New York, January 31, 2026, 07:19 (EST) — The market has closed.
- AT&T shares jumped 4.3% to close Friday at $26.21, bucking the broader U.S. market’s downward trend.
- Verizon Communications Inc. sparked a rally in telecom shares, dragging its peers up in its wake.
- Investors are now eyeing U.S. data alongside further carrier updates for hints on pricing, churn, and cash returns.
AT&T shares closed Friday 4.3% higher at $26.21, boosted by a strong rally in telecom stocks driven by positive news from Verizon. The overall market, meanwhile, slipped lower. (MarketWatch)
The jump matters because wireless stocks react sharply to any sign of a price war, and Friday’s move suggested the opposite. It also brought AT&T back into focus for traders hunting steadier cash returns amid a constantly changing rate outlook.
With U.S. markets closed for the weekend, Monday’s open will reveal if the recent move was just a one-day reset or the start of a sustained trend. Telecom hasn’t relied on the S&P 500’s rally to make gains recently, but it does require assurance that subscriber growth won’t come at too high a cost.
Verizon pushed the tone higher, reporting 616,000 postpaid phone net additions — a key gauge of monthly bill-paying phone subscribers. CEO Dan Schulman declared the company “will no longer be a hunting ground for our competitors.” (Verizon)
AT&T informed investors earlier this week that it intends to return over $45 billion to shareholders between 2026 and 2028 via dividends and buybacks. The company confirmed it will keep its annual common dividend steady at $1.11 per share. It also highlighted upcoming acquisitions in fiber and spectrum, expected to finalize in early 2026. (AT&T Newsroom)
During the earnings call, CEO John Stankey announced the company plans to return “$45 billion-plus” over the next three years. CFO Pascal Desroches reported full-year free cash flow at $16.6 billion. Free cash flow, the cash remaining after capital expenditures, is a key metric for equity investors in the capital-intensive telecom sector.
Friday’s rally partly reflected peer sympathy. Verizon’s jump lifted AT&T and T-Mobile US Inc., sparking new debates about churn, promotions, and broadband demand.
The road ahead isn’t smooth. A fiercer pricing war or bigger promotions might pressure cash flow, and any slip in keeping customers tends to weigh heavily on these stocks. AT&T also faces the challenge of managing a heavy investment cycle while dealing with its shrinking legacy operations.
Rates remain the wild card. Expectations around Federal Reserve policy shift with each data release and central bank comment. On Friday, St. Louis Fed President Alberto Musalem stated there’s no reason for further rate cuts, calling current policy neutral. (Reuters)
Traders are gearing up for key U.S. economic data next week, with attention squarely on the January jobs report set for Feb. 6, per the Bureau of Labor Statistics schedule. (Bureau of Labor Statistics)
Telecom watchers are eyeing T-Mobile’s Q4 earnings call and capital markets update on Feb. 11. The session could shed light on pricing moves and subscriber trends that might ripple through the sector.
