AT&T (T) AI Stock Analysis

• Market Cap: $204.07B
• Dividend Yield: 3.91%
• Average Volume (3M): 30.61M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.19
• Revenue Growth: 0.50%
• EPS Growth: -12.66%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.51
• Shares Outstanding: 7,195,602,000
• 10 Day Avg. Volume: 34,256,645
• 30 Day Avg. Volume: 30,614,667
• PEG Ratio: 1.80
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.25
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $30.58
• Price Target Upside: 7.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $31.00 ▲(9.31%Upside)

AT&T's overall stock score reflects a stable financial performance with robust cash flow generation and profitability improvements. Positive technical indicators and strategic corporate actions like fiber expansion and share repurchases enhance future growth prospects. However, high leverage and potential impacts from tariffs and increased churn pose risks that need careful monitoring.

Positive Factors

Financial Performance

AT&T is on track to report solid results balanced between volume and financial performance, as it leaned into the elevated competitive wireless environment with some active promotions.

Shareholder Returns

AT&T’s convergence growth strategy is driving strong wireless and fixed wireline growth as well as strong revenue and cash flow growth, enabling it to increase its shareholder returns with plans to begin repurchasing shares with a goal of $3 billion.

Strategic Growth

AT&T's investment in its high-speed 5G wireless and fiber networks will continue to drive enhanced service offerings, ongoing revenue and cash flow growth, and accelerating Business Performance trends.

Negative Factors

Market Competition

Gross adds and churn are likely to be elevated for AT&T Mobility similar to its competitors.

Price Sensitivity

AT&T’s postpaid plans are priced at a premium compared to its peers, yet it has managed to grow its subscriber base in recent years.

AT&T Business Overview & Revenue Model

Company Description

AT&T Inc. is a leading telecommunications company based in the United States, providing a wide range of services including wireless communications, broadband, and pay television. The company operates primarily through its Communications segment, which encompasses Mobility, Business Wireline, and Consumer Wireline services. AT&T is known for its extensive network infrastructure, serving millions of consumers and businesses with connectivity solutions.

How the Company Makes Money

AT&T generates revenue through multiple streams, primarily from its Communications segment. The Mobility unit is a significant contributor, earning money from providing wireless services, including voice, data, and equipment sales to consumers and businesses. The Business Wireline segment generates revenue by offering advanced networking, security, and cloud solutions to enterprise customers. The Consumer Wireline segment earns from providing broadband internet and legacy voice services. Additionally, strategic partnerships, such as those with entertainment and technology companies, enhance service offerings and contribute to revenue. AT&T's business model relies heavily on subscription-based services, equipment sales, and value-added services to maintain and grow its earnings.

AT&T Financial Statement Overview

Summary

AT&T demonstrates a stable financial position with strengths in cash flow generation and profitability improvements. The company shows a strong operating cash flow to net income ratio, and free cash flow growth is positive, indicating robust cash generation. However, high leverage with a debt-to-equity ratio of 1.20 and stagnant revenue growth present potential risks.

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	79.33B	95.36B	72.31B	69.89B	73.63B	91.84B
EBITDA	45.22B	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: 28.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 28.36 is above the 20-day moving average (MA) of 28.15, above the 50-day MA of 27.74, and above the 200-day MA of 24.60, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, 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
CMCSA	81 Outperform	$134.38B	8.84	18.57%	3.67%	1.33%	7.69%
TMUS	81 Outperform	$273.36B	23.47	19.35%	1.46%	5.31%	38.46%
VZ	76 Outperform	$183.62B	10.35	18.23%	6.22%	0.93%	56.97%
CHTR	71 Outperform	$63.83B	11.56	36.94%	―	0.93%	16.06%
AMX	71 Outperform	$55.34B	33.11	8.54%	2.71%	0.19%	-49.68%
T	69 Neutral	$204.07B	17.42	11.38%	3.91%	0.50%	-12.66%
Sector *	66 Neutral	¥372.81B	13.63	2.32%	2.51%	5.41%	-17.67%

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.