On Monday, AT&T Inc. (NYSE:T) reaffirmed its guidance ahead of its Morgan Stanley Technology, Media & Telecom Conference.
Lumen Acquisition
The company closed its acquisition of Lumen’s Mass Markets fiber business, a move that was finalized ahead of schedule on February 2.
This strategic acquisition is set to enhance AT&T’s fiber and fixed wireless internet services, allowing the company to offer more comprehensive connectivity solutions across the U.S.
The acquisition added over 1 million fiber subscribers and expanded AT&T’s reach to more than 4 million fiber locations.
This significant expansion positions AT&T to increase its fiber penetration from about 25% to levels more consistent with its existing network.
The company anticipates reaching over 40 million fiber locations by the end of 2026, up from 36 million currently, and plans to expand its fiber reach by about 5 million locations annually through the end of the decade.
Guidance
AT&T reaffirmed its full-year 2026 adjusted EPS of $2.25 to $2.35 in 2026 (versus an analyst consensus estimate of $2.21) and targets a double-digit three-year CAGR through 2028.
The company continues to project adjusted EBITDA growth of 3% to 4% in 2026, then sees that improving to 5% or better by 2028 as gains in Advanced Connectivity more than offset declines in Legacy.
Also, AT&T continues to expect to send back more than $45 billion to shareholders from 2026 to 2028 through dividends and buybacks.
AT&T also plans annual capital investment of $23 billion to $24 billion from 2026 through 2028.
The company anticipates that its net debt-to-adjusted EBITDA ratio will rise to about 3.2x following its transaction with EchoStar, expected to close in early 2026.
However, the company aims to reduce this ratio to around 3x by the end of 2026, with further reductions in the following years.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the April 22, 2026, earnings report.
- EPS Estimate: 55 cents (Up from 51 cents)
- Revenue Estimate: $31.21 Billion (Up from $30.63 Billion)
- Valuation: P/E of 9.2x (Indicates value opportunity)
T Price Action: AT&T shares were up 0.20% at $28.06 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by Jason Taylor AG via Shutterstock
