At&t posts surprise gain in new customers as it shifts focus

AT&T has reported a significant increase in new postpaid phone subscribers for the first quarter of 2026, surprising Wall Street expectations. The telecom giant added 294,000 net new postpaid customers, outpacing forecasts of 272,000.

Customer bundling proves key for at&t

AT&T has found success in customer bundling, with 42% of its home internet customers also signed up for the company's wireless service. This strategy has helped the carrier boost its average revenue per user (ARPU).

However, the company's postpaid phone ARPU decreased slightly year-over-year to $55.57, down from $56.56 in the same period last year. AT&T attributed this decline to its efforts to move more subscribers to mid-range plans and increase ARPU.

The carrier's revenue for the first quarter rose 3% to $31.5 billion, beating estimates of $31.25 billion. Earnings per share also increased 11.8% to 57 cents.

AT&T's reorganization into major Business units, including its advanced connectivity segment, has helped drive growth. This segment covers domestic 5G and fiber services, which saw revenue rise 5% due to higher sales of wireless devices and services.

Despite initial declines, AT&T shares staged an afternoon comeback, gaining nearly 1.5 cents to close at $25.86 per share. The rebound was attributed to the company's strong customer additions and bundling efforts.