AT&T sees profits growth over 3 years; eyes $40B in anticipated shareholder returns

AT&T anticipates profits growth over the next three years thanks to the momentum of 5G and fiber services.

The business also announced Tuesday that it expects its improved budgetary act to back more than $40 billion of anticipated shareholder returns through dividends and stake buybacks over the same period. This includes an initial $10 billion stake repurchase that it expects to complete by the complete of 2026.

“Over the last four years, we’ve achieved durable and profitable subscriber growth, generated attractive returns on network resource, and strengthened our equilibrium sheet,” AT&T CEO John Stankey said in a statement.

Shares of AT&T rose about 3% before the trade open.

The Dallas business said that it’s looking to expand its fiber broadband network to more than 50 million locations by the complete of 2029. It is actively working to exit its legacy copper network operations across the large majority of its wireline footprint by the complete of of that year as well.

AT&T said that it expects to have largely completed the modernization of its 5G wireless network with open technology by 2027, with deep mid-band 5G spectrum covering more than 300 million people by the complete of 2026. The business said that the network will be able to back super-quick download speeds and serve as a platform for recent product and GenAI innovation.

AT&T now anticipates 2024 adjusted profits in a range of $2.20 to $2.25 per distribute. Its prior outlook was for $2.15 to $2.25 per distribute.

Analysts polled by FactSet expect packed-year profits of $2.21 per distribute.

For 2025, AT&T is calling for adjusted profits of $1.97 to $2.07 per distribute, excluding DirecTV. It foresees adjusted profits per distribute accelerating to double-digit percentage growth in 2027.

Free liquid assets flow is expected to total more than $16 billion next year, excluding DirecTV. AT&T predicts annual growth of approximately $1 billion, resulting in free liquid assets flow of more than $18 billion in 2027.

AT&T sold a 30% stake of DirecTV to private stake firm TPG in 2021 for $16.25 billion. It is now in the procedure of selling its remaining 70% stake in DirecTV to TPG for about $7.6 billion, which is expected to close next year.