AT&T (T) Powers Ahead with Strong Results and Growth Outlook

AT&T Inc. (NYSE:T) is one of the best cheap stocks to buy for 2026. UBS reiterated its Buy rating on AT&T Inc. (NYSE:T) with a $31 price target on January 29, citing solid Q4 results and guidance that points to accelerating growth. The firm expects AT&T’s industry-leading fiber and convergence footprint to drive profit expansion and rising free cash flow, while noting that concerns over wireless competition are overstated and already reflected in the stock.

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On January 28, AT&T Inc. (NYSE:T) reported Q4 2025 adjusted earnings of $0.52 per share, surpassing analyst estimates of $0.46. Management credited the positive surprise to over $1 billion in cost savings achieved during the year alongside growth in the company’s convergence strategy of bundling fiber and wireless services.

The telecom provider’s quarterly revenues reached $33.5 billion. This is roughly 3.6% ahead of the prior year and above Wall Street expectations of approximately $32.9 billion. According to management, the revenue growth came on the back of the company’s eighth consecutive year of adding more than one million fiber subscribers and fifth straight year of securing over 1.5 million postpaid phone additions. The quarter’s adjusted EBITDA climbed more than 4% year-over-year and margins expanded by 20 basis points, which management attributed to service revenue growth in 5G, fiber and fixed wireless offerings. Disciplined cost management across the organization also played a huge role here, stated management.

And for the full fiscal year, adjusted earnings reached $2.12 per share, nearly 9% higher than 2024 and finishing above the company’s initial guidance. At the same time, free cash flow totaled $16.6 billion, landing near the upper end of management’s target range. This was despite $1.1 billion in cash taxes and increased pension contributions that partially offset operational cash generation.

Buoyed by the performance, management projected adjusted earnings between $2.25 and $2.35 per share for 2026 and free cash flow exceeding $18 billion. The guidance incorporates expectations that advanced home internet revenues will grow organically by more than 20% annually through 2028.

AT&T Inc. (NYSE:T) provides telecommunications, media, and technology services. This includes wireless and wireline communications, broadband, and pay-TV offerings across the United States.

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