AT&T sees free cash flow of at least $18 billion in 2026

AT&T sees free cash flow of at least $18 billion in 2026

AT&T Inc. (NYSE: T) has updated its financial outlook, projecting free cash flow (FCF) of at least $18 billion in 2026, driven by tax savings from the One Big Beautiful Bill Act and continued operational growth. The company reported strong second-quarter results, with revenues of $30.8 billion and adjusted EPS of $0.54 [3].

AT&T's CEO, John Stankey, highlighted the company's ability to attract high-quality 5G and fiber subscribers, contributing to robust service revenue growth. The company added 401,000 postpaid phone customers and 243,000 AT&T Fiber net adds, with mobility service revenues growing by 3.5% year over year [3].

The company's outlook for 2025 includes adjusted EBITDA growth of 3% or better, mobility EBITDA growth of approximately 3%, and capital investment in the $22 to $22.5 billion range. AT&T expects to achieve a free cash flow of $16 billion in 2025, with the potential to exceed $18 billion in 2026 [3].

AT&T's updated financial outlook reflects the impact of expected cash tax savings from the One Big Beautiful Bill Act, which will be used to accelerate fiber internet build-out and support other strategic investments. The company expects to reach approximately 50 million customer locations with its in-region fiber network by the end of 2030 [3].

Investors will closely watch AT&T's earnings call on Wednesday, July 23, 2025, to assess the company's progress and the impact of the tax provisions on its financial performance.

References:
[1] https://sg.finance.yahoo.com/news/t-q2-preview-wireless-growth-124320226.html
[2] https://www.tradingview.com/news/gurufocus:f97925a81094b:0-at-t-q2-preview-wireless-growth-and-free-cash-flow-in-focus/
[3] https://www.prnewswire.com/news-releases/att-reports-strong-second-quarter-financial-performance-302511875.html