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AT&T Stock Falls 6% on Starlink Mobile Fears Despite Beat
Why is AT&T stock down today?
AT&T (T) stock fell 6.2% to $21.96 on Wednesday after the carrier's phone customer growth slowed and investors feared competition from SpaceX's Starlink Mobile, despite a third-quarter earnings beat.
Key numbers
| Share price (close) | $21.96-6.2% on the day |
|---|---|
| Adjusted EPS (Q3) | $0.65+20% YoY; est. $0.60 |
| Revenue (Q3) | $32.3B+5.3% YoY |
| Postpaid phone net adds | 379Kvs 432K last quarter |
| 2026 adjusted EPS outlook | ~$2.40from $2.25-$2.35 |
| Postpaid phone churn | 0.92%vs 0.86% last quarter |
What happened
AT&T (T) stock fell 6.2% to $21.96 on Wednesday after the carrier's phone customer growth slowed and investors feared competition from SpaceX's Starlink Mobile, despite a third-quarter earnings beat. AT&T's adjusted profit was $0.65 a share, above the $0.60 expected, and it raised its 2026 profit forecast (guidance) to about $2.40 a share. But it added 379,000 monthly-plan phone customers, down from 432,000 last quarter. Earlier this month, SpaceX agreed to buy airwaves (spectrum) for Starlink Mobile, a rival phone service.
Why it matters
AT&T's fall shows investors are watching customer growth and new competition more than one strong quarter. If SpaceX's Starlink Mobile wins customers, big carriers may need to cut prices or spend more to keep them, which could squeeze profits. AT&T's CEO says satellites struggle indoors, where 40% to 45% of mobile use starts. Verizon and T-Mobile also fell about 3%.
Who this affects
- MarketbearishLow impact
- Telecom investors lose; S&P 500 ETF still rose 0.3%.
- CompanybearishMedium impact
- AT&T shareholders lost billions in value despite a strong quarter.
- CompetitorsbearishLow impact
- Verizon and T-Mobile also slid about 3%.
- IndustrybearishMedium impact
- Phone carriers face a possible new satellite-based rival.
AT&T vs Verizon, T-Mobile
How we got here
SpaceX agrees to buy 800 MHz spectrum for Starlink Mobile; telecom stocks sell off.
AT&T reports Q3 beat, raises 2026 EPS outlook to about $2.40.
AT&T closes down 6.2%, worst in the S&P 500, on slower phone adds.
What to watch
- Verizon reports quarterly results, including its own phone customer growth.2026-10-26
- T-Mobile reports quarterly results and comments on Starlink Mobile competition.2026-10-28
Educational content only. Not investment advice.
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