AT&T (T) AI Stock Analysis

• Market Cap: $204.50B
• Dividend Yield: 3.98%
• Average Volume (3M): 30.85M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.21
• Revenue Growth: 0.50%
• EPS Growth: -12.66%
• Country: US
• Employees: 139,970
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.51
• Shares Outstanding: 7,195,602,000
• 10 Day Avg. Volume: 30,263,791
• 30 Day Avg. Volume: 30,848,430
• PEG Ratio: 1.80
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.28
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $30.47
• Price Target Upside: 7.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 69 Neutral
• Price Target: $31.00 ▲(9.08%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

Earnings Performance

Post-paid phone net additions exceeded expectations, indicating strong customer growth.

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.

Subscriber Growth

AT&T's convergence strategy, leveraging its 5G wireless and fiber broadband networks, will continue to drive subscriber growth through its multi-connectivity.

Negative Factors

Business Segment Challenges

Strong expense performance in 1Q25 increases confidence in AT&T's ability to eventually stabilize the Business Wireline segment.

Pricing Strategy

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 displays a stable financial position with strengths in cash flow generation and profitability improvements. However, high leverage and stagnant revenue growth pose potential risks. Continued focus on cost management and debt reduction will be critical for sustaining long-term financial health.

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
	EBIT
19.49B	19.05B	23.46B	-4.59B	25.90B	6.41B
	EBITDA
45.22B	44.02B	45.32B	21.07B	53.72B	33.57B
	Net Income Common Stockholders
11.85B	10.95B	14.40B	-8.52B	20.08B	-5.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.88B	3.30B	6.72B	3.70B	19.22B	9.74B
	Total Assets
397.47B	394.80B	407.06B	402.85B	551.62B	525.76B
	Total Debt
143.59B	140.92B	154.90B	154.68B	195.83B	179.45B
	Net Debt
136.71B	137.63B	148.18B	150.98B	176.61B	169.71B
	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: 28.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 28.42 is above the 20-day moving average (MA) of 27.56, above the 50-day MA of 27.39, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.72 is Negative, 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
CHTR	76 Outperform	$112.38B	11.28	36.94%	―	0.93%	16.06%
VZ	76 Outperform	$186.06B	10.48	18.23%	6.18%	0.93%	56.97%
CMCSA	75 Outperform	$132.99B	8.75	18.57%	3.64%	1.33%	7.69%
TMUS	75 Outperform	$279.16B	23.96	19.35%	1.38%	5.31%	38.46%
AMX	71 Outperform	$52.02B	31.06	8.54%	2.98%	0.19%	-49.68%
T	69 Neutral	$204.50B	17.45	11.38%	3.98%	0.50%	-12.66%
Sector *	61 Neutral	$14.78B	5.89	-4.32%	3.67%	2.75%	-30.30%

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.