AT&T edged out Verizon in the first quarter of 2026, beating Wall Street expectations on fiber and wireless‑driven growth and adding nearly 300,000 postpaid phone subscribers.
For AT&T, the company’s new Advanced Connectivity segment covers both business and consumer fiber and wireless services. Verizon, on the other hand, simplified its reporting into mobility, broadband and equipment categories. Wireless remained the primary growth engine for both carriers, with early signs of subscriber momentum. AT&T added 294,000 postpaid phone subscribers, while Verizon posted its first positive first‑quarter postpaid phone net adds since 2013. Both companies also advanced major acquisitions: AT&T closed multibillion‑dollar fiber and spectrum deals with Lumen and EchoStar, while Verizon finalized its $20 billion acquisition of Frontier Communications.
Here are the financial results from the two leading telecom giants for the first fiscal quarter of 2026.
Business Services
AT&T changed up its reporting segments in 2026 with the introduction of its Advanced Connectivity segment, which includes domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers. The company’s new reporting segment that houses its business fiber and advanced connectivity services increased 7.2 percent in the first quarter to $1.88 billion, compared with $1.75 billion a year ago. The Business Transitional and Other segment, however, declined 16.3 percent to $1.08 billion during the first quarter.
Verizon, like AT&T, changed up its reporting segments in 2026. The company eliminated the breakout of its Enterprise, Business Markets, and Public Sector and Wholesale businesses in favor of Mobility and Broadband Service revenue, Wireless Equipment revenue and other revenue. To that end, overall revenue for the telecom’s business segment climbed 1.8 percent year over year to $7.42 billion compared with $7.29 billion a year ago. Business Wireline equipment declined 1 percent and other, a segment that houses revenue from wireline products that provide legacy voice and data solutions, as well as broadband over copper-based network, climbed 6.3 percent during the quarter.
Wireless Results
Dallas-based AT&T’s wireless services revenue climbed modestly by 1.7 percent to $16.94 billion, up from $16.65 billion a year ago. Equipment revenue also rose 9.3 percent to $5.61 billion during the quarter compared with $5.13 billion a year ago. AT&T said it added 294,000 postpaid phone net additions during the first quarter.
Verizon’s overall mobility and broadband service revenue reached approximately $22.9 billion, representing a 1.6 percent increase year over year. The company’s consumer mobility and broadband service revenue climbed 2 percent to $19.18 billion, up from $18.80 billion in the year-ago quarter. Verizon’s Business mobility and broadband service revenue in the first quarter 2026 was $3.69 billion, a slight increase of 0.9 percent year over year. The company said it added 55,000 postpaid phone net additions during the quarter—its first positive first quarter of postpaid phone net adds since 2013.
First-Quarter 2026 Financials
Total operating revenue for AT&T’s first quarter that ended March 31 was $31.51 billion versus $30.63 billion in the year-ago quarter, up 2.9 percent, which the carrier attributed to Advanced Connectivity wireless and fiber revenue. Net income was $4.18 billion. Diluted earnings per share during AT&T’s first quarter was 54 cents compared with 61 cents a year ago. AT&T’s first-quarter 2026 results beat Wall Street’s expectations of $31.25 billion for the quarter.
For the quarter that ended March 31, Verizon’s total operating revenue was $34.40 billion versus $33.46 billion in the year-ago quarter, up 2.9 percent. Net income was $5.15 billion. Diluted earnings per share during Verizon’s third quarter was $1.20, up 4.3 percent year over year. Verizon’s first-quarter 2026 revenue missed Wall Street estimates of $34.8 billion.
Acquisition Progress
AT&T has closed its previously announced transaction to acquire substantially all of Lumen’s Mass Markets fiber business, including Lumen’s 11-state Mass Markets fiber internet business for $5.75 billion in cash. Via the terms of the deal, AT&T gained about 95 percent of Quantum Fiber, about 4 million fiber locations and about 1 million subscribers. Lumen kept its enterprise fiber customers and Mass Markets copper-based customers, the companies said.
AT&T also closed on its previously announced deal to acquire approximately 30MHz of nationwide 3.45GHz midband spectrum and approximately 20MHz of nationwide 600MHz low-band spectrum for approximately $23 billion in cash from EchoStar.
Meanwhile, Verizon on Jan. 20 closed on its deal to acquire Frontier Communications for $20 billion in cash, according to the Basking Ridge, N.J.-based carrier.
