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AT&T
(NYSE:T)
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Rating:72Outperform
Price Target:
$26.00
▲(7.75% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improved current profitability and cash generation, supported by a positive earnings-call outlook (reiterated guidance, EBITDA/EPS momentum, and an FCF beat). Valuation is a major positive due to the low P/E and strong dividend yield. Offsetting these strengths are structurally high leverage (with additional near-term leverage from the EchoStar deal) and only moderate technical strength, as the stock remains below longer-term moving averages.
Positive Factors
Advanced Connectivity & Fiber Scale
AT&T’s accelerated fiber build and Lumen integration materially expands addressable market and long-term service capacity. Adding millions of locations and positive Advanced Connectivity revenue/EBITDA trends supports durable subscriber growth, higher lifetime value via convergence, and structural positioning for AI/edge demand.
Negative Factors
High absolute leverage
AT&T carries a large absolute debt burden that constrains balance-sheet flexibility. The EchoStar-funded spectrum deal temporarily increases leverage to ~3.2x, limiting near-term capacity to de-risk via buybacks or aggressive M&A and increasing sensitivity to interest costs and execution hiccups over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Advanced Connectivity & Fiber Scale
AT&T’s accelerated fiber build and Lumen integration materially expands addressable market and long-term service capacity. Adding millions of locations and positive Advanced Connectivity revenue/EBITDA trends supports durable subscriber growth, higher lifetime value via convergence, and structural positioning for AI/edge demand.
Read all positive factors
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 (T) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$164.80B
Dividend Yield4.53%
Average Volume (3M)78.66M
Price to Earnings (P/E)7.9
Beta (1Y)0.05
Revenue Growth2.63%
EPS Growth72.35%
CountryUS
Employees133,030
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.03
Shares Outstanding6,852,385,700
10 Day Avg. Volume95,745,999
30 Day Avg. Volume78,659,480
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.02Price Target Upside20.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)2.34
Revenue Forecast (FY)$129.24B
AT&T Business Overview & Revenue Model
Company Description
Globally, AT&T Inc. delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphon...
How the Company Makes Money
AT&T primarily makes money by selling recurring connectivity services and related fees. The largest revenue driver is wireless service, where customers pay monthly subscription charges for smartphone and connected-device voice/data plans; AT&T als...
AT&T Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum driven by Advanced Connectivity: accelerating subscriber adds, improving converged penetration, double-digit growth in key metrics (adjusted EBITDA and EPS growth), a free cash flow beat, and an enlarged share buyback program. The company is also executing a deliberate transformation (fiber build, Lumen integration, legacy copper retirement) that requires elevated capex and causes meaningful near-term declines in legacy revenues and temporary leverage headwinds. Given the clear revenue/EBITDA/margin gains, robust cash generation, and strategic positioning for AI-driven demand — balanced against planned legacy declines, higher capex, and short-term leverage impact — the net tone of the call is positive.Positive Updates
Strong Subscriber Adds and Convergence Momentum
Gained more than 1 million Advanced Connectivity subscribers (fiber, fixed wireless, postpaid phones) in Q2; best-ever Q2 for AT&T Fiber net adds and a record quarter for combined fiber and fixed wireless net adds. 42.5% of advanced home internet customers also have a postpaid wireless account (45% ex-Lumen). June converged gross adds in Lumen territories were up 45% vs. February.
Negative Updates
Pressure on Fiber ARPU
Fiber ARPU declined 1.3% YoY in Q2, primarily due to a full-quarter impact from the Lumen-acquired subscribers who have lower ARPU; management warned convergence-led pricing and adding lower-ARPUs could put near-term pressure on Fiber ARPU (ex-Lumen Fiber ARPU approximately flat YoY).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Subscriber Adds and Convergence Momentum
Gained more than 1 million Advanced Connectivity subscribers (fiber, fixed wireless, postpaid phones) in Q2; best-ever Q2 for AT&T Fiber net adds and a record quarter for combined fiber and fixed wireless net adds. 42.5% of advanced home internet customers also have a postpaid wireless account (45% ex-Lumen). June converged gross adds in Lumen territories were up 45% vs. February.
