AT&T (T) AI Stock Analysis

• Market Cap: $195.18B
• Dividend Yield: 4.56%
• Average Volume (3M): 45.12M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.17
• 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: 7,000,577,000
• 10 Day Avg. Volume: 36,509,132
• 30 Day Avg. Volume: 45,117,244
• PEG Ratio: 0.08
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 9.16
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 6.47
• 1Y Price Target: $29.59
• Price Target Upside: 5.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 2.28
• Revenue Forecast (FY): $128.42B

• Rating: 67 Neutral
• Price Target: $30.00 ▲(7.22% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid but constrained financial performance: strong profitability and scale are tempered by heavy leverage and uneven free-cash-flow conversion. Valuation is a clear positive (low P/E and ~4% yield). Technically, the trend is bullish but momentum is overextended (high RSI/Stoch), raising near-term pullback risk. Earnings call guidance supports a constructive multi-year outlook, though near-term integration costs and higher leverage remain key watch items.

Positive Factors

Strong margins and improving profitability

AT&T's recent margin profile shows durable earnings power driven by high-margin connectivity businesses. Sustained EBITDA and EBIT margins imply structural cost efficiencies and pricing leverage across mobility and fiber, supporting cash generation even if revenue growth remains uneven.

Accelerating fiber expansion and scale

A faster fiber build materially expands AT&T's addressable market and convergence opportunities. Scale reduces unit deployment economics, increases cross-sell and lowers churn in fiber markets, creating a durable structural advantage that supports higher lifetime customer value and margin sustainability.

High absolute cash generation and committed returns

Large operating cash flows and explicit multi-year return targets signal the company's ability to fund capex, M&A and shareholder distributions. Consistent high-dollar cash generation underpins strategic investments in fiber/5G while offering predictable capital-return credibility over the medium term.

Negative Factors

Very high absolute debt and elevated leverage

Sustained absolute debt of ~ $155B limits financial flexibility and amplifies interest-rate and refinancing risk. Elevated leverage constrains capacity for opportunistic investment or aggressive buybacks if operating cash flow weakens, making capital allocation sensitive to cyclical slowdowns.

Volatile free cash flow conversion

Choppy FCF conversion weakens the firm’s ability to sustainably fund capex, debt paydown and shareholder returns. When accounting earnings outpace cash, management faces tougher trade-offs and reduced margin for error on large investments or acquisitions over a multi-year horizon.

Acquisition-driven near-term leverage and integration risk

Material acquisitions increase leverage, depreciation and interest expense and create a compressed integration timeline. Elevated near-term leverage and integration execution risk can pressure free cash flow and raise the operational burden of harmonizing systems, customers and distribution over several quarters.

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

Profitability is strong and improving (2025 net margin ~17.4%, EBIT margin ~25.7%, EBITDA margin ~42.3%), but the financial profile is constrained by very high absolute debt (~$155B) and volatile free cash flow conversion (FCF ~$19.4B in 2025 with choppy growth and ~48% of net income). Uneven revenue history also adds durability risk.

Income Statement

Profitability has improved meaningfully versus the 2022 loss year: net margin rose to ~17.4% in 2025 (vs. ~8.9% in 2024), and operating profitability remained solid with ~25.7% EBIT margin and ~42.3% EBITDA margin in 2025. Revenue growth is inconsistent, with 2025 showing a sharp rebound (reported ~93.8%) after mostly flat-to-low growth in 2023–2024 and declines earlier, which introduces questions around the durability/quality of the top-line move. Overall, earnings power looks strong recently, but the uneven revenue trajectory and prior volatility keep the score below “best-in-class.”

Balance Sheet

Leverage is the primary constraint: total debt remains very high (~$155B in 2025) and debt-to-equity is elevated at ~1.25x (though improved from ~1.50–1.59x in 2022–2023). Equity has rebuilt (to ~$124.5B in 2025 from ~$97.5B in 2022), supporting a stronger capital base, and returns to shareholders improved with ~17.6% return on equity in 2025. Still, the balance sheet carries meaningful financial risk due to sustained high absolute debt levels, limiting flexibility if operating conditions soften.

Cash Flow

Cash generation is solid in absolute dollars, with operating cash flow of ~$40.3B and free cash flow of ~$19.4B in 2025. However, free cash flow growth turned sharply negative in 2025 (reported -257.6%) and has been choppy across years, signaling volatility in cash conversion. Free cash flow covered only about ~48% of net income in 2025 (similar to 2024), suggesting accounting earnings are running ahead of cash generation, even though operating cash flow coverage remains moderate (~0.75 in 2025).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.65B	122.34B	122.43B	120.74B	134.04B
Gross Profit	100.22B	52.53B	53.53B	69.89B	73.63B
EBITDA	54.70B	44.02B	45.32B	21.07B	53.72B
Net Income	21.89B	10.95B	14.40B	-8.52B	20.08B
Balance Sheet
Total Assets	420.20B	394.80B	407.06B	402.85B	551.62B
Cash, Cash Equivalents and Short-Term Investments	18.23B	3.30B	6.72B	3.70B	19.22B
Total Debt	173.99B	140.92B	154.90B	154.68B	195.83B
Total Liabilities	291.71B	274.57B	287.64B	296.40B	367.77B
Stockholders Equity	110.53B	104.37B	103.30B	97.50B	166.33B
Cash Flow
Free Cash Flow	19.44B	18.51B	20.46B	12.40B	25.43B
Operating Cash Flow	40.28B	38.77B	38.31B	32.02B	41.96B
Investing Cash Flow	-18.78B	-17.49B	-19.66B	-25.80B	-32.09B
Financing Cash Flow	-6.39B	-24.71B	-15.61B	-23.74B	1.58B

AT&T Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.98 is above the 20-day moving average (MA) of 26.66, above the 50-day MA of 25.05, and above the 200-day MA of 26.31, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.97 is Neutral, 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
CMCSA	80 Outperform	$113.69B	5.86	21.92%	4.42%	0.20%	61.54%
TMUS	76 Outperform	$234.97B	21.94	18.18%	1.75%	7.30%	17.67%
VZ	73 Outperform	$202.66B	11.84	16.86%	6.60%	2.42%	102.17%
AMX	68 Neutral	$73.01B	16.81	22.81%	2.69%	1.14%	83.48%
T	67 Neutral	$195.18B	9.14	20.43%	4.56%	1.98%	150.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CHTR	58 Neutral	$33.99B	6.38	31.52%	―	0.42%	13.46%

AT&T Corporate Events

AT&T completes $6.5 billion multi-tranche debt offering

On February 5, 2026, AT&T closed a multi-tranche debt offering totaling $6.5 billion in registered global notes, with maturities ranging from 2031 to 2056 and coupon rates between 4.400% and 6.000%, issued under its existing 2013 indenture. The transaction, underwritten by a syndicate of major investment banks and registered with the Securities and Exchange Commission via an existing shelf registration, strengthens AT&T’s access to long-term capital markets and provides additional financial flexibility to support its ongoing corporate and financing needs.

The most recent analyst rating on (T) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

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.