New York, Feb 19, 2026, 08:36 EST — Premarket
- AT&T slipped roughly 0.1% ahead of the bell, following Wednesday’s 2.8% drop.
- AT&T is facing a lawsuit from New York City pension funds, which are pushing the telecom giant to disclose more about its workforce diversity after their shareholder proposal was rejected.
- Investors now turn their focus to a round of management appearances at investor conferences kicking off Feb. 24.
AT&T slipped about 0.1% to $27.86 before the bell Thursday, following a lawsuit by New York City pension funds over a rejected shareholder proposal concerning workforce diversity disclosures. 1
On Tuesday, the funds took their case to Manhattan federal court, trying to compel AT&T to put a shareholder proposal on the 2026 annual meeting ballot—one that would require the company to report workforce breakdowns by race, ethnicity, and gender. AT&T, according to Reuters, had cited a Securities and Exchange Commission policy shift that allows firms to leave out proposals if there’s a “reasonable basis.” The company didn’t respond right away to a request for comment. 2
The case lands right in the thick of proxy season, with heavyweight investors pressing boards over ballot decisions—what gets included, what doesn’t. AT&T, for its part, announced plans to webcast fireside chats featuring CFO Pascal Desroches and COO Jeff McElfresh at a string of investor conferences. The company also stuck to the 2026 targets and longer-term capital return plans it outlined back on its fourth-quarter earnings call. 3
AT&T shares dropped 2.79% to $27.88 on Wednesday, logging a third consecutive loss despite a higher S&P 500 finish. MarketWatch data showed trading volume lagged the 50-day average. 4
Management has aimed to keep the focus on fiber expansion and wireless momentum. Back in late January, the company projected 2026 adjusted profit topping expectations, banking on hefty fiber and spectrum agreements. 5
This week, a U.S. securities filing revealed CEO John Stankey converted 65,128 restricted stock units—an equity award that becomes common stock when vested—into shares. He then sold 24,098 of those shares at $28.80 apiece to cover tax withholding. After everything, Stankey reported a direct holding of 199,244 shares, according to the filing. 6
Insider tax-withholding sales usually get a different read from open-market trades. Still, the timing here stands out, arriving just as the stock pulls back from its recent highs.
The real test is if this lawsuit turns into something more than just a governance skirmish. Should the court act fast—or if more investors rally with the pension funds—management could find itself forced into a public showdown right as annual meetings approach.
Even so, AT&T might come out on top, or the whole thing could just fizzle with a vote that doesn’t draw much backing from shareholders. Stretching the legal fight would muddy the waters further, making it tough to tie any stock swings to what’s actually happening with the business.
Traders watching for executive commentary have their eyes on Desroches, who’s set to speak at the Barclays Communications and Content Symposium on Feb. 24, 8:35 a.m. ET. McElfresh follows a week later at Morgan Stanley’s Tech, Media & Telecom conference, March 3. The New York court filings remain another unpredictable factor right now.
