AT&T Q1 Free Cash Flow Falls 20% to $2.5B, Dividend Secure
AT&T's free cash flow fell 20% to $2.5B in Q1 2026 due to higher fiber deployment, yet management forecasts $18B for the full year, covering its $8.2B dividend commitment. Meanwhile, a sophisticated scam exploiting the AT&T app cost a customer $98 in sales tax, underscoring potential risks to customer trust.
1. Q1 2026 Free Cash Flow and Dividend Outlook
AT&T reported free cash flow of $2.5 billion in Q1 2026, down nearly 20% from the prior quarter as the company accelerated fiber network deployments. Management projects $18 billion in free cash flow for the full year, comfortably above its $8.2 billion dividend obligation and maintaining the $1.11 per share payout.
2. Customer Scam Exposes App Security Risks
A Chicago bus driver fell victim to a scam that leveraged the AT&T mobile app to order a “free” phone, charging $98 in sales tax to her credit card and directing her to ship devices before realizing the fraud. This incident highlights potential vulnerabilities in the order and activation process that could undermine customer trust and brand reputation.