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AT&T Inc. (NYSE: T) has reported impressive fourth-quarter results, surpassing market expectations in both earnings per share (EPS) and revenue. This performance underscores the company’s strategic focus on fiber and 5G customer growth.
 

Strong Mobility and Fiber Growth Drive Q4 Outperformance

In the fourth quarter of 2025, AT&T reported earnings per share (EPS) of $0.52, beating the expected $0.46. This impressive performance was complemented by a revenue of $33.5 billion, surpassing the anticipated $32.87 billion. The company’s strong results were driven by substantial growth in its Mobility and Consumer Wireline segments, which saw revenue increases of 2.4% and 13.6% respectively. These figures highlight AT&T’s successful execution of its investment-led strategy, focusing on expanding its fiber and 5G customer base.

Compared to the previous year, AT&T’s adjusted EPS rose from $0.43, reflecting a robust year-over-year improvement. The company’s operating income also showed growth, reaching $5.8 billion, up from $5.3 billion in the same period last year. This increase was attributed to higher sales volumes in the Mobility business and a decline in operating expenses due to transformation initiatives and lower depreciation costs.

AT&T’s ability to exceed market expectations is a testament to its strategic investments in spectrum and fiber, positioning the company for continued success. The growth in customer satisfaction scores and convergence rates further supports AT&T’s commitment to delivering a superior customer experience, thereby enhancing profitability and shareholder returns.
 

Long-Term Outlook Centers on Fiber, 5G, and Cash Flow Growth

Looking ahead, AT&T has provided a positive outlook for the years 2026 through 2028, driven by strategic acquisitions and continued investment in fiber and 5G technologies. The company anticipates service revenue growth in the low-single-digit range annually and expects adjusted EBITDA to grow by 3% to 4% in 2026, with further improvement to 5% or better by 2028. This growth will be primarily fueled by the Advanced Connectivity segment, which is expected to offset declines in legacy services.

AT&T projects adjusted EPS to be between $2.25 and $2.35 in 2026, with a double-digit compound annual growth rate through 2028. The company also plans significant capital investments, ranging from $23 billion to $24 billion annually, to support its network expansion and upgrade initiatives. Free cash flow is expected to increase steadily, reaching over $21 billion by 2028.

Additionally, AT&T has laid out a comprehensive capital allocation plan, aiming to return over $45 billion to shareholders through dividends and share repurchases from 2026 to 2028. The company expects its net debt-to-adjusted EBITDA ratio to stabilize around 3x by the end of 2026, reflecting its commitment to maintaining a balanced approach to growth and shareholder returns. Overall, AT&T’s forward-looking strategy emphasizes sustainable growth and enhanced value for its stakeholders.

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