AT&T Maintains 2026 Financial Guidance, Plans to Return Over $45B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
AT&Tremainson track to achieve its 2026and multi-yearfinancialguidance. AT&T maintains the long-term outlook and capital allocation plans provided with its first-quarter 2026 results. This includes the company's outlook for improved growth in adjusted EBITDA and adjusted EPS and higher free cash flow through 2028, its plans to return $45B+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of its transaction with EchoStar.For the second quarter of 2026, AT&T continues to expect improved year-over-year growth in wireless service revenue and in consolidated adjusted EBITDA compared to year-over-year growth rates reported in the first quarter of 2026. The company also continues to expect second quarter free cash flow in the range of $4B-$4.5B.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy T?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on T
Wall Street analysts forecast T stock price to rise
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 24.880
Low
20.00
Averages
28.27
High
33.00
Current: 24.880
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lumen Technologies Secures Nearly $13 Billion in AI Infrastructure Contracts
- AI Infrastructure Contracts: Lumen has secured nearly $13 billion in contracts with hyperscalers like Microsoft and Anthropic, highlighting its strategic importance and growing market demand in the AI sector.
- Network Connectivity Products: AWS and Google Cloud are building connectivity products on Lumen's fiber network, which not only enhances Lumen's market position but also lays a foundation for future revenue growth.
- Acquisition of Alkira: Lumen's $475 million acquisition of cloud-to-cloud connectivity software company Alkira is expected to significantly shorten product development cycles and reduce capital expenditures by $100 million to $200 million, further strengthening its competitive edge in the cloud services market.
- Stock Performance: Despite Lumen's stock rising over 400% in the past three years, its valuation remains low at 0.9 times annual sales, indicating market caution regarding its future growth potential.
See More
Lumen Technologies: The Hidden Giant of AI Infrastructure
- Significant Stock Recovery: Lumen Technologies' stock has surged 416% over the past three years, rebounding from $1 two years ago to its current price of $10.87, reflecting its potential in the AI market and renewed investor confidence.
- Strategic Partnerships: Lumen has secured nearly $13 billion in contracts with tech giants like Amazon AWS and Anthropic, becoming the first network operator for AWS's new Interconnect service, highlighting its critical role in AI data transmission.
- Acquisition of Alkira: Lumen's $475 million acquisition of cloud connectivity software company Alkira aims to accelerate the handling of East-West traffic between data centers and cloud environments, expected to reduce capital expenditures by $100 million to $200 million, enhancing operational efficiency.
- Successful Transformation: By selling its residential fiber business to pay down some debt, Lumen has successfully pivoted to become an enterprise AI infrastructure provider, although it still faces a hefty $17 billion debt load, its valuation remains attractive, drawing interest from value investors.
See More
AST SpaceMobile Shares Surge Amid SpaceX IPO Hype
- Stock Surge: AST SpaceMobile's shares jumped 12.91% to $13.67 on Tuesday, reflecting strong market anticipation for SpaceX's upcoming IPO, projected to be the largest in history, raising about $75 billion at a $2 trillion valuation.
- Increased Market Attention: The progress of SpaceX's rocket development and its forthcoming IPO has drawn investor interest, leading to a wave of capital flowing into the entire space industry, with AST SpaceMobile gaining significant attention as a leading satellite broadband provider.
- Satellite Deployment Goals: AST SpaceMobile aims to deploy 45 relatively low-cost satellites in orbit by the end of 2026, and with its vertically integrated manufacturing network and agreements with top launch partners like SpaceX and Blue Origin, the company is well-positioned to achieve this goal.
- Strategic Partnerships: AST SpaceMobile stands to benefit from a recently announced joint venture among AT&T, Verizon, and T-Mobile, as these telecom giants seek to enhance mobile connectivity for their customers using satellite technologies to eliminate dead zones across the U.S.
See More
American Airlines to Equip 500 Aircraft with Starlink Wi-Fi
- Flight Network Upgrade: American Airlines announced it will equip over 500 narrow-body aircraft with Starlink in-flight Wi-Fi starting in Q1 2027, aiming to enhance internet connectivity on domestic and short-haul international routes to meet the soaring demand for premium travel post-pandemic.
- Intensified Market Competition: As airlines worldwide rush to upgrade their fleets to offer faster and more reliable in-flight internet services, this move by American Airlines will help attract more customers in a highly competitive market, particularly in the premium travel segment.
