AT&T Inc (NYSE:T, ETR:SOBA) has said it expects free cash flow to exceed the $28 billion mark come 2027 as plans were laid out to ramp up its fiber rollout and boost shareholder rewards.
Aims were to double fiber availability to 50 million households across America by 2029, AT&T said ahead of its investor day on Tuesday.
Free cash flow would be boosted to $28 billion on the back of the growth, AT&T said, leaving it eyeing over $40 billion in shareholder returns over the coming three years.
Some $20 billion would be returned through buybacks, of which half had already been authorised to be carried out by the end of 2026.
“Over the last four years, we've achieved durable and profitable subscriber growth, generated attractive returns on network investment, and strengthened our balance sheet,” chief executive John Stankey commented.
“We're putting customers first to become the best connectivity provider in America.”
Guidance was also laid out for adjusted pre-tax earnings growth of 3% “or better” between 2025 and 2028 and low-single-digit consolidated service revenue improvement in the meantime.
“With this bold strategy, we are entering a new era of sustained growth at AT&T,” Stankey added.
Shares jumped 4.5% to $23.72 on Tuesday.