AT&T Posts Revenue Beat as Fiber and Wireless Growth Drive Strong Quarter

AT&T (NYSE: T) reported stronger-than-expected fourth-quarter results, fueled by continued gains in fiber broadband and steady wireless subscriber growth, helping lift revenue, earnings, and free cash flow above Wall Street forecasts.

The telecom giant added 283,000 fiber subscribers during the quarter, surpassing analyst expectations and highlighting ongoing demand for high-speed internet. Wireless performance also remained solid, with 421,000 postpaid phone additions, reflecting resilience in AT&T’s core mobility business. The company said more than 40% of its fiber customers also subscribe to wireless service, underscoring the benefits of bundling multiple offerings.

Quarterly revenue climbed 3.6% to $33.5 billion, topping consensus estimates. Adjusted earnings came in at 52 cents per share, comfortably ahead of projections. Growth was led by the mobility segment, where service revenue rose year over year, alongside double-digit gains in fiber revenue as AT&T continued to expand its consumer broadband footprint.

Operating costs increased in the mobility unit, driven by higher device sales, marketing spending, and credit-related expenses. Even so, the company generated $4.2 billion in free cash flow, exceeding expectations and reinforcing its ability to support dividends and planned share repurchases.

AT&T reiterated its focus on capital returns, targeting more than $45 billion between 2026 and 2028, including a stepped-up buyback program beginning in 2026. The company currently offers a dividend yield well above the broader market, making cash generation a key focus for investors.

Looking ahead, AT&T said it remains on track to complete its acquisition of Lumen’s mass-market fiber assets and certain wireless spectrum in early 2026. Management expects the deal to support long-term earnings growth, even as it weighs on results in the near term before turning accretive later in the decade.

For fiscal 2026, AT&T forecast adjusted earnings per share of $2.25 to $2.35, signaling confidence in its strategy of expanding fiber coverage, strengthening wireless performance, and deepening customer relationships through bundled services.

About AT&T

AT&T (NYSE: T) is one of the largest telecommunications companies in the world, providing wireless, broadband, and fiber connectivity services to consumers and businesses across the United States and internationally. Headquartered in Dallas, Texas, the company operates a nationwide wireless network and continues to expand its fiber footprint to meet growing demand for high-speed internet.

At the time of publishing, Stocks.News holds positions in AT&T as mentioned in the article.