Our investments in Fiber and 5G – both organically and through acquisitions – have positioned us to accelerate and scale the execution of our converged strategy in 2025.
• With Fiber, we'll do this in our traditional operating region, in acquired geographies from Lumen and with Gigapower. By the end of 2026, we expect to reach over 30 million Fiber customer locations, up from 25 million locations at the end of 2025. This puts us well ahead of the competition, and on target to reach more than 30 million total Fiber locations by the end of 2027.
• And, with a base of more than 100 million total Fiber subscribers growing at a pace of over 2 million customers per year, we still have plenty of runway to grow this durable franchise.
• We’re also progressing on our vision to deliver always-on connectivity. In 2026, we plan to offer select AT&T customers, and public safety on FirstNet, beta satellite service through our work with AST SpaceMobile.
Putting Customers First
In 2025, we set a new precedent by launching the AT&T Guarantee, the first and only guarantee that covers both wireless and Fiber networks.
With the industry’s best assets, we’re offering more customers what they want – the ability to purchase all their connectivity from one trusted provider.
• Our converged customers remain our most valuable. They display lower churn and a propensity to take higher Internet speeds, attach more wireless lines and stay with us longer.
• Growing our converged subscriber base helps us drive higher service revenue growth and deliver our long-term financial guidance.
• As we’ve expanded our converged opportunity and the AT&T Guarantee, our brand affinity has strengthened. Brand love for AT&T has improved across every customer segment and every product. Additionally, AT&T had the highest Net Promoter Score amongst converged customers.
Our converged strategy is a winning play, and these results give us confidence we are on the right track. Today, we’re able to reach over 50 million customer locations with advanced Internet services – through Fiber or 5G. This will only increase over the next several years. Through the execution of our converged strategy, we expect to materially improve share in home Internet and wireless.
Focusing on Execution. Efficient Operations.
As good stewards of your capital, we’re always looking to reduce costs – allowing us to invest in future growth.
• In 2025, we achieved over $6 billion of cost savings. We plan to achieve an additional $2 billion in annual cost savings by the end of 2027 as we leverage AI, move more customer transactions to digital experiences, and achieve greater operating leverage from a growing customer base.
• Smart policies from FCC Chair Brendan Carr and his team have enabled us to accelerate our copper-based legacy network shutdown. In 2025, we fully powered down our first wire center. We have approval to discontinue copper-based services in more than 75% of our wireline centers by the end of 2026, and we’re on track to shut down a large majority of our copper-based services by the end of 2027.
We returned over $12B to our shareholders through dividends and buybacks. This was more than a 50% increase from 2024.
As we transition to future-focused technologies, we’re lowering operating costs and giving more customers advanced connectivity on a more efficient Fiber and 5G network. The collective benefits of these cost-savings efforts are also showing up in our results, including improving consolidated adjusted EBITDA margins.
Winning Capital Allocation. Strategic Outlook
In 2025, we delivered on all the capital allocation commitments we set at the beginning of 2025!
• With full-year capital investment of $24 billion, we continued our industry-leading Fiber expansion efforts and worked to provide even better, more reliable wireless coverage.
• A strong balance sheet remained a key focus with AT&T reaching the target range of 2.5x net debt-to-adjusted EBITDA in the first half of 2025!
• We also expanded capital returns by implementing a share repurchase program. We returned over $12 billion to our shareholders through dividends and buybacks. This was more than a 50% increase from 2024.
Over the past five years, we’ve significantly evolved how we talk about our company, and in the first quarter of 2026, we plan to adopt a new segment reporting structure with three financial reporting segments: Advanced Connectivity, Legacy and Latin America. We believe this change reflects the company we have become and where our industry is headed.
The goal of this new structure is to show you, our shareholders, greater transparency into the returns we are generating on our growth investments in Fiber and 5G, and how we’re advancing with our legacy shutdown.
Overall, we remain on track to deliver ambitious multi-year growth targets and financial commitments. We believe we’re positioned to drive improved growth now and well into the future.
• From 2026-2027, we expect leading investments in 5G and Fiber to deliver strong returns and drive accelerated growth in adjusted EBITDA, double-digit adjusted EPS growth, and strong free cash flow.
• Our three-year outlook also includes plans for greater shareholder returns. From 2026-2027, we anticipate $15 billion-plus in shareholder returns thanks to an attractive dividend and share repurchases.
• We’re confident that we’ll lead our industry in advanced connectivity service revenue and adjusted EBITDA by the end of the decade.
Bringing Internet to More People
As we enter the next era of connectivity, we remain focused on playing our part in ensuring every American has access to reliable, high-speed Internet. We’re proud to offer vital communications services that communities and first responders – through FirstNet – rely on across the United States.
AT&T is dedicated to doing its part to help close the digital divide. We committed a total of $2 billion to help more people get and stay connected from 2020-2024. Overall, progress is being made. The latest data shows that fewer than 4 million U.S. households remain without Internet access. This achievement is due to private sector investment and smart public policy coming together to connect more communities and reduce the rolls of the unconnected by over 50% in four years.
Our three-year outlook: $45B anticipated in shareholder returns – through dividends and share repurchases – from 2025-2027.
It’s clear that leaders across all levels of government recognize the critical role advanced networks play in driving economic growth. Through initiatives like the Federal Government’s BEAD program and pro-investment policies included in the One Big Beautiful Bill, we’re closer than ever to closing the digital divide.
Ultimately, our goal is to make Internet access not only more easily available, but affordable to everyone. To do this, it’s critical that we fix the funding mechanism for the pre-Internet era Universal Service Fund to align with how people connect today. This is the next great play for Congressional policy makers to create a digital future that benefits everyone.
We Are The Best. Thanks To You.
With the best network and telecommunications assets in America, we’re more than ready to lead our industry forward as demand for AI and autonomous technologies grows on top of today’s robust data and voice workloads. Our progress and performance in 2025 only further reinforces this belief.
To Our Customers.
We’ll continue to put you first, always. The AT&T Guarantee is our promise to you. We’d like to thank you for trusting in AT&T as the one provider for all your important connectivity needs.
To Our Current and Past Employees.
We owe the tremendous opportunity ahead of us to you. Providing good jobs and benefits for Americans remains critically important to us. We’re proud to employ the largest unionized workforce in telecom. Our contributions to further fund our pension plans in 2025 only reinforces our commitment to you. Thank you for keeping our country connected.
To Our Shareholders.
We remain committed to the growth objectives we’ve laid out. We fully believe that our assets enable us to lead our industry and accelerate growth in our company. We expect to deliver healthy returns to you while positioning AT&T for a bright future.
Lastly, thank you to our Board of Directors and our talented management team for their continued support.
Sincerely,
John Stankey
Chairman and Chief Executive Officer, AT&T Inc.
February 5, 2026