"The bullish forecast hinges on AT&T's infrastructure push, anchored by two major deals - a nearly US$6-billion purchase of Lumen's consumer fibre business and a US$23-billion acquisition of EchoStar's spectrum licenses. The deals are expected to close early this year and help AT&T lure customers from rivals with faster internet speeds and improved mobile coverage, capitalizing on demand for broadband as remote work, streaming and connected devices drive data consumption higher."
"The company said 42 per cent of fibre households have also signed up for its 5G mobile service, drawn by discounts for bundling the services. AT&T said it expects 2028 free cash flow to be more than US$21-billion, compared with analysts' estimate for US$19.61-billion, according to data compiled by LSEG. Texas-based AT&T added 283,000 fibre customers in the fourth quarter, above 272,320 expected by analysts at Visible Alpha."
"Starting first quarter, AT&T will reorganize its reporting into three segments, with the new advanced connectivity segment covering domestic 5G and fibre services that accounted for roughly 90 per cent of 2025 revenue. The other two segments are legacy, which includes copper-based voice and data services, and Latin America, representing the company's Mexico wireless operations. AT&T said it expected adjusted profit to be between US$2.25 and US$2.35 per share in 2026, above estimates of US$2.21, according to data compiled by LSEG."
AT&T forecast annual profit above market expectations, betting that wireless and fibre network expansion will tap growing 5G and high-speed internet demand. The company anchored its strategy on a nearly US$6-billion purchase of Lumen's consumer fibre business and a US$23-billion acquisition of EchoStar's spectrum licenses, with both deals expected to close early this year. AT&T reported 283,000 new fibre customers and 421,000 net monthly bill-paying wireless additions in the fourth quarter. Forty-two percent of fibre households have signed up for 5G mobile service. The company projects 2028 free cash flow above US$21 billion and 2026 adjusted EPS of US$2.25–2.35.
Read at The Globe and Mail
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