AT&T forecasts annual profit above expectations, driven by wireless and fiber network expansion for 5G and high-speed internet demand, with shares up over 4%. Major deals include a $6 billion purchase of Lumen’s consumer fiber business and a $23 billion acquisition of EchoStar’s spectrum licenses, expected to close early this year.

42% of fiber households have signed up for AT&T’s 5G mobile service, with CEO John Stankey expecting over 40 million customer locations with fiber services by year-end. The company anticipates 2028 free cash flow to exceed $21 billion, above analysts’ estimate of $19.61 billion.

Texas-based AT&T added 283,000 fiber customers in Q4, surpassing analyst expectations, and will reorganize reporting into three segments: advanced connectivity, legacy, and Latin America. Adjusted profit for 2026 is projected between $2.25 and $2.35 per share, above estimates. The company added 421,000 net monthly bill-paying wireless phone subscribers in Q4.

Read more at Yahoo Finance: AT&T bets on fiber, spectrum deals to forecast annual profit above expectations