3 Telecommunication Stocks Positioned to Outperform AT&T in 2026 Growth Race

The telecommunication sector is entering a transformational phase, riding on accelerated 5G deployment and expanding fiber networks across global markets. While legacy carriers like AT&T struggle with declining traditional services, a new wave of infrastructure-focused telecommunication stocks are capturing the growth momentum.

Why The Telecom Landscape Is Shifting

The 2025 telecom market has been buoyed by robust demand for network infrastructure supporting the IoT revolution. 5G networks, with their ultra-fast speeds and minimal latency, are becoming the backbone for emerging technologies—autonomous vehicles, augmented reality platforms, smart city systems, and AI-powered enterprise solutions. This shift is fundamentally different from previous technology cycles: operators are no longer just offering connectivity; they’re building intelligent infrastructure that enables entire digital ecosystems.

Fiber networks have become equally critical. As operators densify fiber coverage, they’re creating the foundation for small cell deployment, which brings connectivity closer to end-users. This dual approach—5G + fiber—creates a powerful synergy that legacy carriers can’t easily replicate.

The AT&T Problem: Margin Compression & Debt Burden

AT&T represents the old playbook in telecommunication stocks. The company faces relentless headwinds: wireline revenue declines due to VoIP competition, erosion in broadband margins from DSL legacy systems, and aggressive price competition from cable operators offering bundled triple-play services. As AT&T counters with discounts and promotional credits, profitability deteriorates.

The balance sheet tells a cautionary tale. As of Q3 2025, AT&T held $20.27 billion in cash against $128.09 billion in long-term debt—a debt burden that expanded significantly quarter-over-quarter. The company’s current ratio of 1.01 and cash ratio of 0.38 signal potential liquidity constraints for near-term obligations. These metrics underscore why savvy investors are exploring alternative telecommunication stocks with stronger growth vectors.

Three Next-Generation Telecom Players Worth Your Attention

Ericsson (ERIC): The 5G Infrastructure Powerhouse

Ericsson has positioned itself as the global leader in 5G infrastructure, operating 194 live 5G networks spanning 82 countries. The company’s strategic focus extends beyond hardware—it’s architecting the software and ecosystem that enables next-generation services.

A recent innovation exemplifies this approach: Ericsson introduced on-demand network slicing for Android 14 devices, allowing developers to optimize application performance while enabling service providers to customize network connectivity by use case. This represents a fundamental shift in how networks are provisioned.

Production scaling at Ericsson’s automated 5G facility in Lewisville, Texas—powered entirely by renewable energy—demonstrates the company’s commitment to meeting surging 5G equipment demand. The facility manufactures next-generation 5G radios and Advanced Antenna Systems specifically optimized for North American carriers.

From a valuation perspective, earnings estimates have surged 50% for the current fiscal year and 6.9% for the next since December 2024. The stock has appreciated 20.6% over the past 12 months, supported by long-term earnings growth expectations of 8.4%.

CommScope (COMM): Fiber & Backhaul Innovation

CommScope has made strategic moves to dominate next-generation network access solutions. The acquisition of Casa Systems’ cable business assets strengthened its portfolio in virtual CMTS and Passive Optical Network (PON) technologies—essential components for cloud-native network deployments.

The company’s latest product launch—the HX6-611-6WH/B antenna—exemplifies its innovation trajectory. This microwave backhaul solution operates across 6 GHz and 11 GHz bands, delivering long-haul connectivity that enables mobile network operators to handle exploding data traffic. As network operators upgrade infrastructure, demand for such high-performance solutions accelerates.

CommScope’s fundamentals reflect this momentum: earnings estimates have jumped 358.3% for the current year and 68.2% for the next since December 2024. The stock has surged 193.7% over the past year. With long-term earnings growth expectations of 13.5%, CommScope stands apart among telecommunication stocks for its explosive trajectory.

Viavi Solutions (VIAV): Testing & Monitoring Infrastructure

While Ericsson and CommScope focus on network build-out, Viavi Solutions addresses a critical but often overlooked need: network testing, monitoring, and optimization. The company provides end-to-end visibility into complex physical and virtual networks—essential as carriers deploy intricate 5G and fiber architectures.

Viavi operates in a multi-year investment cycle driven by the 5G transition. As OEMs and service providers upgrade to superfast networks, demand for Viavi’s wireless and fiber test solutions strengthens. The company’s high-performance optical coatings extend its addressable market into 3D sensing, automotive, and defense applications.

The company expects growth to be propelled by secular tailwinds in 5G wireless, fiber expansion, and 3D sensing adoption. Earnings estimates have risen 28.8% for the current year and 26.7% for the next. The stock has gained 71.2% over 12 months, with long-term earnings growth expectations of 22.1%.

The Strategic Takeaway

The telecommunication stocks landscape is cleaving into two categories: legacy carriers struggling with declining services and high debt, versus infrastructure-focused players capturing the 5G and fiber build-out wave. Ericsson, CommScope, and Viavi Solutions represent the latter cohort—companies positioned to benefit from structural shifts reshaping global telecommunications. Rather than betting on AT&T’s margin compression, investors should consider where the actual growth is occurring: in the infrastructure enabling the next decade of digital transformation.