AT&T Inc. (T) raised its 2026 adjusted earnings outlook to the $2.40 range and lowered its long-term capital-investment plan after a third quarter in which consolidated revenue growth accelerated and Advanced Connectivity internet net adds reached a record.

The telecommunications company reported third-quarter revenues of $32.3 billion, up 5.3% from a year earlier, after 2.3% growth in the second quarter and 2.9% in the first. The company said the increase was largely due to growth in Advanced Connectivity wireless service and equipment revenues and fiber revenues, including the impact of its first-quarter acquisition of Lumen’s mass-markets fiber business.

Advanced Connectivity service revenue was $23.9 billion, up 6.1% year over year, after 5.1% growth in the second quarter. Advanced home internet service revenue rose 23.4%, a figure that included the acquired mass-markets fiber business. Wireless service revenue was $17.8 billion. Equipment revenue was $5.6 billion.

The company added more than 1 million Advanced Connectivity customers for a second consecutive quarter. Internet net adds totaled 769,000, including 442,000 fiber and 327,000 fixed wireless, after 646,000 total adds in the second quarter. Postpaid phone net adds were 379,000, with postpaid phone churn of 0.92%. About 42.8% of households with AT&T’s advanced home internet services also chose AT&T wireless.

Advanced Connectivity operating income was $7.6 billion, up 18.9% year over year, with EBITDA of $12.3 billion. The company said wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts. Business fiber and advanced connectivity revenues increased largely due to higher fiber and fixed wireless revenues.

Consolidated adjusted EBITDA was $12.5 billion, up 5.4% from a year earlier. Diluted earnings from continuing operations were $0.13 a share, versus $1.29 in the year-ago quarter, which included a gain on the sale of the DIRECTV investment. Adjusted EPS was $0.65, versus $0.54 a year earlier. Operating income was $4.1 billion.

On October 13, 2026, AT&T agreed to sell its Mexico wireless business, the entirety of the Latin America segment, to Grupo Televisa and Fintech Holdings. The company applied held-for-sale accounting as of September 30, 2026, and recorded a $2.6 billion non-cash impairment at Corporate and Other that did not affect third-quarter segment results. Latin America operating revenues were $1.2 billion, up 13.2% year over year.

Legacy segment revenues were $1.5 billion, down 24.5% year over year, as the company continues to decommission its copper-based network. Operating income in Legacy was $498 million. The company said it remains on track to reach more than 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030. Total consumer and business locations reached with fiber exceeded 39 million.

Cash from operating activities from continuing operations was $10.5 billion. Free cash flow was $5.0 billion. Capital expenditures related to continuing operations were $5.1 billion; capital investment was $5.6 billion. Total debt was $159.6 billion and net debt was $149.8 billion, both reflecting a sequential increase related to the closing of the EchoStar spectrum transaction. The company returned about $4.8 billion to shareholders, including $2.8 billion in common share repurchases.

AT&T’s long-term outlook for 2026–2028, on a continuing-operations basis and excluding Mexico for 2027–2028, includes Advanced Connectivity service revenue growth in the mid-single-digit range annually, with expected growth of 5% or more in 2026, and adjusted EPS in the $2.40 range in 2026 with a double-digit three-year CAGR through 2028. Capital investment is now expected in the $23 billion to $24 billion range in 2026 and in the $22 billion to $23 billion range annually in 2027 and 2028. Free cash flow is projected at $18 billion or more in 2026, $19 billion or more in 2027, and $21 billion or more in 2028.