-announced March increase as a broad-based repricing initiative that +1-212-816-1116

could have affected roughly 60–80% of postpaid phone subscribers. The latest michael.rollins@citi.com

action now targets a more recent cohort of subscribers, as the company continues

to optimize pricing, but tries to avoid actions for customers soon after they became

customers. We remain a Buyer of T shares with a favorable setup heading into C2Q

earnings.

The latest action may suggest two things: (1) AT&T remains comfortable with churn

trends despite prior price increases and plan repackaging, and (2) there may be

upside to our postpaid ARPU forecasts of 0.4% growth for 2Q26 and FY26 and to

our wireless service revenue growth estimate of 2.3% for 2Q26 and 2.5% for FY26.

We believe AT&T is now more likely to perform well on wireless ARPU and wireless

service revenues in C2Q26 with possible upside to our estimates and consensus

that could potentially support wireless service revenue growth at the higher end of

its 2-3% range.