AT&T Q3 earnings beat and EPS outlook raise trigger 5% stock drop

AT&T reported third‑quarter revenue of $32.32 billion, up 5.3% year‑over‑year, and adjusted earnings per share of $0.65, beating consensus estimates. The carrier added 379,000 postpaid phone subscribers, a slowdown from the prior quarter, and lifted its 2026 adjusted EPS outlook to the $2.40 range. Despite the beat and guidance lift, the shares fell about 5% in trading.

The company’s raised EPS guidance suggests stronger long‑term earnings, but the market reacted to the slower postpaid growth, pressuring the stock and potentially affecting the valuation of its planned $10 billion buyback. Investors may reassess growth assumptions and short‑term earnings momentum.

  • 1Third‑quarter revenue was $32.32 billion, up 5.3% YoY.
  • 2Adjusted EPS for the quarter was $0.65.
  • 3AT&T added 379,000 net postpaid phone subscribers.
  • 4The company raised its 2026 adjusted EPS outlook to the $2.40 range.
  • 5AT&T shares fell about 5% after the results were released.

Sources