AT&T Inc. saw its shares inch higher in pre-market trading on Tuesday, following the company’s reaffirmation of its 2026 financial targets and a shareholder return plan exceeding $45 billion. The telecommunications giant maintained its long-term outlook ahead of Chief Financial Officer Pascal Desroches’ presentation at the Mizuho Technology Conference, offering investors a fresh data point on cash flow as the second-quarter earnings season approaches.
Pre-market indications placed AT&T shares at approximately $22.58, up 0.36% from Monday’s closing price of $22.50 on the New York Stock Exchange. The modest gain comes amid ongoing pressure from concerns about satellite broadband competition, particularly from SpaceX, which Oppenheimer analysts flagged last week as a potential disruptor to the $1.6 trillion U.S. communications sector.
The company reiterated its commitment to returning more than $45 billion to shareholders through dividends and stock buybacks over the 2026 to 2028 period. This reaffirmation provides a crucial cash-flow marker for investors, especially with the second-quarter earnings report scheduled for July 22. AT&T maintained its second-quarter free cash flow forecast of $4.0 billion to $4.5 billion, a key metric for supporting its dividend, share repurchases, and debt reduction efforts.
AT&T also stuck with its projection for improved growth in adjusted EBITDA and adjusted earnings per share through 2028. The company expects its net debt-to-adjusted EBITDA ratio to return to the 2.5 times range within approximately three years after the completion of the EchoStar deal. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, and certain company-defined items.
The broader market context was supportive, with Wall Street futures pointing higher. Dow futures advanced 0.21%, S&P 500 futures rose 0.36%, and Nasdaq 100 futures climbed 0.7%, buoyed by continued strength in chip stocks and easing geopolitical tensions in the Middle East.
Despite the positive near-term sentiment, satellite broadband risks remain a significant overhang. In May, AT&T, Verizon, and T-Mobile announced a joint venture targeting rural “dead zones” via satellite, directly competing with Starlink and other low-earth-orbit (LEO) network providers. Oppenheimer analyst Timothy Horan cautioned that if satellite broadband prices drop more quickly or capture more home-internet users than anticipated, AT&T’s fiber and wireless growth could be constrained, reducing its flexibility for debt reduction and capital returns.
AT&T is betting heavily on fiber optics. CEO John Stankey recently told Barron’s that while satellite technology is useful in remote areas, it is not a substitute for AT&T’s network speed and reliability. The company is also pursuing cost-cutting by phasing out older networks. In California, AT&T plans to invest $19 billion through 2030, extending fiber to over 4 million additional homes and businesses and adding more than 1,200 new cell sites, while seeking to retire copper-based phone service in parts of the state.
In the first quarter, AT&T reported $31.5 billion in revenue and $11.8 billion in adjusted EBITDA, with free cash flow of $2.5 billion. The company added 294,000 postpaid phone net additions and 584,000 advanced-connectivity internet lines. Despite these results, shares have remained largely unchanged, as the company held its 2026 cash plan steady without raising guidance.
