AT&T Announces Bold $40B+ Shareholder Returns Plan with Fiber and 5G Expansion

Key Highlights

• AT&T commits to returning more than $40 billion to shareholders via dividends and buybacks over the next three years.
• Plans include significant expansion of its fiber-optic broadband network and modernization of 5G wireless infrastructure.
• Anticipates closing the DirecTV stake sale by mid-2025, supporting strategic refocus.

Telecommunications leader AT&T has unveiled an ambitious strategy aimed at driving shareholder value and network innovation. The company plans to return over $40 billion to investors through dividends and share repurchases by 2027, while projecting free cash flow exceeding $18 billion that year.

Following the announcement, AT&T's stock saw a premarket increase of approximately 3%, reflecting investor confidence in the company's growth trajectory. The strategy emphasizes expanding the nation’s largest fiber network to reach more than 50 million locations, alongside upgrading its 5G wireless services to deliver faster, more reliable connectivity.

CEO John Stankey highlighted the company’s progress over the past four years, noting sustained subscriber growth, strong returns on network investments, and a healthier balance sheet. "Our plan not only enhances our infrastructure but also prioritizes rewarding shareholders," Stankey stated.

Updated Financial Outlook for 2024 and Beyond

AT&T raised the lower bound of its 2024 adjusted earnings per share forecast to $2.20, up from $2.15, factoring in proceeds from the upcoming DirecTV stake sale. The company expects free cash flow, excluding DirecTV-related funds, to surpass $16 billion in 2025 and exceed $18 billion by 2027.

The anticipated mid-2025 closing of the DirecTV sale to private equity firm TPG is a key milestone in AT&T’s strategic shift to focus on core telecommunications services, following prior divestitures including WarnerMedia.

Year-to-date, AT&T shares have surged by more than 33%, signaling strong market endorsement of the company’s renewed focus and growth initiatives.

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