AT&T (NYSE: T) issued a current-year profit forecast that exceeded Wall Street expectations, as the telecom giant pointed to recent strategic transactions aimed at expanding its fiber and wireless infrastructure.

Shares of AT&T climbed more than 5% intraday after the update.

The company's outlook was supported by a $6 billion acquisition of Lumen's consumer fiber operations and a $23 billion purchase of spectrum licenses from EchoStar, which management said would enhance network capacity, improve mobile coverage, and boost broadband speeds. These investments were expected to strengthen AT&T's competitive position as remote work and data-intensive usage continued to rise.

AT&T also emphasized its strategy of offering discounted bundles that combine wireless and fiber broadband services. Beginning in the first quarter, the company said it would report results across three operating segments, including a core domestic 5G and fiber unit that accounted for the majority of 2025 revenue, alongside voice and data services and Latin America.

For fiscal 2026, AT&T projected free cash flow of at least $18 billion, rising to $21 billion by 2028, a level above Wall Street expectations. Adjusted earnings for the current year were forecast in a range of $2.25 to $2.35 per share, compared with a consensus estimate of $2.23.

In the fourth quarter, AT&T posted adjusted earnings of $0.52 per share, beating expectations of $0.46, even as net additions of monthly bill-paying wireless subscribers came in slightly below forecasts. Revenue rose 3.7% year over year to $33.5 billion, exceeding consensus expectations of $32.83 billion.