AT&T added a record 769,000 internet customers in its latest quarter

The company also added 379,000 postpaid phone customers, with postpaid phone churn of 0.92%. Total Advanced Connectivity additions topped 1 million for a second consecutive quarter. Of the households with AT&T's advanced home internet services, 42.8% chose AT&T wireless as well.

Revenue totaled $32.3 billion, up 5.3% from a year earlier. Adjusted earnings per share were $0.65, compared with $0.54 a year earlier. Diluted EPS from continuing operations was $0.13, versus $1.29 a year earlier, which included a gain on the sale of the DIRECTV investment. The latest figure reflects a $2.6 billion non-cash impairment charge on the Mexico wireless business, which is held for sale, and employee separation charges.

Analysts expected earnings of 61 cents per share on revenue of $31.68 billion, according to The Associated Press.

"We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless," AT&T Chairman and CEO John Stankey said in a statement.

Advanced home internet revenue rose 23.4% to $3.0 billion. The company said that growth included the effect of its first-quarter acquisition of Lumen's mass markets fiber business.

According to MarketWatch, the results show SpaceX is having no dampening effect on AT&T's internet business, a worry for telecommunications investors.

AT&T raised its 2026 adjusted EPS outlook to the $2.40 range and lowered its long-term capital investment outlook. It now expects capital investment of $23 billion to $24 billion in 2026 and $22 billion to $23 billion annually in 2027 and 2028. The company reached more than 39 million fiber locations and said it is on track for over 40 million by the end of 2026 and more than 60 million by the end of 2030.

AT&T plans to discuss the results on a call webcast at 8:30 a.m. ET on Wednesday.

SpaceX has become a concern for U.S. carriers in recent weeks. Earlier this month, it agreed to acquire a nationwide 800 MHz spectrum portfolio from Grain Management, a deal that requires FCC approval before it can close. SpaceX said the purchase addresses a technical gap in its plans for a cellular service called Starlink Mobile. AT&T stock fell about 10% on the day of the announcement.

Stankey has said direct-to-cell satellite service is "solving the last 2%," referring to users in remote areas, and has expressed doubt that it could displace the ground-based networks carriers have built.