New York, Feb 3, 2026, 09:22 EST — Premarket
- AT&T shares rose roughly 0.4% in premarket trading, after closing yesterday at $26.20
- The company announced it has completed its $5.75 billion cash acquisition of Lumen’s mass-market fiber unit
- AT&T has also submitted paperwork for a five-part notes offering that could raise as much as $6.5 billion
AT&T Inc (NYSE:T) shares rose about 0.4% to $26.30 in premarket trading Tuesday after the company completed its $5.75 billion all-cash acquisition of Lumen Technologies’ Mass Markets fiber division. The deal brings over 1 million fiber subscribers and covers more than 4 million locations, expanding AT&T’s fiber reach to 32 states. The company aims to hit more than 60 million fiber locations by 2030. “America’s largest network is the best positioned in our industry to serve even more consumers – both in the home and on the go,” said CEO John Stankey. (AT&T Newsroom)
The deal brings more home broadband users under AT&T’s umbrella at a moment when U.S. wireless growth has slowed and carriers are pushing harder on bundling. Fiber-to-the-home relies on fiber-optic cables instead of copper, delivering faster speeds — though the high build cost means success hinges on attracting and retaining customers.
Investors are eyeing the balance sheet as well. AT&T has filed for a five-part notes offering totaling up to $6.5 billion, according to a recent filing. These notes—corporate bonds—can be crucial for dividend-focused stocks, especially when interest rates are elevated and refinancing costs shift quickly. (Longbridge SG)
Lumen announced it has sold its consumer fiber-to-the-home business, which includes Quantum Fiber and operates in 11 states. The unit serves over 1 million fiber customers and reaches more than 4 million enabled fiber locations. “The divestiture of our consumer fiber-to-the-home business marks a pivotal moment for Lumen,” CEO Kate Johnson said. She added the company intends to use roughly $4.8 billion from the sale proceeds and cash on hand to pay down “super priority” debt—loans that have priority over other borrowings. Lumen’s management will discuss the deal during its fourth-quarter and full-year 2025 earnings call on Feb. 3. (Lumen)
AT&T outlined much of its fiber-driven growth strategy last week with its quarterly earnings report, describing the Lumen deal as part of a larger infrastructure push. The company projected adjusted earnings of $2.25 to $2.35 per share for 2026 and expects free cash flow in 2028 — the cash remaining after capital expenditures — to exceed $21 billion. It also revealed that 42% of fiber households subscribe to its 5G mobile service, attracted by bundling discounts. (Reuters)
Monday saw a cash-return event as AT&T distributed a quarterly dividend of 27.75 cents per share, per its investor relations site. Income investors often watch closely to see if free cash flow easily covers this payout amid rising expenses on fiber expansion. (AT&T Investors)
Broader U.S. stock-index futures inched higher early Tuesday, with a fresh wave of corporate earnings setting the tone ahead of the open. This steady flow of results helped temper volatility in individual stocks. (Reuters)
AT&T’s immediate strategy is straightforward: grow its fiber subscriber base, then push wireless sales — aiming to outpace competitors. Verizon and T-Mobile still lead in mobile, while cable companies continue to dominate home broadband in numerous areas.
The main risks lie in execution and expense. Rolling out systems, boosting reach in new cities, and reducing churn might drag on past projections. Plus, returns hinge on customers opting for fiber instead of alternatives like fixed-wireless home internet.
The next key date for investors is on the financing front: the term sheet for the planned notes offering sets a Feb. 5 settlement. Traders will focus on pricing and demand for the debt sale, along with any hints from AT&T about shifts in capital spending as it integrates the acquired assets into its build strategy. (OTC Markets)
