AT&T reported its highest quarterly net additions in over five years, adding 1.0 million postpaid subscribers in Q4 under CEO Daniel Schulman’s customer-centric strategy. This influx was driven by bundled wireless and broadband offerings and a simplified pricing model, reversing a two-year trend of stagnant growth. Management projects adjusted EPS growth of 4–5 percent for fiscal 2026, reflecting ongoing cost efficiencies and network monetization initiatives tied to its 5G rollout.

The company unveiled a $25 billion share repurchase authorization over the next three years, supplementing its capital return track record of $85 billion distributed through dividends and buybacks since 2016. This places AT&T among the top five U.S. firms in cumulative shareholder payouts, underscoring a commitment to return excess cash flow despite heavy capital expenditures on fiber build-outs.

At current consensus estimates, AT&T trades at approximately 9.2 times forward P/E, one of the lowest multiples in the large-cap telecom universe, while offering a 6.5 percent dividend yield. The combination of a low valuation, substantial yield and anticipated EPS expansion has led analysts to upgrade the stock to a moderate buy, highlighting its appeal for income-oriented portfolios seeking defensive exposure with upside from subscriber momentum.