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At&t Inc (T)
:T

AT&T (T) AI Stock Analysis

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T

AT&T

(NYSE:T)

Rating:69Neutral
Price Target:
$31.00
▲(9.08%Upside)
AT&T's overall stock score reflects a stable financial performance with robust cash flow generation and profitability improvements. Positive technical indicators and strategic corporate actions like fiber expansion and share repurchases enhance future growth prospects. However, high leverage and potential impacts from tariffs and increased churn pose risks that need careful monitoring.
Positive Factors
Earnings Performance
Post-paid phone net additions exceeded expectations, indicating strong customer growth.
Shareholder Returns
AT&T's convergence growth strategy is driving strong wireless and fixed wireline growth as well as strong revenue and cash flow growth, enabling it to increase its shareholder returns with plans to begin repurchasing shares.
Subscriber Growth
AT&T's convergence strategy, leveraging its 5G wireless and fiber broadband networks, will continue to drive subscriber growth through its multi-connectivity.
Negative Factors
Business Segment Challenges
Strong expense performance in 1Q25 increases confidence in AT&T's ability to eventually stabilize the Business Wireline segment.
Pricing Strategy
AT&T’s postpaid plans are priced at a premium compared to its peers, yet it has managed to grow its subscriber base in recent years.

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:Apr 23, 2025
(Q1-2025)
|
% Change Since: 5.42%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
AT&T started 2025 with strong performance in mobility and consumer wireline, driven by strategic investments in fiber and customer acquisition. However, challenges such as declining business wireline revenues and potential impacts from tariffs and increased churn present notable concerns.
Q1-2025 Updates
Positive Updates
Solid Start to 2025
AT&T reported growth in consolidated service revenue and adjusted EBITDA, driven by strong postpaid phone and fiber net adds. Adjusted EPS and free cash flow also increased when excluding DIRECTV.
Fiber Expansion Success
AT&T is on track to exceed its target of passing over thirty million total locations with its fiber network by midyear 2025, ramping towards fifty million plus by 2029.
Strong Mobility and Consumer Wireline Performance
Total mobility revenues were up 4.7% year over year, with service revenues up 4.1%. Consumer wireline revenue grew by 5.1% year over year, driven by fiber revenue growth of 19%.
Successful Cost Management
AT&T reduced net debt by about one billion dollars in Q1 and plans to begin share repurchases this quarter, targeting at least three billion dollars by year-end.
Negative Updates
Business Wireline Revenue Decline
Business wireline revenues declined approximately 9% year over year, primarily due to continued pressures on legacy and other transitional services.
Potential Impact of Tariffs
The announced tariffs could potentially increase the cost of smartphones, network, and technical equipment, impacting consumer and business demand.
Higher Upgrade Rates and Churn
AT&T saw an acceleration in consumer upgrade behavior and an increase in churn due to normalization and competitive offers, potentially impacting margins.
Company Guidance
During AT&T's First Quarter 2025 Earnings Call, the company provided guidance on several financial metrics. They reported a 2% increase in total revenues and a 1.2% rise in service revenues, with adjusted EBITDA growing by 4.4%. Adjusted EPS reached $0.51, marking a $0.03 increase from the previous year when excluding DIRECTV. The company's free cash flow for the first quarter was $3.1 billion, up by over $350 million on a comparable basis. Capital investment was reported at $4.5 billion. AT&T expects second-quarter capital investment to be between $4.5 billion and $5 billion and anticipates approximately $4 billion in free cash flow. The full-year free cash flow guidance remains at $16 billion plus. Growth was driven by strong performance in mobility and consumer wireline businesses, with postpaid phone net adds of 324,000 and fiber net adds of 261,000. The company also highlighted a strategic focus on customer acquisition and retention, emphasizing the benefits of their fiber and 5G playbook. Despite macroeconomic uncertainties, AT&T remains confident in achieving its financial targets for 2025 and plans to commence share repurchases in the second quarter, with at least $3 billion to be completed by year-end.

AT&T Financial Statement Overview

Summary
AT&T displays a stable financial position with strengths in cash flow generation and profitability improvements. However, high leverage and stagnant revenue growth pose potential risks. Continued focus on cost management and debt reduction will be critical for sustaining long-term financial health.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
122.93B122.34B122.43B120.74B134.04B171.76B
Gross Profit
79.33B95.36B72.31B69.89B73.63B91.84B
EBIT
19.49B19.05B23.46B-4.59B25.90B6.41B
EBITDA
45.22B44.02B45.32B21.07B53.72B33.57B
Net Income Common Stockholders
11.85B10.95B14.40B-8.52B20.08B-5.18B
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.88B3.30B6.72B3.70B19.22B9.74B
Total Assets
397.47B394.80B407.06B402.85B551.62B525.76B
Total Debt
143.59B140.92B154.90B154.68B195.83B179.45B
Net Debt
136.71B137.63B148.18B150.98B176.61B169.71B
Total Liabilities
275.63B274.57B287.64B296.40B367.77B346.52B
Stockholders Equity
103.74B104.37B103.30B97.50B166.33B161.67B
Cash FlowFree Cash Flow
19.49B18.51B20.46B12.40B25.43B27.45B
Operating Cash Flow
40.27B38.77B38.31B32.02B41.96B43.13B
Investing Cash Flow
-19.49B-17.49B-19.66B-25.80B-32.09B-13.55B
Financing Cash Flow
-17.45B-24.71B-15.61B-23.74B1.58B-32.01B

AT&T Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.42
Price Trends
50DMA
27.39
Positive
100DMA
26.37
Positive
200DMA
23.93
Positive
Market Momentum
MACD
0.20
Negative
RSI
59.76
Neutral
STOCH
83.72
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 28.42 is above the 20-day moving average (MA) of 27.56, above the 50-day MA of 27.39, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.72 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$112.38B11.2836.94%0.93%16.06%
VZVZ
76
Outperform
$186.06B10.4818.23%6.18%0.93%56.97%
75
Outperform
$132.99B8.7518.57%3.64%1.33%7.69%
75
Outperform
$279.16B23.9619.35%1.38%5.31%38.46%
AMAMX
71
Outperform
$52.02B31.068.54%2.98%0.19%-49.68%
TT
69
Neutral
$204.50B17.4511.38%3.98%0.50%-12.66%
61
Neutral
$14.78B5.89-4.32%3.67%2.75%-30.30%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
T
AT&T
28.42
11.68
69.77%
AMX
America Movil
17.05
0.74
4.54%
CHTR
Charter Communications
406.77
131.71
47.88%
CMCSA
Comcast
35.62
-0.98
-2.68%
VZ
Verizon
44.13
6.87
18.44%
TMUS
T Mobile US
236.98
65.58
38.26%

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.