Q1 2026 AT&T Inc Earnings Call Transcript
Key Points
- AT&T Inc (T) reported 584,000 total fiber and fixed wireless advanced Internet customer net additions, marking their best ever first quarter result.
- The company closed its transaction with Lumen ahead of schedule, adding 1.1 million fiber customers and over 4 million fiber locations.
- AT&T Inc (T) expanded its fiber reach to over 37 million customer locations and is on track to reach 60 million plus locations by the end of the decade.
- The company launched AT&T OneConnect, the industry's first ever single subscription service for fiber and wireless with a flat monthly price.
- AT&T Inc (T) reported a 2.9% year-over-year increase in total revenues and a 1.4% increase in service revenues for the first quarter.
- Adjusted EBITDA margin decreased by 30 basis points to 37.4% in the first quarter.
- Free cash flow declined by roughly $600 million compared to last year, primarily due to higher capital investment.
- Legacy service revenues declined about 25% year-over-year, consistent with the outlook for a 20% plus decline in 2026.
- Net debt to adjusted EBITDA increased to 2.71 times from 2.53 times at the end of the previous quarter, primarily due to the Lumen transaction.
- The company expects continued declines in legacy EBITDA, greater than the decline in revenue, due to the lag in discontinuing legacy infrastructure operations.
Good morning, and welcome to AT&T's first quarter 2026 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference call over to our host, Brett Feldman, Treasurer and Head of Investor Relations. Please go ahead.
Thank you, and good morning. Welcome to our first quarter call. I'm Brett Feldman, Treasurer and Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our Chairman and CEO; and Pascal Desroches, our CFO. Before we begin, I need to call your attention to our safe harbor statement.
It says that some of our comments today may be forward-looking. As such, they are subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information, as well as our earnings materials are available on the Investor Relations website. I also want to note that the quiet period for FCC Spectrum Option 113 is in effect.
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