- Strengthened Partnerships: Currently, American Airlines partners with AT&T to provide free Wi-Fi for nearly all flights to loyalty program members, and the collaboration with Starlink will further enhance service differentiation, boosting customer satisfaction and loyalty.
- Industry Trend: Starlink, as the only profitable business unit of SpaceX, has secured deals with several U.S. airlines, showcasing its strong appeal and growth potential in the aviation market, which is expected to drive revenue growth for American Airlines.
See More
AST SpaceMobile Advances with Satellite Launch Plans
- Satellite Launch Progress: AST SpaceMobile's Block 2 satellites have successfully arrived in Florida, with plans to launch aboard a SpaceX Falcon 9 rocket in mid-June, marking a significant step forward in the company's efforts to establish a space-based cellular broadband network for standard smartphones.
- FCC Approval and Partner Support: The company has secured regulatory approval from the Federal Communications Commission (FCC) for commercial satellite-to-phone operations in the U.S., bolstered by support from major wireless carriers like AT&T, Verizon, and T-Mobile, which strengthens its market position.
- Investor Confidence Restored: By successfully transporting three commercial satellites to Cape Canaveral on schedule, AST SpaceMobile aims to reassure investors that its manufacturing and launch pipeline remains intact, resulting in nearly a 6% stock price increase during Monday's trading.
- Retail Trader Sentiment Optimistic: On Stocktwits, retail sentiment around the stock remains in 'bullish' territory, with over an 80% surge in message volume within 24 hours, as investors express anticipation for an upcoming launch date announcement, viewing it as an additional catalyst.
See More
Top High-Yield Dividend Stocks: Enbridge and More
- Enbridge's Strong Performance: Enbridge boasts a forward dividend yield of 4.9%, nearly five times that of the S&P 500, and has increased its dividend for 31 consecutive years, reflecting its leadership in the midstream energy sector and stable cash flow, with $50 billion in growth opportunities projected over the next four years.
- Enterprise Products Partners' Stability: Enterprise Products Partners offers a distribution yield of 5.6% and has raised its distribution for 27 years, with a 57% cash flow payout ratio, highlighting its crucial role in the North American midstream energy market while maintaining steady cash flow over the past 20 years.
- Verizon's Growth Potential: Verizon currently pays a forward dividend yield of 5.9% and has increased its dividend for 19 consecutive years, with expected free cash flow of $21.5 billion by 2026, reflecting a 7% year-over-year growth and showcasing its strong financial performance and future growth potential.
- Future Market Demand: With North American LNG demand expected to exceed 30 billion cubic feet per day by 2030, both Enbridge and Enterprise Products Partners are poised to benefit from this trend, particularly as AI and 6G networks drive further market demand.
See More
Lumen Technologies Secures Nearly $13 Billion in AI Infrastructure Contracts
- AI Infrastructure Contracts: Lumen has secured nearly $13 billion in contracts with hyperscalers like Microsoft and Anthropic, highlighting its strategic importance and growing market demand in the AI sector.
- Network Connectivity Products: AWS and Google Cloud are building connectivity products on Lumen's fiber network, which not only enhances Lumen's market position but also lays a foundation for future revenue growth.
- Acquisition of Alkira: Lumen's $475 million acquisition of cloud-to-cloud connectivity software company Alkira is expected to significantly shorten product development cycles and reduce capital expenditures by $100 million to $200 million, further strengthening its competitive edge in the cloud services market.
- Stock Performance: Despite Lumen's stock rising over 400% in the past three years, its valuation remains low at 0.9 times annual sales, indicating market caution regarding its future growth potential.
See More
Lumen Technologies: The Hidden Giant of AI Infrastructure
- Significant Stock Recovery: Lumen Technologies' stock has surged 416% over the past three years, rebounding from $1 two years ago to its current price of $10.87, reflecting its potential in the AI market and renewed investor confidence.
- Strategic Partnerships: Lumen has secured nearly $13 billion in contracts with tech giants like Amazon AWS and Anthropic, becoming the first network operator for AWS's new Interconnect service, highlighting its critical role in AI data transmission.
- Acquisition of Alkira: Lumen's $475 million acquisition of cloud connectivity software company Alkira aims to accelerate the handling of East-West traffic between data centers and cloud environments, expected to reduce capital expenditures by $100 million to $200 million, enhancing operational efficiency.
- Successful Transformation: By selling its residential fiber business to pay down some debt, Lumen has successfully pivoted to become an enterprise AI infrastructure provider, although it still faces a hefty $17 billion debt load, its valuation remains attractive, drawing interest from value investors.
