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AT&T (T)
NYSE:T
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AT&T (T) AI Stock Analysis

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T

AT&T

(NYSE:T)

Rating:68Neutral
Price Target:
$30.00
▲(7.14%Upside)
AT&T's overall score is driven by strong financial performance and strategic corporate events. While technicals are stable and valuation is appealing, challenges in debt management and stagnant revenue growth must be monitored.
Positive Factors
Consumer Wireline growth
The growth engine remains AT&T Fiber, with AT&T now guiding to low to mid teens Consumer Wireline EBITDA growth in '25.
Financial performance
AT&T delivered solid 2Q results that keep the company on track to deliver on annual service revenue growth, better EBITDA growth, and favorable FCF.
Tax benefits
AT&T is enjoying outsized tax relief, raising capex to accelerate its FTTH build, and increasing FCF by approximately $1 billion annually.
Negative Factors
Churn rates
Mobility saw higher-than-expected churn, however, and lower adj. EBITDA – driven primarily by higher device subsidies.
Competitive environment
The greater level of wireless promotional intensity may weigh on Mobility segment EBITDA growth for the balance of the year.
Wireless segment challenges
AT&T is trimming its 2025 Wireless EBITDA expectations due to the assumption that highly competitive intensity remains unchanged.

AT&T (T) vs. SPDR S&P 500 ETF (SPY)

AT&T Business Overview & Revenue Model

Company DescriptionAT&T Inc. is a leading telecommunications company based in the United States, providing a wide range of services including wireless communications, broadband, and pay television. The company operates primarily through its Communications segment, which encompasses Mobility, Business Wireline, and Consumer Wireline services. AT&T is known for its extensive network infrastructure, serving millions of consumers and businesses with connectivity solutions.
How the Company Makes MoneyAT&T generates revenue through multiple streams, primarily from its Communications segment. The Mobility unit is a significant contributor, earning money from providing wireless services, including voice, data, and equipment sales to consumers and businesses. The Business Wireline segment generates revenue by offering advanced networking, security, and cloud solutions to enterprise customers. The Consumer Wireline segment earns from providing broadband internet and legacy voice services. Additionally, strategic partnerships, such as those with entertainment and technology companies, enhance service offerings and contribute to revenue. AT&T's business model relies heavily on subscription-based services, equipment sales, and value-added services to maintain and grow its earnings.

AT&T Key Performance Indicators (KPIs)

Any
Any
Mobility: Postpaid Average Revenue Per User
Mobility: Postpaid Average Revenue Per User
Measures the average revenue generated from each postpaid customer, indicating the value of AT&T's customer base and its ability to upsell services or increase pricing.
Chart InsightsAT&T's postpaid ARPU has shown a notable upward trend since mid-2023, reflecting strategic gains in mobility and consumer wireline segments. This aligns with the company's strong start to 2025, driven by fiber expansion and customer acquisition efforts. Despite macroeconomic challenges and increased churn, AT&T's focus on mobility and fiber appears to be paying off, contributing to revenue growth and supporting their confidence in achieving 2025 financial targets. However, potential tariff impacts and competitive pressures remain risks to monitor.
Data provided by:Main Street Data

AT&T Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 2.12%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
AT&T's earnings call highlighted strong growth in Mobility and Fiber segments, increased financial performance, and a favorable policy environment for investment. However, challenges include increased churn in postpaid phones, declining Business Wireline revenues, and higher equipment costs. Despite these lowlights, the overall sentiment is positive due to significant achievements and strategic positioning for future growth.
Q2-2025 Updates
Positive Updates
Strong Mobility and Fiber Subscriber Growth
AT&T added over 400,000 postpaid phone customers and 243,000 fiber subscribers in Q2 2025. This represents nearly 450,000 new subscribers to advanced broadband services, nearly tripling quarterly broadband net adds in one year.
Increased Mobility Service Revenue Guidance
Due to strong performance, AT&T increased its full-year guidance for Mobility service revenue growth to 3% or better, up from the high end of the 2% to 3% range.
Improved Financial Performance
Consolidated revenues and adjusted EBITDA each grew 3.5% year-over-year. Adjusted EPS increased by approximately 6% to $0.54, and free cash flow was $4.4 billion, up from $4 billion the prior year.
Expansion of Fiber Network
By the end of 2030, AT&T plans to reach more than 60 million fiber locations, doubling its fiber reach from more than 30 million total locations. This includes acquisitions and joint ventures.
Pro-Investment Policy Environment
AT&T highlights the favorable investment and policy environment, including tax savings and legislative support for infrastructure investment, which supports their growth and network expansion strategies.
Strong Consumer Wireline Performance
Consumer Wireline revenue grew 5.8% year-over-year, driven by approximately 19% growth in fiber revenue. Consumer Wireline EBITDA grew by 17.8%.
Negative Updates
Increased Postpaid Phone Churn
Postpaid phone churn rose to 0.87%, up 17 basis points versus last year, driven by customers reaching the end of device financing periods and increased market activity.
Business Wireline Revenue Decline
Business Wireline revenues declined 9.3% year-over-year, with EBITDA declining 11.3%, despite cost-saving initiatives.
Higher Mobility Equipment Costs
AT&T experienced higher mobility equipment costs related to increased volumes and the launch of AT&T Guarantee, impacting cash operating expenses.
Company Guidance
During AT&T's Second Quarter 2025 Earnings Call, guidance highlighted several key metrics. The company reported a 3.5% year-over-year increase in both total revenues and adjusted EBITDA. Adjusted EPS rose by approximately 6% to $0.54, and free cash flow reached $4.4 billion, up from $4 billion the previous year. Capital investment increased modestly to $5.1 billion, with expectations for third-quarter investments to range between $5 billion and $5.5 billion, and free cash flow anticipated between $4.5 billion and $5 billion. AT&T achieved 401,000 postpaid phone net additions, contributing to a 3.5% growth in Mobility service revenue, while also adding 243,000 fiber and 203,000 Internet Air net subscribers. The company plans to accelerate fiber deployment, aiming to reach approximately 50 million customer locations by 2030, leveraging policy tailwinds and the One Big Beautiful Bill Act to enhance network investments and job creation.

