AT&T (NYSE:T), a U.S. telecom carrier, closed at $21.91, down 6.45%. Premarket results beat estimates, but investors are weighing higher spending needs and SpaceX competition. Investors are watching free-cash-flow targets and the raised 2026 profit outlook.
Trading volume reached 82.7 million shares, coming in well above its three-month average of 45.9 million shares.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) rose 0.59% to 7,758, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.05% to 26,703. Among integrated telecommunications services; wireless, broadband, and enterprise connectivity peers, Verizon Communications closed at $43.56, down 2.20%, and T-Mobile U.S. finished at $153.75, down 2.54% as sector rivals tracked AT&T's post-earnings pressure.
What this means for investors
On Wednesday, Oct. 21, AT&T announced record internet net additions and more than one million advanced connectivity customer additions for a second straight quarter. That growth points to the strength of the company's fiber offerings, signaling the capital investments in this area are paying off.
AT&T reported adjusted earnings per share (EPS) and revenue that topped estimates. It raised its 2026 profit outlook and kept free-cash-flow targets intact, yet the stock still fell.
Investors looked past the headline beat, focusing on spending needs and the growing SpaceX threat. The Elon Musk-led company forged a nationwide low-band spectrum deal with Grain Management, which marks a major step toward SpaceX offering direct-to-device phone coverage across the U.S.
On Oct. 13, AT&T agreed to sell its Mexico wireless unit for $2 billion in cash, sharpening its U.S. focus and potentially changing the capital-allocation story. Earlier this month, the company filed its Mexico-sale 8-K, which formalized the deal and kept the divestiture on investors' radar.
Robert Izquierdo has positions in AT&T, Space Exploration Technologies, T-Mobile US, and Verizon Communications. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.