AT&T Stock (T) is up during Tuesday’s trading session following a positive note from the company, which shared its upcoming growth outlook. According to the company, it will see sustained growth over the next three years, pumping stock value. Additionally, the telecom company plans to return $40 billion to shareholders in dividends and stock buybacks. As a result, T stock jumped 4% through 11:05 a.m on Tuesday.
As part of this strategic plan through 2027, AT&T revealed the efforts will begin with a $10 billion share buyback through the end of 2026. The company also plans to build the nation’s largest fiber broadband network, serving more than 50 million customers.
AT&T is taking a two-pronged approach to growth, focusing on 5G wireless communications and fiber broadband fixed-line. This technology “will support superfast download speeds and serve as a platform for new product and GenAI innovation,” says the company.
Furthermore, AT&T targets wireless revenue growth in the 2% to 3% range annually through 2027. The company’s revenue growth averaged across the two prongs of the project should be in the low single digits, according to analysts. AT&T is forecasting “adjusted” earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at 3% or better across the three years. Free cash flow will grow similarly at about 4% per year, from $16 billion or more in 2025 to $18 billion or more in 2027.
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Is AT&T Stock (T) a Buy Now?
AT&T’s forecast predicts it generating $51 billion in total cash profits over three years. This equals about $17 billion per year, covering the $40B return promise to investors. The stock’s uptick suggests that the market finds the outlined goals both realistic and achievable relative to the company’s financial position and management’s execution capabilities.
After the initial pop, T shares cooled down to $23.66, up 4.3% from the previous close. AT&T stock is up 37.1% since the beginning of the year. At $23.66 per share, it has also set a new 52-week high.
Most analysts are projecting gains for T following this announcement, marking the stock as a buy now. It’s important, however, to do your own research and invest at your own risk.