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1. Company Snapshot

1.a. Company Description

AT&T Inc.provides telecommunications, media, and technology services worldwide.Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores.


It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers.In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers.It markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names.


The company's Latin America segment provides wireless services in Mexico; and video services in Latin America.This segment markets its services and products under the AT&T and Unefon brand names.The company was formerly known as SBC Communications Inc.


and changed its name to AT&T Inc.in 2005.AT&T Inc.


was incorporated in 1983 and is headquartered in Dallas, Texas.

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1.b. Last Insights on T

AT&T's recent performance has been impacted by pressure from rivals in the fiber network expansion. Despite adding 243K fiber subscribers in Q2, the company's growth faces challenges from market saturation and stiff competition. Barclays downgraded AT&T's stock due to concerns about industry competition and debt levels. Additionally, St. Louis Financial Planners Asset Management sold $3.3 million in AT&T stock, potentially signaling a lack of confidence. The company's high leverage and mature market competition in the US also pose risks.

1.c. Company Highlights

2. AT&T's Strong 2025 Performance and Promising Outlook

AT&T Inc. reported a robust financial performance in 2025, with consolidated adjusted EBITDA growing over 4% and adjusted EBITDA margins expanding by 20 basis points. The company's earnings per share (EPS) came in at $0.52, beating analyst estimates of $0.4628. Revenue growth was driven by solid gains in 5G and fiber subscriber additions, with over 1.5 million postpaid phone net adds for the fifth consecutive year and over 1 million AT&T Fiber net adds for the eighth consecutive year. The company's Internet Air growth accelerated, with 875,000 net adds, doubling its customer base from 2024.

Publication Date: Feb -02

📋 Highlights
  • Subscriber Growth:: 1.5 million postpaid phone net adds (5th year) and 1 million AT&T Fiber net adds (8th year), alongside 875,000 Internet Air net adds (doubling customer base vs. 2024).
  • Shareholder Returns:: $12 billion returned in 2025 (50% increase from 2024) and $45 billion+ planned over 2026–2028 (30% of market cap, 75% of free cash flow).
  • Fiber Expansion:: 32 million fiber locations in 2025, aiming for 40 million by 2026, with 5 million annual additions through 2028, plus $900M annualized revenue from Lumen fiber assets.
  • Financial Guidance:: 3–4% consolidated adjusted EBITDA growth in 2026 (rising to 5%+ by 2028), with adjusted EPS CAGR of double-digits through 2028 ($2.25–$2.35 in 2026).
  • Cost Efficiency:: $1B cost savings in 2025, targeting $4B annually by 2028, driven by legacy segment reductions and operational efficiencies.

Segment Performance and Outlook

The company's investments in 5G and fiber have positioned it to accelerate and scale the execution of its strategy in 2026. AT&T expects to reach over 40 million customer locations with its fiber services by the end of 2026, up from 32 million at the end of 2025. The company also expects to drive improved growth in adjusted EBITDA, double-digit adjusted EPS growth, and strong free cash flow over the next three years. Analysts estimate next year's revenue growth at 2.2%, indicating a steady pace of expansion.

Valuation and Dividend Yield

AT&T's current valuation metrics indicate a relatively attractive profile, with a P/E Ratio of 8.59, P/B Ratio of 1.51, and Dividend Yield of 4.23%. The company's EV/EBITDA ratio stands at 6.07, suggesting a reasonable level of leverage. With a Free Cash Flow Yield of 10.74%, AT&T appears to be generating significant cash flows relative to its market capitalization. The company's ROE stands at 19.71%, indicating a strong level of profitability.

Growth Drivers and Initiatives

AT&T's growth is being driven by its investments in 5G and fiber, as well as its convergence strategy. The company's fiber convergence rate has climbed 200 basis points year over year to 42%, indicating a strong level of customer adoption. The acquisition of Lumen Fiber assets is expected to drive reported growth in advanced home internet revenues in 2026 exceeding 30%. The company's cost transformation initiatives are also expected to drive significant cost savings, with a projected $4 billion over the next three years.

Management's Confidence and Guidance

Management has expressed confidence in the company's ability to deliver on its plan, citing the right assets, regulatory environment, technical direction, and team in place. The company's guidance indicates a strong level of visibility into its future performance, with expected consolidated adjusted EBITDA growth in the 3% to 4% range in 2026, improving to 5% or better in 2028. As John Stankey noted, "We've positioned ourselves to make opportunistic strategic investments that benefit our customers and shareholders." This confidence is reflected in the company's plans to return $45 billion plus to shareholders over the next three years.

