AT&T (T)
NYSE:T
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AT&T
(NYSE:T)
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Rating:67Neutral
Price Target:
$28.00
▲(5.62% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by solid financial performance (strong trailing profitability and steady operating cash flow) but tempered by high leverage and weaker recent free-cash-flow trends. The earnings call supports the outlook with reiterated 2026 guidance and strong fiber/wireless operating momentum, while technical indicators point to soft near-term price momentum. Valuation is supportive due to a moderate P/E and a high dividend yield.
Positive Factors
Fiber & Advanced Internet Growth
Sustained high growth in advanced home Internet and large-scale fiber expansion create durable recurring revenue and higher ARPU mix. Expanding fiber footprint to tens of millions of locations supports long-term service penetration, lowers per-customer economics, and underpins multi-year cash generation from connectivity.
Negative Factors
Elevated Leverage
High absolute debt and a leverage ratio that increases after acquisitions reduce financial flexibility and raise refinancing and interest-rate sensitivity. Elevated leverage constrains optionality for further M&A, accelerates need for deleveraging, and heightens vulnerability to cash-flow shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber & Advanced Internet Growth
Sustained high growth in advanced home Internet and large-scale fiber expansion create durable recurring revenue and higher ARPU mix. Expanding fiber footprint to tens of millions of locations supports long-term service penetration, lowers per-customer economics, and underpins multi-year cash generation from connectivity.
Read all positive factors
AT&T (T) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$178.22B
Dividend Yield4.56%
Average Volume (3M)40.45M
Price to Earnings (P/E)13.2
Beta (1Y)0.05
Revenue Growth2.92%
EPS Growth83.12%
CountryUS
Employees139,970
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.57
Shares Outstanding6,983,556,000
10 Day Avg. Volume33,599,622
30 Day Avg. Volume40,453,902
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 Cap1.86
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda6.18
Forecast
1Y Price Target
$30.85Price Target Upside16.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)2.31
Revenue Forecast (FY)$129.33B
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 makes money primarily by selling recurring connectivity subscriptions and related services. The largest revenue driver is wireless service, where customers pay monthly recurring charges for access to AT&T’s mobile network (voice, text, and da...
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call highlighted clear operational momentum: record-first-quarter advanced Internet net adds, strong Advanced home Internet revenue growth (+27.3% YoY), successful closing and early integration of a large fiber acquisition, continued fiber footprint expansion and converged customer strength (organic convergence ~45%). Financials showed revenue, EBITDA and EPS growth and the company reiterated full-year guidance while detailing multi-year growth and return plans. Near-term challenges include margin compression vs. comps due to prior vendor settlements, elevated capex depressing free cash flow, higher leverage from acquisitions, and continued steep declines in legacy revenues and EBITDA as the company phases out copper. Overall, the positive operational progress and reiterated outlook outweigh the near-term cash, margin and legacy-transition headwinds.Positive Updates
Strong Advanced Internet Net Adds
Reported 584,000 total fiber and fixed wireless advanced Internet customer net additions in Q1 — the best-ever first quarter and sixth consecutive quarter with over 0.5M consumer and business net adds. Advanced home Internet net adds were 512,000 (273,000 fiber; 239,000 Internet Air).
Negative Updates
Adjusted EBITDA Margin Compression and Comparability Headwinds
Adjusted EBITDA margin decreased 30 basis points to 37.4% year-over-year; Q1 2025 benefitted from a ~$100 million vendor settlement that complicates comparisons and reduced the comparable EBITDA benefit this year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Advanced Internet Net Adds
Reported 584,000 total fiber and fixed wireless advanced Internet customer net additions in Q1 — the best-ever first quarter and sixth consecutive quarter with over 0.5M consumer and business net adds. Advanced home Internet net adds were 512,000 (273,000 fiber; 239,000 Internet Air).
