AT&T’s fourth quarter saw a positive market reaction, as the company outperformed Wall Street expectations on both revenue and profit. Management credited continued growth in 5G and fiber subscribers, noting that postpaid phone and fiber net additions each surpassed one million for the year. CEO John Stankey emphasized that investments in advanced connectivity, particularly the expansion of fiber and fixed wireless offerings, were key contributors to customer gains. Stankey noted, “The result of this operating momentum was the best year for consumer broadband subscriber growth in a decade.”

Is now the time to buy T? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From AT&T’s Q4 Earnings Call

• John Hodulik (UBS) asked about the long-term target for the fiber convergence rate and whether AT&T can achieve similar penetration in the newly acquired Lumen footprint. CEO John Stankey stated the target is at least 50%, with further upside possible, and expects gradual improvement as bundled offerings expand.
• Benjamin Swinburne (Morgan Stanley) inquired about AT&T’s spectrum investment strategy and the potential impact of new device launches like a foldable iPhone. Stankey explained the company has reserved capacity for strategic spectrum investments and does not anticipate major shifts in customer demand from new form factors.
• Peter Supino (Wolfe Research) questioned the outlook for fiber pricing and the sustainability of fixed wireless access (FWA) growth as DSL customers transition off legacy networks. Stankey noted AT&T’s fiber pricing flexibility relative to cable competitors and indicated FWA can bridge gaps prior to fiber availability without major supply-demand concerns.
• Michael Rollins (Citi) asked about macro factors affecting postpaid phone growth and how AT&T is responding to competitive promotions. COO Jeff McElfresh highlighted opportunities in underpenetrated segments and affirmed the convergence strategy as the primary growth lever.
• Sebastiano Petti (JPMorgan) requested clarity on seasonality and distribution changes as fiber build accelerates. Stankey and McElfresh confirmed ongoing seasonality in broadband growth, with the Lumen acquisition introducing a ramp period as distribution and operational integration scale up.

Catalysts in Upcoming Quarters

Looking to the coming quarters, the StockStory team will be monitoring (1) the pace of fiber buildout and successful integration of Lumen assets, (2) improvements in convergence rates and the ability to upsell combined wireless-fiber packages, and (3) the realization of targeted cost savings and the impact of digital initiatives on operating margins. Additionally, any shifts in competitive pricing or promotional activity could influence customer acquisition and retention trends.

AT&T currently trades at $26.79, up from $23 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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