Earnings Call Intelligence Subscribe
Home › Call Sheets › T › Q2'26
Call sheet · Q2'26

AT&T (T)

Q2'26 earnings call · held July 22, 2026 · compared with the Q1'26 call · management-credibility review
9/12
Disclosure score
2 medium, 4 low flags
Financial quality
Bottom line
The sleeper story is that Lumen territories are already outperforming AT&T's organic convergence rate (45% vs 42.5%), proving the acquisition thesis and justifying the aggressive $10B buyback. Yes, they added 1M+ subs, but the real story is they're finally winning NEW accounts, not just adding lines, with consumer accounts up 147K (best in 3+ years). The binding constraint isn't demand anymore; it's literally how fast they can dig trenches and string fiber. Management is deliberately trading fiber ARPU for lifetime value through convergence, with Stankey admitting 'we're not optimizing for individual products' while Pascal warns of 'near term pressure' on fiber ARPU. My view changes if fiber penetration in Lumen territories doesn't hit 15%+ by year-end, proving they can replicate the playbook.

The 30-second version

  • THE SLEEPER: Lumen territories are already 45% converged vs 42.5% overall, proving AT&T can replicate its playbook at acquired assets
  • The obvious 1M+ net adds story masks the real story: AT&T is finally winning NEW accounts, not just adding lines
  • Fiber ARPU 'flat ex-Lumen' is code for accepting lower prices to drive convergence, a fundamental strategy shift they're not explicitly acknowledging

What changed this quarter

MetricQ1'26Q2'26Change
Total Revenue$30.1B (+2.9% YoY)$30.7B (+2.3% YoY)60 bps deceleration
Service Revenue$26.1B (+1.4% YoY)$26.7B (+2.7% YoY)+130 bps acceleration
Adjusted EPS$0.57 (+12% YoY)$0.65 (+20% YoY)+800 bps acceleration
Adjusted EBITDA$11.3B (+2.3% YoY)$12.0B (+5.2% YoY)+290 bps acceleration
EBITDA Margin37.4% (-30 bps YoY)39.1% (+110 bps YoY)+170 bps sequential, +140 bps swing YoY
Free Cash Flow$2.5B (-$0.6B YoY)$4.7B (+$0.3B YoY)Back to growth after Q1 decline
Advanced Connectivity Service Revenue+3.6% YoY+5.1% YoY+150 bps acceleration
Advanced Connectivity EBITDA+5.6% YoY+8.0% YoY+240 bps acceleration
Wireless Service Revenue+1.7% YoY+3.3% YoY+160 bps acceleration
Postpaid Phone Net Adds294K432K+47% sequential improvement

Accountability tracked

7 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full T Q2'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.