AT&T Reiterates 2026 Financial Guidance and $45B Capital Return Plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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 fall
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 28.640
Low
20.00
Averages
28.27
High
33.00
Current: 28.640
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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- Lack of Investment Advice: The report notes that Benzinga does not provide investment advice, emphasizing the importance for investors to rely on their own research and analysis rather than solely on analysts' ratings.
- Diverse Information Sources: To gain a more comprehensive view of analyst rating changes, investors are encouraged to visit Benzinga's analyst ratings page for the latest upgrades and downgrades information.
See More
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- Enhanced Financial Transparency: AT&T will implement a new segment reporting strategy starting with its first-quarter 2026 results, providing clearer insights into financial returns from investments in advanced connectivity solutions, thereby distinguishing these from its declining legacy segments.
- Guidance Reaffirmation: AT&T reaffirms its adjusted EPS guidance for 2026 at $2.25 to $2.35, exceeding the analyst consensus of $2.21, and anticipates a double-digit three-year CAGR through 2028, reflecting the company's confidence in future growth prospects.
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See More
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- New Segment Reporting: AT&T plans to revise its operating segments to better reflect its investments in 5G and fiber services, which is anticipated to improve transparency regarding returns on growth investments, helping the company stand out in a competitive market.
- Significant Acquisition Impact: The first-quarter 2026 results will reflect AT&T's acquisition of Lumen's fiber assets, adding over 1 million fiber internet customers, although the current penetration rate is only 40%, with plans to increase this through enhanced investments.
- Optimistic Financial Outlook: AT&T reiterates its financial guidance for 2026 and beyond, expecting adjusted EBITDA growth of 3% to 4% and plans to return over $45 billion to shareholders from 2026 to 2028, demonstrating confidence in its future financial health.
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- Future Development Plans: AST SpaceMobile aims to launch 45 to 60 satellites by 2026 for continuous coverage across the U.S., Europe, and Japan, projecting $2 billion in revenue by 2028, highlighting its long-term growth strategy.
See More
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- Satellite Launch Plans: AST SpaceMobile aims to deploy 45 to 60 satellites by the end of the year to achieve continuous coverage in key markets such as the U.S., Europe, and Japan, marking a significant advancement in its commercial operations.
- Government Contracts Secured: The company has secured major contracts with 50 mobile operators and the U.S. government, including a $43 million contract with the Space Development Agency, ensuring its competitiveness and financial backing in the global communications market.
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