AT&T Q1'26 earnings beat, FCF margin 13.7% LTM, $45B returns plan
Key Questions
What were AT&T's Q1'26 earnings results?
AT&T beat expectations with EPS of $0.57, up 11.76% YoY, and revenue of $31.51B. Free cash flow reached $2.51B with a 13.7% LTM margin.
What is AT&T's shareholder return plan through 2028?
The company reaffirmed plans to return over $45B to shareholders from 2026 to 2028 via dividends and buybacks. This is supported by fiber and 5G investments.
What is AT&T's current dividend and yield?
AT&T pays a quarterly dividend of $0.2775, yielding 4.45%. The payout remains a key focus for income investors.
What guidance did AT&T provide for Q2 and full-year 2026?
AT&T reaffirmed full-year guidance and expects Q2 free cash flow of $4.0-4.5B. It also projects improved EBITDA and EPS growth beyond 2026.
How did Scotiabank respond to AT&T's results?
Scotiabank raised its price target to $29 while maintaining an Outperform rating. The upgrade reflects confidence in AT&T's cash flow and returns outlook.
What long-term financial outlook did CEO John Stankey confirm?
Stankey reaffirmed expectations for EBITDA and EPS growth starting in 2026. Higher free cash flow will support the $45B+ capital return program.
How is AT&T's valuation viewed after the earnings report?
Analysts see the stock as attractive given its dividend yield and buyback potential. Fair value estimates range widely depending on growth assumptions.
What analyst commentary supports AT&T as a long-term value stock?
JP Morgan and others continue to rank AT&T as a top pick due to stable cash flows and shareholder returns. Zacks and similar services highlight its income appeal.
Beat EPS $0.57 (+11.76% YoY)/rev $31.51B; FCF $2.51B, $18B guide. Reaffirmed guidance + Q2 FCF $4.0-4.5B. CEO reaffirms 2026+ EBITDA/EPS growth + $45B+ returns via fiber/5G. $0.2775 dividend (4.45% yield). Scotiabank raises PT to $29/Outperform.