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AT&T
(NYSE:T)
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Rating:69Neutral
Price Target:
$26.00
▲(0.89% Upside)
Action:Downgraded
Date:10/21/26
The score is driven primarily by improved current fundamentals (strong TTM profitability and meaningful cash generation) and an attractive valuation (low P/E and high dividend yield). These positives are moderated by elevated leverage and weaker recent technical momentum, while the latest earnings call adds support through strong operating trends and raised outlook but also flags leverage and near-term cost/cash-flow pressures.
Positive Factors
Advanced connectivity growth
Growth is concentrated in AT&T’s strategic wireless, fiber, fixed-wireless and business connectivity offerings rather than solely legacy services. This supports a more durable revenue mix, improves network utilization, and strengthens the company’s ability to compound service revenue over coming quarters.
Negative Factors
Elevated leverage
The spectrum acquisition strengthens network capacity but materially increased leverage and interest requirements. Debt at this level reduces balance-sheet flexibility, makes cash-flow allocation more constrained, and leaves the company dependent on sustained operating performance to reach its leverage target.
Read all positive and negative factors
Positive Factors
Negative Factors
Advanced connectivity growth
Growth is concentrated in AT&T’s strategic wireless, fiber, fixed-wireless and business connectivity offerings rather than solely legacy services. This supports a more durable revenue mix, improves network utilization, and strengthens the company’s ability to compound service revenue over coming quarters.
Read all positive factors
AT&T Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyAT&T (T) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$150.14B
Dividend Yield5.07%
Average Volume (3M)44.32M
Price to Earnings (P/E)11.8
Beta (1Y)0.04
Revenue Growth3.51%
EPS Growth-39.83%
CountryUS
Employees133,030
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.03
Shares Outstanding6,852,385,700
10 Day Avg. Volume56,601,158
30 Day Avg. Volume44,321,146
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.61
Price to Sales (P/S)1.42
P/FCF Ratio9.16
Enterprise Value/Market Cap2.34
Enterprise Value/Revenue2.77
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda6.55
Forecast
1Y Price Target
$28.10Price Target Upside9.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)2.37
Revenue Forecast (FY)$129.66B
AT&T Business Overview & Revenue Model
Company Description
Globally, AT&T Inc. delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphon...
How the Company Makes Money
AT&T primarily makes money by charging recurring service fees for connectivity and related telecom services, supplemented by equipment sales and enterprise networking revenue.
1) Wireless service revenue (largest driver)
- Monthly subscriptions: ...
AT&T Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with broad-based growth in subscribers, service revenue, EBITDA, adjusted EPS, wireless, fiber and business connectivity. Management also raised portions of its full-year outlook, highlighted record margins and continued progress in fiber expansion, convergence, copper retirement and shareholder returns. The main challenges were declining legacy revenues, lower fiber ARPU, higher near-term customer acquisition and interest costs, elevated leverage following the spectrum purchase, one-time charges and uncertainty around future technology shifts.Positive Updates
Strong Advanced Connectivity Subscriber Growth
AT&T added over one million Advanced Connectivity subscribers from fiber, fixed wireless and postpaid phone in the third quarter, its best quarter in more than four years and its second consecutive quarter with more than 1 million net adds across these services.
Negative Updates
Legacy Segment Revenue and EBITDA Declines
Legacy segment service revenue declined approximately 25% year-over-year, consistent with the expected continued 20%+ declines as AT&T powers down copper-based services and migrates customers. Legacy EBITDA declined about 27%.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Advanced Connectivity Subscriber Growth
AT&T added over one million Advanced Connectivity subscribers from fiber, fixed wireless and postpaid phone in the third quarter, its best quarter in more than four years and its second consecutive quarter with more than 1 million net adds across these services.
