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AT&T Q1 2026 Results: Record Internet Adds, Fiber Expansion, and OneConnect Launch

Jitesh Bhayani — Wed, 29 Apr 2026 04:00:00 GMT

AT&T opened 2026 with its best-ever first quarter for advanced internet customer growth, posting 584,000 total fiber and fixed wireless net additions — the sixth consecutive quarter exceeding 500,000 net adds — while beating consensus estimates on both revenue and adjusted EPS. The company’s Q1 2026 consolidated revenue of $31.5 billion, representing 2.9% year-over-year growth, was driven primarily by strength in its newly reported Advanced Connectivity segment, which now accounts for more than 90% of consolidated revenues and nearly all adjusted EBITDA. Adjusted EPS of $0.57 surpassed analyst expectations of $0.55, rising nearly 12% year over year.

Q1 free cash flow of $2.5 billion came in at the high end of the company’s own $2.0–$2.5 billion outlook, though it declined roughly $600 million year over year as AT&T accelerated fiber deployment, investing $5.1 billion in capital expenditures. The Lumen Mass Markets fiber acquisition, which closed ahead of schedule on February 2, 2026, added 1.1 million fiber customers and over four million fiber locations, expanding AT&T’s total fiber reach to more than thirty-seven million locations. AT&T reiterated its full-year guidance of $18 billion or more in free cash flow, adjusted EPS of $2.25–$2.35, and Advanced Connectivity EBITDA growth of 6% or more.

Collectively, AT&T’s Q1 2026 performance reflects a company executing well on its converged connectivity strategy while managing the near-term financial implications of accelerated network investment and strategic acquisitions. The launch of AT&T OneConnect — the industry’s first single-subscription service bundling fiber and wireless at a flat monthly price — signals a meaningful shift in go-to-market strategy, moving away from device subsidies toward service-led differentiation and long-term customer lifetime value.

Key Financial Highlights:

Q1 2026 consolidated revenue: $31.5 billion, up 2.9% YoY, beating consensus estimates of $31.25 billion and driven by Advanced Connectivity segment growth.

Adjusted EBITDA: $11.8 billion, up 2.3% YoY; Advanced Connectivity EBITDA grew 5.6% YoY with margin improvement of thirty basis points.

Q1 2026 adjusted EPS: $0.57, up nearly 12% YoY, beating analyst estimates of $0.55; full-year 2026 guidance reiterated at $2.25–$2.35.

Free cash flow: $2.5 billion, at the high end of AT’s $2.0–$2.5 billion Q1 outlook; declined ~$600 million YoY due to higher capital investment. Full-year 2026 FCF of $18 billion+ maintained.

Q1 shareholder returns: $4.3 billion returned in Q1 2026 via dividends and ~$2.3 billion in share repurchases; $45 billion+ shareholder return commitment through 2028 maintained.

Strategic & Network Milestones: Record Internet Growth and OneConnect Launch

AT&T’s Q1 2026 results mark its best-ever first quarter for advanced internet customer growth. The company added 584,000 total fiber and fixed wireless net adds — its sixth consecutive quarter above 500,000 — bringing total fiber subscribers to 12.5 million and total Internet Air connections to over 2.3 million. Fiber now reaches more than thirty-seven million locations, including 4 million-plus acquired from Lumen. AT&T is on track to reach forty million fiber locations by end of 2026 and over sixty million by end of 2030.

The Lumen Mass Markets acquisition closed ahead of schedule on February 2, 2026, adding 1.1 million fiber customers and over four million fiber locations. AT&T also launched OneConnect — the industry’s first single-subscription service bundling fiber and wireless at a flat monthly price — marking a deliberate shift from device-subsidy competition toward service-led convergence. The EchoStar spectrum acquisition is expected to close during 2026, further expanding Internet Air coverage and network performance.

Segment Performance: Detailed Commentary

Mobility

The Mobility segment remains AT&T’s growth engine, delivering:

Q1 2026 postpaid phone net adds:294,000, with postpaid phone churn of 0.89%; approximately 42–45% of advanced home internet customers also take AT&T wireless, representing AT&T’s fastest-ever organic Q1 convergence rate.

Service revenue: Wireless service revenue grew 1.7% YoY in Q1 2026, consistent with guidance that Q1 would be below the full-year run rate; pricing actions effective April are expected to accelerate growth in Q2–Q4.

Churn: Postpaid phone churn of 0.89% improved sequentially and remained below 1%; AT&T reported its fastest-ever organic growth in the advanced home internet convergence rate in Q1 2026, with approximately 42–45% of advanced home internet customers also taking AT&T wireless.

