Quick SummaryThe telecom giant delivered Q1 adjusted earnings per share of $0.57, surpassing Wall Street’s $0.55 projectionQuarterly revenue totaled $31.5 billion, representing a 2.9% year-over-year increase and exceeding the $31.25 billion forecastThe company secured 294,000 postpaid phone net adds, outperforming the analyst consensus of 270,000Shares climbed 0.8% in trading following the earnings releaseManagement confirmed its full-year 2026 outlook, targeting at least $18 billion in free cash flowAT&T launched Wednesday’s trading session on a positive note, delivering first-quarter results that exceeded Wall Street’s expectations across multiple fronts.$T (AT&T) #earnings are out: pic.twitter.com/jDuawW5kXc— The Earnings Correspondent (@earnings_guy) April 22, 2026The company reported adjusted earnings of $0.57 per share, outpacing the consensus forecast of $0.55. Quarterly revenue hit $31.5 billion, marking a 2.9% year-over-year improvement and beating the $31.25 billion analyst projection.Shares responded positively, rising 0.8% following the earnings announcement.AT&T Inc., TThe telecom provider brought in 294,000 postpaid phone net subscribers during the three-month period. This figure exceeded analyst projections, which ranged between 270,000 and 272,000, representing a notable outperformance.The company’s bundling approach continues delivering results. Approximately 42% to 45% of AT&T’s home internet customer base also maintains wireless service — a convergence strategy that’s become increasingly central to the company’s value proposition.Internet subscriber additions reached 584,000 for the quarter, with an even distribution: 292,000 came from fiber deployments while 292,000 originated from fixed wireless offerings.AT&T and competitor T-Mobile both maintained aggressive device promotion strategies throughout Q1, engaging in fierce competition for market share through iPhone incentives and discounted service plans.Price AdjustmentsThe carrier implemented price increases on both its entry-level and premium wireless offerings. The strategic intention is to guide subscribers toward middle-tier plans while simultaneously boosting average revenue per user metrics.Industry observers suggest this approach reflects a strategy to optimize customer value rather than initiate broader industry pricing competition.Business ReorganizationBeginning this quarter, the company restructured its operational framework into revised business segments designed to emphasize core expansion opportunities.The newly established Advanced Connectivity division — encompassing domestic 5G infrastructure and fiber operations — generated approximately 5% revenue expansion. Service revenue within this segment increased 3.6% year-over-year to $22.9 billion. Operating income surged 14.8% to reach $6.9 billion.Portions of this growth stemmed from the previously acquired mass market fiber operations from Lumen.Free cash flow totaled $2.5 billion, declining from $3.1 billion in the comparable year-ago period. The reduction reflects elevated capital investment as the company intensifies fiber network buildout.Capital expenditures for the quarter totaled $4.9 billion, up from $4.3 billion in the prior-year quarter.CEO John Stankey characterized the performance as the “best first quarter ever for Advanced Connectivity internet customer net additions.”The company reiterated its complete 2026 financial outlook: adjusted earnings per share ranging from $2.25 to $2.35, EBITDA expansion of 3% to 4%, and free cash flow of no less than $18 billion.Management also confirmed its commitment to repurchase roughly $8 billion in shares throughout 2026.The post AT&T (T) Stock Gains Following Strong Q1 Performance and Subscriber Momentum appeared first on Blockonomi.