AT&T shares climbed more than 4% on January 29 after several brokerages raised their ratings, with trading volume reaching 62.3 million shares—approximately 37% above the three-month average of 45.6 million. The spike in activity highlights renewed investor focus on the company’s cash-flow profile and defensive positioning, even as broader indices declined. Market capitalization stands at $171 billion, while the company’s dividend yield of 4.61% and gross margin of 42.93% continue to attract income-oriented shareholders.

AT&T reported adjusted earnings per share of $0.52 in the fourth quarter, beating consensus by six cents, and delivered revenue growth of 3.7% year-over-year to $33.5 billion. Wireless service revenues rose 2.4%, driven by 421,000 net postpaid phone adds and a churn rate of 0.98%. Broadband segment results included 283,000 fiber net additions and 221,000 fixed-wireless subscribers, marking a second consecutive quarter with over half a million advanced home internet net adds. Free cash flow for the quarter reached $4.2 billion, up from $4.0 billion a year ago.

Management reiterated a long-term outlook projecting low-single-digit annual service revenue growth, a 3%–4% adjusted EBITDA increase in 2026 rising to 5% or more by 2028, and Adjusted EPS growing at a double-digit CAGR through 2028. Free cash flow is expected to exceed $18 billion in 2026 and reach $21 billion by 2028. The company plans to deploy over $45 billion in dividends and share repurchases from 2026 through 2028, supported by continued investment in 5G and fiber expansion as well as recent acquisitions of fiber assets and spectrum licenses.