AT&T (NYSE:T) 2026 Conference February 24, 2026 08:35 AM ET Company ParticipantsPascal Desroches - CFOConference Call ParticipantsKannan Venkateshwar - Md and Lead AnalystKannan VenkateshwarThank you. Good morning, everyone. I'm Kannan Venkateshwar, and I lead the North American Cable Telecom and Media Research effort here at Barclays. I'm sorry we had to make this event virtual last minute, given all the travel disruptions, but I did want to acknowledge all the work of my corporate access team, who've been ...

Financial Data and Key Metrics Changes - The fourth quarter revenue rose 3.4% in Mexican peso terms to MXN 245 billion, and was up 6.2% at constant exchange rates, with service revenue expanding 5.3% [7][8] - EBITDA increased by 4.2% in Mexican peso terms to MXN 95 billion, and was up 6.9% at constant exchange rates [8] - Net profit for the quarter was MXN 19 billion, which was four times larger than the previous year, equivalent to MXN 0.32 per share or $0.35 per ADR [9] Business Line Data and Key Metrics Changes - The company added 2.5 million wireless subscribers in the quarter, with 2.8 million postpaid net gains and 298,000 prepaid losses, ending December with 331 million wireless subscribers [5][6] - The mobile postpaid base grew by 8.4% year-on-year, while broadband accesses expanded by 5.6% [7] - Fixed line service revenue increased by 3.6% year-over-year, with fixed broadband revenue rising by 6.4% [9] Market Data and Key Metrics Changes - The dollar depreciated against most currencies in the region, declining 2.3% versus the Mexican peso and 5.7% versus the Chilean peso [5] - Brazil led in postpaid net additions with 644,000 subscribers, followed by Colombia with 276,000 and Peru with 148,000 [6] Company Strategy and Development Direction - The company aims to maintain a capital expenditure target of around 14%-15% of revenues, approximately $6.8 billion to $7 billion [15][18] - The management is focused on reducing debt and preparing for potential consolidation opportunities in the region, particularly in small companies or fiber operations [40][41] Management's Comments on Operating Environment and Future Outlook - The management noted that the U.S. government shutdown raised uncertainty about economic activity, impacting employment and economic indicators [4] - The competitive landscape in Latin America is changing, with expectations of further consolidation in the market, which could benefit the company [61][65] Other Important Information - The company reported a nearly 40% year-on-year increase in free cash flow, reaching MXN 82 billion after CapEx of MXN 131 billion [10] - Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks [10] Q&A Session Summary Question: CapEx outlook for 2026 and coming years - The company targets a CapEx of around 14%-15% of revenues, approximately $6.8 billion to $7 billion, for the next few years [15][18] Question: Pre-tax, non-operating expenses - The management acknowledged the increase in non-operating expenses and suggested contacting investor relations for detailed information [22][24] Question: Telefónica's sale of operations in Chile - The company decided not to proceed with a bid for Telefónica's operations due to complexities and regulatory issues, but remains committed to competing in Chile [30][32] Question: Capital allocation strategy - The management emphasized a focus on reducing debt, preparing for M&A opportunities, and returning value to shareholders through buybacks and dividends [40][41] Question: Impact of FX on overall results - The company highlighted the complexity of managing multiple currencies and the importance of constant exchange rates for accurate financial reporting [50][51] Question: Regulatory environment and consolidation in Latin America - The management sees potential for consolidation in the market, which could be beneficial, and noted that asymmetric regulation only exists in Mexico [61][65] Question: Number portability trends in Brazil - The management indicated that both NuCel and strong postpaid operations are contributing to positive number portability trends in Brazil [70][71] Question: Sustainability of broadband growth in Mexico - The management expressed confidence in sustaining broadband growth due to successful promotions and high customer satisfaction with service bundles [78]

Core Viewpoint - Verizon Communications reported a significant increase in postpaid mobile users and revenue growth, indicating a potential turnaround under new CEO Dan Schulman, who is implementing cost-cutting and strategic transformation plans [1][2][4]. Financial Performance - Verizon's Q4 revenue grew by 2% year-over-year, reaching $36.4 billion, slightly exceeding analyst expectations [2][5]. - The company reported earnings per share of $0.55, with adjusted earnings of $1.09, impacted by severance costs from layoffs [6]. - Wireless service revenue, Verizon's largest segment, amounted to $21 billion [5]. User Growth - The company added 616,000 postpaid mobile users in Q4, significantly surpassing the expected 417,000 [2][6]. - Total wireless retail subscribers reached 146.9 million by the end of the quarter [5]. - Verizon also gained 372,000 net broadband users and 319,000 net fixed wireless users during the quarter [3][7]. Strategic Developments - Verizon completed the acquisition of Frontier Communications for $9.6 billion, expanding its fiber network and broadband user base to 16.3 million [3][6]. - The company aims to provide both mobile and home network services as part of its strategy [3]. - Capital expenditures are projected to be between $16 billion and $16.5 billion in 2026, with approximately $17 billion expected in 2025 [7]. Future Outlook - Verizon forecasts a net addition of 750,000 to 1 million postpaid mobile users for the current year [2][6]. - The company expects wireless service revenue to remain stable, while overall mobile and broadband service revenue is anticipated to grow by 2% to 3% [2][6].