3. NewsRoom

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Undercovered Dozen: POET Technologies, Pan American Silver, MercadoLibre, AT&T And More

Feb -02

Source: seekingalpha.com

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AT&T, ActiveProtective and JACS Collaborate to Enhance Senior Safety with New Tango Belt Connectivity Device

Feb -02

Source: prnewswire.com

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How AT&T Delivered $85 Billion To Shareholders

Feb -02

Source: forbes.com

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Lumen Completes Sale of Consumer Fiber-to-the-Home Business to AT&T

Feb -02

Source: businesswire.com

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America's Best and Largest Network Just Got Larger: AT&T Completes Acquisition of Lumen's Mass Markets Fiber Business

Feb -02

Source: prnewswire.com

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Principal Financial Group Inc. Increases Holdings in AT&T Inc. $T

Feb -02

Source: defenseworld.net

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Why AT&T Stock Surged This Week

Feb -02

Source: fool.com

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AT&T Q4 Earnings Call Highlights

Jan -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.11%)

6. Segments

Communications - Mobility

Expected Growth: 5.3%

AT&T's wireless communications and mobile internet services are expected to grow driven by increasing demand for 5G connectivity, mobile video, and IoT applications, as well as strategic investments in network infrastructure and digital transformation.

Latin America - Mexico

Expected Growth: 5.5%

AT&T's Mexican operations are poised for growth driven by increasing demand for mobile data services, particularly in the 5G space, and the company's expanding fiber-optic network, which will enhance business connectivity and support IoT adoption.

Communications - Business Wireline

Expected Growth: 4.8%

Growing demand for high-speed internet and data services among business customers, driven by increasing adoption of cloud-based applications and need for secure, reliable connectivity, fuels growth for AT&T's wireline technology segment.

Communications - Consumer Wireline

Expected Growth: 4.3%

Growing demand for high-speed internet, increasing adoption of streaming services, and AT&T's fiber expansion drive growth in wireline communications services.

Unallocated Value Portfolio

Expected Growth: 2.5%

AT&T's Unallocated Value Portfolio segment, comprising unallocated corporate items, is expected to grow modestly, driven by the company's efforts to optimize costs, invest in growth initiatives, and benefit from improved operational efficiencies.

Unallocated Securitization Fees

Expected Growth: 6.5%

Growth in securitization fees is driven by increasing demand for diversified investment products, expansion of AT&T's 5G network, and rising adoption of IoT devices, leading to higher transaction volumes and fees.

Unallocated Parent Administration Support

Expected Growth: 3.5%

AT&T's Unallocated Parent Administration Support segment is expected to grow driven by increasing focus on operational efficiency, cost savings initiatives, and strategic investments in growth areas, such as 5G network development and digital transformation.

7. Detailed Products

Wireless Services

AT&T's wireless services provide customers with voice, data, and text messaging capabilities on a variety of plans and devices.

Broadband Internet Services

AT&T's broadband internet services offer high-speed internet access to residential and business customers through fiber-optic and DSL technologies.

TV and Entertainment Services

AT&T's TV and entertainment services provide customers with access to live TV, on-demand content, and streaming services through its DIRECTV and AT&T TV offerings.

Landline Phone Services

AT&T's landline phone services provide customers with voice communication capabilities through traditional landline phones and long-distance calling plans.

Business Solutions

AT&T's business solutions provide enterprises with a range of services, including network solutions, cybersecurity, and cloud services.

Satellite and Internet of Things (IoT) Solutions

AT&T's satellite and IoT solutions provide customers with connectivity and data services for a range of devices, including satellite phones, IoT sensors, and connected cars.

8. AT&T Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AT&T Inc. has a low threat of substitutes due to its strong brand presence and high switching costs for customers.

Bargaining Power Of Customers

AT&T Inc. has a moderate bargaining power of customers due to the presence of multiple players in the market, but customers still have limited negotiating power.

Bargaining Power Of Suppliers

AT&T Inc. has a low bargaining power of suppliers due to its large scale of operations and ability to negotiate better prices.

Threat Of New Entrants

AT&T Inc. has a high threat of new entrants due to the relatively low barriers to entry in the telecommunications industry and the presence of new technologies.

Intensity Of Rivalry

AT&T Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.45%
Debt Cost 6.52%
Equity Weight 42.55%
Equity Cost 7.50%
WACC 6.94%
Leverage 135.02%

11. Quality Control: AT&T Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 8.0

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Comcast

A-Score: 6.1/10

Value: 8.6

Growth: 5.2

Quality: 6.6

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Alphabet

A-Score: 5.8/10

Value: 1.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 8.1

Growth: 7.7

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.3$

Current Price

26.3$

Potential

-0.00%

Expected Cash-Flows