AT&T's Q3 2026 Earnings: What to Expect

Dallas, Texas-based AT&T Inc. (T) provides telecommunications and technology services worldwide. Valued at $167.7 billion by market cap, the company provides local and long-distance phone, wireless and data communications, Internet access and messaging, IP-based and satellite television, telecommunications equipment, and directory advertising and publishing services. The telecom giant is expected to announce its fiscal third-quarter earnings for 2026 before the market opens on Wednesday, Oct. 21. 

Ahead of the event, analysts expect AT&T to report a profit of $0.61 per share on a diluted basis, up 13% from $0.54 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect AT&T to report EPS of $2.33, up 9.9% from $2.12 in fiscal 2025. Its EPS is expected to rise 9.9% year over year to $2.56 in fiscal 2027. 

T stock has underperformed the S&P 500 Index’s ($SPX) 14% gains over the past 52 weeks, with shares down 13.6% during this period. Similarly, it underperformed the State Street Communication Services Select Sector SPDR ETF’s (XLC) 6.3% losses over the same time frame.

T’s stock underperformance stems primarily from sluggish revenue growth, heavy debt-servicing costs in a high-rate environment, and massive capital expenditure for its 5G and Fiber rollouts. While net subscriber additions remain steady, average revenue per user (ARPU) has been squeezed by deep promotional discounting and integration dynamics from lower-ARPU acquisitions like Lumen's fiber assets. Consequently, the stock has traded like a defensive, capped-upside yield vehicle, lagging broader market rallies driven by higher-growth sectors.

Analysts’ consensus opinion on T stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 29 analysts covering the stock, 15 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” 10 give a “Hold,” and one recommends a “Strong Sell.” T’s average analyst price target is $29.12, indicating a potential upside of 19.3% from the current levels.