AT&T’s fourth-quarter results confirmed robust cash generation, with free cash flow reaching approximately $5.2 billion for the period and full-year free cash flow of $19.8 billion. The company’s gross margin held steady at 42.9%, while adjusted EBITDA rose by 3.7% year-over-year, reflecting continued efficiency in its wireless and broadband operations. Trading volume for the quarter averaged 62.3 million shares, roughly 37% above the three-month average, underscoring investor interest in the stability of AT&T’s cash flows versus broader market volatility.

AT&T added 421,000 postpaid phone subscribers, 283,000 fiber broadband subscribers and 221,000 5G fixed wireless customers in Q4, driving consolidated service revenues up by 3.7% year-over-year to $33.5 billion. Management issued guidance forecasting free cash flow of at least $18 billion in fiscal 2026, rising to $21 billion by 2028, and projected a double-digit EPS compound annual growth rate through 2028. The company reiterated plans to accelerate 5G and fiber network expansions, targeting coverage enhancements in 15 major metro areas over the next two years.

AT&T’s board approved a multi-part U.S. dollar bond issuance to extend debt maturities and preserve liquidity, supporting a return-to-shareholders program totaling over $45 billion through 2028. In Q4 alone, the company repurchased $3.1 billion of stock and paid $2.7 billion in dividends, maintaining a dividend yield of 4.6%. Debt leverage declined modestly to 3.7x net debt-to-EBITDA, giving AT&T room to pursue strategic acquisitions—such as planned fiber purchases—without jeopardizing its commitment to sustainable dividends and share buybacks.