AT&T reported fourth-quarter results that exceeded consensus revenue and adjusted EBITDA estimates, driven by 5G wireless and fiber broadband penetration. Wireless service revenues rose 6.2% year-over-year as postpaid net additions reached 420,000, the highest quarterly figure since 2019. Broadband connections expanded by 310,000, led by fiber-to-the-home deployments in key metropolitan markets. Convergence offerings—bundling wireless, broadband and streaming—now account for 32% of consumer service revenue, up from 27% a year earlier. Capital expenditures of $6.1 billion funded network upgrades, with 5G coverage now available to 280 million Americans. These gains offset continued declines in legacy voice and DSL services, which fell 14% year-over-year, but overall adjusted EBITDA margins narrowed by 120 basis points due to elevated rollout costs and promotional spending.

Over the past decade, AT&T has delivered $85 billion in value to shareholders through cash dividends and share repurchases, underscoring its commitment to income investors. The company returned $18 billion to shareholders last year alone, representing 70% of free cash flow, and has maintained an annual dividend yield above 6%. Management reiterated its plan to allocate 40–45% of adjusted free cash flow to dividends and 20–25% to share buybacks, supporting a net leverage target below 2.5x debt-to-EBITDA by year-end. With projected adjusted EPS growth of 3–4% in 2026 and a sustainable payout ratio near 55%, AT&T’s capital return strategy remains a key pillar of its investment thesis.