AT&T has revealed its strategic plan for the next three years, forecasting free cash flow exceeding $18 billion by 2027. The announcement, which also highlighted the company’s focus on expanding its 5G and fibre networks across the U.S., led to a 2.3% increase in AT&T’s stock price during premarket trading.
Central to AT&T’s growth strategy is the expansion of its fibre internet offerings and enhancement of its 5G network infrastructure. The company plans to bundle fibre internet with wireless phone services, offering customers discounts while improving access to high-speed connectivity.
AT&T, based in Dallas, Texas, expects to extend its fibre network to over 50 million locations by 2029, up from the current 28.3 million. This expansion is in line with growing demand for reliable high-speed internet. The company has already seen strong customer growth, especially with its unlimited mobile plans that offer additional perks like hotspot data, contributing to strong subscriber gains.
In addition to its network investments, AT&T plans to return over $40 billion to shareholders through dividends and share buybacks over the next three years. The company also intends to maintain annual capital investments of around $22 billion.
AT&T has raised its 2024 earnings forecast, expecting adjusted earnings per share in the range of $2.20 to $2.25, slightly above analysts’ expectations of $2.21. Excluding its sale of a 70% stake in DirecTV to TPG for $7.6 billion, the company also projects modest service revenue growth in the low single digits from 2025 to 2027.
Overall, AT&T’s emphasis on network expansion and shareholder returns underscores its vision for sustained growth and market leadership despite fierce competition from rivals like T-Mobile
