So, AT&T is getting its fiber act together, and it's doing it faster than expected. On Monday, the telecom giant AT&T Inc. (T) reaffirmed its financial guidance ahead of a major industry conference. The real story, however, is about a deal that closed early and what it means for the company's future.

The Fiber Game Just Got Serious

Remember that plan to buy a chunk of Lumen's fiber business? Well, AT&T didn't just buy it; they closed the deal ahead of schedule back on February 2. This wasn't just a paperwork shuffle. This strategic move to acquire Lumen's Mass Markets fiber business is a big deal for AT&T's connectivity ambitions.

Think of it this way: AT&T just added over 1 million ready-made fiber subscribers to its roster overnight. More importantly, it expanded the company's physical reach to more than 4 million fiber locations. That's a lot of homes and businesses that can now, in theory, get AT&T's high-speed internet.

This acquisition is the key to AT&T's plan to offer more comprehensive connectivity solutions across the U.S. It significantly boosts the company's fiber footprint, allowing it to increase penetration from about 25% to levels more in line with its existing network. The goal? To reach over 40 million fiber locations by the end of 2026, up from 36 million today. And they're not stopping there. The plan is to keep expanding by about 5 million locations every year through the end of the decade.

Guidance: Sticking to the Plan

With this new fiber muscle, AT&T is feeling confident enough to double down on its long-term promises. The company reaffirmed its full-year 2026 target for adjusted earnings per share (EPS) in the range of $2.25 to $2.35. For context, the analyst consensus estimate is sitting at $2.21, so AT&T is guiding above the street's expectations.

But they're playing the long game. The target is a double-digit compound annual growth rate (CAGR) all the way through 2028. On the profitability front, AT&T continues to project adjusted EBITDA growth of 3% to 4% in 2026, with an improvement to 5% or better by 2028. The idea is that gains from their "Advanced Connectivity" services (think fiber and 5G) will more than make up for the slow decline of their older "Legacy" services.

And here's what shareholders really want to hear: AT&T still plans to send more than $45 billion back to them from 2026 to 2028. That money will come through a combination of dividends and stock buybacks. To make all this growth happen, the company also plans to keep the investment taps open, with annual capital spending projected at $23 billion to $24 billion from 2026 through 2028.

There is one financial metric that's expected to take a temporary hit. Following its pending transaction with EchoStar (expected to close in early 2026), AT&T anticipates its net debt-to-adjusted EBITDA ratio will rise to about 3.2 times. The company's immediate goal is to wrestle that ratio back down to around 3 times by the end of 2026, with further reductions planned in the following years.

What's Next? The Earnings Catalyst

With the fiber deal done and guidance locked in, the next major event for AT&T stock is the first-quarter 2026 earnings report, scheduled for April 22. The analyst outlook is setting up for a positive showing:

• EPS Estimate: 55 cents (up from 51 cents a year prior)
• Revenue Estimate: $31.21 billion (up from $30.63 billion)
• Valuation: A price-to-earnings (P/E) ratio of 9.2x, which some analysts see as a value opportunity in the current market

In early trading Tuesday, AT&T shares were up 0.20% at $28.06, according to market data.