Q2 2026 AT&T Inc Earnings Call Transcript
Key Points
- AT&T Inc (T) reported a significant increase in advanced connectivity subscribers, gaining over 1 million from fiber, fixed wireless, and postpaid phones.
- The company achieved its best-ever second quarter for AT&T fiber net additions and a record quarter for combined fiber and fixed wireless net additions.
- AT&T Inc (T) reported faster year-over-year growth in service revenue, adjusted EBITDA, and adjusted EPS compared to the first quarter.
- The company is expanding its fiber footprint significantly, with plans to reach 8 million new locations, including over 4 million from the Lumen acquisition.
- AT&T Inc (T) is well-positioned to meet future AI-driven connectivity demands, with a focus on fiber-enabled network convergence at the edge.
- Legacy segment service revenues declined by 26% year over year, and EBITDA declined about 46% as the company accelerates the process of powering down its legacy copper network.
- Fiber ARPU declined 1.3% compared to a year ago, primarily due to the impact of the Lumen acquisition, which brought in subscribers with lower ARPUs.
- The company expects its net leverage ratio to increase following the close of its transaction with EchoStar, reaching the 3.2 times range.
- AT&T Inc (T) faces challenges in scaling the pace of fiber expansion, with construction work being bumpy in certain geographies.
- The company acknowledges that device costs are expected to rise, which could suppress demand and impact customer behavior regarding device upgrades.
Good morning, and welcome to AT&T's second 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 second 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're 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.
With that, I'll turn things over to John.
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