The telecom giant reported 20% EPS growth and increased its share repurchase plan by $2 billion amid a 5.1% stock gain.
AT&T posted second-quarter earnings that exceeded expectations, with non-GAAP earnings per share rising to $0.65 from $0.54 a year earlier. Revenue grew 2.3% year over year to $31.6 billion, while adjusted EBITDA margin expanded 110 basis points to 39.1%. Free cash flow reached $4.7 billion, up from $4.4 billion in the prior-year period.
The company also announced an increase to its 2026 share buyback plan, raising it to $10 billion from $8 billion. Shares closed at $24.13, up 5.1% for the session, though still below the 52-week high of $29.79. The stock trades at 8 times earnings with a 4.6% dividend yield.
Management attributed the stronger bottom line to cost efficiencies and operational improvements, despite modest top-line growth. The buyback expansion signals confidence in sustained cash flow generation.