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AT&T Stock Outlook Hinges on Fiber Growth and Wireless Risks in 2026
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Key Takeaways
T added over 1 million Advanced Connectivity customers in second-quarter 2026.
Fiber added 367,000 customers, while advanced home Internet connections rose 29.5%.
Promotions, legacy declines and heavy network investment continue to pressure AT&T's outlook.
AT&T Inc. (T - Free Report) is trying to show that a cleaner connectivity model can still produce steady growth. The stock story now rests less on media optionality and more on execution in fiber, 5G and bundled Internet-wireless services.
That focus gives investors a clearer operating thesis. It also leaves T exposed to promotional wireless competition, legacy copper declines and the capital intensity needed to keep expanding network reach.
AT&T Resets Around Advanced Connectivity
AT&T has moved away from a broader media and video structure. The divestiture of media assets and the sale of its Video business sharpened the company’s focus on core connectivity services.
Effective first-quarter 2026, the company realigned reporting around Advanced Connectivity, Legacy and Latin America. Advanced Connectivity generated about 90% of operating revenues in that quarter and now houses domestic 5G, fiber-based wireless, advanced home Internet, business fiber and related services.
T Builds Growth Through Fiber and Wireless
The growth case starts with customer additions. In second-quarter 2026, AT&T reported more than 1 million Advanced Connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
Fiber remained central to that momentum, with 367,000 net additions. Fixed wireless added 279,000 customers, while advanced home Internet connections rose 29.5% year over year. Convergence is another lever. About 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan, and management has indicated that converged households churn at roughly half the rate of standalone accounts.
AT&T Sees Edge and Open RAN as Levers
AT&T is also positioning the network for heavier edge and artificial intelligence-related traffic. Dense fiber, 5G backhaul and spectrum depth are expected to support lower-latency workloads and stronger uplink performance over time.
The company has cited more than 20 metro multi-access edge computing zones and more than 150 active private 5G and edge trials. Verizon Communications Inc. (VZ - Free Report) remains a relevant peer because AT&T’s wireless pricing and network investments are judged against other national carriers. T-Mobile US Inc. (TMUS - Free Report) is another key reference point for subscriber growth and promotional intensity in postpaid wireless.
Open radio access network deployment is part of the cost story. AT&T aims to deploy Open RAN for 70% of wireless network traffic across open-capable platforms by late 2026, using the effort to lower long-run network costs and reduce reliance on single vendors.
T Still Faces Pricing and Legacy Pressure
Wireless growth does not remove pricing risk. The U.S. market remains highly competitive, and promotions, plan incentives and converged discounts can limit per-product monetization even as AT&T adds subscribers.
Legacy erosion remains another drag. In second-quarter 2026, Legacy operating revenues declined 25.9% year over year, while Legacy EBITDA fell 45.5% as cost reductions lagged customer migrations.
Older business services are also pressuring results. Business Transitional and Other revenues within Advanced Connectivity fell 16.6% year over year, showing that the cleanup of copper-based and transitional services still affects reported growth and margins.
How AT&T’s Hold Signal Fits the Setup
AT&T remains a balanced stock story. Fiber, wireless and convergence support the income and valuation case, but promotional pressure, legacy declines and heavy investment needs keep the setup from looking like a simple growth call.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a neutral short-term earnings-revision backdrop rather than a high-conviction buy signal.
The Style Scores tell a similar mixed story. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The strong value mark supports the valuation argument, while weaker growth and momentum scores suggest investors may need patience as the company works through the next stage of its connectivity reset.
View the Zacks #1 Rank List
Image: Bigstock
AT&T Stock Outlook Hinges on Fiber Growth and Wireless Risks in 2026
Key Takeaways
AT&T Inc. (T - Free Report) is trying to show that a cleaner connectivity model can still produce steady growth. The stock story now rests less on media optionality and more on execution in fiber, 5G and bundled Internet-wireless services.
That focus gives investors a clearer operating thesis. It also leaves T exposed to promotional wireless competition, legacy copper declines and the capital intensity needed to keep expanding network reach.
AT&T Resets Around Advanced Connectivity
AT&T has moved away from a broader media and video structure. The divestiture of media assets and the sale of its Video business sharpened the company’s focus on core connectivity services.
Effective first-quarter 2026, the company realigned reporting around Advanced Connectivity, Legacy and Latin America. Advanced Connectivity generated about 90% of operating revenues in that quarter and now houses domestic 5G, fiber-based wireless, advanced home Internet, business fiber and related services.
T Builds Growth Through Fiber and Wireless
The growth case starts with customer additions. In second-quarter 2026, AT&T reported more than 1 million Advanced Connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
Fiber remained central to that momentum, with 367,000 net additions. Fixed wireless added 279,000 customers, while advanced home Internet connections rose 29.5% year over year. Convergence is another lever. About 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan, and management has indicated that converged households churn at roughly half the rate of standalone accounts.
AT&T Sees Edge and Open RAN as Levers
AT&T is also positioning the network for heavier edge and artificial intelligence-related traffic. Dense fiber, 5G backhaul and spectrum depth are expected to support lower-latency workloads and stronger uplink performance over time.
The company has cited more than 20 metro multi-access edge computing zones and more than 150 active private 5G and edge trials. Verizon Communications Inc. (VZ - Free Report) remains a relevant peer because AT&T’s wireless pricing and network investments are judged against other national carriers. T-Mobile US Inc. (TMUS - Free Report) is another key reference point for subscriber growth and promotional intensity in postpaid wireless.
Open radio access network deployment is part of the cost story. AT&T aims to deploy Open RAN for 70% of wireless network traffic across open-capable platforms by late 2026, using the effort to lower long-run network costs and reduce reliance on single vendors.
T Still Faces Pricing and Legacy Pressure
Wireless growth does not remove pricing risk. The U.S. market remains highly competitive, and promotions, plan incentives and converged discounts can limit per-product monetization even as AT&T adds subscribers.
Legacy erosion remains another drag. In second-quarter 2026, Legacy operating revenues declined 25.9% year over year, while Legacy EBITDA fell 45.5% as cost reductions lagged customer migrations.
Older business services are also pressuring results. Business Transitional and Other revenues within Advanced Connectivity fell 16.6% year over year, showing that the cleanup of copper-based and transitional services still affects reported growth and margins.
How AT&T’s Hold Signal Fits the Setup
AT&T remains a balanced stock story. Fiber, wireless and convergence support the income and valuation case, but promotional pressure, legacy declines and heavy investment needs keep the setup from looking like a simple growth call.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a neutral short-term earnings-revision backdrop rather than a high-conviction buy signal.
The Style Scores tell a similar mixed story. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The strong value mark supports the valuation argument, while weaker growth and momentum scores suggest investors may need patience as the company works through the next stage of its connectivity reset.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.