AT&T (T.US) sets a "military order": accelerate profit growth by 2027 and plans to repurchase $20 billion in stock
1min read AT&T (T.US) said on Tuesday that it expects double-digit percentage growth in adjusted EPS by 2027 and free cash flow of more than $18 billion. The telecom giant is embarking on a multi-year strategic plan focused on achieving profitable growth in 5G and fiber users.According to the strategy announced by AT&T, it will expand its fiber broadband network to more than 50 million locations by the end of 2029 and complete the modernization of its 5G wireless network using open technology before 2027.The company also expects the improvement in financial performance to support more than $40 billion in shareholder returns over the next three years, including a $10 billion initial stock buyback authorization that management expects to complete by the end of 2026.AT&T plans to report adjusted EPS and free cash flow starting in the first quarter of 2025, excluding the results and cash flow from DIRECTV.AT&T recently announced that it will sell its remaining 70% stake in satellite TV provider DirecTV to private equity firm TPG Capital for $7.6 billion, marking AT&T's full exit from the pay-TV market.AT&T expects adjusted EPS of $1.97 to $2.07 in 2025, not including DIRECTV (market expectation is $2.27), and will accelerate double-digit percentage growth in 2027. The free cash flow is expected to exceed $16 billion in 2025, with an annual growth of about $1 billion, and will reach more than $18 billion in 2027.The annual growth rate of consolidated service revenue is expected to be in the low single digits from 2025 to 2027.The company expects total dividend payments of more than $20 billion in 2025-2027 and the ability to repurchase about $20 billion of stock.AT&T is expected to maintain its current annual common stock dividend of $1.11 per share.As of the time of writing, AT&T's premarket shares rose 3.52% to $23.50.
