AT&T reported second-quarter 2026 earnings earlier today with revenues of $31.6 billion, up 2.3% from the year-ago quarter, as the telecom giant navigates mounting competition from Elon Musk’s Starlink satellite service.
The company’s diluted earnings per share from continuing operations came in at $0.66, versus $0.62 in the year-ago quarter, while adjusted EPS was $0.65, compared to $0.54 a year earlier. Analysts had predicted adjusted profit of 59 cents per share, up 9% from a year earlier, with revenue rising 3% to $31.82 billion.
AT&T stock has struggled this year, down about 12% in 2026 amid concerns about wireless competition and the emerging threat from satellite-based services. The company faces pressure as SpaceX moves forward with plans to launch Starlink mobile service, potentially competing directly with AT&T’s core wireless business. According to Investor’s Business Daily, analysts forecast AT&T will add 287,000 wireless postpaid phone subscribers in the quarter, down from 401,000 a year earlier.
Satellite Services and Starlink Competition
AT&T is moving to defend its market position by launching its own satellite-based services in 2026 through a partnership with AST SpaceMobile. The company began a limited beta program for satellite services in the first half of 2026, with plans for limited voice connectivity expected in late 2026, according to Light Reading and Android Headlines.
Musk’s vision for Starlink extends beyond rural broadband. SpaceX is exploring the launch of a Starlink mobile service to challenge Verizon, AT&T, and T-Mobile directly, according to reporting from The Motley Fool and other outlets. However, SpaceX does not yet own terrestrial spectrum, a critical requirement for building a nationwide wireless network.
Analysts remain divided on the near-term threat. J.P. Morgan analyst Sebastiano Petti told investors in a report that he views Starlink as “more of a lingering overhang on U.S. wireless than a near-term fundamental threat,” modeling that SpaceX would begin its U.S. terrestrial buildout in 2028 and launch a direct-to-consumer service in 2029. TD Cowen analyst Gregory Williams suggested in a report that AT&T, given its dominant fiber network position, could be the carrier most likely to forge a wholesale network leasing agreement with SpaceX if any of the three major carriers choose to do so.
Another possibility analysts have discussed is SpaceX acquiring radio spectrum in a government auction in 2027, then using that spectrum as leverage to negotiate a wholesale network deal with one of the wireless carriers, according to MoffettNathanson analyst Craig Moffett.
Sources
- AlphaSense / Twitter — Q2 2026 earnings figures: $31.6 billion revenue, $0.66 diluted EPS, $0.65 adjusted EPS
- Investor’s Business Daily — Analyst expectations, AT&T stock performance, analyst commentary on Starlink threat
- Light Reading — AT&T satellite service launch timeline and limited voice connectivity expected in late 2026
- Android Headlines — AT&T satellite service beta program in first half of 2026
- The Motley Fool — SpaceX Starlink mobile service plans competing with AT&T
- SDxCentral — AT&T satellite broadband services coming in 2026 through AST SpaceMobile partnership
