AT&T’s Strategic Moves and Legal Challenges Ahead of Q4 Earnings Release

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Investors are turning their attention to AT&T as the telecommunications giant prepares to report its fourth-quarter 2025 financial results. The earnings release is scheduled for Wednesday, January 28, before the market opens, followed by a conference call at 8:30 a.m. Eastern Time. The upcoming figures will reflect a complex period marked by significant network investments, new product launches, a major legal settlement, and ongoing labor negotiations.

A cornerstone of AT&T's recent strategy involves aggressive infrastructure development. The company recently announced a milestone in Georgia, having expanded its fiber-optic network to reach two million business and residential customer locations. AT&T cites capital expenditures of nearly $16.9 billion directed toward its wireline and wireless networks between 2020 and 2024. Looking ahead, the company aims to add approximately one million new fiber customer locations annually starting in 2026.

In parallel, AT&T is broadening its service portfolio. Its Connected Spaces IoT solution recently launched on the AWS Marketplace, targeting small and medium-sized businesses with real-time environmental monitoring and streamlined procurement. Furthermore, a collaboration with AST SpaceMobile is underway to introduce beta satellite-based broadband services for select customers and FirstNet users in the first half of 2026.

Legal Settlement and Operational Adjustments

Legal and operational developments are set to impact the financial landscape. In mid-January, a court reviewed a proposed $177 million settlement related to two separate data breaches in 2024 that exposed sensitive customer information, including Social Security numbers. Barring any appeals, payments to eligible customers are expected to commence in the spring of 2026.

On the labor front, negotiations with unions began on January 12. Talks cover the "Legacy T" contracts, affecting roughly 1,800 wireline employees, and the "Mobility Orange" contract, which covers approximately 9,000 workers in retail, call center, and customer service roles.

Customers will also see changes. Effective February 6, the monthly price for a specific 5GB prepaid data plan will increase from $30 to $33, plus taxes and fees. Also in February, AT&T will discontinue the unlimited photo storage feature included in its AT&T Protect Advantage package.

Key Dates for Investors

• Wednesday, January 28: Q4 2025 earnings release and conference call at 8:30 a.m. ET.
• Friday, February 2: Quarterly dividend payment of $0.2775 per common share (record date was January 12).
• Thursday, February 6: Implementation of prepaid price changes and photo storage discontinuation.
• First Half of 2026: Planned beta launch of satellite broadband services with AST SpaceMobile.
• Spring 2026: Anticipated start of settlement payments, pending no legal appeals.

The forthcoming earnings report will provide critical insight into whether the company's substantial network investments and new services are successfully driving revenue and cash flow growth. Equally important will be clarity on the degree to which provisions for the legal settlement and potential increased labor costs have affected the bottom line.