AT&T Q3 2026 earnings lift EPS outlook but trigger double‑digit stock drop
AT&T reported third‑quarter 2026 adjusted earnings of $0.65 per share, a 20.4% year‑over‑year increase, and revenue up 5.3% to $32.32 billion. The company raised its full‑year adjusted EPS guidance to about $2.40 per share. Despite the stronger operating picture, the stock fell 8% on the day and 13.4% over the month as investors focused on rising net debt and leverage.
Why it matters
The higher EPS outlook suggests better profitability, but the share‑price decline reflects investor concern that the $149.8 billion net‑debt balance and a debt‑to‑EBITDA ratio of 3.13X could limit financial flexibility. Investors must weigh the earnings upside against the leverage risk.
Key facts
- 1Adjusted EPS for Q3 2026 was $0.65 per share, up 20.4% YoY. zacks.com
- 2Total revenue grew 5.3% to $32.32 billion. zacks.com
- 3Full‑year adjusted EPS guidance was raised to around $2.40 per share. zacks.com
- 4Net debt increased to $149.8 billion after the EchoStar spectrum purchase. zacks.com
- 5Net debt to adjusted EBITDA rose to 3.13× from 2.68× in Q2. zacks.com
- 6Shares closed at $20.93 after the earnings release. gurufocus.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.