NEW YORK, July 22, 2026, 04:10 EDT
- AT&T requires between $11.0 billion and $11.5 billion in free cash flow during the second half to meet its 2026 minimum target.
- Initial calculation indicates that approximately 87% of that floor is absorbed by common dividends and intended buybacks.
- On Tuesday, shares finished at $22.26, a rise of 1.4%, prior to results scheduled for release at 8:30 a.m. EDT.
AT&T Inc. NYSE:T approaches its Wednesday report aiming to meet a back-weighted cash goal. The company requires $11.0 billion to $11.5 billion in free cash flow during the second half to achieve its 2026 minimum.
This is the primary test for investors. The range stands at 61% to 64% of the year’s lowest cash output. Missing in the second quarter would shift more requirements to the last two quarters.
The schedule is significant as AT&T is targeting buybacks totaling about $8 billion. The company also plans to maintain its yearly common dividend at $1.11. An initial projection shows total cash outflows approaching $15.7 billion.
There is just a limited buffer left.
| 2026 cash distribution | Amount | Portion of $18 billion minimum |
|---|---|---|
| Common dividends — initial estimate | $7.7 billion | 42.8% |
| Targeted share repurchases | About $8.0 billion | 44.4% |
| Other cash — initial estimate | About $2.3 billion | 12.7% |
Early calculations factor in 6.948 billion shares outstanding as of April 22, the yearly dividend of $1.11, and a minimum free cash flow of $18 billion. These figures do not include preferred dividends or subsequent adjustments to the share count.
Share buybacks decrease the number of shares outstanding and future common dividend expenses. In contrast, preferred dividends increase these costs.
Management posted first-quarter free cash flow of $2.5 billion and forecasted between $4.0 billion and $4.5 billion for the second quarter. This results in projected first-half cash flow ranging from $6.5 billion to $7.0 billion.
NYSE core trading had ended at the dateline time. The main session is scheduled to open at 9:30 a.m. EDT.
AT&T ended Tuesday at $22.26, rising 1.4%. Trading volume stood at 139.1 million shares, more than double the 50-day average. Over the last five sessions, the stock advanced 4.6%, but remains roughly 25% under its 52-week peak. The yearly dividend yield is close to 5.0%.
AT&T is scheduled to report earnings ahead of Wednesday’s market open, with its earnings call set for 8:30 a.m. EDT.
Forecasts project adjusted profit of $0.59 per share. Revenue estimates are around $31.8 billion. Predicted postpaid phone-adds fall between 287,000 and 338,500.
First-quarter performance was robust. Advanced Connectivity service revenue increased by 3.6%, and net internet additions totaled 584,000. However, free cash flow declined to $2.5 billion from $3.1 billion due to higher investment.
In April, Chief Financial Officer Pascal Desroches described the choice AT&T faced. The company sought to “balance our investment in fiber and 5G, while maintaining consistent return to shareholders,” he said.
Further peer updates are expected soon. T-Mobile US Inc. NASDAQ:TMUS will release its results Thursday at 7:30 a.m. EDT. Verizon Communications Inc. NYSE:VZ is scheduled to report Friday. Their churn, pricing, and expenditure figures will enable a clearer comparison.
Risks persist. AT&T reported net debt of $126.4 billion at the end of March, with net leverage at 2.71 times. Increased investment in fiber or softer cash generation could erode the remaining buffer.
A better-than-expected earnings report might not be enough to boost the stock. Investors are focused on whether quarterly cash reaches about $4.5 billion and if the forecast that exceeds $18 billion remains unchanged.
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