AT&T shares jump on upbeat 2026 outlook as fiber push and spectrum deal take center stage

29 January 2026

New York, Jan 29, 2026, 09:08 ET — Premarket

AT&T shares climbed roughly 4.6% in premarket action following its forecast for 2026 profits that topped estimates, alongside boosted long-term cash flow projections.
The company linked its forecast to growth in fiber broadband and 5G, factoring in pending deals for Lumen fiber assets and EchoStar spectrum licenses.
CEO John Stankey said AT&T aims to connect over 40 million fiber customer locations by the end of the year.

Shares of AT&T Inc rose in early trading Thursday following the U.S. telecom giant’s forecast for 2026 profits that topped Wall Street estimates, driven by fiber expansion and fresh spectrum assets fueling growth.

AT&T climbed roughly 4.6% to $24.07 in early trading, building on gains after its quarterly report shifted investor attention toward cash flow and subscriber growth.

Guidance takes on new weight as U.S. wireless growth cools and promotional battles ramp up, driving investors to favor carriers that can protect pricing and expand broadband coverage. AT&T is pushing its “convergence” approach—bundling fiber with mobile—to reduce churn and boost customer lifetime value. Reuters

AT&T’s optimistic outlook hinges partly on two deals slated to close early this year: a nearly $6 billion acquisition of Lumen’s consumer fiber business and a $23 billion purchase of EchoStar’s spectrum licenses—key airwaves for wireless traffic.

“With the addition of Lumen’s fiber assets, we anticipate covering more than 40 million customer locations with our fiber services by year-end,” CEO John Stankey said. Reuters

AT&T gained 283,000 fiber subscribers in Q4, surpassing analyst estimates. Its postpaid phone net additions, which track monthly bill-paying wireless customers, roughly matched expectations.

The company is projecting adjusted earnings of $2.25 to $2.35 per share in 2026, beating the $2.21 per share consensus from analysts, based on LSEG-compiled estimates cited by Reuters.

AT&T raised its long-term cash flow forecast, projecting free cash flow in 2028 to top $21 billion. That’s well above the roughly $19.6 billion estimate from analysts Reuters cited.

Starting with first-quarter results, AT&T will revamp its reporting structure by separating “advanced connectivity” — covering domestic 5G and fiber — from a “legacy” segment that includes copper-based voice and data services. The company will also carve out a Latin America segment specifically for its Mexico wireless operations. Reuters

The success of the plan depends heavily on execution and timing. How well AT&T integrates its new fiber assets, controls capital expenditures, and steers clear of a price war with bigger wireless competitors will be crucial if subscriber growth slows.

Investors are now focused on the progress of closing the Lumen fiber deal in Q1 and early signs that bundling fiber with wireless boosts retention and service revenue amid fierce competition.

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Shan Ahmed Khan is a senior markets reporter at TS2.tech. His coverage ranges from stocks and technology to economic developments across global markets. He worked in investment research and market analysis before becoming a financial journalist and is a graduate of the Lahore University of Management Sciences (LUMS).

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