Telecommunications equities moved higher on Wednesday, with AT&T climbing 3.5% to $28.37 during afternoon trading. The stock traded between $27.15 and $28.56 as sector activity intensified. Verizon shares increased 2.8%, while T-Mobile added 2.6%.
The advance followed a significant update from T-Mobile, which elevated its 2027 service revenue forecast to $81.5 billion and improved its adjusted free cash flow projection for that year. The company attributed the raised outlook to growing customer adoption of premium 5G plans that include streaming benefits. However, T-Mobile also stated it will cease reporting specific figures for postpaid phone subscriber additions, a decision that drew mixed analyst reactions.
For AT&T, investors reviewed new disclosures after the company filed its annual Form 10-K report for the fiscal year ending December 31, 2025. The market is closely watching whether AT&T will intensify promotional phone offers to retain wireless customers and if its broadband subscriber figures can keep pace with rival bundled services. Any increase in customer churn is viewed as a potential indicator of rising marketing costs.
The sector's sensitivity to competitive pressures remains a focal point. Should carriers aggressively pursue upgrades and new customer acquisitions, profit margins could compress rapidly—a scenario typically punished by investors. Additionally, telecom stocks often behave like yield-oriented investments, with their substantial dividends and debt loads making them reactive to interest rate expectations.
Regulatory developments also garnered attention. Earlier in the week, executives from major carriers, including AT&T, testified before a Senate Judiciary Committee regarding historical procedures for handling phone-record requests. The companies informed lawmakers that their policies have since been revised.
Market participants are now turning to the next major economic indicator. The U.S. Consumer Price Index for January is scheduled for release on Friday, February 13. A stronger-than-expected inflation reading could push bond yields higher, potentially creating headwinds for high-dividend stocks such as those in the telecom sector.
