When AT&T (T), T-Mobile US (TMUS) and Verizon Communications (VZ) report third quarter earnings, Wall Street analysts will be looking for management views on the outlook for competitive intensity versus the cable TV industry in 2026. AT&T stock has gained 14%, about the same as the S&P 500, this year but has retreated since mid-September.
Third quarter earnings for AT&T are due before the market open on Oct. 22. T-Mobile reports Q3 financial results early Oct. 23. Earnings for Verizon stock are due early Oct. 29. Verizon moved its Q3 report back from Oct. 21.
AT&T earnings are expected to fall 11% to 54 cents a share. T-Mobile earnings will drop 8% to $2.40, analysts predict. Verizon earnings are expected to be flat at $1.19 a share.
T-Mobile stock has advanced 5% this year while Verizon stock is up 1.5%.
Verizon Dividend At Risk Under New CEO?
In a surprise move, Verizon on Oct. 6 appointed Dan Schulman as chief executive officer effective immediately. He replaced Hans Vestberg. T-Mobile in September as expected named Srinivasan Gopalan as president and CEO effective Nov. 1, taking the helm from Michael Sievert.
“We’ll be looking for signs that of strategy shifts at Verizon or T-Mobile. Both have new CEOs,” said Craig Moffett, analyst at MoffettNathanson. “The transition at T-Mobile has been orderly and planned, but the transition at Verizon was completely unexpected. This will be the first opportunity for Dan to put his stamp on Verizon’s strategic direction.”
JPMorgan analyst Sebastiano Petti in a report said Verizon could target its dividend under the new CEO.
“We anticipate that Schulman will pursue an assertive strategy to accelerate Verizon’s fiber footprint growth, with a heightened focus on convergence to lower churn and enhance consumer segment volumes and share,” Petti said. “However, increased capital expenditures to support footprint expansion are likely to pressure free cash flow and impede the company’s de-leveraging trajectory. As a result, we would not be surprised if Verizon suspends dividend growth to prioritize investment in growth initiatives and/or discretionary share buybacks.”
The IBD Methodology: How To Invest In Stocks While Managing Risks
Schulman has served as the CEO of PayPal Holdings (PYPL) and Virgin Mobile. At PayPal, Schulman had a mixed record. He successfully spun off the company from eBay (EBAY). But PayPal stock plunged in 2022 after the company trimmed guidance and growth stalled. Also, critics said PayPal trailed newer fintechs in product development.
Verizon’s consumer business has been under pressure amid subscriber share losses to T-Mobile and AT&T. Verizon expects its $20 billion acquisition of Frontier Communications (FYBR) to close in early 2026.
In a regulatory filing, Verizon said Schulman’s contract runs through Dec. 31, 2027.
Wireless Competition Heats Up
“We suspect the (Verizon) board’s first blush into 2026 numbers may have been the impetus of the recent CEO transition announcement,” said TD Cowen analyst Gregory Williams in a report. “2026 will see heavy capital spending and operating expenses to expand and integrate the Frontier businesses.” He also says Verizon could target its dividend.
“The new board member CEO seems like a stop-gap we suspect could possibly be the fall guy for a dividend cut,” Williams added.
At T-Mobile, Gopalan had been chief operating officer since March. Earlier, he served as a managing director at T-Mobile’s parent, Germany-based Deutsche Telekom (DTEGY).
Wireless competition has intensified in 2025 pressuring profit margins, say Wall Street analysts. AT&T, Verizon and T-Mobile have increased subsidies on mobile phones amid Apple‘s (AAPL) roll out of higher priced iPhone 17 models. And, the wireless firms have stepped up phone trade-in promotions that also offer consumers buyouts if they terminate contracts.
How To Read Stock Charts
Meanwhile, T-Mobile is expected to lead in Q3 additions of higher spending “postpaid” phone subscribers. Wall Street analysts estimate that T-Mobile will add 840,000 postpaid phone subscribers, with AT&T adding 332,000 and Verizon 47,000.
T-Mobile: Q3 Subscriber Additions
Some analysts expect a strong Q3 from T-Mobile.
“Q3 will be Mike Sievert’s last quarter as CEO,” said RBC Capital analyst Jonathan Atkin in a report. “We do not expect that he is leaving the company on a weaker footing.”
Citibank analyst Michael Rollins said in a report: “T-Mobile is primed to deliver favorable 3Q results with better organic postpaid phone net adds and solid financial performance, which should be boosted by early contributions from the US Cellular and fiber acquisitions.”
Both AT&T and Verizon are focused on “convergence” — selling landline broadband and wireless services in product bundles. Cable TV firms Comcast (CMCSA) and Charter Communications (CHTR) also sell product bundles.
Goldman Sachs analyst Michael Ng in a recent report said competition could heat up next year. Cable TV companies have been stung by losses of high-speed internet subscribers and will try to rebound with aggressive pricing.
“We expect 2026 will likely be a pivotal year for the U.S. telecom and cable sectors given heightened competition in consumer connectivity services,” Ng said. “Unlike in years past where competitive responses were largely through plan pricing and wireless handset promotions, we are seeing more competitive activity through wireless and wireline bundling (convergence).”
AT&T Stock: Fiber Expansion
Other analysts hold similar views.
“AT&T, Verizon, and T-Mobile have each laid out aggressive fiber expansion plans, and their current pace — driven by both organic and inorganic builds, partnerships, and acquisitions — leaves little doubt that the rollout is accelerating,” said Bernstein Research analyst Laurent Yoon in a report. “Cable companies will fight to defend their base and may even claw back growth over time, but it will come at a cost. For now, they are largely at the mercy of telco’s expansion plans and the foreseeable future is not going to be pretty.”
See The Latest Updates To IBD Watchlists
At KeyBanc Capital, analyst Brandon Nispel said in a report: “Over time, we believe competition in a market with a finite total addressable market suggests more losers than winners, pricing pressure, margin pressure and valuation compression.”
In addition to building out fiber-optic networks to residential homes and businesses, telecom firms have expanded fixed wireless broadband services via 5G networks.
Comcast reports Q3 earnings on Oct. 30. Comcast in late September named Chief Financial Officer Michael Cavanagh co-CEO along with Brian Roberts.
AT&T Stock Technical Ratings
Further, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and WarnerMedia.
From a technical view, AT&T stock holds an IBD Composite Rating of 46 out of a best possible 99. T-Mobile’s CR stands at 58 while Verizon’s is 27. Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Also, AT&T stock holds an Accumulation/Distribution Rating of C-minus. The rating gauges institutional buying and selling of the stock over the past 13 weeks. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Want To Trade Options? Try Out These Strategies
Monitor IBD’s “Breaking Out Today” List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Build Custom Stock Screens With MarketSurge
Join IBD Live For Stock Ideas Each Morning Before The Open