IDC notes that the launch of AT&T OneConnect is a strategically important inflection point. By pricing fiber and wireless as a bundled flat-rate subscription, AT&T is redefining its competitive playbook — shifting emphasis from device subsidies to service value and convergence stickiness. The early rollout to BYOD and value-segment customers is deliberate; the platform creates the foundation for broader convergence monetization in future quarters.

Consumer Wireline

Advanced home internet delivered AT&T’s best-ever Q1 consumer net additions, driven by both organic fiber growth and the Lumen acquisition:

Fiber net adds:273,000 organic AT&T Fiber consumer net adds in Q1 2026, plus 1.1 million fiber customers acquired through Lumen; total fiber subscriber base now stands at 12.5 million. Advanced home internet service revenue grew 27.3% YoY, driven by subscriber growth and ARPU expansion.

Internet Air (FWA): Added 239,000 customers in Q1 2026 (up from 181,000 in Q1 2025), reaching a total of 1.73 million subscribers; AT&T Guarantee now extended to cover Internet Air service.

Broadband revenue: Advanced home internet service revenue reached $2.8 billion in Q1 2026, up 27.3% YoY, reflecting both organic subscriber growth and two months of Lumen contribution. Business fiber and advanced connectivity revenues grew 7.2% YoY, reflecting rising enterprise demand.

IDC observes that AT&T’s record Q1 internet net additions validate its dual-track broadband strategy. Lumen integration, while expected to be EBITDA-neutral in 2026 as AT&T invests in standing up the acquired operations, significantly expands AT&T’s addressable fiber market. AT&T now reaches over 90 million U.S. locations with advanced internet technologies across fiber and 5G — a scale that is increasingly difficult for cable-only or wireless-only competitors to match.

Business Wireline

The Business Wireline segment continues to face structural decline:

Q1 2026 legacy results: Legacy service revenue fell approximately 25% YoY to $1.8 billion in Q1 2026, with legacy EBITDA down roughly 40%; consistent with AT&T’s 2026 guidance for 20%+ legacy revenue declines, reflecting the deliberate acceleration of copper network retirement.

Copper retirement acceleration: AT&T now has FCC approval to discontinue legacy services in more than 30% of its wire centers, and 30% of wire centers are on a total shutdown schedule by late 2026. The company is actively migrating legacy customers to fiber and Internet Air, generating cost savings, and improving network efficiency.

IDC highlights that AT&T’s accelerated copper retirement is a structural positive. The shutdown of 30% of wire centers by end of 2026 will generate meaningful opex savings and simplify the network estate. The key risk is managing business customer migration smoothly, but regulatory approvals now in hand significantly de-risk the timeline.

Google Cloud Next 2026: Building the Agentic Enterprise Through an Integrated Developer Platform

Jim Mercer — Wed, 29 Apr 2026 04:00:00 GMT

Google Cloud Next 2026 marks a pivotal transition from generative AI experimentation to production-scale agentic systems. The event highlighted Google Cloud’s strategy to deliver a unified platform spanning infrastructure, data, security, and developer tooling, enabling enterprises to build, deploy, and govern autonomous agents at scale. Central to this vision is the Gemini Enterprise Agent Platform, which integrates development frameworks, runtime environments, governance controls, and optimization capabilities into a cohesive system. This IDC Link examines the key announcements and provides perspective on their implications for developers, DevOps, and platform engineering as we move toward the agent development lifecycle (ADLC).

2026年国内ITサービスベンダーの海外ビジネス戦略と日系企業のグローバル展開支援

Tatsuhiro Soga, Masaru Muramatsu — Tue, 28 Apr 2026 04:00:00 GMT

国内ITサービス市場は、企業のITモダナイゼーションやAI（Artificial Intelligence）活用への支出拡大を背景に成長基調にあるが、長期的には総人口の減少による経済規模の縮小によって、市場成長の鈍化も懸念される。このため、国内ITサービスベンダーにとって海外ビジネスの拡大は、次なる市場機会の候補となり得るが、大手グローバルベンダーの存在など留意すべき事項もある。

「国内ITサービスベンダーは、欧米やインドの大手ITサービスベンダーと正面から競うのではなく、重点市場を特定した上で、ドメインやソリューションに特化した高付加価値なサービスを訴求すべきである。加えて、持続的成長には、自律性の高いガバナンスモデルの構築と、迅速な意思決定を可能とする運営体制の構築が重要となる」と、IDC Japan、Software, Services, and IT Spendingのリサーチアナリストである曽我龍宏は述べている。

2026年国内情報セキュリティユーザー調査：企業における対策の現状

Kotaro Saito — Tue, 28 Apr 2026 04:00:00 GMT

本調査レポートは、2026年3月に実施した情報セキュリティ対策の実態調査に基づき、国内の企業／組織500社の導入実態と今後の方向性について分析した結果をまとめたものである。

