Why Is AT&T Stock Down Today?
AT&T beat third-quarter 2026 forecasts and raised its EPS outlook to about $2.40, but added 379,000 postpaid phones against about 387,000 expected and lifted debt to 3.13 times EBITDA. The stock was down 5.85% on October 21.
- AT&T stock was down 5.85% at $22.05 at 10:16 ET on October 21, 2026, after third-quarter results.
- Adjusted EPS of $0.65 beat the $0.61 forecast and revenue of $32.3 billion beat $31.68 billion; the 2026 EPS outlook rose to about $2.40.
- Postpaid phone additions of 379,000 missed the roughly 387,000 expected, while internet additions hit a record 769,000.
AT&T stock was down 5.85% at $22.05 at 10:16 ET on Wednesday, October 21, 2026, after third-quarter results that beat profit and revenue forecasts but added fewer postpaid phone customers than analysts expected. AT&T added 379,000 postpaid phone customers against about 387,000 expected, and its debt rose to 3.13 times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) after it paid for new wireless spectrum.
The company raised its 2026 forecast for adjusted earnings per share (EPS) to about $2.40, from $2.25 to $2.35. Quarterly adjusted EPS was $0.65, against $0.61 expected and $0.54 a year earlier, and revenue rose 5.3% to $32.3 billion, against $31.68 billion expected, according to LSEG data cited by Reuters. The shares fell anyway, because the miss came in phones, the business most exposed to the new competition that knocked the stock down earlier this month.
| Third quarter 2026 | Result | Comparison |
|---|---|---|
| Revenue | $32.3 billion | $31.68 billion expected |
| Adjusted EPS | $0.65 | $0.61 expected; $0.54 a year earlier |
| Adjusted EBITDA | $12.5 billion | Up 5.4% |
| Free cash flow | $5.0 billion | 2026 outlook of more than $18 billion kept |
| Postpaid phone net additions | 379,000 | About 387,000 expected |
| Postpaid phone churn | 0.92% | Share of phone customers who left each month |
| Internet net additions | 769,000 | 442,000 fiber and 327,000 Internet Air |
| Net debt to adjusted EBITDA | 3.13 times | 2.68 times at the end of June |
Why AT&T stock fell after beating forecasts
Home internet had a record quarter. The 769,000 new internet customers were the most AT&T has ever added, helped by Internet Air, its fixed wireless service, and home internet revenue rose 23.4%, a figure that includes the fiber business it bought from Lumen. Wireless service revenue grew a slower 5.0%, and phone additions fell short. Seeking Alpha linked the sell-off to worries that new competition will squeeze margins. Free cash flow of $5.0 billion kept AT&T on course for its forecast of more than $18 billion this year, but the company left that forecast unchanged, so the higher EPS outlook did not come with more cash.
The cost of new spectrum
AT&T's net debt rose to $149.8 billion at the end of September from $126.4 billion three months earlier, mostly because it paid for spectrum bought from EchoStar. That lifted its net debt to 3.13 times adjusted EBITDA from 2.68 times, and the company's goal of bringing the ratio back to about 2.5 times now falls in 2029, later than before, according to Investing.com's review of the results slides. AT&T still plans to buy back about $10 billion of its shares this year.
Two weeks of pressure from SpaceX
AT&T reported into a stock already marked down by a new rival. SpaceX agreed on October 8 to buy a nationwide set of 800 MHz airwaves from Grain Management for about $8 billion in cash, as reported by the Wall Street Journal, to push its Starlink service into U.S. mobile phones. The deal still needs approval from the Federal Communications Commission.
- October 8, 2026: AT&T traded at $24.69 at 10:02 ET on the day SpaceX announced the deal.
- October 9, 2026: AT&T closed down 9.81%, Verizon fell 8.75% and T-Mobile fell 13.27%, according to CNBC.
- October 21, 2026: AT&T reported third-quarter results and the stock fell again, to $22.05 by 10:16 ET, 10.7% below the October 8 price.
Why is AT&T stock down today?
AT&T fell after its third-quarter 2026 results on October 21 showed 379,000 postpaid phone additions, fewer than the roughly 387,000 analysts expected, and debt of 3.13 times adjusted EBITDA after a spectrum purchase. The company beat profit and revenue forecasts and raised its EPS outlook.
Did AT&T beat earnings in the third quarter of 2026?
Yes. Adjusted EPS was $0.65 against $0.61 expected, and revenue rose 5.3% to $32.3 billion against $31.68 billion expected, according to LSEG data cited by Reuters.
What is AT&T's 2026 guidance?
AT&T now expects adjusted EPS of about $2.40 for 2026, up from $2.25 to $2.35. It kept its forecast for free cash flow above $18 billion in 2026, above $19 billion in 2027 and above $21 billion in 2028.
Why did AT&T stock fall on October 9, 2026?
SpaceX agreed to buy 800 MHz spectrum from Grain Management for about $8 billion to offer Starlink phone service in the United States. AT&T closed down 9.81% the next day, with Verizon and T-Mobile also lower.
Sources
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AT&T Delivers Strong Third-Quarter 2026 Results with Its Best Consolidated Service Revenue Growth in More Than Four Years
— AT&T via PR Newswire
Revenue, adjusted EPS, adjusted EBITDA, free cash flow, postpaid phone and internet net additions, home internet and wireless service revenue growth, raised 2026 EPS outlook and free cash flow outlook.
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AT&T third-quarter 2026 earnings release (Form 8-K, Exhibit 99.1)
— AT&T via SEC EDGAR
The filed copy of the third-quarter 2026 results release.
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AT&T raises annual profit forecast on strong demand for bundled plans
— Reuters via Investing.com
Consensus of $0.61 adjusted EPS and $31.68 billion revenue (LSEG), prior 2026 forecast of $2.25 to $2.35, year-ago adjusted EPS of $0.54.
-
AT&T Q3 2026 slides: strong growth overshadowed by debt concerns
— Investing.com
Net debt of $149.8 billion against $126.4 billion, leverage of 3.13 times against 2.68 times after the EchoStar spectrum purchase, the later 2.5 times target and about $10 billion of buybacks.
-
AT&T (T) Shares Dip 4.6% Premarket After Q3 Earnings Beat but Subscriber Growth Misses
— GuruFocus
Postpaid phone net additions of 379,000 against about 387,400 expected.
-
AT&T slips despite Q3 revenue and adjusted earnings beats
— Seeking Alpha
Share decline after the results and concern that new competition could pressure margins.
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