AT&T (T) AI Stock Analysis

• Market Cap: $166.25B
• Dividend Yield: 4.56%
• Average Volume (3M): 34.02M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.19
• Revenue Growth: 1.98%
• EPS Growth: 150.68%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.52
• Shares Outstanding: 7,089,449,700
• 10 Day Avg. Volume: 37,409,139
• 30 Day Avg. Volume: 34,022,265
• PEG Ratio: -0.61
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 8.86
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 5.51
• 1Y Price Target: $29.27
• Price Target Upside: 27.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $26.00 ▲(13.04% Upside)

The score is driven primarily by solid financial performance (notably strong free cash flow improvement) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical signals (price below key moving averages and negative MACD), while the earnings call adds support via clear multi-year growth/FCF guidance but flags near-term integration and leverage risks.

Positive Factors

Free cash flow generation

AT&T's materially improved free cash flow (169% TTM) and efficient cash conversion provide durable funding for fiber/5G investments, buybacks and dividends. Strong FCF underpins multi-year capex and deleveraging plans, reducing execution risk on strategic expansion.

Advanced connectivity revenue mix

A business model increasingly driven by 5G and fiber shifts AT&T toward higher-margin, recurring services. Structural convergence benefits—higher wallet share, lower churn and stronger EBITDA contribution—should support steadier organic growth and margin resilience across cycles.

Disciplined capital allocation and cost targets

Management's explicit multi-year return plan plus $4B cost savings target demonstrates disciplined allocation: funding growth while returning cash. This balance between shareholder returns, productivity gains and reinvestment enhances strategic credibility and long-term shareholder value potential.

Negative Factors

Near-term leverage increase from acquisitions

Planned spectrum and fiber deals temporarily raise leverage to ~3.2x, which increases interest costs and reduces financial flexibility. Although management targets deleveraging, the interim leverage spike heightens refinancing and covenant risk and constrains optionality during integration.

Decline of legacy copper services

The structural wind-down of copper services erodes legacy revenue and forces migration costs. Transitioning customers to fiber incurs operating disruption, capital and marketing expenses, and pressures Business Wireline results; this multi-year shift creates persistent execution and revenue-mix challenges.

Higher depreciation and interest from capex-heavy expansion

Sustained heavy capex elevates non-cash depreciation (~$20B p.a.) and interest expense, suppressing reported EPS and near-term free cash flow despite long-term asset benefits. These elevated structural expense items will temper headline profitability and cash available for discretionary uses.

AT&T Business Overview & Revenue Model

Company Description

AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores. It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers. It markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The company's Latin America segment provides wireless services in Mexico; and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is headquartered in Dallas, Texas.

How the Company Makes Money

AT&T generates revenue primarily through its Communications segment, which includes mobility services, such as wireless voice and data plans, as well as broadband and video services. The company has a substantial customer base for its mobile services, driving recurring income from monthly subscriptions. Additionally, AT&T earns revenue from its WarnerMedia segment, which includes advertising revenue, subscription fees from its streaming services, and content licensing. Partnerships with device manufacturers, such as Apple and Samsung, enhance revenue through sales of smartphones and accessories. The company's extensive infrastructure and customer base also allow it to generate significant income from business solutions, including managed services and network solutions for enterprise clients.

AT&T Financial Statement Overview

Summary

Solid fundamentals supported by strong free cash flow improvement (FCF growth 169.2% TTM) and improved profitability (net margin 10.29%, gross margin 42.81%). Balance sheet is stable with reduced leverage trend, but total debt remains a key risk despite a lower debt-to-equity ratio (1.25).

Income Statement

AT&T's income statement shows a strong recovery with a significant revenue growth rate of 0.4% in the TTM, reversing previous declines. The gross profit margin remains robust at 42.81%, and the net profit margin has improved to 10.29%, indicating enhanced profitability. However, the EBIT and EBITDA margins, while healthy, suggest room for further operational efficiency improvements.

Balance Sheet

AT&T's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.25, showing a decrease from previous years, which is a positive sign of reduced leverage. The return on equity is solid at 11.59%, demonstrating effective use of equity. However, the high level of total debt remains a concern, requiring careful management to avoid financial strain.

