Earnings call transcript: AT&T beats Q3 2026 estimates as stock falls premarket

AT&T surpassed Wall Street's Q3 2026 estimates for both earnings and revenue, but its shares dropped 4.62% in premarket trading as investors examined higher debt, substantial capital spending, and one-time charges against the company's improving financial performance. The telecom giant disclosed adjusted earnings of $0.65 per share, exceeding the $0.60 prediction, and revenue of $32.3 billion, surpassing the $31.69 billion forecast.

AT&T's stock closed at $22.34, down from $23.42, remaining below its 52-week peak of $29.44. AT&T exceeded expectations in both EPS and revenue. Service revenue growth accelerated to 3.8% year over year, the best pace in over four years. Adjusted EBITDA increased by 5.4%, reaching a record third-quarter margin of 38.7%. The company also raised its full-year adjusted EPS guidance to approximately $2.40.