NEW YORK, May 29, 2026, 16:02 (EDT)
AT&T Inc. ended Friday down 0.3% at $24.80, according to StockAnalysis, after retreating into the close as tech stocks drove bigger gains in the main U.S. indexes. The telecom stock lagged the rally and finished lower.
AT&T goes into its June 9 investor event emphasizing that its cash-return strategy hasn’t changed. The company said this week it’s sticking with its 2026 and longer-term outlook, keeping the plan to return over $45 billion to shareholders between 2026 and 2028 via dividends and buybacks. AT&T still sees second-quarter free cash flow landing between $4.0 billion and $4.5 billion. Free cash flow is what’s left after covering operations and capital spending.
AT&T stood out as the rest of the market pushed higher. Reuters said that the Dow, S&P 500 and Nasdaq all hit fresh intraday records on Friday, with Dell’s numbers and another AI buying push doing most of the work. The S&P 500 communications services sector slipped 1.7%. “There’s definitely euphoric sentiment in the market around AI,” Wells Fargo chief equity strategist Ohsung Kwon said. He said the rally is “driven by earnings.” Reuters
Verizon slipped roughly 0.3% and T-Mobile US lost about 0.8% late, so AT&T wasn’t the only one moving lower. The declines took some of the AT&T focus out of the day’s selling. Telecom investors remain cautious about debt, price wars and the question of whether big network outlays can keep driving growth.
AT&T’s story is simple: wireless and fiber have to give it enough cash for the dividend, stock buybacks and network spending. In the first quarter, AT&T put up $31.5 billion in revenue, adjusted EBITDA of $11.8 billion and free cash flow of $2.5 billion. Adjusted EBITDA leaves out some items and strips out interest, taxes, depreciation and amortization. The company brought in 294,000 new postpaid phone subscribers—people who pay monthly—and 584,000 new advanced connectivity internet customers.
AT&T CEO John Stankey in April said the company saw its “best first quarter ever” for advanced connectivity internet net adds, adding that AT&T is working from a “solid foundation” of assets. Postpaid phone churn came in at 0.89%, the company said. AT&T Newsroom
AT&T’s Build-A-Plan launch puts pricing to the test. The plan went online May 27 with a $15 monthly base for one line, coming with unlimited talk, text, and 1GB of data. To use it, customers need an unlocked phone that supports eSIM. “Customers want plans that fit their lives,” said Jenifer Robertson, executive vice president and general manager of AT&T Consumer, calling the plan a “win-win.” AT&T Newsroom AT&T
AT&T is stepping up fiber plans. Last week the company said it will spend $19 billion on fiber and wireless networks in California through 2030. That covers fiber for an extra 4 million homes and businesses and over 1,200 new cell sites. “Largest-ever California investment commitment,” said Susan Santana, state president of AT&T California. AT&T Newsroom
Competition isn’t just about price. Verizon, AT&T and T-Mobile said on May 14 they’ve reached a deal in principle to build a joint venture targeting rural coverage gaps by using direct-to-device satellite tech, hooking phones to satellites when towers aren’t available. Reuters reported the FCC has signed off on EchoStar’s $40 billion spectrum sale to SpaceX and AT&T. FCC Chairman Brendan Carr called it a “clear pathway” for Starlink to push into direct-to-cell service. Reuters
Analyst calls haven’t dropped off the stock, but the ratings aren’t driving Friday’s action. RBC Capital’s Jonathan Atkin stuck with his outperform rating and $31 price target on May 20, Benzinga reported in a note shared by Sahm Capital.
But risk remains on the table. AT&T finished Q1 with $126.4 billion of net debt — debt minus cash and similar items — and said it plans $23 billion to $24 billion in capital investment this year. If rates stay high, wireless price wars get worse, or fiber demand stalls, or copper network shutdowns slip, that could squeeze buyback capacity and take some shine off the $45 billion return target for shares.
Desroches is set to appear at the Mizuho Technology Conference on June 9. Until that, AT&T shares look likely to move on the same question: can steady telecom cash flow draw buyers when the market keeps chasing quicker earnings stories? AT&T Investors
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