AT&T (T) AI Stock Analysis

• Market Cap: $173.27B
• Dividend Yield: 4.52%
• Average Volume (3M): 58.28M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.22
• 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: 88,577,075
• 30 Day Avg. Volume: 58,277,845
• 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: 2.07
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 6.43
• 1Y Price Target: $31.16
• Price Target Upside: 26.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 2.05
• Revenue Forecast (FY): $125.03B

• Rating: 72 Outperform
• Price Target: $28.00 ▲(14.01% Upside)

AT&T's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators and competitive pressures highlighted in the earnings call. The company's strategic focus on fiber expansion and converged customer relationships positions it well for future growth, but challenges such as high debt levels and increased competition remain significant.

Positive Factors

Fiber Expansion

AT&T's aggressive fiber expansion enhances its competitive edge in broadband services, supporting long-term revenue growth and customer retention.

Cash Flow Generation

Robust cash flow generation provides AT&T with the financial flexibility to invest in strategic initiatives and manage debt, ensuring long-term stability.

Strategic Acquisitions

Strategic acquisitions enhance AT&T's service offerings and infrastructure, positioning it for sustained growth in the competitive telecom market.

Negative Factors

High Debt Levels

High debt levels pose a risk to AT&T's financial flexibility, potentially limiting its ability to invest in growth opportunities and manage economic downturns.

Increased Competition

Rising competition in the wireless market could pressure AT&T's market share and profitability, challenging its ability to maintain customer growth.

Business Wireline Revenue Decline

Declining business wireline revenues indicate 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 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'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: 24.56
• 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 24.56 is below the 20-day moving average (MA) of 25.39, below the 50-day MA of 27.05, and below the 200-day MA of 26.71, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 23.47 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
AMX	74 Outperform	$69.69B	18.25	17.70%	2.27%	1.14%	83.48%
TMUS	73 Outperform	$230.74B	19.84	19.03%	1.72%	7.30%	17.67%
VZ	72 Outperform	$165.79B	8.38	19.70%	6.86%	2.42%	102.17%
T	72 Outperform	$173.27B	7.94	20.88%	4.52%	1.98%	150.68%
CMCSA	69 Neutral	$99.99B	4.56	24.73%	4.76%	0.20%	61.54%
CHTR	66 Neutral	$57.18B	6.21	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

AT&T Corporate Events

AT&T Reports Strong Q3 2025 Financial Performance

AT&T Inc. is a leading telecommunications company in the United States, providing wireless, broadband, and fiber connectivity services to millions of consumers and businesses. Known for its extensive network coverage and innovative technology solutions, AT&T continues to play a significant role in the telecommunications industry.

AT&T Earnings Call Highlights Growth Amid Challenges

AT&T’s latest earnings call revealed a mixed sentiment, highlighting strong growth in broadband and mobility services, alongside strategic acquisitions poised to drive future expansion. However, the company faces challenges from increased competition, declining business wireline revenue, and rising operating expenses, which could impact its overall performance.

AT&T Completes $5 Billion Global Notes Sale

On September 24, 2025, AT&T successfully completed the sale of $5 billion in aggregate principal amount of Global Notes with varying maturity dates and interest rates, under an agreement with several major underwriters. This strategic financial move is expected to impact AT&T’s operations by potentially enhancing its liquidity and financial flexibility, thereby strengthening its position in the telecommunications industry.

The most recent analyst rating on (T) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

AT&T Completes €2.25 Billion Notes Sale

On September 16, 2025, AT&T Inc. completed the sale of €2.25 billion in Floating Rate Global Notes due 2027, which were issued under an indenture agreement with The Bank of New York Mellon Trust Company. This financial move, registered under the Securities Act of 1933, signifies a strategic effort by AT&T to manage its financial operations, potentially impacting its liquidity and market positioning.

The most recent analyst rating on (T) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

AT&T Acquires Spectrum Licenses in $23 Billion Deal

On August 25, 2025, AT&T Mobility II LLC, a subsidiary of AT&T Inc., entered into a $23 billion agreement to acquire wireless spectrum licenses from EchoStar Corporation. This acquisition aims to enhance AT&T’s spectrum portfolio, supporting its strategy to lead in 5G and fiber connectivity across the U.S. The transaction, expected to close in mid-2026, will enable AT&T to expand its 5G coverage and improve its home internet services, positioning the company as a leader in advanced connectivity. The deal also includes a long-term network services agreement with EchoStar, allowing it to operate under the Boost Mobile brand. AT&T plans to finance the purchase with cash and borrowings, expecting to maintain its financial targets and leverage ratios over time.

The most recent analyst rating on (T) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.

AT&T Announces New Board Director Appointment

On August 15, 2025, AT&T‘s Board of Directors elected Kelly J. Grier as a Director, effective September 1, 2025, and appointed her to the Corporate Development and Finance and Human Resources Committees. Concurrently, Scott T. Ford announced his retirement from the Board, also effective September 1, 2025, marking a significant change in the company’s leadership structure.

The most recent analyst rating on (T) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on AT&T stock, see the T Stock Forecast page.