AT&T Inc. (NYSE: T) stated that it is rolling out "Build-A-Plan," a customizable wireless setup that lets customers adjust their plan month to month based on budget and needs, leaning into the idea of flexibility rather than fixed tiers. Starting May 27, Build-A-Plan customers will be able to access America's largest wireless network starting at $15 per month.
They will have the flexibility to modify their plan on a monthly basis to better align with their budget, lifestyle, and connectivity requirements.
Investment In California
Also, on Thursday, the company disclosed a $19 billion investment plan to expand its fiber and wireless networks across California through 2030.
The company said recent changes in federal policy enabling faster network modernization have allowed it to commit its largest-ever infrastructure buildout in the state.
AT&T also plans to invest an additional $3 billion over 2026-2030 versus the prior five-year period, bringing total California network investment to about $35 billion over 2021-2030.
This investment aims to enhance high-speed connectivity across the state, supporting advancements in technology and infrastructure, which could contribute to the stock's positive movement.
AT&T's commitment includes transitioning from outdated copper infrastructure to fiber and wireless technologies, with plans to create jobs and ensure reliable service for customers.
The investment aligns with AT&T's broader goal of expanding its U.S. fiber footprint to more than 60 million locations by the end of 2030.
Guidance Reaffirmed
Following the investment announcement, the company reiterated its 2026 and multi-year outlook.
For 2026-2028, the company sees low-single-digit annual service revenue growth. The company expects adjusted EBITDA growth of 3% to 4% in 2026, then sees that improving to 5% or better by 2028 as gains in Advanced Connectivity more than offset declines in Legacy.
AT&T projects adjusted EPS of $2.25 to $2.35 in 2026 (versus an analyst consensus estimate of $2.29) and a double-digit three-year CAGR through 2028.
The company expects annual capital spending of $23-$24 billion from 2026 to 2028 and free cash flow targets of $18B+ in 2026, $19B+ in 2027, and $21B+ in 2028.
By segment, Advanced Connectivity service revenue is projected to grow at a mid-single-digit pace annually, including 5%+ growth in 2026, while EBITDA from this segment is expected to rise at a mid-to-high single-digit rate, including 6%+ growth in 2026. Legacy services are expected to continue declining, with revenue projected to fall by more than 20% in 2026.
Earnings Snapshot
Last month, the telecom giant reported operating revenues of $31.51 billion, a 2.9% increase from the same period last year, beating the analyst consensus estimate of $31.25 billion. Adjusted earnings per share stood at 57 cents, topping the analyst consensus estimate of 55 cents.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $29.75. Recent analyst moves include:
- RBC Capital: Outperform (Maintains Target to $31.00) (May 20)
- BNP Paribas: Neutral (Lowers Target to $26.00) (April 23)
- Scotiabank: Sector Perform (Lowers Target to $31.00) (April 23)
- State Street Communication Services Select Sector SPDR ETF (NYSE: XLC): 5.15% Weight
- Fidelity MSCI Communication Services Index ETF (NYSE: FCOM): 4.82% Weight
- iShares Global Comm Services ETF (NYSE: IXP): 5.07% Weight