Shares of AT&T (T +4.65%) popped on Wednesday after the telecommunications titan announced strong subscriber growth metrics.
By the close of trading, AT&T's stock price was up more than 4%.
Image source: AT&T.
AT&T's impressive customer gains
AT&T added 421,000 postpaid phone subscribers, who pay monthly bills and are typically the most profitable customers for wireless companies, in the fourth quarter.
The telecom giant also gained 283,000 fiber subscribers and 221,000 5G fixed wireless home internet customers.
"With new investments in spectrum and fiber, we're set to win more customers in more categories and geographies across the U.S.," CEO John Stankey said in a press release.
NYSE: T
Key Data Points
More people are choosing AT&T as their single, converged provider of connectivity solutions. The company noted that 42% of its fiber households also use its wireless services.
All told, AT&T's revenue rose 3.6% year over year to $33.5 billion. Its adjusted free cash flow, in turn, increased 5% to $4.2 billion.
AT&T intends to return a massive amount of cash to investors
Management sees AT&T's free cash flow rising to over $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028.
The wireless leader plans to use its bountiful cash flow to reward its shareholders with more than $45 billion in dividends and stock buybacks over the next three years.
