AT&T (T) revealed a multi-year strategic plan ahead of its presentation at today’s Analyst and Investor Day. The telecommunications giant introduced an ambitious three-year roadmap aimed at expanding its 5G and fiber services across the United States, with projections to generate over $18 billion in free cash flow by 2027.
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AT&T Expects to Double Its Fiber Internet Availability
In addition to this, AT&T plans to double the availability of its fiber internet, strengthening its 5G network while offering customers bundled discounts on high-speed fiber data and wireless phone services. The company currently reports 28.3 million fiber passings, representing potential customer locations within its fiber network’s reach. Looking ahead, AT&T has set a target to extend its fiber network to over 50 million locations by 2029.
AT&T Focuses on Wireless Growth
Turning to its wireless offerings, AT&T’s unlimited plans—featuring benefits such as increased hotspot data—have fueled stronger-than-expected subscriber growth in the third quarter. With its focus on mobility, the company is also planning to modernize its 5G network by 2027, with mid-band 5G expected to cover over 300 million people by late 2026.
AT&T Issues Long Term Outlook
On the financial front, AT&T has set its sights on returning more than $40 billion to shareholders over the next three years through dividends and share repurchases. In addition, the company expects annual capital investments to remain steady at around $22 billion from 2025 to 2027.
Moreover, AT&T raised its FY24 adjusted earnings forecast to a range of $2.20 to $2.25 per share, slightly higher than its previous forecast of $2.15 to $2.25 per share.
From 2025 to 2027, AT&T projects annual service revenue growth in the low-single-digit range, excluding its 70% stake in DirecTV, which is being sold to TPG for $7.6 billion.
What Is the Price Target for T?
Analysts remain cautiously optimistic about AT&T stock, with a Moderate Buy consensus rating based on nine Buys and four Holds. Over the past year, T has increased by more than 40%, and the average T price target of $24.15 implies an upside potential of 6.4% from current levels.