Read all positive updates
Company Guidance
For the full year, AT&T expects consolidated service revenues to grow in the low single-digit range, consolidated adjusted EBITDA to grow in the upper portion of the 3%-4% range, adjusted EPS in the $2.40 range, $18 billion+ of free cash flow, $23 billion to $24 billion of capital investment, and cash taxes in the $750 million range; for the fourth quarter, it expects free cash flow of approximately $6 billion, unfavorable vendor dispute settlements of approximately $100 million, advanced home internet net adds to moderate, and fiber ARPU to show a similar year-over-year decline compared to the third quarter. AT&T expects full-year Advanced Connectivity service revenue growth of 5%+ and EBITDA growth of 6%+, legacy service revenue declines to continue at 20%+, $4 billion in annual consolidated cost savings by the end of 2028, net debt to adjusted EBITDA to return to a level consistent with its target in the 2.5x range during 2029, and approximately $10 billion of share repurchases in 2026. It expects to reach 60 million+ fiber locations by the end of the decade, with annual capital investment in the $22 billion to $23 billion range for 2027 and 2028 and $19 billion+ of free cash flow in 2027; its target is to discontinue copper-based services in 50% of its wire centers outside of California by the end of 2027 and substantially all of them by the end of 2029.AT&T Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.24B | 125.65B | 122.34B | 122.43B | 120.74B | 134.04B |
| Gross Profit | 75.99B | 74.83B | 52.53B | 53.53B | 69.89B | 73.63B |
| EBITDA | 53.74B | 54.70B | 44.02B | 45.32B | 21.07B | 53.72B |
| Net Income | 21.49B | 21.89B | 10.95B | 14.40B | -8.52B | 20.08B |
Balance Sheet | ||||||
| Total Assets | 428.36B | 420.20B | 394.80B | 407.06B | 402.85B | 551.62B |
| Cash, Cash Equivalents and Short-Term Investments | 17.57B | 18.23B | 3.30B | 6.72B | 3.70B | 19.22B |
| Total Debt | 162.89B | 173.99B | 140.92B | 154.90B | 154.68B | 195.83B |
| Total Liabilities | 301.93B | 291.71B | 274.57B | 287.64B | 296.40B | 367.77B |
| Stockholders Equity | 110.44B | 110.53B | 104.37B | 103.30B | 97.50B | 166.33B |
Cash Flow | ||||||
| Free Cash Flow | 17.65B | 19.44B | 18.51B | 20.46B | 12.40B | 25.43B |
| Operating Cash Flow | 39.90B | 40.28B | 38.77B | 38.31B | 32.02B | 41.96B |
| Investing Cash Flow | -25.33B | -18.78B | -17.49B | -19.66B | -25.80B | -32.09B |
| Financing Cash Flow | -7.21B | -6.39B | -24.71B | -15.61B | -23.74B | 1.58B |
AT&T Technical Analysis
Negative
25.77
Price Trends
24.62
Negative
23.44
Negative
24.51
Negative
Market Momentum
-0.53
Positive
32.56
Neutral
31.84
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 25.77 is above the 20-day moving average (MA) of 23.71, above the 50-day MA of 24.62, and above the 200-day MA of 24.51, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 32.56 is Neutral, neither overbought nor oversold. The STOCH value of 31.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for T.
AT&T Risk Analysis
AT&T disclosed 21 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $169.21B | 16.05 | 18.22% | 2.65% | 9.68% | -10.02% | |
72 Outperform | $79.35B | 7.17 | 12.04% | 5.98% | 0.58% | -48.94% | |
69 Neutral | $150.14B | 11.84 | 11.50% | 5.07% | 3.51% | -39.83% | |
65 Neutral | $185.05B | 11.34 | 15.52% | 6.46% | 1.38% | -10.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $19.38B | 2.75 | 30.43% | ― | -1.50% | 4.45% | |
50 Neutral | $4.60B | -4.36 | -52.11% | 9.72% | -7.74% | 13.54% |
* Communication Services Sector Average
T
AT&T
21.91
-1.59
-6.77%
LUMN
Lumen Technologies
4.46
-3.33
-42.75%
CHTR
Charter Communications
107.26
-136.66
-56.03%
CMCSA
Comcast
22.08
-3.97
-15.25%
VZ
Verizon
43.56
7.56
20.98%
TMUS
T Mobile US
153.75
-61.69
-28.63%
AT&T Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
AT&T Reshapes International Operations with Mexico Exit
Neutral
Oct 16, 2026
ATT Inc., a major telecommunications provider with significant international operations, has been reshaping its portfolio, including its wireless business in Mexico, to streamline its global footprint and organizational structure. These moves refl...
Business Operations and StrategyExecutive/Board Changes
AT&T Adds Independent Director to Strengthen Board Oversight
Positive
Sep 9, 2026
On September 7, 2026, ATT’s Board of Directors approved an expansion of the board from 10 to 11 members and elected Fazal F. Merchant as a new director, effective September 8, 2026. The board also appointed Merchant to the Audit and the Corp...
Private Placements and FinancingRegulatory Filings and Compliance
AT&T Issues New Floating Rate Global Notes Offering
Positive
Aug 17, 2026
On August 17, 2026, ATT closed the sale of €1.2 billion of floating rate global notes and $1.1 billion of floating rate global notes, both due 2028, in separate underwritten offerings led by Deutsche Bank AG, London Branch, and BNP Paribas S...
Private Placements and FinancingRegulatory Filings and Compliance
AT&T boosts European funding with new debt issuance
Positive
Aug 4, 2026
On August 3, 2026, ATT completed the sale of multiple euro- and sterling-denominated global notes, raising a total of €4.1 billion and £550 million with maturities ranging from 2030 to 2052. The transaction, led by a syndicate of intern...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
AT&T Expands 5G Spectrum with $23 Billion Acquisition
Positive
Jul 28, 2026
On July 28, 2026, ATT Mobility II LLC, an indirect wholly owned subsidiary of ATT Inc., closed its previously announced acquisition of wireless spectrum licenses from EchoStar for approximately $23 billion, covering virtually every U.S. market. Th...
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.