AT&T Reaffirms 2026 Guidance and Long-Term Shareholder Return Strategy

AT&T Inc. (T) announced on Wednesday that it is maintaining its adjusted earnings and service revenue growth guidance for the 2026 fiscal year. The update, delivered alongside the company's first-quarter financial results, signals operational stability and a consistent trajectory for the telecom leader. The company is currently managing a strategic pivot from legacy infrastructure to modern connectivity. By reaffirming its outlook, AT&T provides predictability for investors regarding its earnings per share and revenue streams amidst a shifting industry landscape. For fiscal 2025, the company projects adjusted earnings in the range of $2.25 to $2.35 per share. While consolidated service revenue is expected to grow in the low-single-digit range, a clear divergence is emerging: Advanced Connectivity service revenue is projected to grow by more than 5%, while Legacy service revenue is expected to decline by more than 20%. AT&T is also doubling down on its capital allocation strategy. The firm will maintain its annualized common stock dividend of $1.11 per share and intends to execute approximately $8 billion in share repurchases. Looking toward the long term, the company plans to return more than $45 billion to shareholders between 2026 and 2028. Market reaction was modestly positive following the announcement, with shares trading up 1.19% to $26.20 in pre-market activity. The company expects continued growth in adjusted EBITDA and adjusted earnings per share through 2028.