Telecommunications giant AT&T (T) kicked off the earnings season with a strong performance, reporting adjusted earnings per share (EPS) of $0.52 for the fourth quarter of 2025, comfortably beating the estimated $0.46. Revenue for the quarter also exceeded expectations, coming in at $33.5 billion against an estimated $32.83 billion. The company saw solid subscriber growth, adding 641,000 wireless postpaid net additions, including 421,000 wireless postpaid phone net additions.
Looking ahead, AT&T provided an optimistic outlook for 2026, projecting adjusted EPS in the range of $2.25 to $2.35, surpassing analyst estimates of $2.23 to $2.21. The company anticipates annual service revenue growth in the low-single-digit range from 2026 to 2028. Furthermore, AT&T expects to generate over $18 billion in free cash flow in 2026.
In a significant commitment to shareholder returns, AT&T announced plans to return more than $45 billion to shareholders between 2026 and 2028 through a combination of dividends and share repurchases. This includes an expected $8 billion in common stock repurchases during 2026 alone, while the company intends to maintain its current annualized common stock dividend of $1.11 per share. The company also outlined capital investments in the $23 billion to $24 billion range annually during 2026-2028 and plans to revise its operating segments starting from Q1 2026.
In other corporate news, GE Vernova (GEV) delivered a strong fourth quarter, with revenues reaching $10.96 billion, outperforming the estimated $10.27 billion. The company reported net income of $3.67 billion, which included a $2.9 billion tax benefit, and an EPS of $13.39.
GE Vernova also significantly boosted its financial outlook for 2026, now expecting revenues between $44 billion and $45 billion, an increase from its previous projection of $41 billion to $42 billion. Adjusted free cash flow for 2026 is also anticipated to be stronger, in the range of $5 billion to $5.5 billion, up from the earlier $4.5 billion to $5 billion. This positive revision is partly attributed to the impact of the Prolec GE deal. The company's gas backlog and slot deals grew to 83 GW from 62 GW, and it expects a low-teens revenue CAGR from 2025 to 2028. However, GE Vernova anticipates EBITDA losses of $300 million to $400 million in its Wind segment during the first quarter.
Separately, the €1.6 trillion overhaul of the Dutch pensions system is reportedly facing unexpected market dynamics, with its implementation not aligning with initial investor expectations. The transition to the new system, which began in July 2023, aims to reduce intergenerational differences and better suit the modern labor market, with many pensions expected to transfer to the new system by January 2026.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.