AT&T Shares Lag as Debt and Network Spending Weigh

AT&T shares fell 13.9% over six months, underperforming Verizon, which declined 7.1%, and outperforming T-Mobile, which lost 19%, according to the source article. The article also reported growth of 104.6% for the Wireless National industry over the period.

As of 14:24 UTC on Oct. 1, AT&T traded at $24.465, up 0.27% since the previous close.

Competition and investment needs are weighing on the company’s outlook. AT&T had $144 billion in total debt at the end of the second quarter, and management expects its leverage ratio to rise to roughly 3.2 after the EchoStar transaction before moving toward a 2.5 target over time.

The company plans $23 billion to $24 billion in annual capital investment and about $10 billion in share repurchases during 2026. Meanwhile, revenue from its Legacy business fell 25.9% year over year in the second quarter, while operating income dropped 45.5% to $523 million.

AT&T added 367,000 fiber customers and 279,000 fixed wireless customers in the quarter. It also added 432,000 postpaid phone customers, with postpaid phone churn at 0.86%.

The company had reached 38.6 million fiber locations and aims to exceed 40 million by the end of 2026. Zacks reported that earnings estimates for fiscal 2026 and 2027 have edged lower over the past 60 days, to $2.33 and $2.56, respectively.