What was the impact of the Lumen fiber business acquisition on AT&T's Q1 2026 results?

The acquisition of substantially all of Lumen's mass markets fiber business, closed on February 2, 2026, has been integrated into AT&T's operations. Revenues from this business are included in the Advanced Connectivity segment's growth, contributing to higher advanced home internet revenues. However, for financial reporting purposes, the fiber business assets are held for sale and reflected as discontinued operations as AT&T plans to sell a controlling interest.

How did AT&T's subscriber growth perform in Q1 2026?

AT&T reported a net gain of 158,000 retail wireless subscribers, including 294,000 postpaid phone net adds. The company also saw strong growth in internet connections, with a net gain of 584,000 total internet connections, comprising 292,000 fiber net adds and 292,000 fixed wireless net adds.

What is the outlook for AT&T's Legacy segment?

The Legacy segment, which comprises domestic legacy voice and data services over AT&T's copper-based network, is expected to continue its decline. Revenues decreased by 25.3% year-over-year in Q1 2026 due to lower demand, aligning with the company's strategy to decommission its copper network.

Is AT&T actively returning capital to shareholders?

Yes, AT&T repurchased $2.3 billion of its common stock in the first quarter of 2026. The company has an active stock repurchase program, with approximately $13.5 billion remaining under authorization as of March 31, 2026.

AT&T INC. 8-K SEC Disclosure

Summary

AT&T Inc. reported first-quarter 2026 results showing solid revenue growth driven by its Advanced Connectivity segment, which includes wireless and fiber services. The company saw a 2.9% increase in total operating revenues to $31.5 billion, largely propelled by strong performance in advanced home internet and wireless services, augmented by recent acquisitions. Despite a slight dip in income from continuing operations to $4.2 billion ($0.54 per diluted share) compared to the prior year, the company's operating income margin expanded to 21.1% from 18.8%, indicating improved operational efficiency. The strategic shift towards 5G and fiber is evident in the segment performance, with Advanced Connectivity revenues up 4.7% and operating income margin improving to 24.1%. Conversely, the Legacy segment continues its expected decline, with revenues down 25.3% as AT&T progresses with its network decommissioning. The company also repurchased $2.3 billion of common stock in the quarter, underscoring its commitment to shareholder returns.

Key Highlights

1First-quarter 2026 operating revenues increased by 2.9% year-over-year to $31.5 billion, driven by growth in Advanced Connectivity services.
2Income from continuing operations for Q1 2026 was $4.2 billion ($0.54 per diluted share), compared to $4.7 billion ($0.61 per diluted share) in Q1 2025.
3Operating income margin improved significantly to 21.1% in Q1 2026 from 18.8% in Q1 2025, reflecting better operational leverage.
4The Advanced Connectivity segment saw revenue growth of 4.7%, with fiber revenues up 21.2% and AT&T Internet Air (AIA) revenues increasing over 100%.
5Legacy segment revenues declined by 25.3% as the company continues its copper network decommissioning strategy.
6AT&T repurchased $2.3 billion of common stock in the first quarter of 2026 under its stock repurchase program.
7The acquisition of Lumen's mass markets fiber business has been integrated, with its results reflected in discontinued operations as the company seeks a partner for a controlling interest.

AT&T INC. 8-K Report, Corporate Update (Apr 22, 2026)

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Key Highlights

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