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AT&T (T)
NYSE:T
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AT&T (T) AI Stock Analysis

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T

AT&T

(NYSE:T)

Rating:77Outperform
Price Target:
$33.00
▲(13.64% Upside)
AT&T's overall stock score reflects strong financial performance and positive technical indicators. The company's strategic investments in 5G and fiber, along with positive earnings call sentiment, bolster its growth prospects. However, reliance on debt and valuation concerns slightly temper the score.
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.
Product Performance
AT&T's stand-alone product performance is strong within mass markets.
Spectrum Acquisition
The spectrum purchase boosts AT&T's competitive position.
Negative Factors
Competitive Environment
The greater level of wireless promotional intensity may weigh on Mobility segment EBITDA growth for the balance of the year.
Market Competition
Elevated churn and switching activity are expected to continue, impacting Mobility EBITDA.
Regulatory Approval
Closing the sale of spectrum to AT&T requires FCC approval, and ongoing discussions with the FCC may impact potential approval timing.

AT&T (T) vs. SPDR S&P 500 ETF (SPY)

AT&T Business Overview & Revenue Model

Company DescriptionAT&T Inc. is a leading telecommunications and media company based in the United States, primarily engaged in providing mobile and fixed telephony services, broadband, and digital television. The company operates through three main segments: Communications, WarnerMedia, and Latin America. Its core products include wireless communication services, broadband internet, and video entertainment, catering to both individual consumers and businesses. AT&T's expansive network infrastructure and significant investments in technology position it as a prominent player in the evolving telecommunications landscape.
How the Company Makes MoneyAT&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 Key Performance Indicators (KPIs)

Any
Any
Mobility: Postpaid Average Revenue Per User
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.
Chart InsightsAT&T's Mobility Postpaid ARPU has shown a significant upward trend since mid-2023, reflecting strategic pricing and service enhancements. This aligns with the company's strong growth in Mobility service revenue, as highlighted in the recent earnings call. Despite increased churn, the addition of 401,000 postpaid phone customers underscores robust demand. The company's focus on expanding its fiber network and leveraging favorable policy environments positions it well for sustained growth, although higher equipment costs could pressure margins.
Data provided by:Main Street Data

AT&T Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
AT&T's earnings call reflected strong growth in Mobility and Fiber segments, with record free cash flow and increased investment in next-generation networks. However, challenges such as increased churn in Mobility and declines in Business Wireline were noted. The overall sentiment is positive due to outweighing highlights.
Q2-2025 Updates
Positive Updates
Strong Mobility Growth
AT&T added over 400,000 postpaid phone customers, driving service revenue growth of 3.5% in the Mobility segment.
Fiber Subscriber Increase
The company added 243,000 fiber subscribers, contributing to a nearly threefold increase in quarterly total broadband net additions in one year.
Record Free Cash Flow
Second quarter free cash flow was $4.4 billion, up from $4 billion the prior year.
Increased Investment in Fiber and 5G
AT&T plans to invest in its network by accelerating fiber deployment to 4 million new locations per year by 2026.
Positive Financial Guidance
The company increased its full-year guidance for Mobility service revenue growth to 3% or better and Consumer Wireline EBITDA growth to the low- to mid-teens.
Negative Updates
Increased Churn in Mobility
Postpaid phone churn increased by 17 basis points year-over-year, attributed to the end of device financing periods and increased market activity.
Challenges in Business Wireline
Business Wireline revenues declined 9.3% year-over-year with EBITDA declining 11.3%, due to legacy Wireline pressure.
Higher Operating Expenses
The cost of acquiring and retaining subscribers has increased, impacting operating expenses.
Company Guidance
During AT&T's Second Quarter 2025 Earnings Call, the company reiterated its commitment to becoming the top connectivity provider in the U.S., as evidenced by its substantial investments in both 5G and fiber technologies. The financial highlights of the quarter included a 3.5% year-over-year growth in service revenues and adjusted EBITDA, while adjusted EPS increased by 6% to $0.54. AT&T added over 400,000 postpaid phone customers and nearly 450,000 new broadband subscribers, driven by 243,000 fiber and 203,000 Internet Air additions. The company also announced an acceleration of its fiber deployment, aiming to reach 4 million new locations annually by the end of 2026 and expand its fiber reach to 60 million locations by 2030. Additionally, AT&T plans to invest tax savings from the recent One Big Beautiful Bill Act into its network and pension fund, while also repurchasing $4 billion of stock by year-end. The call highlighted AT&T's strategic focus on convergence, as Mobility service revenue growth was raised to 3% or better, reflecting their successful customer acquisition and retention strategies.

