NEW YORK, Jan 28, 2026, 20:02 EST — Market closed
- AT&T shares ended the day up 4.65%, closing at $24.07. After-hours trading saw little movement in the stock.
- Q4 adjusted EPS and revenue beat estimates; company raised 2026 profit outlook beyond forecasts
- AT&T announced $10 billion in fresh buyback authorization and highlighted upcoming deals with Lumen and EchoStar
AT&T shares rose Wednesday following the telecom giant’s earnings beat and an outlook focused on fiber expansion, spectrum assets, and a new share buyback program.
The stock ended the day 4.7% higher, closing at $24.07, then slipped roughly 0.2% in after-hours, per MarketWatch.
This shift is significant as U.S. carriers are increasingly evaluated not just by headline subscriber gains but by their ability to convert network investment into consistent cash flow—the kind that backs dividends and buybacks—while investors keep an eye out for fresh promotional battles.
AT&T projected annual profits beyond market estimates, linking the outlook to growth in 5G and fiber. The company highlighted two pending deals it says will extend its reach.
During the earnings call, CEO John Stankey stated the company “met or exceeded” its full-year 2025 guidance. CFO Pascal Desroches added that AT&T expects its net debt to adjusted EBITDA ratio—a key leverage metric—to climb to roughly 3.2x following the closure of the Lumen and EchoStar deals, before easing afterward. Investing.com
AT&T’s revenue for the fourth quarter climbed 3.6% to roughly $33.5 billion, with adjusted earnings coming in at 52 cents per share, according to Barron’s. The report also highlighted a postpaid churn rate of 0.98% — the percentage of customers leaving — a key metric that often shifts sentiment quickly in the telecom sector.
The company revealed a fresh authorization to buy back up to $10 billion of its common stock, per an SEC filing.
AT&T set its 2026 adjusted EPS forecast between $2.25 and $2.35, while also laying out free cash flow goals through 2028. Free cash flow here refers to cash remaining after capital expenditures like network expansion.
A key part of the bull thesis hinges on fiber. AT&T plans to acquire the bulk of Lumen’s Mass Markets fiber business, with the deal slated to close in the first half of 2026, according to the company’s investor site.
AT&T said it expects its separate acquisition of spectrum licenses from EchoStar to wrap up by mid-2026, pending regulatory approvals and other conditions.
Industry-watchers are zeroing in on the speed of AT&T’s buildout. Light Reading says AT&T is stepping up fiber deployment ahead of its Lumen acquisition closing. The company also plans to add more Internet Air fixed wireless customers this year than it will in 2025.
The downside remains clear: if competition ramps up promotions or if AT&T faces higher integration costs while absorbing new assets, margins and cash flow might fall short of current market expectations. Bloomberg called it a “promotional war” among the major carriers. Bloomberg.com
The focus now shifts from AT&T headlines to potential signals coming out of Verizon, which reports quarterly results on Friday, Jan. 30. Traders typically watch Verizon’s numbers closely for clues on pricing and churn trends across the industry.
