AT&T reported fourth-quarter revenue of $32.5 billion, up 3.2% year-over-year and surpassing the consensus estimate of $31.8 billion. Adjusted EPS came in at $0.71, beating the $0.68 expected by analysts. Free cash flow reached $6.3 billion, reflecting robust operating performance despite macroeconomic headwinds.

The company added 225,000 net broadband customers in Q4, lifting total fiber-to-the-home connections to 8.1 million. Wireless postpaid net additions totaled 310,000, fueled by its expanded 5G footprint now covering 290 million people. Broadband ARPU rose 2.8% year-over-year to $58.40, while wireless service revenues grew 4.5% to $20.1 billion.

Legacy wireline revenues continued to shrink, falling 7.1% to $5.3 billion as demand for copper-based services waned. Consolidated EBITDA margin narrowed by 60 basis points to 38.7%, weighed down by higher network deployment costs and promotional intensity in wireless. Management expects full-year 2026 margins to stabilize around 39% with ongoing cost-discipline initiatives.

In Q4, AT&T returned $5.2 billion to shareholders through dividends and share repurchases, contributing to the $85 billion delivered over the past decade. The board authorized an additional $15 billion buyback program for 2026, alongside a quarterly dividend of $0.27 per share. Management reiterated its target of 3-4% adjusted EPS growth in 2026, supported by continued fiber expansion and 5G monetization.