AT&T Inc (T.N): AT&T Reports Better 2Q Results, Reaffirms FY26/Multi-Year Guide, Raises FY26 Buyback Target

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AT&T Inc (T.N): AT&T Reports Better 2Q Results, Reaffirms FY26/Multi-Year Guide, Raises FY26 Buyback Target

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22 Jul 2026 07:42:41 ET │ 16 pages

AT&T Inc (T.N)

AT&T Reports Better 2Q Results, Reaffirms FY26/Multi-Year Guide,

Raises FY26 Buyback Target

CITI'S TAKE Buy

Price (21 Jul 26 16:00) US$22.26 AT&T reported better 2Q operational and financial results with stronger

Target price US$31.50 advanced connectivity performance on volume, wireless ARPU, service

revenue and EBITDA. Consolidated service revenue was up 2.7% yoy to Expected share price return 41.5%

$26.0B and EBITDA growth was up 5.2% yoy to $12.3B that each Expected dividend yield 5.0%

exceeded consensus. Also, EPS of $0.65 and FCF of $4.7B exceeded our Expected total return 46.5%

estimates and consensus. Guidance was reaffirmed for FY26/multi-year Market Cap US$154,670M

outlook, while AT&T raised its buyback target to $10B for 2026 after

repurchasing $4.5B in the 1H. Wireless broadly showed better

performance on better phone net adds of 432k and significantly better

postpaid phone ARPU of $58, which we believe benefitted from the Michael Rollins, CFAAC

broader positive price action disclosed in 1Q26 (link). Resi BB net adds and +1-212-816-1116

convergence volume metrics were better, although fiber ARPU fell michael.rollins@citi.com

sequentially that likely reflects promotional and bundling discounts to

push volume. We remain a Buyer of T and expect shares to trade higher

near-term.

By The Numbers — For 2Q26, AT&T revenue was up 2.3% yoy to $31.6B, which was

below our estimate of 3.3% growth yoy and consensus of 2.9%. The miss on revenue

was lower equipment revenue as the upgrade rate fell yoy. With lower churn and

from other category data points, we believe the device replacement cycle is