セキュリティ製品ベンダーの戦略策定、開発計画、マーケティング活動に資する分析を提供するため、情報セキュリティ対策をすでに導入している企業だけでなく、導入を検討している企業を対象としている。セキュリティ被害の状況や情報セキュリティ対策の導入状況、AI（Artificial Intelligence）がセキュリティ対策に与える影響などについて調査／分析を行った。

ランサムウェアや不正ログインによる被害に加えて、企業が活用するAIへの攻撃も発生しており、企業が防御すべきIT資産の範囲は膨大になっている。「セキュリティ対策を強化するために、セキュリティ投資に積極的な企業が多い。ベンダーにとって、製品導入に留まらない支援を通じて、ユーザー企業から信頼を獲得することがますます重要になる」と、IDC Japan、Network and Securityのシニアリサーチアナリストである齊藤耕太郎は述べている。

AI時代の基盤提供者を目指すLenovo： Lenovo's Tech World 2026 Hong Kong

Akira Sugawara — Tue, 28 Apr 2026 04:00:00 GMT

本調査レポートは、レノボ（以下、Lenovo）が2026年3月に香港で開催したイベント「Hong Kong Tech World 2026」ならびにアナリスト向け説明会において発表された同社のAI（Artificial Intelligence）市場戦略や、そのアピールポイントをまとめている。また、今後の展望についてIDCの視点から考察を行っている。

「Lenovoの現在の取り組みは、同社がデバイスベンダーから基盤提供者を目指すものであり、全方位的な戦略を採用している。しかし、AI市場から確たるブランド認知を得るためには、従来どおりの製品力強化もさることながら、AIの領域で具体的なソリューションを提供するプレイヤーであるための継続的な努力が必要になるであろう」とIDC Japan、AI and Automationのシニアリサーチアナリストである菅原啓は述べている。

Adobe Introduces AI-Driven Adobe Journey Optimizer Loyalty at Adobe Summit 2026

Ornella Urso, Dorothy Creamer — Tue, 28 Apr 2026 04:00:00 GMT

At Adobe Summit 2026, Adobe announced Adobe Journey Optimizer (AJO) Loyalty, a new solution designed to embed loyalty into the broader customer experience through AI-driven personalization, real-time data, and journey orchestration. IDC views this launch as a strategic move to reposition loyalty as a scalable growth engine, although its success will depend on how effectively Adobe navigates a fragmented loyalty technology landscape and demonstrates measurable business impact.

Azure Local Scales Private Cloud to Thousands of Nodes

Rob Tiffany — Tue, 28 Apr 2026 04:00:00 GMT

Microsoft's announcement that Azure Local now scales to thousands of servers within a single sovereign environment represents a meaningful step forward in enterprise private cloud architecture, directly addressing the growing demand from regulated industries and national infrastructure operators for large-scale, on-premises, and cloud-consistent deployments. By combining expanded fault domains, GPU support for sovereign AI inference, and a validated partner ecosystem, Microsoft is positioning Azure Local as a platform for organizations that must balance digital sovereignty mandates with the operational scale and AI capabilities increasingly expected of modern cloud infrastructure.

Beyond the NVD: Rethinking Vulnerability Intelligence in an Era of Accelerating Disclosure

Michelle Abraham — Tue, 28 Apr 2026 04:00:00 GMT

The National Institute of Standards and Technology (NIST) April 2026 decision to formally limit common vulnerabilities and exposures (CVE) enrichment in the National Vulnerability Database (NVD) marks a structural shift in the vulnerability intelligence supply chain, with direct implications for security vendors and the organizations that depend on their data. Security teams that have anchored prioritization decisions to NVD-sourced CVSS scores now face an accelerating coverage gap at precisely the moment AI-driven vulnerability discovery is compressing response windows.

Google Cloud Next '26: IDC Analysis of Cloud Networking Announcements for the Agentic Enterprise

Taranvir Singh — Tue, 28 Apr 2026 04:00:00 GMT

Google Cloud Next '26 advancements are a step forward in enabling cloud networking for the agentic enterprise era. The announcements span Agent Gateway for agentic traffic governance, ambient networking to remove sidecar overhead in service meshes, GKE Inference Gateway for multiregion inference, Virgo Network for optimized datacenter AI fabric, Cloud Number Registry for agentic IP address management (IPAM), and Gemini Cloud Assist agents for AI-driven network security and operations. In IDC's view, these capabilities collectively position Google's cloud networking as a modern AI fabric for connecting users, data, models, applications, and agents consistently and securely across distributed enterprise environments.

HPC-AI Index, 3Q25

Madhumitha Sathish, Peter Rutten — Tue, 28 Apr 2026 04:00:00 GMT

This IDC Market Perspective provides an overview of the worldwide AI and HPC infrastructure markets as projected and segmented in the most recent release of IDC’s HPC-AI Index.