Read all positive updates
Company Guidance
AT&T reiterated 2026 guidance and provided a range of operating metrics: consolidated service revenues are expected to grow low single‑digits and consolidated adjusted EBITDA to grow 3–4% (Q1 adjusted EBITDA +2.3%, margin 37.4%, -30 bps); full‑year adjusted EPS $2.25–$2.35 (Q1 adj. EPS $0.57, +~12%). Free cash flow was $2.5B in Q1 (capex $5.1B, FCF down ~ $600M YoY), Q2 FCF is guided to $4.0–4.5B and full‑year FCF to $18B+. Advanced Connectivity (>90% of revenues) is expected to grow service revenues 5%+ and EBITDA 6%+ (Q1 AC EBITDA +5.6%); Advanced home Internet revenue +27.3% with 512k net adds (273k fiber, 239k Internet Air) and total fiber/fixed‑wireless net adds 584k (plus 1.1M acquired Lumen customers). Wireless service revenue grew 1.7% in Q1 with 294k postpaid phone net adds and a full‑year wireless service revenue outlook of 2–3%. Legacy service revenue is declining (~25% YoY); net debt/adj. EBITDA was 2.71x (Q4 2.53x), expected to rise to ~3.2x after EchoStar, fall to ~3.0x by end‑2026 and return toward ~2.5x within ~3 years; cash $12B, $19B available to draw; $4.3B returned to shareholders in Q1 and $45B+ targeted returns through 2028; $4B annual cost‑savings target by end‑2028.AT&T Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 126.53B | 125.65B | 122.34B | 122.43B | 120.74B | 134.04B |
| Gross Profit | 100.80B | 100.22B | 52.53B | 53.53B | 69.89B | 73.63B |
| EBITDA | 53.57B | 54.70B | 44.02B | 45.32B | 21.07B | 53.72B |
| Net Income | 21.37B | 21.89B | 10.95B | 14.40B | -8.52B | 20.08B |
Balance Sheet | ||||||
| Total Assets | 421.19B | 420.20B | 394.80B | 407.06B | 402.85B | 551.62B |
| Cash, Cash Equivalents and Short-Term Investments | 11.96B | 18.23B | 3.30B | 6.72B | 3.70B | 19.22B |
| Total Debt | 164.13B | 173.99B | 140.92B | 154.90B | 154.68B | 195.83B |
| Total Liabilities | 293.57B | 291.71B | 274.57B | 287.64B | 296.40B | 367.77B |
| Stockholders Equity | 109.66B | 110.53B | 104.37B | 103.30B | 97.50B | 166.33B |
Cash Flow | ||||||
| Free Cash Flow | 17.35B | 19.44B | 18.51B | 20.46B | 12.40B | 25.43B |
| Operating Cash Flow | 38.79B | 40.28B | 38.77B | 38.31B | 32.02B | 41.96B |
| Investing Cash Flow | -25.47B | -18.78B | -17.49B | -19.66B | -25.80B | -32.09B |
| Financing Cash Flow | -7.93B | -6.39B | -24.71B | -15.61B | -23.74B | 1.58B |
AT&T Technical Analysis
Negative
26.51
Price Trends
27.60
Negative
25.91
Positive
26.23
Positive
Market Momentum
-0.43
Positive
43.06
Neutral
33.05
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 26.51 is below the 20-day moving average (MA) of 27.48, below the 50-day MA of 27.60, and above the 200-day MA of 26.23, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $98.27B | 11.94 | 19.63% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $201.37B | 23.07 | 18.18% | 1.75% | 8.49% | 0.29% | |
71 Outperform | $79.00B | 14.75 | 17.05% | 2.69% | 9.51% | 188.07% | |
69 Neutral | $198.65B | 10.46 | 16.78% | 6.60% | 2.85% | -2.51% | |
67 Neutral | $178.22B | 13.24 | 19.37% | 4.56% | 2.92% | 83.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $24.18B | 5.82 | 30.84% | ― | -0.92% | 3.13% |
* Communication Services Sector Average
T
AT&T
26.06
-0.48
-1.82%
AMX
America Movil
26.18
9.42
56.21%
CHTR
Charter Communications
173.11
-218.75
-55.82%
CMCSA
Comcast
27.64
-3.05
-9.95%
VZ
Verizon
47.24
5.96
14.44%
TMUS
T Mobile US
186.72
-56.08
-23.10%
AT&T Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
AT&T Posts Q1 Revenue Growth on Advanced Connectivity Strength
Positive
Apr 22, 2026
ATT reported on April 22, 2026 that first-quarter 2026 operating revenues from continuing operations rose 2.9% year on year to $31.5 billion, driven by growth in Advanced Connectivity wireless and fiber services and supported by favorable foreign ...
Private Placements and FinancingRegulatory Filings and Compliance
AT&T Completes CAD-Denominated Long-Term Debt Offering
Neutral
Mar 12, 2026
On March 12, 2026, ATT closed a Canadian-dollar debt offering consisting of CAD$1.25 billion of 4.500% Global Notes due 2036 and CAD$1.0 billion of 5.250% Global Notes due 2056, sold under a March 5, 2026 underwriting agreement with a syndicate le...
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.