AT&T reported fourth-quarter revenue of $33.5 billion, exceeding consensus estimates by more than $0.6 billion, and delivered adjusted EPS of $0.52 versus analyst forecasts of $0.46. Operating cash flow reached $11.3 billion, while free cash flow stood at $4.2 billion, up 5% year-over-year. The company’s gross margin of 42.9% remained stable, supporting a 4.61% dividend yield and underscoring its status as a cash-generative telecom operator in a challenging market environment.

During the quarter, AT&T added 421,000 postpaid phone customers, 283,000 fiber broadband subscribers and 221,000 5G fixed wireless users, marking the second consecutive quarter with more than half-a-million advanced home internet net additions. Mobility service revenues grew 2.4% to $17.0 billion, while consumer wireline fiber revenues climbed 13.6% to $2.2 billion. To highlight the shift toward convergence, management will report three segments starting in Q1 2026: Advanced Connectivity (5G and fiber), Legacy (copper-based services) and Latin America.

AT&T’s fourth-quarter results followed a $1.5 billion U.S. dollar bond issuance that bolstered balance-sheet flexibility, enabling planned acquisitions of Lumen’s mass-market fiber business and EchoStar spectrum licenses in early 2026. The company expects free cash flow to exceed $18 billion in 2026, rising to $21 billion by 2028, and has committed to returning over $45 billion to shareholders through dividends and share repurchases over the next three years, while maintaining leverage ratios within target ranges.

The stock traded 37% above its three-month average volume at 62.3 million shares, reflecting renewed investor focus on AT&T’s defensive earnings stability. On a day when the S&P 500 slipped 0.17% and the Nasdaq Composite fell 0.72%, AT&T shares rose more than 4%, driven by analyst upgrades and the reassurance that network investments in 5G and fiber are translating into consistent cash generation without compromising the dividend policy.