AT&T (NYSE:T) shares edged higher in premarket U.S. trading on Wednesday after the telecoms group reported fourth-quarter results that topped profit expectations and outlined an upbeat outlook for the year ahead.
Recent strategic deals have underpinned AT&T’s push to strengthen its network infrastructure, including a $6 billion acquisition of Lumen’s consumer fiber assets and a $23 billion purchase of spectrum licenses from EchoStar. Management believes these moves will enhance broadband speeds and mobile coverage, helping the company compete more effectively as demand for reliable connectivity grows alongside remote and hybrid working trends.
In parallel, AT&T has continued to promote bundled offerings that combine wireless and fiber broadband services at discounted rates, a strategy it sees as key to retaining and attracting customers in a crowded market.
From the first quarter, AT&T will begin reporting results across three operating segments. These will include a core division covering domestic 5G and fiber services, which accounted for the majority of 2025 revenue, alongside segments for voice and data services and for Latin America.
Looking ahead, the company said it expects free cash flow of at least $18 billion in fiscal 2026, rising to around $21 billion by 2028—comfortably above Wall Street forecasts. Adjusted earnings for the current year are projected to range between $2.25 and $2.35 per share, compared with Bloomberg consensus estimates of $2.23.
For the fourth quarter, AT&T delivered adjusted earnings per share of $0.52, beating expectations of $0.46, despite adding slightly fewer net monthly bill-paying wireless subscribers than analysts had anticipated. Revenue increased 3.7% year on year to $33.5 billion, also exceeding forecasts of $32.83 billion.
The company’s stronger-than-expected profit guidance reflects confidence that its recent investments will support cash generation and earnings growth as it continues to expand its fiber and 5G capabilities.