AT&T reaffirmed its full-year 2026 guidance and outlined shareholder return plans at the Bank of America 2026 Media, Communications & Entertainment Conference on Thursday, emphasizing momentum in its fiber-and-wireless convergence strategy.
Second-quarter service revenue grew 1.8%, while postpaid phone net additions reached 432,000. Consumer postpaid wireless account additions totaled 147,000 — the strongest quarterly figure in more than three years. Last-twelve-months revenue came to $127.2 billion, up 2.63% year-over-year, and LTM adjusted EBITDA was $44.9 billion.
The company expects single-digit service revenue growth and double-digit EPS growth over the next three years. It plans to return $18 billion to shareholders in 2026 through dividends and buybacks, with approximately $45 billion targeted over a three-year horizon. AT&T has paid dividends for 43 consecutive years; its yield stands at 4.41%. Shares closed at $25.45.
Fiber infrastructure remains central to management’s thesis. AT&T is targeting more than 60 million fiber locations over time. At the end of the second quarter, 42.5% of its internet customers held postpaid wireless service — 45% when excluding the Lumen footprint. Executives cited a public convergence target of 50%, with a stretch goal above that level.
"I think we reached a tipping point in the second quarter," said Pascal, an AT&T executive. "It is our belief if you want to be the best connectivity company, you need to have the very best technology. That is, for us, fiber and 5G."
About 50% or more of AT&T's fixed wireless customers also subscribe to wireless service, according to Gen, another AT&T executive. He noted that converged customers tend to carry more lines and add-ons, boosting overall account value. "At the end of the day, we are solving for CLV. You don't have a net add target anyway," Gen said.
The Lumen consumer asset acquisition, which closed in February 2026, added 4.5 million consumer locations. Penetration within the acquired footprint currently sits at roughly 25%, compared to about 40% in legacy AT&T territory.
On device pricing, new iPhone models are expected to carry average selling prices approximately $100 higher. Pascal said subsidy budgets remain constrained regardless. "Just because the manufacturer has decided to increase prices, doesn't mean that changes our subsidy budget. We have to figure out how to live within that budget envelope."
