AT&T Inc. (T) AI Stock Analysis

Established in 1983 and based in Dallas, Texas, AT&T Inc. operates through three main business segments: Communications, WarnerMedia, and Latin America. Its Communications division delivers wireless voice and data services to consumers and enterprise clients, along with broadband fiber and traditional voice under brands like AT&T, Cricket, AT&T PREPAID, and AT&T Fiber. The WarnerMedia segment produces and distributes feature films, television shows, and gaming content across basic networks, direct-to-consumer platforms, theatrical releases, and licensing channels. In Latin America, the company provides wireless telecommunications services primarily across Mexico under the AT&T and Une brands.

AT&T reported FY2025 revenue of $125.65B, rising 2.7% after generating $122.34B in FY2024 and $122.43B in FY2023. This followed revenue declines of 22.0% in FY2021 to $134.04B and 9.9% in FY2022 to $120.74B, reflecting a 5-year revenue CAGR of -6.1% from FY2020 to FY2025. Gross margin expanded to 59.6% in FY2025 from 42.9% in FY2024, while net income climbed to $21.89B with a 17.4% net margin. For the trailing twelve months, revenue was $127.24B with an operating margin of 24.8%. In the latest quarter ended June 30, 2026, revenue increased 2.3% year-over-year while earnings grew 6.2%.

As of June 30, 2026, AT&T held $17.57B in cash and short-term investments alongside total debt of $162.89B, resulting in net debt of $145.32B. The company recorded a debt-to-equity ratio of 1.47 and a current ratio of 0.97 against shareholders' equity of $110.44B. In FY2025, operating cash flow reached $40.28B and free cash flow was $19.44B. Capital allocation during FY2025 included $20.84B in capital expenditures, $8.18B in dividends paid, and $6.58B in share buybacks.

AT&T trades at a trailing P/E of 7.7x and a forward P/E of 9.9x, both below the median of its S&P 500 Communication Services peers of 20.5x and 15.4x, respectively. Its enterprise value of $318.68B translates to an EV/EBITDA of 5.9x, compared to the peer median of 11.7x. The company's price-to-sales multiple is 1.3x versus the peer median of 1.9x. Over the past year, the stock fell 6.3% while the S&P 500 gained 16.8%, and its 5-year return of 61.0% trailed the S&P 500 gain of 83.0%.

AT&T pays a forward annual dividend of $1.11 per share, representing a dividend yield of 4.74% and a payout ratio of 48.8%. The company has distributed dividends for 43 consecutive years on a quarterly schedule. Over the past five years, the dividend has registered an annualized decline of 11.8%, with the most recent ex-dividend date on October 9, 2026.

Wall Street analysts hold 11 Strong Buy, 3 Buy, 10 Hold, 0 Sell, and 1 Strong Sell ratings on AT&T. The mean price target stands at $28.76, implying upside of 22.7% above the last close of $23.44. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $2.34 on revenue of $129.21B. AT&T beat EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of AT&T Inc. (T). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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