AT&T (T) AI Stock Analysis

• Market Cap: $200.90B
• Dividend Yield: 3.96%
• Average Volume (3M): 30.84M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.22
• Revenue Growth: 1.46%
• EPS Growth: 0.88%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 76
• Industry: Telecommunications Services
• EPS (TTM): 0.54
• Shares Outstanding: 7,195,602,000
• 10 Day Avg. Volume: 36,406,955
• 30 Day Avg. Volume: 30,839,647
• PEG Ratio: 1.80
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.24
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $31.45
• Price Target Upside: 12.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

AT&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 Money

AT&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 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

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.34B	122.43B	120.74B	134.04B	171.76B
Gross Profit	95.36B	72.31B	69.89B	73.63B	91.84B
EBITDA	44.02B	45.32B	21.07B	53.72B	33.57B
Net Income	10.95B	14.40B	-8.52B	20.08B	-5.18B
Balance Sheet
Total Assets	394.80B	407.06B	402.85B	551.62B	525.76B
Cash, Cash Equivalents and Short-Term Investments	3.30B	6.72B	3.70B	19.22B	9.74B
Total Debt	145.16B	154.90B	154.68B	195.83B	179.45B
Total Liabilities	274.57B	287.64B	296.40B	367.77B	346.52B
Stockholders Equity	104.37B	103.30B	97.50B	166.33B	161.67B
Cash Flow
Free Cash Flow	18.51B	20.46B	12.40B	25.43B	27.45B
Operating Cash Flow	38.77B	38.31B	32.02B	41.96B	43.13B
Investing Cash Flow	-17.49B	-19.66B	-25.80B	-32.09B	-13.55B
Financing Cash Flow	-24.71B	-15.61B	-23.74B	1.58B	-32.01B

AT&T Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMUS	80 Outperform	$278.54B	22.06	19.74%	1.35%	6.27%	31.78%
VZ	79 Outperform	$181.64B	9.96	18.26%	6.29%	2.05%	61.39%
AMX	77 Outperform	$56.05B	18.97	14.41%	0.16%	-0.64%	56.92%
CMCSA	75 Outperform	$132.06B	8.68	18.57%	3.80%	1.33%	7.69%
CHTR	70 Outperform	$58.17B	8.43	36.19%	―	1.03%	17.05%
T	68 Neutral	$200.90B	15.82	12.12%	3.96%	1.46%	0.88%
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%

AT&T Corporate Events

AT&T Completes $3.5 Billion Global Notes Sale

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.

AT&T Announces Acquisition of Lumen’s Fiber Business

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.

AT&T Stockholders Show Strong Leadership Support

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.