Results Read-Across and Call Backs (Post #242): Takeaways from AT&T’s Earnings Call and Callbacks

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Results Read-Across and Call Backs (Post #242): Takeaways from AT&T’s Earnings Call and Callbacks

Off the Cuff |

22 Jul 2026 13:00:48 ET │ 11 pages

Results Read-Across and Call Backs (Post #242)

Takeaways from AT&T's Earnings Call and Callbacks

Following the earnings call and callbacks, we believe AT&T remains on track to

deliver on its 2026 financial targets and potentially higher-end of the range on

wireless service revenues and consolidated adjusted EBITDA. Incrementally, AT&T is

upbeat on the direction of volume, especially for fiber net adds. Churn could

continue to recede significantly on a yoy basis with lengthening device replacement,

even while managing the after-math of its recent wireless price actions (with Michael Rollins, CFAAC

indications that AT&T has managed the process well). AT&T remains bullish on +1-212-816-1116

convergence, while ongoing fiber and converged offer promotions are diluting fiber michael.rollins@citi.com

ARPUs. Hence, we believe AC resi broadband revenue growth could be slightly

slower than our expectation, although at least offset by the relative strength in

wireless. C2Q expense and EBITDA performance may have been partly helped by

some favorable timing of expenses as well as planned corporate expense reductions,

while the call-outs on tower gains were not material to share a dollar figure.

Net-net, we believe Buy-rated AT&T delivered favorable 2Q results and we would

expect shares to trade higher near-term. Results and commentary are also positive

for a stabilizing wireless competitive landscape with the potential for churn to

improve for the category, while we would expect AT&T to stay active on accelerating

annual broadband passings and subscriptions in the 2H26, which is not helpful for

Cable.