AT&T beats and lifts EPS guide to ~$2.40, stock still down 4–6%: postpaid adds only in line, Mexico impairment, capex un
Posted: Wed Oct 21, 2026 2:11 pm
Afternoon from London. AT&T reported Q3 before the bell and the headline numbers were fine, but the stock is getting sold anyway. Newsquawk had it about −6% pre-market and others had −3.5 to −4%.
The numbers
- Revenue $32.3bn, +5.3% y/y. Adj EPS $0.65 vs ~$0.60 consensus and $0.54 a year ago
- GAAP EPS only $0.13, because of a non-cash impairment on the held-for-sale Mexico wireless business plus severance charges
- FCF $5.0bn vs $4.9bn last year. Adj EBITDA $12.5bn, +5.4%
- Postpaid phone net adds 379k, churn 0.92%. Fiber adds 442k plus 327k fixed wireless, a record quarter for internet adds
- FY26 adj EPS guide now about $2.40, up from $2.25–2.35. Long-term capital investment guide comes down, but this year's capex was reiterated slightly above what the Street wanted (per FactSet)
Why it's red: the wireless print was "in line", not a beat, and the market is nervous that competition in postpaid phones heats up into Q4 promo season. The beat itself is partly below-the-line. With VZ and TMUS reporting soon, T is being treated as the first read on the whole group.
For scalpers: T is a low-beta, high-volume name, so a 4–6% gap is a big move for it. I'd watch whether it holds the opening range low or starts filling. Dividend buyers tend to show up on these drops. VZ and TMUS sympathy moves are worth a look too.
Sources: [AT&T Q3 release](https://about.att.com/story/2026/3q-earnings.html) | [Reuters via Investing.com](https://www.investing.com/news/stock-ma ... ns-4962380) | [CNBC premarket movers](https://www.cnbc.com/2026/10/21/stocks- ... -more.html)
Anyone fading the gap in T, or is the postpaid story enough to keep it heavy all day? Do you trade VZ/TMUS sympathy off this or wait for their own prints?
The numbers
- Revenue $32.3bn, +5.3% y/y. Adj EPS $0.65 vs ~$0.60 consensus and $0.54 a year ago
- GAAP EPS only $0.13, because of a non-cash impairment on the held-for-sale Mexico wireless business plus severance charges
- FCF $5.0bn vs $4.9bn last year. Adj EBITDA $12.5bn, +5.4%
- Postpaid phone net adds 379k, churn 0.92%. Fiber adds 442k plus 327k fixed wireless, a record quarter for internet adds
- FY26 adj EPS guide now about $2.40, up from $2.25–2.35. Long-term capital investment guide comes down, but this year's capex was reiterated slightly above what the Street wanted (per FactSet)
Why it's red: the wireless print was "in line", not a beat, and the market is nervous that competition in postpaid phones heats up into Q4 promo season. The beat itself is partly below-the-line. With VZ and TMUS reporting soon, T is being treated as the first read on the whole group.
For scalpers: T is a low-beta, high-volume name, so a 4–6% gap is a big move for it. I'd watch whether it holds the opening range low or starts filling. Dividend buyers tend to show up on these drops. VZ and TMUS sympathy moves are worth a look too.
Sources: [AT&T Q3 release](https://about.att.com/story/2026/3q-earnings.html) | [Reuters via Investing.com](https://www.investing.com/news/stock-ma ... ns-4962380) | [CNBC premarket movers](https://www.cnbc.com/2026/10/21/stocks- ... -more.html)
Anyone fading the gap in T, or is the postpaid story enough to keep it heavy all day? Do you trade VZ/TMUS sympathy off this or wait for their own prints?