AT&T (T) AI Stock Analysis

• Market Cap: $203.64B
• Dividend Yield: 3.86%
• Average Volume (3M): 30.79M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.22
• Revenue Growth: 1.46%
• EPS Growth: 0.88%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.54
• Shares Outstanding: 7,150,385,300
• 10 Day Avg. Volume: 30,414,540
• 30 Day Avg. Volume: 30,788,923
• PEG Ratio: -0.60
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 8.86
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 8.12
• 1Y Price Target: $31.31
• Price Target Upside: 8.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: $30.00 ▲(4.35% Upside)

AT&T's overall stock score is driven by strong financial performance, particularly in cash flow and profitability improvements, and attractive valuation metrics. Technical indicators suggest a neutral outlook, while recent earnings call highlights growth potential in Mobility and Fiber segments despite some operational challenges.

Positive Factors

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.

Strategic Investments

AT&T is investing in incremental fiber build, contributing to fund its pension, and using the remainder for strategic opportunities including increasing its return of capital levels.

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.

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 through a diverse range of streams. The majority of its income comes from its Communications segment, which includes wireless services, wireline services, and broadband offerings. The company charges monthly subscription fees for mobile and internet services, as well as pay-per-view content and advertising revenue from its video services. The WarnerMedia segment contributes significantly to revenue through content creation, distribution, and licensing, particularly from its HBO and Warner Bros. properties. Additionally, AT&T benefits from partnerships, such as agreements with content providers and distribution deals, enhancing its service offerings and revenue potential. Factors such as the growth in demand for mobile data, the expansion of 5G services, and strategic acquisitions also play a crucial role in driving the company's earnings.

AT&T Financial Statement Overview

Summary

AT&T exhibits a stable financial position with strong cash flow generation and improved profitability. However, high leverage and stagnant revenue growth present potential risks. Continued focus on cost management and debt reduction is needed for long-term health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.93B	122.34B	122.43B	120.74B	134.04B	171.76B
Gross Profit	52.91B	52.53B	53.53B	51.87B	55.78B	63.32B
EBITDA	45.16B	44.02B	45.32B	21.07B	53.72B	33.57B
Net Income	11.85B	10.95B	14.40B	-8.52B	20.08B	-5.18B
Balance Sheet
Total Assets	397.47B	394.80B	407.06B	402.85B	551.62B	525.76B
Cash, Cash Equivalents and Short-Term Investments	6.88B	3.30B	6.72B	3.70B	19.22B	9.74B
Total Debt	143.59B	140.92B	154.90B	154.68B	195.83B	179.45B
Total Liabilities	275.63B	274.57B	287.64B	296.40B	367.77B	346.52B
Stockholders Equity	103.74B	104.37B	103.30B	97.50B	166.33B	161.67B
Cash Flow
Free Cash Flow	19.49B	18.51B	20.46B	12.40B	25.43B	27.45B
Operating Cash Flow	40.27B	38.77B	38.31B	32.02B	41.96B	43.13B
Investing Cash Flow	-19.49B	-17.49B	-19.66B	-25.80B	-32.09B	-13.55B
Financing Cash Flow	-17.45B	-24.71B	-15.61B	-23.74B	1.58B	-32.01B

AT&T Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.75
• 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 28.75 is above the 20-day moving average (MA) of 27.80, above the 50-day MA of 27.74, and above the 200-day MA of 25.34, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 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
VZ	81 Outperform	$182.36B	10.05	18.26%	6.23%	2.05%	61.39%
TMUS	80 Outperform	$283.92B	23.79	19.74%	1.31%	6.27%	31.78%
CHTR	76 Outperform	$40.11B	7.32	36.19%	―	1.03%	17.05%
AMX	74 Outperform	$57.73B	19.96	14.41%	2.77%	-0.64%	56.92%
CMCSA	72 Outperform	$121.47B	5.43	25.44%	3.89%	2.54%	60.53%
T	67 Neutral	$203.64B	16.24	12.12%	3.86%	1.46%	0.88%
Sector *	60 Neutral	$44.01B	1.91	-11.93%	4.00%	2.46%	-39.70%

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.