Read all positive updates
Company Guidance
AT&T reiterated confident full‑year targets and provided detailed Q2 metrics: consolidated service revenues +2.7% YoY (total revenues +2.3%), adjusted EBITDA +5.2% YoY with margin up 110 bps to 39.1%, adjusted EPS $0.65 (Q2; up >20% from $0.54) and full‑year adjusted EPS guidance of $2.25–$2.35; Q2 free cash flow was $4.7B (vs guidance $4.0–4.5B) and capex was $6.1B (Q2) with full‑year capex guidance $23B–$24B and FCF guidance $18B+. Advanced Connectivity strength drove guidance for full‑year Advanced Connectivity service‑revenue growth of 5%+ and EBITDA growth of 6%+, after Q2 Advanced Connectivity service revenues +5.1% and EBITDA +8%, advanced home internet revenues +27% YoY, >1M fiber locations added in Q2 and a plan to reach 8M new locations this year (including >4M from Lumen); wireless added 432k postpaid phone net adds and 147k consumer postpaid accounts, while fiber ARPU was roughly flat ex‑Lumen. Capital allocation expectations: Q2 returned $4.1B to shareholders (including ~$2.2B buybacks), buybacks accelerated to ~ $10B for 2026 (from $8B), total repurchases + dividends ~ $18B (~100% of FCF outlook), net debt/adjusted‑EBITDA 2.68x (projected ~3.2x post‑EchoStar then ~2.5x within ~3 years), and a target of $4B annual cost savings 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 | 127.24B | 125.65B | 122.34B | 122.43B | 120.74B | 134.04B |
| Gross Profit | 75.99B | 74.83B | 52.53B | 53.53B | 69.89B | 73.63B |
| EBITDA | 53.74B | 54.70B | 44.02B | 45.32B | 21.07B | 53.72B |
| Net Income | 21.49B | 21.89B | 10.95B | 14.40B | -8.52B | 20.08B |
Balance Sheet | ||||||
| Total Assets | 428.36B | 420.20B | 394.80B | 407.06B | 402.85B | 551.62B |
| Cash, Cash Equivalents and Short-Term Investments | 17.57B | 18.23B | 3.30B | 6.72B | 3.70B | 19.22B |
| Total Debt | 162.89B | 173.99B | 140.92B | 154.90B | 154.68B | 195.83B |
| Total Liabilities | 301.93B | 291.71B | 274.57B | 287.64B | 296.40B | 367.77B |
| Stockholders Equity | 110.44B | 110.53B | 104.37B | 103.30B | 97.50B | 166.33B |
Cash Flow | ||||||
| Free Cash Flow | 17.65B | 19.44B | 18.51B | 20.46B | 12.40B | 25.43B |
| Operating Cash Flow | 39.90B | 40.28B | 38.77B | 38.31B | 32.02B | 41.96B |
| Investing Cash Flow | -25.33B | -18.78B | -17.49B | -19.66B | -25.80B | -32.09B |
| Financing Cash Flow | -7.21B | -6.39B | -24.71B | -15.61B | -23.74B | 1.58B |
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $191.15B | 18.64 | 18.22% | 2.19% | 9.68% | -10.02% | |
72 Outperform | $164.80B | 7.95 | 19.48% | 4.60% | 2.63% | 72.35% | |
72 Outperform | $89.43B | 8.18 | 12.04% | 5.92% | 0.58% | -48.94% | |
69 Neutral | $195.40B | 12.25 | 15.52% | 6.03% | 1.38% | -10.78% | |
67 Neutral | $73.45B | 13.68 | 21.99% | 2.28% | 13.40% | 75.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $20.51B | 3.93 | 30.43% | ― | -1.50% | 4.45% |
* Communication Services Sector Average
T
AT&T
24.50
-2.70
-9.92%
AMX
America Movil
23.43
4.81
25.84%
CHTR
Charter Communications
157.69
-105.41
-40.06%
CMCSA
Comcast
25.65
-3.03
-10.57%
VZ
Verizon
47.27
6.79
16.76%
TMUS
T Mobile US
178.58
-69.03
-27.88%
AT&T Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
AT&T boosts European funding with new debt issuance
Positive
Aug 4, 2026
On August 3, 2026, ATT completed the sale of multiple euro- and sterling-denominated global notes, raising a total of €4.1 billion and £550 million with maturities ranging from 2030 to 2052. The transaction, led by a syndicate of intern...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
AT&T Expands 5G Spectrum with $23 Billion Acquisition
Positive
Jul 28, 2026
On July 28, 2026, ATT Mobility II LLC, an indirect wholly owned subsidiary of ATT Inc., closed its previously announced acquisition of wireless spectrum licenses from EchoStar for approximately $23 billion, covering virtually every U.S. market. Th...
Executive/Board Changes
AT&T Announces CFO Retirement and Successor Appointment
Neutral
Jun 16, 2026
On June 11, 2026, ATT announced that Senior Executive Vice President and Chief Financial Officer Pascal Desroches will retire effective December 31, 2026, marking a planned leadership transition in the company’s top finance role. On June 15,...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
AT&T Shareholders Approve Governance Changes and Charter Update
Neutral
May 20, 2026
At its virtually held annual meeting on May 14, 2026, ATT shareholders elected all nominated directors and backed management-sponsored proposals, including ratification of the independent auditor, a 2026 incentive plan, and a stock purchase and de...
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.