AT&T reported adjusted earnings of $0.52 per share for the fourth quarter, exceeding the consensus estimate of $0.46, while revenue rose 3.7% year-over-year to $33.5 billion versus expectations of $32.8 billion. Mobility service revenues climbed 2.4%, driven by solid postpaid phone performance, and consumer wireline fiber revenue grew 13.6%. Operating income increased to $5.8 billion and adjusted EBITDA reached $11.2 billion, underscoring resilient demand for both wireless and fiber services despite declines in legacy copper-based offerings.

Management unveiled a $10 billion share repurchase authorization for 2026, supplementing the $12 billion returned through dividends and buybacks in 2025. The company reaffirmed its commitment to returning at least $8 billion in buybacks this year and up to $45 billion cumulatively through 2028. With a dividend yield near 4.8% and gross margin of 42.7%, AT&T’s capital returns program remains central to its strategy for rewarding income-focused investors.

In the quarter, AT&T added 421,000 net postpaid phone subscribers and 283,000 fiber broadband customers, marking its strongest broadband adds in a decade. Nearly 42% of fiber households bundled wireless services, driving higher average revenue per user. Management attributes this convergence success to targeted discounted bundles and network upgrades, as consumer demand for integrated 5G and fiber solutions continues to rise.

AT&T raised its free cash flow target to more than $18 billion in 2026, up from prior guidance, and forecasts growth to $21 billion by 2028. Adjusted EPS is expected between $2.25 and $2.35 in 2026 with double-digit compounded annual growth through 2028. The outlook incorporates the pending $6 billion acquisition of Lumen’s consumer fiber business and $23 billion spectrum purchase from EchoStar, which management says will enhance network capacity and underpin mid-single-digit service revenue growth annually.