AT&T Financial Statement Overview

Summary
AT&T shows a stable financial outlook with strong cash flow and improved profitability. However, high leverage and stagnant revenue growth are concerns that need addressing.
Income Statement
67
Positive
AT&T's income statement reveals a stable revenue base with a slight increase in TTM revenue compared to the previous year. The gross profit margin for TTM is 64.54%, reflecting strong cost management. Net profit margin has improved to 9.64% in TTM, showing enhanced profitability compared to previous losses. However, revenue growth remains stagnant, and EBIT margin is lower than optimal at 15.86%, indicating room for operational efficiency improvements.
Balance Sheet
62
Positive
The balance sheet shows a high debt-to-equity ratio of 1.20 in TTM, indicating significant leverage, which could be a risk in volatile markets. However, the equity ratio is reasonably healthy at 30.14%, providing some balance. Return on equity is 9.89%, showing moderate efficiency in utilizing equity to generate profits.
Cash Flow
70
Positive
AT&T's cash flow statement is strong, with the operating cash flow to net income ratio at 3.40 in TTM, indicating robust cash generation relative to profits. Free cash flow growth is positive, and free cash flow to net income ratio is 1.64, showing a good ability to cover net income with free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.34B122.43B120.74B134.04B171.76B
Gross Profit95.36B72.31B69.89B73.63B91.84B
EBITDA44.02B45.32B21.07B53.72B33.57B
Net Income10.95B14.40B-8.52B20.08B-5.18B
Balance Sheet
Total Assets394.80B407.06B402.85B551.62B525.76B
Cash, Cash Equivalents and Short-Term Investments3.30B6.72B3.70B19.22B9.74B
Total Debt145.16B154.90B154.68B195.83B179.45B
Total Liabilities274.57B287.64B296.40B367.77B346.52B
Stockholders Equity104.37B103.30B97.50B166.33B161.67B
Cash Flow
Free Cash Flow18.51B20.46B12.40B25.43B27.45B
Operating Cash Flow38.77B38.31B32.02B41.96B43.13B
Investing Cash Flow-17.49B-19.66B-25.80B-32.09B-13.55B
Financing Cash Flow-24.71B-15.61B-23.74B1.58B-32.01B

AT&T Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.00
Price Trends
50DMA
27.56
Positive
100DMA
27.14
Positive
200DMA
24.85
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
57.91
Neutral
STOCH
91.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For T, the sentiment is Positive. The current price of 28 is above the 20-day moving average (MA) of 27.66, above the 50-day MA of 27.56, and above the 200-day MA of 24.85, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for T.

AT&T Risk Analysis

AT&T disclosed 22 risk factors in its most recent earnings report. AT&T reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

AT&T Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$278.54B22.0619.74%1.35%6.27%31.78%
79
Outperform
$181.64B9.9618.26%6.29%2.05%61.39%
77
Outperform
$56.05B18.9714.41%0.16%-0.64%56.92%
75
Outperform
$132.06B8.6818.57%3.80%1.33%7.69%
70
Outperform
$58.17B8.4336.19%1.03%17.05%
68
Neutral
$200.90B15.8212.12%3.96%1.46%0.88%
62
Neutral
$42.18B-1.56-12.06%2.81%2.10%-71.01%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
T
AT&T
28.00
9.95
55.12%
AMX
America Movil
18.48
2.28
14.07%
CHTR
Charter Communications
309.75
-67.61
-17.92%
CMCSA
Comcast
33.68
-5.64
-14.34%
VZ
Verizon
43.08
5.57
14.85%
TMUS
T Mobile US
243.55
69.12
39.63%

AT&T Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
AT&T Completes $3.5 Billion Global Notes Sale
Positive
Jun 3, 2025

On June 3, 2025, AT&T successfully closed the sale of $3.5 billion in aggregate principal amount of Global Notes with varying maturity dates and interest rates. This strategic financial move is expected to impact AT&T’s financial operations by potentially enhancing liquidity and supporting its long-term investment strategies.

The most recent analyst rating on (T) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
AT&T Announces Acquisition of Lumen’s Fiber Business
Positive
May 21, 2025

On May 21, 2025, AT&T announced a definitive agreement to acquire Lumen Technologies’ Mass Markets fiber business for $5.75 billion. This acquisition, expected to close in the first half of 2026, will allow AT&T to expand its fiber network to approximately 60 million locations by 2030, significantly enhancing its market presence in 11 U.S. states. The deal is anticipated to stimulate investment in U.S. connectivity infrastructure, create jobs, and improve high-speed internet access for millions. AT&T plans to engage an equity partner post-acquisition to co-invest in the business, further supporting its growth strategy.

The most recent analyst rating on (T) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

Shareholder Meetings
AT&T Stockholders Show Strong Leadership Support
Positive
May 19, 2025

On May 15, 2025, AT&T Inc. held its Annual Meeting of Stockholders virtually, with 76.08% of common shares represented. During the meeting, the election of directors was conducted, with all nominees receiving a majority of votes cast, reflecting strong shareholder support for the company’s leadership.

The most recent analyst rating on (T) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025