AT&T’s 2027 Outlook

AT&T (NYSE:T) shared its 2027 outlook on Tuesday, projecting free cash flow (FCF) exceeding $18 billion as part of its three-year plan to expand 5G and fiber services across the US.

Expansion Plans

The company aims to double its fiber internet reach and enhance 5G capabilities, planning to offer bundled deals combining high-speed fiber and wireless phone services. By 2029, AT&T anticipates its fiber network will reach over 50 million locations, up from the current 28.3 million.

Company Statements

John Stankey, AT&T CEO, stated, “Over the last four years, we’ve achieved durable and profitable subscriber growth, generated attractive returns on network investment, and strengthened our balance sheet.” He emphasized the company’s commitment to becoming the best connectivity provider in America.

Shareholder Returns

AT&T announced plans to return over $40 billion to shareholders through dividends and share buybacks over the next three years. The company’s annual capital expenditures are expected to be about $22 billion during this period.

Earnings Guidance

For 2024, AT&T raised its lower adjusted earnings per share guidance to a range of $2.20 to $2.25, closely aligning with analysts’ consensus of $2.21 per share, according to LSEG data.

Stock Movement

The telecom company's shares initially declined in premarket trading but later recovered, rising nearly 1%.

Future Outlook

AT&T's growth outlook for 2025 through 2027 excludes its 70% stake in DirecTV, which is being sold for $7.6 billion, a deal expected to close by mid-2025. During this period, it forecasts annual service revenue growth in the low single digits. In comparison, competitor T-Mobile US Inc (NASDAQ:TMUS) recently projected adjusted free cash flow of $18 billion to $19 billion for 2027.