AT&T (T) Stock: Wireless Carrier Beats Q4 Earnings and Revenue Estimates

TLDR

• AT&T beat Q4 earnings expectations with 52 cents per share versus the 46 cents forecast and revenue of $33.5 billion versus $32.9 billion expected
• The company added 421,000 postpaid customers with a churn rate of 0.98%, better than the 1.10% Wall Street predicted
• AT&T plans to buy back $8 billion in stock during 2026 and return over $45 billion to shareholders between 2026 and 2028
• Full-year earnings guidance came in at $2.25 to $2.35 per share, beating the $2.23 analyst estimate
• The stock jumped 3% in premarket trading after initially rising more than 6% following the earnings announcement

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AT&T shares climbed 3% in premarket trading Wednesday after the telecom company delivered better-than-expected fourth quarter results. The stock had initially jumped over 6% before pulling back.

AT&T Inc., T

The Dallas-based carrier reported adjusted earnings of 52 cents per share on revenue of $33.5 billion. Analysts had projected earnings of 46 cents per share on revenue of $32.9 billion. Revenue increased 3.6% compared to the same quarter last year.

The company added 421,000 postpaid customers during the quarter, slightly below estimates of about 440,000. Fiber subscribers grew by 283,000, topping the 277,028 consensus estimate.

Customer retention showed improvement. AT&T’s postpaid churn rate hit 0.98% for the quarter, beating Wall Street’s forecast of 1.10%. The churn rate measures the percentage of subscribers who cancel or switch services.

Guidance Tops Expectations

AT&T provided full-year earnings guidance between $2.25 and $2.35 per share. That range exceeded the analyst estimate of $2.23 per share.

The company projects adjusted EBITDA growth of 3% to 4% for the year, with growth reaching 5% by 2028. Service revenue is expected to grow in the low-single-digit range annually through 2028.

Free cash flow should reach more than $18 billion in 2026, over $19 billion in 2027, and above $21 billion in 2028. Capital investment is planned at $23 billion to $24 billion annually from 2026 through 2028.

Shareholder Returns and Stock Performance

AT&T announced plans to repurchase approximately $8 billion in common stock during 2026. The company expects to return more than $45 billion to shareholders between 2026 and 2028 through dividends and buybacks.

The carrier will maintain its current annual dividend of $1.11 per share. The stock had declined about 7% year-to-date through Tuesday’s close.

Convergence remains a key part of AT&T’s strategy. The company is investing in spectrum and fiber to offer 5G, fiber-optic broadband, and Wi-Fi on one platform. About 42% of AT&T fiber households now also subscribe to AT&T wireless services.

Net income for the quarter came in at $3.8 billion, or 53 cents per share. That compared to $4 billion, or 56 cents per share, in the same period last year.

AT&T became the first of the major U.S. telecom companies to report quarterly results. Verizon is scheduled to announce earnings on January 30, while T-Mobile reports on February 11.

The company plans to revise its operating segments starting with first-quarter results. The new structure will include “Advanced Connectivity,” “Legacy,” and “Latin America” segments.

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