New York, Jan 28, 2026, 11:22 (EST) — Regular session
- Shares of AT&T jumped roughly 4.7% in morning trading following the company’s decision to boost profit and cash-flow forecasts through 2028
- Long-term plan targets over $18 billion in free cash flow by 2026, alongside annual capital spending of $23 billion to $24 billion
- Traders are eyeing the timing of the deal closure alongside the Federal Reserve’s decision due later Wednesday
AT&T shares jumped roughly 4.7% to $24.08 in early New York trading Wednesday, following the carrier’s announcement of raised profit and cash-flow goals through 2028. The stock climbed as high as $24.57.
This shift is crucial as investors pressure telecom firms to show they can bankroll network expansions while still generating cash. For AT&T, the key issue is whether fiber and 5G can grow quickly enough to justify hefty spending and maintain steady capital returns.
AT&T’s forecast hinges on two network deals set to close early this year: a nearly $6 billion purchase of Lumen’s consumer fiber business and a $23 billion buyout of EchoStar’s spectrum licenses—the airwaves powering wireless traffic. CEO John Stankey said the company aims to cover over 40 million customer locations with its fiber services by year-end. 1
AT&T’s long-term outlook projects annual capital investment—network spending—between $23 billion and $24 billion. Free cash flow, which accounts for cash remaining after capital expenditures, is expected to exceed $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028. The company also set adjusted EPS guidance at $2.25 to $2.35 for 2026 and aims for a double-digit compound annual growth rate over the next three years through 2028.
AT&T reported $33.5 billion in fourth-quarter revenue and an adjusted EPS of $0.52, alongside $4.2 billion in free cash flow. The company added 421,000 postpaid phone subscribers and 283,000 fiber net additions. Its postpaid phone churn rate stood at 0.98%. AT&T returned over $12 billion to shareholders in 2025 and projects returning more than $45 billion between 2026 and 2028. 2
AT&T released its results and accompanying exhibits in a Form 8-K submitted to the U.S. Securities and Exchange Commission on Wednesday. 3
Wall Street braced for a challenging wireless quarter, yet AT&T delivered better-than-expected revenue and profit, MarketWatch reported. The company’s strong free cash flow supported its dividend, with the stock currently yielding about 4.8%, the report noted. 4
BofA Securities analysts Michael Funk and Matthew Griffiths singled out AT&T as their top U.S. telecom pick for 2026, despite noting “limited pricing power” and rising costs to acquire customers across the industry. They highlighted AT&T’s focus on “convergence,” pushing wireless and broadband services to the same households, and projected the company’s fiber network expanding to cover over 60 million locations. 5
AT&T led the pack today, while Verizon shares climbed roughly 1.1% and T-Mobile rose about 1.2% in morning trading. Upcoming earnings reports will provide a clearer picture on churn and promotional activity in the U.S. wireless sector.
AT&T’s upbeat targets don’t erase ongoing concerns. Its 5G fixed-wireless adds, marketed as Internet Air, fell short of some expectations, Investors.com reported. With carriers leaning heavily on promotions to secure upgrades, investors are cautious about a potential price war. Such a shift would squeeze service margins and complicate AT&T’s plans to ramp up cash flow. 6
The broader market showed strength, with the S&P 500 pushing past 7,000 ahead of the Federal Reserve’s rate decision set for later Wednesday. For AT&T, focus is on new details regarding deal closure and if early-2026 trends stay aligned with the $18 billion-plus free cash flow target for the year. 7
