AT&T (NYSE: T) is set to report its second-quarter earnings before the market opens on Wednesday, July 22, putting one of the market’s most closely watched telecom stocks back in the spotlight. Investors will be looking for signs that AT&T’s wireless and fiber businesses continue to gain momentum, while Wall Street will be closely watching subscriber growth, free cash flow, and management’s outlook for the rest of 2026.
Making it even more attractive will be signs of dividend growth. The stock currently yields about 5.1%, and the company is scheduled to pay its next quarterly dividend of just over $0.27 per share on August 3 to shareholders of record as of July 10.
Earnings Expectations
Wall Street expects AT&T to report earnings of approximately $0.59 per share on $31.9 billion in revenue. Analysts will also be looking for strength in postpaid phone subscriber growth. These customers are especially valuable because they tend to stay with their wireless provider longer and generate reliable monthly revenue.
Despite competition from Verizon and T-Mobile, AT&T has continued to add postpaid customers by investing in its wireless network and offering competitive promotions. Another quarter of healthy subscriber growth would reinforce confidence that the company is maintaining its market position.
Fiber Remains a Major Growth Driver
AT&T’s fiber internet business continues to be one of its strongest growth engines. The company has spent billions expanding its fiber network to reach more homes and businesses across the U.S. Not only will analysts watch for continued growth in fiber subscribers, they’re also looking for updates on how quickly AT&T is expanding its network. Strong results would provide further evidence that the company’s long-term investment strategy is paying off.
Free cash flow will be another one of the most closely watched financial metrics in the report.
The company relies on that cash to fund its dividend, reduce debt, and continue investing in its network. Earlier this year, management reaffirmed its goal of generating more than $18 billion in free cash flow during 2026. If AT&T remains on pace to reach that target, investors are likely to view the quarter favorably.
In addition, management’s outlook for the remainder of the year could ultimately be the biggest takeaway from the earnings report.
Analysts expect AT&T to reaffirm its full-year guidance for earnings, free cash flow, and capital spending. Holding that guidance steady would signal that management remains confident despite ongoing economic uncertainty and intense competition in the wireless industry.
What’s Next for AT&T?
If the company delivers another quarter of steady wireless subscriber growth, healthy fiber additions, strong free cash flow, and reaffirms its full-year outlook, it would reinforce the idea that management’s strategy is working.
That kind of consistency has helped rebuild investor confidence over the past few years and could provide another reason for the stock to continue gaining ground.
For income investors, the combination of a yield above 5% and improving fundamentals remains compelling. While competition in the telecom industry isn’t going away, AT&T has shown it can make steady progress even in a challenging environment.
Wednesday’s earnings report may not produce dramatic headlines, but it should offer a clearer picture of whether the company is staying on track—and whether AT&T stock still has room to reward patient, long-term investors.