Core Viewpoint - Verizon Communications reported solid third-quarter 2025 results, with strong wireless service revenues but missed revenue estimates, leading to questions about future performance [3][6][17]. Financial Performance - Verizon's Q3 2025 net income was $5.06 billion or $1.17 per share, up from $3.41 billion or $0.78 per share year-over-year, driven by top-line growth and lower operating expenses [5]. - Total operating revenues increased by 1.5% to $33.82 billion, but fell short of the consensus estimate of $34.18 billion [6]. - Adjusted earnings were $1.21 per share, beating the Zacks Consensus Estimate by 2 cents [5]. Segment Results - Consumer segment revenues rose 2.9% year-over-year to $26.1 billion, exceeding estimates, with service revenues up 2.1% to $20.34 billion [7]. - Business segment revenues declined 2.8% to $7.14 billion, below estimates, due to lower wholesale and enterprise revenues [10]. Subscriber Growth - Verizon achieved 261,000 net additions in fixed wireless access, bringing the total subscriber base to nearly 5.4 million, on track to meet its 2028 target of 8 to 9 million subscribers [4]. - Wireless retail postpaid churn was 1.12%, with 110,000 wireless retail postpaid net additions in the business segment [8][10]. Operating Metrics - Total operating expenses decreased by 6.2% to $25.72 billion, while operating income improved by 36.8% to $8.1 billion [12]. - Consolidated adjusted EBITDA increased to $12.77 billion, reflecting growth in wireless service revenues [12]. Cash Flow and Guidance - Verizon generated $28 billion in net cash from operating activities for the first nine months of 2025, with free cash flow of $6.96 billion for the quarter [13]. - For 2025, Verizon expects wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2.5%-3.5% [14]. Market Position - Verizon's stock has a subpar Growth Score of D and a strong value score of A, placing it in the top 20% for value investors [16]. - The stock has a Zacks Rank 3 (Hold), indicating an expected in-line return in the coming months [17].

Core Viewpoint - AT&T is identified as the only wireless player with a clear strategic direction according to KeyBanc [1] Group 1 - KeyBanc highlights AT&T's unique position in the wireless industry, suggesting it has a well-defined strategy compared to its competitors [1]

Core Insights - AT&T's growth strategy focuses on acquiring high-value customers who utilize both wireless and fiber services, resulting in significant subscriber growth in the third quarter [1][8] Financial Performance - Earnings per share exceeded analyst expectations, while revenue slightly fell short; however, the company maintained its full-year guidance despite economic challenges [2] - Mobility service revenue is projected to grow by at least 3% for the year, with consumer fiber revenue expected to increase by a mid-to-high-teens percentage, and free cash flow anticipated to exceed $16 billion [2] Subscriber Growth - AT&T added 405,000 net postpaid phone subscribers in the third quarter, surpassing the 401,000 added in the previous quarter [4] - The company gained 288,000 net fiber subscribers, bringing the total to 10.1 million, and 270,000 subscribers for Internet Air, a 5G-powered service [5] Converged Customers - There are now 4.2 million customers using both AT&T's wireless and fiber services, representing 41.5% of the fiber install base, an increase from 39.7% in the same quarter last year [6] Cash Flow and Future Projections - Free cash flow for the quarter was $4.9 billion, up from $4.6 billion year-over-year, with expectations of at least $16 billion for the full year and projections of over $18 billion in 2026 and $19 billion in 2027 [7]

Core Insights - AT&T reported better-than-expected wireless user growth in Q3, driven by bundled plans and promotions around the new iPhone launch [1] - The company added 405,000 postpaid wireless users, surpassing the forecast of 334,100 [1] - AT&T's strategy includes bundling wireless and fiber broadband services, which has reduced customer churn [1] Financial Performance - Q3 device sales increased by 6.1% due to higher smartphone sales [2] - Operating costs in the mobile segment rose by 3.8% due to increased sales of more expensive devices and higher marketing expenses [2] - The wireline business saw a revenue decline of 7.8% due to falling traditional voice and data service revenues [2] - Adjusted earnings per share for Q3 were $0.54, in line with expectations [2] - Total revenue for Q3 grew by 1.7% year-over-year to $30.7 billion, slightly below the expected $30.87 billion [2] Strategic Moves - AT&T announced a significant $23 billion deal to acquire wireless spectrum licenses from EchoStar, aimed at enhancing network capabilities [1]

