AT&T (T, Financial) is laying out a bold vision for its future, and investors should take note. The company plans to double its fiber internet reach, targeting over 50 million locations by 2029, while expanding its 5G network to cover 300 million people by 2026. This isn't just incremental growth—it's a strategic overhaul designed to dominate the high-speed connectivity market. With $22 billion earmarked annually for capital investments through 2027, AT&T is betting big on staying ahead of the competition. Early results are promising, as the company's revamped wireless offerings, like enhanced hotspot perks, drove stronger-than-expected subscriber growth in the last quarter.
Financially, AT&T is positioning itself as a cash-flow machine. The company updated its 2024 guidance, forecasting adjusted earnings per share between $2.20 and $2.25 and projecting free cash flow to hit more than $18 billion by 2027. Meanwhile, the sale of its 70% stake in DIRECTV, expected to close in 2025, will bring in $5.4 billion, boosting its financial flexibility. Shareholders stand to gain too, with plans to return $40 billion through dividends and stock buybacks by 2027. The strategy? A balanced mix of cutting-edge investments and disciplined financial management to fuel sustainable growth and shareholder value.
AT&T's growth story feels like a masterclass in execution. While rivals like T-Mobile are chasing similar cash flow targets, AT&T's emphasis on low-single-digit service revenue growth and mid-teens broadband expansion speaks to a carefully calculated approach. With the infrastructure in place and a clear vision for the future, AT&T is more than a telecom player—it's positioning itself as a leader in the next wave of digital connectivity. For long-term investors, this could be a ride worth taking.
