Investing.com -- Shares in AT&T rose 2.5% in premarket trading Wednesday after the telecom giant reported second-quarter earnings that topped Wall Street estimates, driven by accelerating subscriber growth.

AT&T posted second-quarter earnings per share of $0.65, beating the analyst estimate of $0.59. Revenue came in at $31.6 billion, up 2.3% year-over-year and roughly in line with the $31.8 billion consensus.

Adjusted EBITDA rose 5.2% to $12.3 billion, while free cash flow increased to $4.7 billion from $4.4 billion a year earlier.

The company added more than 1 million Advanced Connectivity customers during the quarter, driven by year-over-year growth in fiber, fixed wireless and postpaid phone net adds. Advanced Connectivity service revenue rose 5.1% to $23.5 billion, with operating income up 20.3% to $7.3 billion and EBITDA up 8.0% to $12.0 billion.

AT&T added 646,000 total consumer and business Advanced Connectivity internet subscribers, including 367,000 fiber and 279,000 fixed wireless net adds, along with 432,000 postpaid phone net adds, with postpaid phone churn at 0.86%. AT&T said 42.5% of households using its advanced home internet services also subscribe to AT&T wireless.

It added more than 1 million fiber locations during the quarter, bringing its total to 38.6 million, and said it remains on track to reach over 40 million fiber locations by the end of 2026 and more than 60 million by the end of 2030.

Capital expenditures related to continuing operations were $5.7 billion, with total capital investment at $6.1 billion.

Looking ahead, AT&T reiterated its full-year 2026 guidance, targeting earnings per share of $2.25 to $2.35, versus a consensus of $2.32, with a double-digit three-year compound annual growth rate through 2028.