AT&T reported approximately $3.8 billion in net income in the fourth quarter, with year-over-year results affected by the sale of its stake in DIRECTV, which eliminated equity earnings in prior periods. Even so, management’s forward outlook continues to center on wireless network modernization and spectrum deployment—a posture likely to support steady macro-tower modification and integration work rather than a broad new-build cycle.
AT&T’s fourth-quarter results and conference call yesterday were marketed as a fiber-and-convergence story. Still, the call also contained several macro-tower tells: continued wireless network modernization, spectrum deployment, and a multi-year service-revenue growth outlook that can’t be delivered without sustained macro performance.
CEO John Stankey framed AT&T’s strategy as a durable blend of fiber and wireless, calling the convergence model “a winning play both structurally and in the market.” For tower owners and contractors, the key isn’t the slogan—it’s what it implies operationally: more traffic concentration in fiber-rich footprints, more midband loading, and continued pressure to keep macro sites performing at a high level.
In a passage that speaks directly to tower activity, Stankey said that while AT&T will remain “fiber first,” its “investments in wireless network modernization and spectrum materially expand” its ability to serve customers (including fixed wireless) where fiber isn’t present. That’s a plain-language reminder that AT&T still needs macro capacity and coverage as a primary delivery mechanism—even when fiber is the preferred pipe.
CFO Pascal Desroches reinforced the timeline and the investment cadence by tying long-term service growth to the modernization program and spectrum deployment. He reiterated the company’s expectation of 2%–3% annual growth in wireless service revenue over the next three years and explicitly linked home-internet growth to “5G network modernization” and continued spectrum deployment from the EchoStar transaction.
AT&T also leaned into capital intensity messaging—important for forecasting whether tower work is likely to be episodic or sustained. Stankey said AT&T has been investing “at the top of our industry” and expects that to continue under its outlook through 2028, while projecting capital intensity steps down as major projects near completion.
Bottom line for macro towers: AT&T’s headline emphasis may be fiber, but the call language points to continued macro site modernization—more like measured, necessity-driven upgrades than a broad greenfield cycle.
Contractor-focused impact summary
What’s most likely to show up in the field (near- to mid-term):
- Amendments/mods tied to modernization: radio swaps, baseband changes, antenna re-works, and optimization passes as AT&T pushes “5G network modernization” and spectrum deployment.
- Structural work where loading increases: reinforcement, mounts, platform steel, and occasional top work as spectrum deployment matures and sectors get reconfigured.
- Backhaul/power touch labor at macro sites: fiber-fed doesn’t mean “no tower work”—it often means more integration and coordination at the site level.
- More work in converged footprints: AT&T says its postpaid share is materially higher where it has fiber, which generally correlates with heavier utilization and more upgrade cycles at nearby macros.
- How to translate this into forecasting: Expect more “steady drumbeat” mod activity than a surge of new tower starts. Contractors positioned for integration, structural, and closeout work (not just civil) are best aligned with what AT&T communicated.
Comparison with Verizon’s outlook
Verizon’s most recent reporting period (3Q 2025) signals a similar “steady investment” posture, but with a different emphasis and cadence than AT&T’s fiber-forward narrative.
Profitability and cash generation (room to spend): Verizon reported $5.1B net income in 3Q 2025 —strong enough to keep network investment plans intact.
Capex guidance (macro relevance): Verizon reiterated 2025 capex of $17.5B–$18.5B, stating it expects to land “within or below” that range. This is the type of guidance that usually supports ongoing macro mods rather than a sharp pullback.
Service revenue growth frame: Verizon guided 2.0%–2.8% wireless service revenue growth for the year. That’s broadly in the same neighborhood as AT&T’s 2%–3% multi-year wireless service revenue growth outlook.
Management tone: Verizon’s CEO, Dan Schulman, positioned his agenda as “bold and fiscally responsible,” highlighting cost structure and execution rather than a fiber land grab.
AT&T is telling Wall Street “fiber + convergence,” but still anchoring outcomes to modernization and spectrum on the macro layer; Verizon is telegraphing disciplined, steady capex and service-revenue growth targets that also tend to support continued macro mod work, even if neither carrier is pitching a classic build boom.
