{"id":65201,"date":"2026-07-22T07:08:18","date_gmt":"2026-07-22T11:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/at-wells-fargo-trims-arm-holdings-target\/65201\/"},"modified":"2026-07-22T07:08:18","modified_gmt":"2026-07-22T11:08:18","slug":"at-wells-fargo-trims-arm-holdings-target","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/at-wells-fargo-trims-arm-holdings-target\/65201\/","title":{"rendered":"AT&#038;T Surpasses Q2 Earnings Estimates; Wells Fargo Trims Arm Holdings Target"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>) reported Q2 2026 adjusted EPS of $0.65<\/strong>, beating analyst estimates of <strong>$0.59<\/strong> by over 10%, driven by robust subscriber growth in fiber and wireless segments.<\/li>\n<li><strong>The telecom giant accelerated its share repurchase program<\/strong>, now targeting approximately <strong>$10 billion<\/strong> in buybacks for 2026, signaling strong confidence in its free cash flow and market position.<\/li>\n<li><strong>Wells Fargo (<a href=\"\/stock\/WFC\">WFC<\/a>) lowered its price target for Arm Holdings (<a href=\"\/stock\/ARM\">ARM<\/a>) to $350 from $410<\/strong>, citing valuation concerns despite maintaining a positive long-term outlook on AI-driven demand.<\/li>\n<li><strong>Iran accused the U.S. of &quot;pretext for aggression&quot;<\/strong> following reports of strikes near the Kolang Kouh site, escalating geopolitical tensions in the region.<\/li>\n<\/ul>\n<h2>AT&amp;T Delivers Strong Q2 Results and Boosts Buybacks<\/h2>\n<p>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>) posted a significant earnings beat for the second quarter of 2026, reporting <strong>adjusted EPS of $0.65<\/strong> against a consensus estimate of <strong>$0.59<\/strong>. While revenue of <strong>$31.6 billion<\/strong> slightly missed the <strong>$31.77 billion<\/strong> forecast, the company saw a <strong>2.3% year-over-year increase<\/strong> in total sales. The growth was spearheaded by the <strong>Advanced Connectivity<\/strong> segment, where service revenue rose <strong>5.1%<\/strong> and operating income surged <strong>20.3%<\/strong>.<\/p>\n<p>The company added <strong>432,000 wireless postpaid phone net adds<\/strong>, comfortably exceeding the estimated <strong>325,264<\/strong>. Additionally, AT&amp;T (<a href=\"\/stock\/T\">T<\/a>) reported <strong>367,000 fiber net adds<\/strong>, marking its strongest consumer postpaid account growth in over three years. Management reiterated its full-year guidance, expecting <strong>free cash flow of at least $18 billion<\/strong> and adjusted EPS between <strong>$2.25 and $2.35<\/strong>.<\/p>\n<p>In a move that cheered investors, CEO John Stankey announced an acceleration of the company&#39;s capital return plans. AT&amp;T (<a href=\"\/stock\/T\">T<\/a>) now intends to repurchase approximately <strong>$10 billion<\/strong> of its own shares this year. <em>The market reacted positively to the news, with shares rising nearly 5% in early trading as investors focused on the subscriber momentum and increased shareholder returns.<\/em><\/p>\n<h2>Wells Fargo Trims Arm Holdings Price Target<\/h2>\n<p>Wells Fargo (<a href=\"\/stock\/WFC\">WFC<\/a>) adjusted its outlook on Arm Holdings (<a href=\"\/stock\/ARM\">ARM<\/a>) on Wednesday, cutting its price target to <strong>$350 from $410<\/strong>. The revision comes amid a broader cooling of semiconductor valuations following a massive year-to-date rally. Despite the lower target, the firm remains optimistic about Arm&#39;s role as a &quot;compute backbone&quot; for the AI era, particularly with the rollout of its <strong>AGI CPU<\/strong> architecture.<\/p>\n<p>Analysts noted that while <strong>data center royalty revenue<\/strong> more than doubled in recent quarters, the stock\u2019s premium valuation\u2014trading at over <strong>100x forward earnings<\/strong>\u2014presents a challenging setup for the near term. <em>The adjustment reflects a growing trend among Wall Street analysts to recalibrate expectations for high-flying AI names ahead of the late-July earnings cycle.<\/em> Arm Holdings (<a href=\"\/stock\/ARM\">ARM<\/a>) is currently scheduled to report its next set of financial results on July 29, 2026.<\/p>\n<h2>Geopolitical Tensions Escalate Over Iranian Nuclear Sites<\/h2>\n<p>Geopolitical risks intensified as Iran issued a stern warning to the United States regarding its focus on the <strong>Kolang Kouh<\/strong> region. Iranian officials characterized U.S. interest in the site as a &quot;fabricated pretext for aggression,&quot; maintaining that no nuclear activity is occurring there. This follows reports of U.S. strikes on other infrastructure, including the under-construction <strong>Darkhovin nuclear power plant<\/strong>.<\/p>\n<p>Tehran has called upon the <strong>International Atomic Energy Agency (IAEA)<\/strong> to condemn what it describes as &quot;barbaric acts&quot; and violations of international law. <em>Market participants are closely monitoring these developments, as any further escalation in the Middle East could lead to increased volatility in energy markets and defense-related equities.<\/em> The Iranian mission to the UN warned that continued &quot;appeasement of aggressors&quot; would only encourage further instability in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways AT&amp;T (T) reported Q2 2026 adjusted EPS of $0.65, beating analyst estimates of $0.59 by over 10%, driven 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