AT&T on Wednesday projected full-year adjusted profit that tops market expectations, citing an infrastructure-driven strategy designed to capture growing demand for 5G and high-speed home internet. The company said its stock reacted favorably, trading about 7% higher in premarket hours after the forecast.
Central to AT&T’s outlook are two sizeable transactions. One is an almost $6 billion purchase of Lumen’s consumer fiber business, and the other is a $23 billion deal that secures EchoStar’s spectrum licenses. AT&T said both agreements are expected to close early this year and will support efforts to attract customers from competitors by delivering faster broadband speeds and broader mobile coverage.
The carrier argued that stronger network capacity and speed will allow it to tap higher data consumption driven by remote work, streaming and an expanding array of connected devices. In support of that point, AT&T noted that 42% of households with its fiber service have also subscribed to its 5G mobile offering, a takeaway it links to bundling discounts aimed at encouraging combined service adoption.
On longer-term cash generation, AT&T provided a target for 2028 free cash flow of more than $21 billion. That figure compares with analysts’ expectations of $19.61 billion, based on data compiled by LSEG.
Operational metrics released for the fourth quarter showed the company added 283,000 fiber subscribers, beating Visible Alpha analyst projections of 272,320. On the wireless side, AT&T reported net additions of 421,000 monthly bill-paying phone subscribers in the quarter, essentially in line with the 421,510 additions estimated by Visible Alpha.
Beginning in the first quarter, AT&T will reorganize its segment reporting into three groups. The new advanced connectivity segment will combine domestic 5G and fiber services and represented roughly 90% of 2025 revenue, the company said. The other reporting units will be legacy - covering copper-based voice and data services - and Latin America, which will comprise AT&T’s wireless operations in Mexico.
For 2026, AT&T set an adjusted earnings-per-share range of $2.25 to $2.35, above the LSEG-compiled consensus estimate of $2.21. The company’s management emphasized the infrastructure investments and the expected closing of the two major deals as core to achieving that target.
Methodology note: The article reports company-provided guidance, transaction values and quarterly subscriber statistics as disclosed by AT&T and cited analyst estimates. No additional forecasts or outside data have been added.