-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AT&T delivered strong Q1 2026 results with revenues of $31.5B (+2.9% Y/Y) and adjusted EPS of $0.57 vs $0.51 prior year, beating Wall Street estimates. Advanced Connectivity underpinned growth, with service revenues of $22.9B (+3.6%) and operating income surging 14.8% to $6.9B, while home internet revenue jumped 27.3% to $2.8B. The Lumen acquisition, which closed in February and added 4M+ fiber locations, is accelerating convergence strategy with nearly 45% of fiber subscribers choosing wireless services. Management reaffirmed 2026 guidance, including free cash flow of $18B+ and EBITDA growth of 3%-4%. We believe the convergence strategy represents a key competitive differentiator, with organic convergence rates improving over 3 percentage points Y/Y, supporting higher customer lifetime values through reduced churn. The company remains on track to reach 40M fiber locations by end-2026 and 60M by 2030, positioning AT&T to capitalize on growing demand for bundled connectivity services.