These Small Caps Just Hit Critical Inflection Levels (From Market Crux)
Why Verizon, AT&T, and T-Mobile Are Beating the Market in 2026 Written by Leo Miller on February 13, 2026 
Key Takeaways - While telecom earnings cycles can feature clear winners and losers, this wasn't the case in Q4.
- The United States' Big Three telecom companies all impressed investors, for one reason or another.
- Still, Verizon delivered a standout performance, massively beating expectations on wireless customer additions.
For U.S. telecom giants, 2026 has gotten off to a great start. As seen below, Verizon Communications (NYSE: VZ), AT&T (NYSE: T), and T-Mobile US (NASDAQ: TMUS) are all handily outperforming the S&P 500 Index. Total returns for 2026 through Feb. 12 close: - Verizon: 23%
- AT&T: 18%
- T-Mobile US: 6%
- S&P 500: 0%
This strength isn’t due to overall gains in the broader communications sector that these companies sit in, either. The Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), a proxy for the sector’s performance, has a -3% total return in 2026. Rather, strong earnings reports from all three companies have contributed significantly to their strong starts to the new year. Three Nobel Prize Winners expose this once-in-a-generation wealth shift:
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Porter Stansberry exposes how the convergence of three immense forces is about to rewrite everything about the American way of life: how you work, save, invest… it's all about to change. Don't be left behind. Click here now. Verizon Sees Best Post-Earnings Gain in Recent Memory Verizon clearly stole the show in telecom with its latest earnings report, released on Jan. 30. Shares popped nearly 12% that day, marking Verizon's largest post-earnings gain in at least ten years. Sales grew by 2%, beating expectations, and adjusted earnings per share (EPS) of $1.09 also came in slightly better than anticipated. However, these modest beats weren’t what primarily drove investor optimism. The company added 616,000 net postpaid wireless subscribers, its highest in the last five years. This is key, as these additions translate into recurring revenue over multiple periods. The figure came in much better than the 417,000 net adds analysts forecasted. The firm’s guidance on this front also impressed. It expects 750,000 to 1,000,000 net additions in 2026, or between two and three times what it added in 2025. Analysts continue to hold mixed views on Verizon, with the consensus price target implying around 1% downside in shares. However, every price target tracked after earnings increased, demonstrating a consensus belief that the firm is moving in the right direction. Furthermore, Verizon has a 5.5% dividend yield, a strong contributor to its return profile. AT&T’s Fiber-Postpaid Convergence Plan Keeps Winning AT&T also impressed with its Q4 2025 earnings, released on Jan. 28. The stock gained 4.6% that day and posted 4% gains in the two following days. Revenue growth of 3.6% surpassed estimates, and adjusted EPS of 52 cents was around 13% better than expected. The company’s 2026 adjusted EPS guidance of $2.25 to $2.35 also exceeded estimates. Net postpaid wireless additions of 421,000 were essentially in line, but AT&T’s “convergence strategy” continues to be an area of strength. Now, 42% of AT&T’s fiber optic home internet customers are also postpaid wireless customers. This is an impressive increase from 40% at the end of 2024, helping increase stickiness among the firm’s customer base. The consensus price target of $29.88 implies only around 4% upside in the stock. However, the two targets released after the company’s report come in substantially higher, averaging $32.50. This figure suggests that shares could rise by a solid 12%. AT&T’s significant 3.8% dividend yield is also a key factor to consider. You don't need fancy software or AI tools to stay ahead — just the right signal before momentum hits. Market Pulse Today tracks a repeating pattern that flashes before select small caps start to move, sending fast, no-fluff alerts with clear breakdowns of why they matter now. Get the next Market Pulse report before it drops in 24 hours Analysts Eye +15% Upside After TMUS’s Q4 2025 Finally, T-Mobile received a solid 5% spike on the day of its Feb. 11 earnings release, and gained another 2.5% the next day. Sales growth near 18% beat estimates. But, the company’s net postpaid wireless subscriber adds of 962,000 fell short, and adjusted EPS of $1.88 also missed. However, T-Mobile announced updates to its long-term outlook that overshadowed the weakness during the quarter. In 2027, the company now sees itself generating $81 billion in service revenue at the midpoint. This is a more than 7% increase versus prior estimates. The midpoint of its adjusted free cash flow estimate for 2027 also moved up over 8% to $20 billion. Over the past year, T-Mobile has seen its share price move down moderately. This has led to a notable divergence between the stock’s price and analyst targets. The consensus target near $256 implies 19% upside in shares. Targets updated after the firm’s report average to nearly the same level. T-Mobile’s 1.9% dividend yield is certainly not as enticing as that of its two competitors, but can still provide a meaningful source of income. VZ, T and TMUS All Walk Away as Winners After Q4 Despite impressing for different reasons, all three of the U.S. telecom giants gave investors reason for optimism in their latest earnings. Looking ahead, Verizon’s turnaround story under its new CEO is particularly intriguing. Read this article online › Further Reading 
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