AT&T’s (T) shares edged higher on Tuesday after the telco giant added Toyota’s (TM) Lexus luxury vehicle brand to its roster of 5G network partnerships. Both companies are working together to introduce the advanced network coverage to the 2026 redesigned version of the Lexus ES midsize sedan and future Lexus models.
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AT&T to Boost Lexus’ In-Car Entertainment
The partnership builds on the telecommunications company’s October 2025 collaboration with Toyota, a Japanese automaker, to enhance in-car entertainment. As part of the new partnership, AT&T will integrate its 5G network connectivity into the Lexus Interface multimedia system.
“AT&T 5G provides improved speeds for in-car Wi-Fi hotspots, seamless real-time navigation, remote services, and over-the-air updates,” the telco company noted in a statement, adding that the integration will also support a new embedded voice assistant solution in the vehicle.
Earlier this year, the Texas-based company also partnered with another Japanese automaker, Mitsubishi Motors (MMTOF), to introduce its advanced 5G connectivity to the 2026 model of the carmaker’s flagship SUV, Outlander.
AT&T Ramps Up 5G Rollout
The partnership comes as AT&T continues to double down on its 5G rollout, recently deploying the mid-band spectrum acquired from its $23 billion deal with EchoStar (SATS) to further that goal. This is even as the telco company’s advanced connectivity business remains its biggest revenue source.
During AT&T’s first quarter, which ended on March 31, revenue from this segment grew by roughly 5% from a year ago to $28.5 billion. The majority came from its service revenue, that is, AT&T’s earnings from its core growth areas of 5G wireless services and fiber offerings.
Is AT&T a Buy, Sell, or Hold?
On Wall Street, AT&T’s shares remain a Moderate Buy based on analysts’ consensus rating. This breaks down into 15 Buys and six Holds issued by analysts over the past three months.
However, the average T price target of $30.97 implies about 23% upside in the months ahead.
