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AT&T beats Q1 earnings estimates with broadband growth but sees rising debt and lower free cash flow.

Company Fundamentals
23 Apr 2026
Seeking Alpha
View Source
Bullish
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AT&T reported stronger-than-expected earnings for Q1 2026, driven by growth in its broadband segment, helped by the acquisition of Lumen's Mass Market fiber business. However, the company's net debt increased to $126.4 billion, pushing leverage above its long-term target. Free cash flow declined 19% year-over-year to $2.5 billion due to higher capital expenditures and acquisition costs. Despite this, AT&T maintains a solid dividend coverage and expects at least $18 billion in free cash flow for the full year 2026, though increased debt levels remove prior expectations of deleveraging.

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