By Cris Tolomia

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AT&T added 294,000 postpaid phone net subscribers in the first quarter of 2026, topping analyst expectations as customers opted to bundle wireless service with the company's fiber internet offerings. Analysts polled by FactSet had projected additions of 272,000, according to Reuters.

Wireless plan adoption among AT&T's home internet customer base reached 42%, the company reported. Excluding customers acquired through AT&T's February 2026 purchase of substantially all of Lumen's mass markets fiber business, that figure approaches 45% — up more than 3 percentage points year over year and the fastest organic growth in the convergence rate AT&T has reported.

First-quarter revenue reached $31.5 billion, a roughly 3% year-over-year increase that cleared the $31.25 billion consensus figure tracked by LSEG. On an adjusted basis, AT&T earned 57 cents per share, topping the 55-cent figure analysts had anticipated, according to Reuters.

The company added 584,000 total internet net subscribers in the quarter — split evenly between 292,000 fiber and 292,000 fixed wireless. AT&T said it now reaches more than 37 million total consumer and business locations with fiber, including more than 4 million added through the Lumen acquisition, and remains on track to exceed 40 million fiber locations by year-end 2026.

Revenue in the advanced connectivity segment — AT&T's unit encompassing its 5G and domestic fiber operations — grew approximately 5%, with increased device sales and the folded-in Lumen mass markets business both contributing to the gain. Postpaid phone churn was 0.89%.

Adjusted EBITDA for the quarter was $11.8 billion, up from $11.5 billion in the year-ago quarter. Free cash flow was $2.5 billion, compared with $3.1 billion a year earlier, reflecting higher capital investment as AT&T accelerates fiber deployment. Capital expenditures related to continuing operations were $4.9 billion.

"We're uniquely positioned to deliver more of what customers want — fiber and 5G all from one provider on the nation's largest advanced converged network," AT&T Chairman and CEO John Stankey said in a statement.

AT&T maintained its full-year 2026 guidance, continuing to project adjusted EPS of $2.25 to $2.35, free cash flow of $18 billion or more, and capital investment in the $23 billion to $24 billion range. The company also said it plans to repurchase about $8 billion in stock and maintain its annualized dividend of $1.11 per share.