AT&T Details 5G and Fiber Growth, Reaffirms $2.25–2.35 EPS in 2026
AT&T, XLC’s largest holding at 5.02% weight, will detail its multi-year growth strategy in 5G and fiber after the Lumen acquisition and shift to new segment reporting from Q1 2026 to isolate advanced connectivity returns. It reaffirmed 2026 adjusted EPS guidance of $2.25–2.35 and $45B planned returns by 2028.
1. Multi-Year Growth Strategy
AT&T’s CFO presented the company’s multi-year growth plan emphasizing advancements in 5G network expansion and fiber deployment following the acquisition of Lumen’s Mass Markets fiber business.
2. New Segment Reporting
From its first-quarter 2026 results, AT&T will adopt new segment reporting to separately disclose financial returns from advanced connectivity solutions, distinguishing these from its legacy telecom services.
3. Guidance and Financial Targets
The company reiterated its full-year 2026 adjusted EPS guidance of $2.25 to $2.35, targeting 3–4% adjusted EBITDA growth in 2026 and a double-digit three-year CAGR through 2028.
4. Impact on XLC Holdings
AT&T expects to return over $45 billion to shareholders from 2026 to 2028, and as XLC’s top holding at a 5.02% weight, its strategy updates and guidance could influence performance and flows in the Communication Services ETF.