Cash Flow

The cash flow statement highlights a strong free cash flow growth rate of 169.2% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio of 0.76 suggests efficient cash conversion. Despite these strengths, the free cash flow to net income ratio of 0.48 indicates potential for further improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.48B	122.34B	122.43B	120.74B	134.04B	171.76B
Gross Profit	53.15B	52.53B	53.53B	69.89B	73.63B	63.32B
EBITDA	55.82B	44.02B	45.32B	21.07B	53.72B	33.57B
Net Income	22.25B	10.95B	14.40B	-8.52B	20.08B	-5.18B
Balance Sheet
Total Assets	423.21B	394.80B	407.06B	402.85B	551.62B	525.76B
Cash, Cash Equivalents and Short-Term Investments	20.27B	3.30B	6.72B	3.70B	19.22B	9.74B
Total Debt	158.49B	140.92B	154.90B	154.68B	195.83B	179.64B
Total Liabilities	294.47B	274.57B	287.64B	296.40B	367.77B	346.52B
Stockholders Equity	110.71B	104.37B	103.30B	97.50B	166.33B	161.67B
Cash Flow
Free Cash Flow	19.96B	18.51B	20.46B	12.40B	25.43B	27.45B
Operating Cash Flow	40.86B	38.77B	38.31B	32.02B	41.96B	43.13B
Investing Cash Flow	-19.80B	-17.49B	-19.66B	-25.80B	-32.09B	-13.55B
Financing Cash Flow	-3.46B	-24.71B	-15.61B	-23.74B	1.58B	-32.01B

AT&T Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For T, the sentiment is Negative. The current price of 23 is below the 20-day moving average (MA) of 23.80, below the 50-day MA of 24.38, and below the 200-day MA of 26.23, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 34.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for T.

AT&T Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	77 Outperform	$107.24B	4.89	24.73%	4.42%	0.20%	61.54%
VZ	77 Outperform	$167.05B	8.45	19.70%	6.60%	2.42%	102.17%
TMUS	77 Outperform	$210.23B	18.07	19.03%	1.75%	7.30%	17.67%
T	73 Outperform	$166.25B	7.61	20.88%	4.56%	1.98%	150.68%
CHTR	65 Neutral	$28.08B	5.05	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.87B	16.73	17.70%	2.69%	1.14%	83.48%

AT&T Corporate Events

AT&T Reports Q4 Earnings, Authorizes New $10B Buyback

AT&T reported on January 28, 2026, that its fourth-quarter 2025 net income attributable to common stock fell to $3.8 billion, or $0.53 per diluted share, from $4.0 billion, or $0.56, a year earlier, even as quarterly operating revenues rose 3.6% to $33.5 billion on growth in Mobility, Consumer Wireline and Mexico, partially offset by ongoing weakness in Business Wireline. For full-year 2025, net income attributable to common stock more than doubled to $21.9 billion from $10.7 billion in 2024, with earnings per diluted share rising to $3.04, driven largely by a $5.6 billion gain and related items from the sale of its remaining stake in DIRECTV and lower impairment charges versus 2024, while operating revenues increased 2.7% to $125.6 billion and operating income margin improved to 19.2% from 15.6%. Segment results underscored strategic shifts: Mobility posted 5.3% revenue growth and added 1.2 million wireless subscribers in the quarter despite slightly lower margins and higher churn; Consumer Wireline expanded revenues and sharply improved margins on fiber and AT&T Internet Air growth and lower depreciation on fully depreciated legacy assets; Business Wireline revenues declined 7.5% amid reduced demand for legacy and VPN services but saw modest margin improvement; and Mexico revenue surged 20.6% on subscriber growth and favorable foreign exchange. Cash from operations rose to $40.3 billion in 2025, capital investment stayed roughly flat at about $22 billion, and AT&T continued to use excess cash for shareholder returns, repurchasing $4.3 billion of stock under a 2024 buyback authorization and securing a new $10 billion repurchase approval on January 27, 2026, moves that signal management’s confidence but also heighten the importance of sustaining growth in core connectivity businesses while managing restructuring, legal costs and pension-related volatility.

The most recent analyst rating on (T) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

AT&T Secures $29.5 Billion Credit Agreements

On November 3, 2025, AT&T Inc. announced the execution of a $12 billion Second Amended and Restated Credit Agreement and a $17.5 billion Delayed Draw Term Loan Credit Agreement. These agreements, involving Citibank and Bank of America, are designed to support the company’s general corporate purposes and potential acquisitions, such as additional spectrum. The credit facilities include various interest rate options and financial covenants, reflecting AT&T’s strategic financial management and positioning in the telecommunications industry.

The most recent analyst rating on (T) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.