AT&T sees capital investment $23B-$24B annually from 2026-2027

AT&T sees capital investment $23B-$24B annually from 2026-2027

AT&T Inc. (NYSE: T) has updated its financial outlook, projecting capital investment of $23 billion to $24 billion annually from 2026 to 2027. This significant increase is driven by expected cash tax savings from the One Big Beautiful Bill Act, which will total $6.5 to $8.0 billion over the next three years. The company plans to invest a substantial portion of these savings into its network expansion, accelerating its fiber internet build-out to a pace of 4 million locations per year by the end of 2026. This ambitious target aims to reach approximately 50 million customer locations with its in-region fiber network by 2030, and more than 60 million when including the Lumen Mass Markets fiber assets it has agreed to acquire and other commercial open access providers.

AT&T's second-quarter results, released on July 23, 2025, demonstrated strong growth in 5G and fiber subscriber numbers, with 401,000 postpaid phone net adds and 243,000 AT&T Fiber net adds. The company also saw a 3.5% year-over-year increase in mobility service revenues, totaling $16.9 billion. Consumer fiber broadband revenues grew by 18.9% year over year, reaching $2.1 billion. AT&T's adjusted earnings per diluted common share (EPS) for the quarter was $0.54, up from $0.51 a year ago.

The company's financial flexibility will be bolstered by the tax savings, which will also contribute to its employee pension plan and support additional strategic investments. AT&T expects consolidated service revenue growth in the low-single-digit range for 2025, with mobility service revenue growth of 3% or better. Consumer fiber broadband revenue growth is projected to be in the mid-to-high teens, and adjusted EBITDA growth is expected to be 3% or better. Free cash flow for 2025 is forecast to be in the low-to-mid $16 billion range, including over half of the planned pension funding through 2026.

AT&T's capital investment plans are aligned with its long-term strategy to expand its connectivity portfolio and maintain its competitive edge in the telecommunications industry. The company's ability to attract high-quality 5G and fiber subscribers and grow service revenues has positioned it for continued growth and profitability.

References:
[1] https://www.prnewswire.com/news-releases/att-reports-strong-second-quarter-financial-performance-302511875.html