Since January 1, AT&T shares have slid more than 12% as investors grew cautious about slowing wireless service revenue and pressure on average revenue per user (ARPU). Following a mixed Q3 report where wireless ARPU increased just 1.8% year-over-year, market participants have been skeptical about management’s ability to sustain growth. The stock’s weak performance places added importance on AT&T’s upcoming fourth-quarter earnings release, as a stronger-than-expected subscriber growth or cost-cutting announcement could reverse the recent trend.

AT&T has launched an end-to-end Internet of Things (IoT) solution on the AWS Marketplace, aiming to simplify deployment and management of connected devices for small and medium-sized businesses. The platform bundles AT&T’s cellular connectivity, device management software and analytics dashboards, with pricing starting at $29 per device per month. By leveraging Amazon’s infrastructure, AT&T expects to tap into a segment that represents nearly 40% of its non-consumer revenue opportunity, potentially adding 100,000 new SIM connections over the next 12 months.

Analysts forecast AT&T will report Q4 service revenues of roughly $31.5 billion, with consolidated adjusted EBITDA near $12.2 billion. Wireless margins may contract by about 150 basis points as promotional handset financing and spectrum lease costs accelerate. Investors will closely watch broadband net additions, where consensus stands at 250,000 new fiber and DSL subscribers, a pace needed to offset wireless margin headwinds. On the capital allocation front, AT&T has signaled plans to repurchase up to $2.5 billion of stock in the quarter, a move that could support the share price if executed in full.