AT&T has raised its 2026 profit outlook. Specifically, it now expects adjusted earnings of $2.25 to $2.35 per share—which clearly beats the analyst consensus of $2.21. This improvement stems directly from its aggressive push into AT&T fiber and 5G infrastructure.
Moreover, this strategy is working well because demand for high-speed internet and mobile data continues to rise. In fact, remote work, streaming, and smart devices are all driving data consumption higher.
At the heart of this plan are two major deals. First, AT&T bought Lumen’s consumer fiber business for nearly $6 billion. Second, it acquired EchoStar’s spectrum licenses for $23 billion. Both deals are expected to close early this year, and as a result, they will significantly expand AT&T’s network reach.
Consequently, AT&T can now offer faster speeds and better coverage than many rivals. Therefore, it gains a real competitive edge in attracting new customers.
Additionally, bundling is proving highly effective. Already, 42% of fiber customers also use AT&T’s 5G mobile service. This is no coincidence—the company offers discounts for combining services. “We expect to reach over 40 million customer locations with fiber by year-end,” said CEO John Stankey.
Recent results strongly support this trend. In Q4, AT&T added 283,000 fiber customers—which exceeds the expected 272,320. At the same time, it gained 421,000 net monthly wireless phone subscribers, nearly matching forecasts.
Looking ahead, AT&T projects more than $21 billion in free cash flow by 2028. By comparison, analysts had expected only $19.61 billion. This gap shows strong confidence in its future earnings power.
To better reflect this strategic shift, AT&T will reorganize its reporting starting in Q1 2026. It will create three segments. The largest is “Advanced Connectivity,” which covers domestic AT&T fiber and 5G—accounting for about 90% of 2025 revenue. The other two segments are Legacy (copper-based services) and Latin America (Mexico wireless operations).
Importantly, this move signals a clear transition. Rather than clinging to outdated tech, AT&T is betting big on modern, high-margin networks.
In short, AT&T’s upgraded forecast shows its AT&T fiber and 5G strategy is gaining real traction. With major acquisitions closing soon and bundling driving customer loyalty, the carrier is building a stronger, more integrated future. Unsurprisingly, markets responded positively—shares rose over 4% after the announcement.