AT&T Inc.'s stock surged 5.74% in pre-market trading, following the release of its fourth-quarter 2025 financial results and an optimistic annual profit forecast that exceeded market expectations.

The telecommunications giant reported adjusted earnings per share of $0.52 for the quarter, beating the Ibes estimate of $0.46. Revenue came in at $33.5 billion, also above the estimated $32.87 billion. The company's performance was driven by robust growth in converged fiber and 5G customers, adding 421,000 net monthly bill-paying wireless phone subscribers and 283,000 fiber customers in the period.

AT&T forecast adjusted profit between $2.25 and $2.35 per share for 2026, surpassing the consensus estimate of $2.21. This bullish outlook is anchored by the company's infrastructure push, including a nearly $6 billion purchase of Lumen's consumer fiber business and a $23 billion acquisition of EchoStar's spectrum licenses. These deals are expected to close early this year, helping AT&T attract customers with faster internet speeds and improved mobile coverage. Additionally, the company provided strong free cash flow guidance for 2028 of over $21 billion and plans to return more than $45 billion to shareholders through dividends and share repurchases during 2026-2028.