AT&T (T) AI Stock Analysis

• Market Cap: $202.50B
• Dividend Yield: 3.92%
• Average Volume (3M): 30.13M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.20
• Revenue Growth: 1.46%
• EPS Growth: 0.88%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.54
• Shares Outstanding: 7,150,385,300
• 10 Day Avg. Volume: 30,457,581
• 30 Day Avg. Volume: 30,133,392
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: 7.91
• 1Y Price Target: $31.57
• Price Target Upside: 11.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $33.00 ▲(16.53% 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

5G and Fiber Expansion

AT&T's strategic investments in 5G and fiber expansion enhance its competitive edge in connectivity, supporting long-term growth and market leadership.

Spectrum Acquisition

The acquisition of spectrum licenses strengthens AT&T's 5G capabilities, positioning it to better compete in the telecommunications industry and expand service offerings.

Strong Cash Flow

Robust cash flow growth indicates strong cash generation ability, providing AT&T with financial flexibility to invest in strategic initiatives and manage debt.

Negative Factors

Rising Debt Levels

Increased debt levels to finance acquisitions may strain AT&T's balance sheet, impacting financial stability and flexibility in volatile market conditions.

Business Wireline Decline

Declining Business Wireline revenues highlight challenges in legacy services, potentially affecting overall revenue growth and profitability if not addressed.

Increased Operating Expenses

Rising operating expenses due to higher customer acquisition costs may pressure margins, affecting profitability and limiting investment capacity.

AT&T Business Overview & Revenue Model

Company Description

AT&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 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 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

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	123.98B	122.34B	122.43B	120.74B	134.04B	171.76B
Gross Profit	53.07B	52.53B	53.53B	69.89B	73.63B	63.32B
EBITDA	46.32B	44.02B	45.32B	21.07B	53.72B	33.57B
Net Income	12.76B	10.95B	14.40B	-8.52B	20.08B	-5.18B
Balance Sheet
Total Assets	405.49B	394.80B	407.06B	402.85B	551.62B	525.76B
Cash, Cash Equivalents and Short-Term Investments	10.50B	3.30B	6.72B	3.70B	19.22B	9.74B
Total Debt	150.07B	140.92B	154.90B	154.68B	195.83B	179.64B
Total Liabilities	282.11B	274.57B	287.64B	296.40B	367.77B	346.52B
Stockholders Equity	105.27B	104.37B	103.30B	97.50B	166.33B	161.67B
Cash Flow
Free Cash Flow	19.62B	18.51B	20.46B	12.40B	25.43B	27.45B
Operating Cash Flow	40.94B	38.77B	38.31B	32.02B	41.96B	43.13B
Investing Cash Flow	-21.56B	-17.49B	-19.66B	-25.80B	-32.09B	-13.55B
Financing Cash Flow	-12.01B	-24.71B	-15.61B	-23.74B	1.58B	-32.01B

AT&T Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For T, the sentiment is Neutral. The current price of 28.32 is below the 20-day moving average (MA) of 29.19, below the 50-day MA of 28.51, and above the 200-day MA of 26.36, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for T.

AT&T Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	83 Outperform	182.06B	10.07	17.65%	6.28%	2.05%	61.39%
CMCSA	78 Outperform	116.71B	5.22	23.65%	4.05%	2.54%	60.53%
T	77 Outperform	$202.50B	16.41	12.12%	3.92%	1.46%	0.88%
TMUS	73 Outperform	268.30B	22.59	19.99%	1.48%	6.27%	31.78%
AMX	68 Neutral	62.87B	22.54	11.57%	2.54%	-0.64%	56.92%
CHTR	68 Neutral	40.15B	7.17	32.48%	―	1.03%	17.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

AT&T Corporate Events

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.

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.

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.