AT&T Plans $250B Network Expansion as Scotiabank Lifts Price Target to $31
AT&T forecasted 2–3% annual wireless revenue growth, 20% advanced home internet gains and free cash flow above $18 billion in 2026, prompting Scotiabank to lift its price target to $31. The company unveiled a $250 billion five-year expansion of fiber, wireless and satellite networks to support AI, cloud computing and broadband grants.
1. Scotiabank Raises Price Target
Scotiabank raised its price target on AT&T to $31 from $29.50 while maintaining a Sector Perform rating following the company’s annual TMT conference, citing stable demand trends and encouraging industry signals.
2. Growth Forecasts and Cash Flow Guidance
AT&T projects wireless service revenue growth of 2–3% annually over the next three years, advanced home internet organic revenue growth above 20% per year through 2028 (exceeding 30% in 2026 post-Lumen acquisition), and free cash flow exceeding $18 billion in 2026 with incremental increases in 2027 and 2028.
3. $250 Billion Network Investment Plan
The company will invest over $250 billion across five years in network infrastructure—doubling its prior capex run rate to roughly $50 billion annually—focused on high-speed fiber, expanded wireless and satellite coverage to support AI and cloud computing, and leveraging federal broadband grant programs in five states.