AT&T Tops Q4 Forecasts, Raises 2026 Cash-Flow Outlook as Fiber Base Reaches 10.4 Million
Analysts cite fiber scale plus spectrum depth as advantages likely to sustain growth in cash generation.
Overview
- AT&T reported Q4 revenue of $33.5 billion, beating estimates, with consolidated service revenue up 1.0% and adjusted EBITDA rising about 4.1%.
- The Mobility unit grew service revenue 2.4% year over year and added 421,000 postpaid phone subscribers in the quarter, ending 2025 with 74.2 million postpaid users.
- Fiber availability expanded to more than 32 million locations and subscribers climbed to 10.4 million, marking an eighth straight year of adding over one million fiber customers.
- Free cash flow for 2025 totaled $16.6 billion near the top of guidance, with management crediting more than $1 billion in annual cost savings and noting margin expansion.
- Management guided to 2026 adjusted EPS of $2.25–$2.35 and free cash flow above $18 billion, and UBS reaffirmed a Buy rating with a $31 target following the results.