NEW YORK, Jan 29, 2026, 12:34 p.m. ET — Regular session
- AT&T shares climbed midday, building on gains after the carrier raised its outlook through 2028
- The company signaled more than $45 billion in shareholder returns between 2026 and 2028, with about $8 billion earmarked for buybacks in 2026
- Traders will be eyeing Verizon’s Friday earnings for signs on wireless pricing and promotions
Shares of AT&T Inc. climbed 2.9% to $24.76 in midday trading Thursday, pushed by investor reaction to the telecom’s upbeat profit and cash flow forecast after its latest quarterly results.
This move is significant since AT&T’s stock hinges on its ability to convert heavy network investments into consistent cash returns. Investors zero in on free cash flow — the cash remaining after capital expenditures — as it supports dividends, buybacks, and debt reduction.
AT&T is betting on fiber internet and 5G wireless to drive growth, as it phases out legacy copper services that have weighed on revenue. The company also emphasized a “convergence” strategy, combining home broadband with mobile plans to lower customer churn.
AT&T announced Wednesday that its fourth-quarter revenue hit $33.5 billion, with adjusted earnings per share coming in at 52 cents. The company added 421,000 postpaid phone subscribers and 283,000 fiber customers. Postpaid phone churn stood at 0.98%. 1
AT&T projected adjusted earnings per share between $2.25 and $2.35 for 2026. The company also set free cash flow goals of at least $18 billion in 2026, rising to $19 billion in 2027, and $21 billion in 2028. Capital investment is expected to range from $23 billion to $24 billion annually over 2026 through 2028.
AT&T’s outlook depends on two deals already announced — snapping up most of Lumen’s mass-market fiber business and picking up spectrum licenses from EchoStar — both expected to wrap up early 2026. CEO John Stankey said the fiber buildout will push AT&T’s reach to over 40 million customer locations by year-end. 2
AT&T told investors it will accelerate its fiber rollout and continue relying on fixed wireless for areas not yet fiber-covered. “The DSL base is going to go away. It probably can’t happen fast enough,” Stankey said on the earnings call, according to the industry publication Light Reading. 3
AT&T plans to return over $45 billion to shareholders from 2026 through 2028 via dividends and stock buybacks, while keeping its annual dividend steady at $1.11 per share. The company expects to repurchase roughly $8 billion of common stock in 2026. Following these transactions, net leverage is projected to climb to around 3.2 times before dropping back to about 3 times by the end of 2026. 4
Telecom stocks edged up Thursday, with Verizon climbing 1.4% and T-Mobile gaining 1.2% by midday.
The downside is well-known: heavy wireless promotions might squeeze service revenue and margins. Plus, any hold-ups in closing or integrating the Lumen and EchoStar assets would challenge the timeline AT&T has laid out for 2026-2028 targets.
Traders are turning their attention to Verizon’s fourth-quarter earnings and webcast set for Friday, Jan. 30. Investors will be watching closely for clues on churn, pricing strategies, and spending plans that could impact the broader U.S. wireless market. 5
