T · Q2 FY2026
AT&T INC. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $31.56B | $30.85B (yr ago) | Beat |
| EPS | $0.66 | $0.62 (yr ago) | Beat |
| Free Cash Flow | N/M (financial-company presentation) | N/M (yr ago) | Miss |
| Gross Margin | N/M (financial-company presentation) | N/M (yr ago) | Miss |
| Operating Margin | 22.3% pre-tax margin | 21.1% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 2.3% year over year to $31.56 billion, while EPS rose 6.5% to $0.66. The more consequential change was profitability: the reported pre-tax margin expanded 1.2 percentage points to 22.3%, the highest level in the 12-quarter table.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We establish fair value at $27.18 per share using 9.0 times TTM EPS; the stronger margin supports that valuation but does not justify a more aggressive multiple given AT&T’s $134.72 billion of debt and limited quarterly cash-flow disclosure.