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Big spend, bigger signal
AT&T just announced a $19 billion plan to expand its fiber and wireless footprint across California through 2030. That’s not a dabble-that’s-a-decade kind of check. The company says this is its biggest-ever infrastructure buildout in the state, and it comes with a not-so-subtle message: the old copper era is getting escorted off the stage.
The new ‘Build-A-Plan’ era
On top of the California capex splash, AT&T rolled out “Build-A-Plan,” a customizable wireless setup that starts at $15 per month on May 27. Translation: instead of forcing everyone into a one-size-fits-all bucket, AT&T wants to let customers tweak their plan month to month like they’re adjusting a streaming subscription.
That matters because telecom is basically a knife fight over churn. If AT&T can make the service feel more flexible without torching margins, that’s a cleaner pitch to customers than “please stay because we said so.”
Why investors are watching
The company also used the moment to reaffirm its medium-term outlook, including:
- low-single-digit annual service revenue growth for 2026–2028
- adjusted EBITDA growth of 3% to 4% in 2026, improving to 5%+ by 2028
- adjusted EPS of $2.25 to $2.35 in 2026
- annual free cash flow targets climbing from $18B+ in 2026 to $21B+ in 2028
Last month’s earnings already gave the bulls something to chew on: revenue came in at $31.51 billion, ahead of estimates, and adjusted EPS landed at 57 cents versus 55 cents expected. So this announcement is less “new story” and more “here’s the next chapter, and yes, we’re still buying the same plot.”
Big picture: AT&T is trying to sell investors a combo meal of growth, fiber, and discipline. If the buildout pays off, the stock gets a stronger long-term case; if not, you’re left with a very expensive cable trench.