Analysts at several major brokerage firms raised AT&T’s rating to Buy after the company delivered fourth-quarter adjusted earnings per share of $0.52, up 21% from $0.43 a year earlier, and revenue of $33.5 billion, a 3.7% year-over-year increase that exceeded consensus forecasts. While Mobility net additions were modest and Consumer Wireline subscriber growth underwhelmed management’s internal targets, AT&T’s ability to sustain margin expansion and deliver free cash flow of $4.2 billion in the quarter convinced analysts that current valuation levels understate the durability of cash generation across its wireless and fiber businesses.

In 2025 AT&T returned over $12 billion to shareholders through dividends and share repurchases, representing more than 8% of free cash flow for the year. Management reaffirmed its plan to distribute at least $45 billion to investors between 2026 and 2028, comprising nearly $17 billion in dividends and $28 billion in buybacks. The company also authorized an incremental $8 billion repurchase program for calendar 2026, signaling confidence in cash-flow sustainability despite ongoing investments in network densification.

Capital expenditures reached $7.1 billion in the fourth quarter and totaled $22.0 billion for full-year 2025, funding accelerated deployment of fiber to 32 million homes and expansion of 5G coverage to more than 280 million POPs. At the same time, AT&T reduced its consolidated debt by $5.3 billion during the year, lowering net leverage to 2.7x adjusted EBITDA. Management highlighted upcoming spectrum and fiber assets acquisitions—subject to customary closing conditions—as catalysts for mid-single-digit service revenue growth and double-digit EPS CAGR through 2028.