AT&T (T) AI Stock Analysis

• Market Cap: $175.18B
• Dividend Yield: 4.56%
• Average Volume (3M): 30.48M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.16
• Revenue Growth: 1.98%
• EPS Growth: 150.68%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.54
• Shares Outstanding: 7,089,449,700
• 10 Day Avg. Volume: 20,280,074
• 30 Day Avg. Volume: 30,475,530
• 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: 2.05
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 6.43
• 1Y Price Target: $28.27
• Price Target Upside: 16.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $27.00 ▲(10.93% Upside)

AT&T's overall score reflects solid financial performance and attractive valuation, supported by strong earnings call highlights. However, technical indicators suggest bearish momentum, and challenges such as high debt levels and increased competition pose risks.

Positive Factors

Broadband Growth

Strong broadband growth indicates robust demand and market penetration, enhancing AT&T's revenue base and competitive position.

Strategic Acquisitions

These acquisitions are expected to enhance AT&T's service capabilities and market reach, supporting long-term growth and competitive advantage.

Financial Flexibility

The new credit agreements enhance liquidity and financial flexibility, allowing AT&T to pursue strategic investments and manage debt effectively.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, necessitating careful management to ensure long-term financial health.

Increased Competition

Rising competition in the wireless market may pressure margins and customer retention, challenging AT&T's market share and profitability.

Business Wireline Revenue Decline

Declining wireline revenue indicates challenges in a key segment, potentially impacting overall revenue growth and necessitating strategic adjustments.

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

AT&T's financial performance is strong, with improving profitability and cash flow metrics. The income statement shows a recovery with revenue growth and improved margins. The balance sheet is stable but indicates reliance on debt, which could pose risks. Cash flow is robust, with significant free cash flow growth, though there is room for improvement in cash flow management.

Income Statement

AT&T's income statement shows a strong recovery with a TTM revenue growth rate of 0.85% and improving margins. The gross profit margin increased to 46.99%, and the net profit margin improved to 10.29% in the TTM period. The EBIT and EBITDA margins also showed positive trends, indicating enhanced operational efficiency. However, the company faced revenue declines in previous years, which could pose a risk if not managed well.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.43, indicating moderate leverage. The return on equity improved to 12.27% in the TTM period, showcasing effective utilization of equity. However, the equity ratio remains relatively low, suggesting a higher reliance on debt financing, which could be a risk in volatile market conditions.

Cash Flow

AT&T's cash flow statement highlights a robust free cash flow growth of 68.2% in the TTM period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.84, indicating efficient cash conversion. However, the free cash flow to net income ratio is moderate at 0.48, suggesting room for 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: 24.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 24.34 is below the 20-day moving average (MA) of 24.49, below the 50-day MA of 24.99, and below the 200-day MA of 26.74, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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
VZ	81 Outperform	$169.63B	8.58	19.70%	6.60%	2.42%	102.17%
CMCSA	77 Outperform	$102.50B	4.67	24.73%	4.42%	0.20%	61.54%
TMUS	77 Outperform	$224.66B	19.31	19.03%	1.75%	7.30%	17.67%
T	71 Outperform	$175.18B	8.02	20.88%	4.56%	1.98%	150.68%
CHTR	69 Neutral	$30.43B	5.81	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.63B	16.84	17.70%	2.69%	1.14%	83.48%

AT&T Corporate Events

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.