See More
AST SpaceMobile Shares Surge Amid SpaceX IPO Hype
- Stock Surge: AST SpaceMobile's shares jumped 12.91% to $13.67 on Tuesday, reflecting strong market anticipation for SpaceX's upcoming IPO, projected to be the largest in history, raising about $75 billion at a $2 trillion valuation.
- Increased Market Attention: The progress of SpaceX's rocket development and its forthcoming IPO has drawn investor interest, leading to a wave of capital flowing into the entire space industry, with AST SpaceMobile gaining significant attention as a leading satellite broadband provider.
- Satellite Deployment Goals: AST SpaceMobile aims to deploy 45 relatively low-cost satellites in orbit by the end of 2026, and with its vertically integrated manufacturing network and agreements with top launch partners like SpaceX and Blue Origin, the company is well-positioned to achieve this goal.
- Strategic Partnerships: AST SpaceMobile stands to benefit from a recently announced joint venture among AT&T, Verizon, and T-Mobile, as these telecom giants seek to enhance mobile connectivity for their customers using satellite technologies to eliminate dead zones across the U.S.
See More
American Airlines to Equip 500 Aircraft with Starlink Wi-Fi
- Flight Network Upgrade: American Airlines announced it will equip over 500 narrow-body aircraft with Starlink in-flight Wi-Fi starting in Q1 2027, aiming to enhance internet connectivity on domestic and short-haul international routes to meet the soaring demand for premium travel post-pandemic.
- Intensified Market Competition: As airlines worldwide rush to upgrade their fleets to offer faster and more reliable in-flight internet services, this move by American Airlines will help attract more customers in a highly competitive market, particularly in the premium travel segment.
- Strengthened Partnerships: Currently, American Airlines partners with AT&T to provide free Wi-Fi for nearly all flights to loyalty program members, and the collaboration with Starlink will further enhance service differentiation, boosting customer satisfaction and loyalty.
- Industry Trend: Starlink, as the only profitable business unit of SpaceX, has secured deals with several U.S. airlines, showcasing its strong appeal and growth potential in the aviation market, which is expected to drive revenue growth for American Airlines.
See More
AST SpaceMobile Advances with Satellite Launch Plans
- Satellite Launch Progress: AST SpaceMobile's Block 2 satellites have successfully arrived in Florida, with plans to launch aboard a SpaceX Falcon 9 rocket in mid-June, marking a significant step forward in the company's efforts to establish a space-based cellular broadband network for standard smartphones.
- FCC Approval and Partner Support: The company has secured regulatory approval from the Federal Communications Commission (FCC) for commercial satellite-to-phone operations in the U.S., bolstered by support from major wireless carriers like AT&T, Verizon, and T-Mobile, which strengthens its market position.
- Investor Confidence Restored: By successfully transporting three commercial satellites to Cape Canaveral on schedule, AST SpaceMobile aims to reassure investors that its manufacturing and launch pipeline remains intact, resulting in nearly a 6% stock price increase during Monday's trading.
- Retail Trader Sentiment Optimistic: On Stocktwits, retail sentiment around the stock remains in 'bullish' territory, with over an 80% surge in message volume within 24 hours, as investors express anticipation for an upcoming launch date announcement, viewing it as an additional catalyst.
See More
Top High-Yield Dividend Stocks: Enbridge and More
- Enbridge's Strong Performance: Enbridge boasts a forward dividend yield of 4.9%, nearly five times that of the S&P 500, and has increased its dividend for 31 consecutive years, reflecting its leadership in the midstream energy sector and stable cash flow, with $50 billion in growth opportunities projected over the next four years.
- Enterprise Products Partners' Stability: Enterprise Products Partners offers a distribution yield of 5.6% and has raised its distribution for 27 years, with a 57% cash flow payout ratio, highlighting its crucial role in the North American midstream energy market while maintaining steady cash flow over the past 20 years.
- Verizon's Growth Potential: Verizon currently pays a forward dividend yield of 5.9% and has increased its dividend for 19 consecutive years, with expected free cash flow of $21.5 billion by 2026, reflecting a 7% year-over-year growth and showcasing its strong financial performance and future growth potential.
- Future Market Demand: With North American LNG demand expected to exceed 30 billion cubic feet per day by 2030, both Enbridge and Enterprise Products Partners are poised to benefit from this trend, particularly as AI and 6G networks drive further market demand.
See More
