AT&T Reiterates 2026 Financial Guidance and $45B Capital Return Plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy T?
AT&T reiterates all full-year 2026 and multi-year financial guidance and capital return plans provided with its fourth-quarter 2025 earnings report, including its outlook for improved growth in adjusted EBITDA and adjusted EPS and higher free cash flow through 2028, as well as plans to return $45B+ to shareholders during 2026-2028 through dividends and share repurchases. AT&T expects that its net debt-to-adjusted EBITDA ratio will increase to approximately 3.2x following its transaction with EchoStar - which the company expects to close in early 2026 - and to decline to approximately 3x by the end of 2026. AT&T continues to expect net leverage will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of this acquisition. The company expects to maintain a consistent approach to capital returns while reducing net leverage to its target range.
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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: 26.130
Low
20.00
Averages
28.27
High
33.00
Current: 26.130
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.
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- Tax Treatment Differences: While 401(k) accounts are taxed upon withdrawal, Roth IRAs are taxed before investment, allowing for completely tax-free withdrawals, making Roth IRAs more attractive for long-term investments, especially in a potentially rising tax environment.
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- Acquisition Impact: The recent debt increase primarily stems from the $20 billion acquisition of Frontier Communications, and the $53 billion spent on C-band spectrum in 2021, which, while enhancing network quality, has further exacerbated the debt load.
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- Support for Women Entrepreneurs: Winners of the AT&T Small Business Contest will be featured in her show, showcasing women's breakthroughs in business and sports, further elevating the influence and societal recognition of female entrepreneurs, and promoting the growth and development of the next generation.
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- Cybersecurity Initiative: AT&T Dynamic Defense® will be available on May 4, providing a network-embedded cybersecurity solution that helps small and medium-sized businesses block cyber threats proactively without requiring additional hardware.
- Focus on Women Entrepreneurs: Winners of the AT&T Small Business Contest will be featured in the new season of 'She's Connected by AT&T,' highlighting women's breakthroughs in business and sports, thereby enhancing visibility for female entrepreneurs.
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See More
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- Dividend Safety Analysis: AT&T's payout ratio is approximately 37%, indicating a safer dividend, whereas Verizon's payout ratio is around 67%, which, while higher, still suggests that both dividends are considered secure by investors.
- Dividend Growth Trends: Verizon increased its dividend by 2.5% in Q1 2026 and has seen a nearly 13% rise over the past five years, while AT&T has not raised its dividend since 2020, leading to erosion of dividend income due to inflation.
- Company Performance Insights: Verizon reported positive net adds for postpaid phones in Q1 2026, with adjusted earnings expected to rise by 5% to 6%; AT&T's revenue grew by 2.9% but free cash flow fell to $2.5 billion, reflecting investment pressures in its fiber business.
See More
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