AT&T (T)
NYSE:T
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AT&T
(NYSE:T)
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Rating:67Neutral
Price Target:
$30.00
▲(5.93% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
AT&T (T) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$198.26B
Dividend Yield4.56%
Average Volume (3M)42.85M
Price to Earnings (P/E)8.1
Beta (1Y)0.13
Revenue Growth1.98%
EPS Growth150.68%
CountryUS
Employees139,970
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding7,000,577,000
10 Day Avg. Volume48,199,373
30 Day Avg. Volume42,846,908
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.61
Price to Sales (P/S)1.42
P/FCF Ratio9.16
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue2.80
Enterprise Value/Gross Profit3.34
Enterprise Value/Ebitda6.44
Forecast
1Y Price Target
$31.00Price Target Upside9.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)2.3
Revenue Forecast (FY)$128.46B
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 c...
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 servi...
AT&T Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyAT&T Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented a constructive long-term growth story driven by strong subscriber adds, accelerating fiber expansion, convergence gains, and solid 2025 financial performance (EPS, EBITDA, FCF). Management outlined material capital deployment (EchoStar, Lumen) that expands TAM and convergence opportunities, while committing to meaningful shareholder returns and cost savings. Near-term challenges include integration costs and temporary leverage increase, ARPU headwinds from device accounting and strategic discounts, modest deployment cost inflation (~2% p.a.), higher D&A and interest, and some first-quarter softness as investments ramp. Overall, the positives — clear execution on 5G/fiber growth, strong cash generation, and a detailed multi-year plan — materially outweigh near-term transition and integration headwinds.Positive Updates
Exceeded 2025 Guidance and Strong Financial Results
Met or exceeded consolidated full-year guidance; Q4 adjusted EPS grew over 20% to $0.52 and full-year adjusted EPS rose nearly 9% to $2.12. Q4 consolidated adjusted EBITDA grew over 4% and adjusted EBITDA margin expanded by ~20 basis points.
Negative Updates
Near-Term Dilution and Integration Costs
Expected ~ $0.05 of adjusted EPS dilution in 2026 from stand-up/integration costs and higher interest expense related to EchoStar and Lumen transactions. Company expects upfront spending that will depress Q1 2026 adjusted EBITDA growth and produce first-quarter free cash flow of $2.0B–$2.5B.
Read all updates
Q4-2025 Updates
Positive
Negative
Exceeded 2025 Guidance and Strong Financial Results
Met or exceeded consolidated full-year guidance; Q4 adjusted EPS grew over 20% to $0.52 and full-year adjusted EPS rose nearly 9% to $2.12. Q4 consolidated adjusted EBITDA grew over 4% and adjusted EBITDA margin expanded by ~20 basis points.
Read all positive updates
Company Guidance
AT&T provided multi-year guidance focused on its advanced‑connectivity strategy: it expects consolidated adjusted EBITDA growth of 3–4% in 2026 improving to 5%+ by 2028, adjusted EPS of $2.25–$2.35 in 2026 with a double‑digit three‑year CAGR through 2028 (including ~ $0.05 of 2026 dilution), and free cash flow of $18B+ in 2026 (up ~$1B in 2027 and ~ $2B in 2028); the company plans to return $45B+ to shareholders in 2026–2028 (including ~ $8B buybacks in 2026 and an additional $10B board authorization), target net debt/adjusted EBITDA to rise to ~3.2x post‑close of Lumen/EchoStar then fall to ~3.0x by year‑end 2026 and back to ~2.5x within ~3 years, and maintain D&A of about $20B annually through 2028; operational and market metrics include 2026 fiber build pacing from 3.0M passes in 2025 to a 4.0M run rate by year‑end, >40M fiber customer locations by end‑2026 (up from 32M), ~5M incremental fiber locations annually thereafter, advanced home Internet revenue organic growth of 20%+ annually through 2028 (over 30% in 2026 including the ~$900M annualized revenue from Lumen assets), wireless service revenue growth of 2–3% annually, advanced connectivity driving ~90% of revenues and >95% of adjusted EBITDA on a recast 2025 basis, Q1 2026 FCF of $2.0–$2.5B and below‑run‑rate adjusted EBITDA as upfront integration and build investments occur, expected annual cash taxes of ~$1B–$1.5B through 2028, $1.15B pension contribution in 2025 plus $350M in 2026, and $4B of additional annual cost savings targeted by 2028 (after >$1B saved in 2025).AT&T Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| 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
Positive
28.32
Price Trends
27.61
Positive
26.04
Positive
26.53
Positive
Market Momentum
0.28
Positive
52.13
Neutral
27.31
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 28.32 is above the 20-day moving average (MA) of 28.19, above the 50-day MA of 27.61, and above the 200-day MA of 26.53, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.31 is Neutral, 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 21 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $99.52B | 5.14 | 20.98% | 4.42% | 0.20% | 61.54% | |
74 Outperform | $218.84B | 20.84 | 18.18% | 1.75% | 7.30% | 17.67% | |
72 Outperform | $207.30B | 10.02 | 16.62% | 6.60% | 2.42% | 102.17% | |
67 Neutral | $198.26B | 8.14 | 20.35% | 4.56% | 1.98% | 150.68% | |
62 Neutral | $77.41B | 14.48 | 17.05% | 2.69% | 1.14% | 83.48% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $31.27B | 5.66 | 31.24% | ― | 0.42% | 13.46% |
* Communication Services Sector Average
T
AT&T
28.32
3.04
12.01%
AMX
America Movil
25.29
12.25
93.94%
CHTR
Charter Communications
219.98
-101.70
-31.62%
CMCSA
Comcast
27.66
-1.81
-6.15%
VZ
Verizon
49.15
9.68
24.53%
TMUS
T Mobile US
198.61
-43.55
-17.98%
AT&T Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
AT&T completes $6.5 billion multi-tranche debt offering
Positive
Feb 5, 2026
On February 5, 2026, ATT 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 tra...
Business Operations and StrategyStock BuybackFinancial Disclosures
AT&T Reports Q4 Earnings, Authorizes New $10B Buyback
Positive
Jan 28, 2026
ATT 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...
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.