Core Viewpoint - AT&T reported third-quarter earnings that met Wall Street expectations, with earnings of 54 cents per share and revenue of $30.7 billion, slightly below analyst projections [1][2]. Financial Performance - AT&T's adjusted earnings were 54 cents per share, unchanged from the previous year, while revenue increased by 1.6% to $30.7 billion [1][2]. - Analysts had anticipated earnings of 54 cents per share on revenue of $30.87 billion [2]. - The company reported free cash flow of $4.9 billion, exceeding estimates of $4.8 billion, which supports its dividend [4]. Subscriber Growth - AT&T added 405,000 postpaid wireless phone customers during the quarter, surpassing estimates of 334,000 [2]. - The company also gained 270,000 fiber internet customers, slightly above the estimate of 267,000 [4]. - A year earlier, AT&T added 403,000 postpaid phone subscribers [2]. Stock Market Reaction - Following the earnings report, AT&T stock rose by 1% to $26.30 in early trading, with shares up 14% in 2025 prior to the report [3]. - Despite the increase, the stock remains below its 50-day and 200-day moving averages [3]. Strategic Focus - AT&T is refocusing on "convergence," which involves selling landline broadband and wireless services in bundled products [4]. - Competition with cable TV firms is expected to intensify in 2026 [4].

Core Viewpoint - Analysts project that Rogers Communication (RCI) will report quarterly earnings of $0.92 per share, reflecting an 11.5% decline year over year, with revenues expected to reach $3.84 billion, a 2.1% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 0.7%, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Metrics Forecast - Analysts estimate 'Wireless Subscriber - Postpaid mobile phone - Gross additions' at 378.29 thousand, down from 459.00 thousand in the same quarter last year [5]. - The 'Home Phone - Total Home Phone Subscriber' is expected to reach 1.43 million, compared to 1.53 million a year ago [5]. - The estimate for 'Wireless Subscriber - Total Postpaid mobile phone subscribers' is 10.93 million, slightly up from 10.70 million in the same quarter last year [6]. - For 'Wireless Subscriber - Prepaid mobile phone - Gross additions', the consensus stands at 165.01 thousand, down from 185.00 thousand in the previous year [6]. - 'Wireless Subscriber - Prepaid mobile phone - Net additions' is projected at 52.91 thousand, compared to 93.00 thousand last year [7]. - The estimate for 'Cable Subscriber - Homes passed' is 10.41 million, up from 10.15 million a year ago [8]. - Analysts expect 'Cable Subscriber - Net additions' to be 9.78 thousand, down from 13.00 thousand last year [8]. - 'Cable Subscriber - Total Customer Relationships' is forecasted to reach 4.83 million, compared to 4.67 million last year [9]. - 'Retail Internet - Net Additions' is expected at 22.51 thousand, down from 33.00 thousand in the same quarter last year [9]. - 'Retail Internet - Total Retail Internet Subscribers' is projected to be 4.47 million, compared to 4.25 million last year [10]. - 'Video - Total Video Subscriber' is expected to reach 2.54 million, down from 2.65 million a year ago [10]. Stock Performance - Shares of Rogers Communication have increased by 4.4% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 1.2% [11]. - With a Zacks Rank of 4 (Sell), RCI is anticipated to underperform the overall market in the near future [11].

Group 1 - T-Mobile is expected to continue leading the industry in user growth and revenue due to its extensive 5G coverage and strong mid-band spectrum [1][2] - Wells Fargo upgraded T-Mobile's stock rating from "hold" to "overweight," citing its strategic advantage in wireless network performance compared to competitors [1] - The valuation premium of T-Mobile compared to AT&T and Verizon has narrowed, indicating stronger potential for T-Mobile to outperform its rivals [1] Group 2 - Verizon's stock is expected to remain in a certain range until the new CEO Dan Schulman clarifies the strategic direction [1] - Verizon faces ongoing challenges, including a net loss of consumer mobile subscribers in Q3, and EBITDA estimates may decline due to increased promotional efforts in Q4 [1] - T-Mobile is projected to maintain its lead in postpaid user growth over the next few years, surpassing its three main competitors [2]