New York, January 30, 2026, 11:24 AM EST — Regular session
- AT&T shares climbed in early trading, pushing a two-day rally higher following its updated outlook
- Investors are balancing cash returns with the risks tied to heavy network spending and deal execution
- Next up: deal timing, early-2026 reporting shifts, and the upcoming earnings date
Shares of AT&T Inc climbed 2.6% to $25.78 Friday morning, extending gains for a second day after the company raised its profit and cash-flow forecasts. The stock hit a high of $25.90 and dipped as low as $25.00 during the session.
Telecom stocks are bouncing back amid a familiar 2026 dilemma: how long will intense promotions persist, and can the massive network buildout at last translate into consistent cash flow?
AT&T’s key metric is “free cash flow” — the cash left over after covering operating costs and capital expenditures — since it funds the dividend and buybacks that attract much of its shareholder base.
AT&T reported fourth-quarter revenue of $33.5 billion and adjusted EPS of 52 cents on Wednesday. The company projected adjusted earnings per share between $2.25 and $2.35 for 2026. It expects free cash flow to exceed $18 billion that year, climbing past $21 billion by 2028, with capital expenditures running $23 billion to $24 billion annually through 2026–2028. AT&T also said it plans to return over $45 billion to shareholders during that period while keeping its dividend steady at $1.11 a share. Starting with Q1 2026 results, the company will shift its segment reporting toward “Advanced Connectivity,” covering domestic 5G and fiber, alongside Legacy and Latin America segments. Historical figures have been restated to reflect this new structure, the company noted. (AT&T Newsroom)
Management is banking heavily on two infrastructure deals announced earlier — a nearly $6 billion acquisition of Lumen’s consumer fiber business, plus a $23 billion pact for EchoStar’s spectrum licenses, which handle wireless traffic. CEO John Stankey said the fiber network will reach “over 40 million customer locations” by year-end. The company also highlighted rising bundle adoption, noting that 42% of fiber households now subscribe to its 5G mobile service. (Reuters)
AT&T’s announcement arrives just as Verizon made waves. On Friday, Verizon projected annual profit and free cash flow for 2026 that beat expectations. The company also launched a $25 billion share buyback program, driving its stock up sharply. This has renewed focus on how carriers juggle funding returns while battling for subscribers. (Reuters)
Sentiment on the Street is mixed. TD Cowen cut its price target on AT&T to $32 but maintained a Hold rating. Analyst Gregory Williams, however, called the company’s “convergence narrative” “stronger than ever,” highlighting its effort to bundle wireless and home broadband services. (Investing)
UBS stuck to its Buy rating and held the target price at $31, saying worries about wireless competition seem “overdone” since a lot of promotional pressure is already factored in. (Investing)
AT&T’s stock has bounced back sharply, climbing roughly 12% since it closed on Jan. 27. The rally gained steam with about 4% jumps in each of the two sessions after the company updated its outlook. (Investing)
The plan isn’t straightforward. The guidance counts on AT&T to keep signing up more high-value fiber customers, cover costly buildout expenses, handle integration costs from recent deals, and dodge a tougher price war in wireless. If regulatory approvals drag or subscriber growth weakens, the cash-flow argument takes a hit.
Investors will be watching closely for the first-quarter report, the first under AT&T’s new segment setup, along with any news on the Lumen fiber and EchoStar spectrum deals clearing their closing conditions. AT&T’s next earnings release is scheduled for April 22, per Yahoo Finance’s earnings calendar. (Yahoo)
