New York, June 22, 2026, 07:12 (EDT)
- AT&T (NYSE:T) finished Thursday at $22.01, just above its 52-week low of $21.99. Early Monday, Google Finance showed the stock indicated at $22.10 in premarket trading.
- U.S. stocks start trading again Friday after the NYSE was closed for Juneteenth. AT&T reports Q2 earnings before the bell on July 22.
- Another detail: AT&T’s Q2 free cash flow outlook is about 2.1 to 2.3 times its stated quarterly common dividend requirement, according to current market data and what the company told investors.
AT&T Inc. (NYSE:T) hovered just above a one-year low early Monday, with the stock under pressure as a California dispute over legacy copper lines met the company’s message to investors that 5G and fiber deployment will support its cash returns.
NYSE trading resumes Monday after the Juneteenth holiday closure. AT&T finished last Thursday at $22.01, off 1.92%. Premarket data on Google Finance put the stock at $22.10, with a 52-week range between $21.99 and $29.79.
Regulation, not fresh wireless trouble, is now the main overhang. California’s utility regulator is pushing both a U.S. court and the FCC to block AT&T’s plan to end copper-line phone service for new customers, Reuters said. “Carrier of last resort” rules keep AT&T on the hook for old-school phone lines. AT&T told Reuters it spends around $1 billion each year to keep up a network that now covers just 3% of California homes. Reuters
Core problem hits AT&T equity narrative. The company is trimming its legacy copper side and moving more cash toward “advanced connectivity,” meaning 5G wireless and fiber broadband. One filing shows legacy revenue fell 25.3% in Q1. The advanced connectivity segment now takes in domestic 5G and fiber services for both consumers and businesses. SEC
Growth isn’t firing on all cylinders yet. AT&T posted a 2.9% rise in first-quarter revenue to $31.5 billion. The company said it added 294,000 postpaid phone customers and 584,000 advanced-connectivity internet net adds. Postpaid users, billed each month, remain the stronger part of the business versus prepaid. Free cash flow dropped to $2.5 billion as fiber buildout picked up.
Peer signals are mixed. Verizon and T-Mobile both want the bundled wireless-broadband customer, while AT&T, like T-Mobile, pushed out device subsidies in Q1. “Data is going to be the revenue of the future,” Brian Mulberry, chief market strategist at Zacks Investment Management, told Reuters about the spending. Reuters
Dividend coverage isn’t usually in focus, but it matters here as much as the chart. With AT&T trading at $22.01, the company commands a $154.7 billion market cap. That puts the share count just over 7 billion. The annual $1.11 dividend means AT&T lays out around $1.95 billion for common dividends each quarter. Management is calling for $4.0 billion to $4.5 billion in free cash for the second quarter, so coverage runs about 2.1 to 2.3 times, not counting buybacks.
The math helps, but it doesn’t guarantee support for the stock. If regulators move slower on copper retirement, or promo costs in wireless go higher, or if second-quarter free cash flow comes in weak and debt stays high, investors might value the dividend yield and buyback less.
AT&T faces its next test on July 22, when it will report second-quarter earnings and host an 8:30 a.m. ET call. The stock isn’t looking for drama. What investors want is proof the company can bring in new customers without paying too much for them, and show the copper exit won’t keep pulling cash into its legacy network.
