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AT&T's Fiber Push Fuels Profit Expectations
28 Jan
Summary
- AT&T anticipates exceeding profit expectations due to wireless and fiber expansion.
- Recent acquisitions of Lumen's fiber business and EchoStar's spectrum are key.
- Company expects over 40 million fiber locations by year-end.
AT&T has projected its annual profit to exceed market expectations, signaling confidence in its ongoing expansion of wireless and fiber networks. This optimistic outlook is primarily based on anticipated growth from 5G services and high-speed internet demand. The company's strategic infrastructure push is significantly bolstered by two major recent acquisitions.
These include the nearly $6 billion purchase of Lumen's consumer fiber business and a $23 billion acquisition of EchoStar's spectrum licenses. Expected to finalize early this year, these deals are poised to enhance AT&T's ability to attract customers with superior internet speeds and improved mobile coverage.
The company noted that 42% of its fiber households have also subscribed to its 5G mobile service, attracted by bundle discounts. CEO John Stankey stated that AT&T expects to reach over 40 million customer locations with its fiber services by the end of 2026.
AT&T anticipates its 2028 free cash flow to exceed $21 billion, surpassing the $19.61 billion estimated by analysts. In the fourth quarter of the previous year, AT&T added 283,000 fiber customers, exceeding analyst expectations. The company also expects its adjusted profit for 2026 to be between $2.25 and $2.35 per share, also above initial estimates.
