NEW YORK, June 24, 2026, 06:06 EDT
- AT&T climbed 3.21% to $22.81 Tuesday, trading on heavy volume. The S&P 500 dropped.
- The company’s 2026 free-cash-flow goal works out to roughly an 11% free-cash-flow yield based on its latest market value.
- AT&T has its next test on July 22. The company is set to report second-quarter results before the NYSE opens.
NYSE floors were still quiet when this was written, with regular trading set for 9:30 a.m. to 4 p.m. EDT. June 24 is a normal session day, not shown on the NYSE 2026 holiday list.
AT&T Inc. shares jumped 3.21% to $22.81 on Tuesday, logging a second day of gains while the S&P 500 dropped 1.44%. Volume hit 73.3 million shares, topping the 50-day average of 42.2 million. The move came on strong trading and a down market.
The real angle for investors is cash. AT&T carries a quoted market cap near $160.3 billion. It projects free cash flow topping $18 billion in 2026. Free cash flow is the money left after running the business and capital expenses. That puts the stock at about an 11% free-cash-flow yield, showing how much cash could come in versus AT&T’s market value.
The stock’s one-day swing is key here. AT&T is targeting about $8 billion for buybacks this year and keeping its annual payout at $1.11 a share. Closing Tuesday, the dividend yield landed near 4.9%. The repurchase pledge is close to 5.0% of the current market cap. Combined, that puts cash returns at almost 10%, not counting debt moves.
AT&T isn’t getting a boost from investors. Shares are off 8.17% this year and down 20.83% over the past three months, MarketWatch data show. The stock trades at a price-to-earnings ratio of about 7.7, well under Verizon’s 11.4 and T-Mobile US at 19.6.
AT&T is set to report second-quarter results before the NYSE opens on July 22. The company expects free cash flow for the quarter at $4.0 billion to $4.5 billion. It also looks for stronger wireless service revenue growth and better adjusted EBITDA from a year ago. Adjusted EBITDA strips out interest, tax, depreciation and amortization, plus company adjustments.
AT&T CEO John Stankey told a J.P. Morgan event in May that “our guidance is sound” and investors should look for “cash flow improvement” into the second quarter. He said AT&T is on track to add 7 million fiber passings this year. A fiber passing is any home or business the company’s fiber network reaches. AT&T Investors
AT&T Chief Financial Officer Pascal Desroches called the current capital spending a bet on AI, more connected devices, and bigger upload traffic. “We are building a network not simply for today,” Desroches said at a Mizuho event this month. He said the company is still returning cash to shareholders as it invests for what he called “enormous growth.” AT&T Investors
AT&T is betting on what it calls convergence — getting broadband and wireless into one account. In Q1, AT&T had 584,000 net adds for Advanced Connectivity internet, 294,000 postpaid phone net adds, and said its fiber footprint hit 37.5 million home and business locations.
The competition isn’t letting up. Verizon and T-Mobile both traded higher Tuesday, with both players chasing the same wireless and broadband customers. AT&T is still banking on its fiber push. CFO Desroches said, “Fiber is our lead offer.” He also warned about fixed wireless, saying it needs caution since the economics get tougher as carriers boost capacity. MarketWatch
Satellite broadband is another worry for the market, especially as investors pay new attention to SpaceX and Starlink. Desroches called satellite “a great solution” for the 1% of the U.S. living in remote rural spots, but said urban and suburban locations have lower-cost, built-out networks. He said AT&T, Verizon and T-Mobile could cut direct-to-device satellite prices if they share spectrum and infrastructure. AT&T Investors
But the cash argument can fall apart if regulation locks in high legacy costs. California regulators last week asked a court and the FCC to turn down AT&T’s request to end traditional copper-wire phone service for new customers. The fight affects 360 wire centers and touches about 184,000 homes and 15,000 business lines. AT&T says California rules mean it has to pour about $1 billion a year into a legacy network that only covers about 3% of its customers in the state.
Investors are watching free cash flow this July, not adjusted EPS. If the number falls below the $4.0 billion to $4.5 billion range, it could challenge the cash-yield pitch first. If the result matches the range, the stock’s discount to Verizon and T-Mobile stands out more.