AT&T Financial Statement Overview

Summary
AT&T demonstrates a positive financial trajectory with improving profitability and cash flow metrics. The income statement shows strong recovery with increased margins, while the balance sheet reflects moderate leverage. However, reliance on debt and past revenue declines pose potential risks.
Income Statement
78
Positive
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
72
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue123.98B122.34B122.43B120.74B134.04B171.76B
Gross Profit53.07B52.53B53.53B69.89B73.63B63.32B
EBITDA46.32B44.02B45.32B21.07B53.72B33.57B
Net Income12.76B10.95B14.40B-8.52B20.08B-5.18B
Balance Sheet
Total Assets405.49B394.80B407.06B402.85B551.62B525.76B
Cash, Cash Equivalents and Short-Term Investments10.50B3.30B6.72B3.70B19.22B9.74B
Total Debt150.07B140.92B154.90B154.68B195.83B179.64B
Total Liabilities282.11B274.57B287.64B296.40B367.77B346.52B
Stockholders Equity105.27B104.37B103.30B97.50B166.33B161.67B
Cash Flow
Free Cash Flow19.62B18.51B20.46B12.40B25.43B27.45B
Operating Cash Flow40.94B38.77B38.31B32.02B41.96B43.13B
Investing Cash Flow-21.56B-17.49B-19.66B-25.80B-32.09B-13.55B
Financing Cash Flow-12.01B-24.71B-15.61B-23.74B1.58B-32.01B

AT&T Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.04
Price Trends
50DMA
28.08
Positive
100DMA
27.66
Positive
200DMA
25.83
Positive
Market Momentum
MACD
0.33
Positive
RSI
58.45
Neutral
STOCH
64.35
Neutral
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 29.04 is above the 20-day moving average (MA) of 28.72, above the 50-day MA of 28.08, and above the 200-day MA of 25.83, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 64.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for T.

AT&T Risk Analysis

AT&T disclosed 23 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$184.68B10.1818.26%6.20%2.05%61.39%
81
Outperform
$126.02B5.6425.44%3.78%2.54%60.53%
81
Outperform
$287.98B24.1319.74%1.39%6.27%31.78%
77
Outperform
$209.43B16.5812.12%3.82%1.46%0.88%
68
Neutral
$61.08B21.0714.41%2.68%-0.64%56.92%
68
Neutral
$40.31B7.1136.19%1.03%17.05%
60
Neutral
$43.83B3.98-12.77%4.14%1.86%-42.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
T
AT&T
29.04
9.32
47.26%
AMX
America Movil
19.50
3.63
22.87%
CHTR
Charter Communications
261.22
-69.56
-21.03%
CMCSA
Comcast
33.89
-4.58
-11.91%
VZ
Verizon
44.18
5.47
14.13%
TMUS
T Mobile US
252.12
57.71
29.68%

AT&T Corporate Events

M&A TransactionsBusiness Operations and Strategy
AT&T Acquires Spectrum Licenses in $23 Billion Deal
Positive
Aug 26, 2025

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.

Executive/Board Changes
AT&T Announces New Board Director Appointment
Neutral
Aug 19, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
AT&T Completes $3.5 Billion Global Notes Sale
Positive
Jun 3, 2025

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.

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.Date of analysis: Aug 26, 2025