AT&T (NYSE: T) Earnings Beat Expectations, Shares Fall Amid Market Concerns

By Danny Green22 Oct, 01:06From Financial Modeling Prep

Key points

AT&T (NYSE: T) surpassed analyst expectations for both revenue and adjusted earnings in its latest quarterly report.
The company demonstrated strong demand for its high-speed fiber services, reporting record internet net additions and raising its 2026 adjusted earnings outlook.
Despite positive financial results, AT&T shares experienced a decline, influenced by investor concerns regarding future spending, wireless subscriber growth, and free cash flow targets.

AT&T is a leading U.S. wireless and internet provider that competes with Verizon (NYSE: VZ) and T-Mobile US (NASDAQ: TMUS). Goldman Sachs lowered its stock price target for the stock to $27.00 from $30.00. At the quoted share price of $21.91, the new target is about 23.2% higher. A price target is an analyst’s estimate of where a stock could trade.

The lower target follows AT&T’s Oct. 21 quarterly earnings report. Revenue rose 5.3% from a year earlier to $32.30 billion, above the $31.69 billion analysts expected. Adjusted earnings were $0.65 per share, compared with a $0.60 forecast. As highlighted by Seeking Alpha, key subscriber growth metrics also beat expectations.

AT&T reported record internet net additions and more than 1 million advanced connectivity customer additions for the second straight quarter, indicating strong demand for its high-speed fiber services. It also raised its 2026 adjusted earnings outlook to about $2.40 per share, from a previous range of $2.25 to $2.35.

Even with those results, shares fell 6.45% to $21.91. Investors weighed the cost of further spending, wireless subscriber growth, competition from SpaceX’s Starlink Mobile service and AT&T’s free cash flow (FCF) targets. Free cash flow is the cash left after a company pays for operations and major investments.

Stock trading volume reached 82.7 million shares, above the three-month average of 45.9 million, showing unusually heavy activity during the decline. Verizon and T-Mobile shares also fell that session.