NEW YORK, August 31, 2026, 05:12 EDT AT&T’s stock advanced 2.3% after the company announced $4.7 billion in cash flow, which will be allocated to strengthening its fiber network expansion.
- AT&T rose 2.3% on Friday to close at $26.01, trading on lighter-than-usual volume.
- Free cash flow for the second quarter totaled $4.7 billion.
- Fiber revenue increased by 21.4% as the company gained 367,000 new fiber customers.
- The company maintains its forecast for yearly capital spending at $23 billion to $24 billion.
AT&T Inc. (NYSE: T) stock climbed 2.3% on Friday, closing at $26.01. The advance came after the company reported $4.7 billion in free cash flow for the quarter.
The development is significant as AT&T is financing two costly commitments simultaneously, expanding fiber and distributing cash to shareholders.
Trading volume on Friday reached 22.7 million shares, compared with the 50-day average of 65.5 million. The stock stayed 12.7% under its 52-week peak of $29.79 MarketWatch.
Revenue for the second quarter climbed 2.3% to $31.6 billion. Adjusted operating income reached $7.5 billion, up from $6.5 billion AT&T results.
The main driver is Advanced Connectivity, where service revenue increased by 5.1% to $23.5 billion and operating income climbed 20.3% to $7.3 billion.
AT&T gained 367,000 fiber subscribers alongside 279,000 fixed-wireless customers in the quarter. The company’s network covered 38.6 million fiber locations by quarter-end company release.
| Company | Price | Market value | P/E | Latest move |
|---|---|---|---|---|
| AT&T | $26.01 | $180.7bn | 8.6x | up 2.3% |
| Verizon (NYSE: VZ) | $50.10 | $209.0bn | 13.0x | up 1.3% |
| T-Mobile US (NASDAQ: TMUS) | $181.37 | $196.3bn | 19.0x | up 2.0% |
The lower valuation stems from slower growth and increased infrastructure spending. This also provides additional scope for the cash yield to underpin the shares.
AT&T delivered $4.1 billion in the quarter, with $2.2 billion attributed to common-stock buybacks.
Management reaffirmed its adjusted earnings outlook at $2.25 to $2.35 per share. The company also projects Advanced Connectivity EBITDA will rise by a minimum of 6% this year.
The expenditure outlined in the bill is significant. Yearly capital investment is projected to range between $23 billion and $24 billion until 2028.
Fiber economics are getting stronger. Fiber revenue increased by 21.4%, and the segment’s operating margin advanced to 25.7% from 22.2% quarterly filing.
Legacy services weighed on results, with revenue declining 25.9% to $1.63 billion and operating income decreasing 45.5%.
Risks: Increased network expenses, competitive pricing, and lagging fiber uptake may impact cash conversion. Following the EchoStar deal, debt reduction may also take priority over share repurchases.
The focus now shifts to execution rather than announcements. AT&T needs to leverage its expanded fiber network to deliver ongoing margin improvement while maintaining strong free cash flow.
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