AT&T shares went up on Wednesday after the company reported second-quarter earnings that beat Wall Street’s expectations, although its revenue was lower than expected.
The stock rose 4.7% before the market opened, while overall index futures dropped as investors moved away from AI-related stocks.
These results may also help calm investor worries about SpaceX. Its Starlink service has caused concern about possible disruption to the wireless market, which is now led by AT&T and similar companies.
AT&T reported adjusted earnings of 65 cents per share, beating the 59 cents expected by analysts surveyed by FactSet. Revenue was $31.6 billion, which was slightly below the $31.8 billion estimate. The company gained 432,000 postpaid phone subscribers in the quarter, much higher than the 338,500 that Wall Street predicted. This suggests AT&T is still attracting new customers, even with challenges from an immigration crackdown and a price war with T-Mobile US and Verizon Communications.
Telecom stocks have mostly struggled in 2026 because of worries that growing 5G and fiber networks will hurt carriers’ free cash flow. AT&T shares were down 10% for the year through Tuesday’s close, and T-Mobile was down 6%. Verizon was an exception, rising 7.5% this year thanks to cost-cutting efforts.
