AT&T Stock Faces Starlink Pressure Despite Strong Cash Flow Outlook

Key Facts

1AT&T shares closed at $21.30 with projected free cash flow of at least $18 billion for 2026.

2Bernstein cut its price target for AT&T due to risks associated with Starlink's market entry.

3The company is testing price hikes on some unlimited plans to boost service revenue.

Amid rapid shifts in the satellite communications landscape, AT&T shares are facing pressure from Starlink's potential market entry. The stock closed at $21.30, supported by projections of at least $18 billion in free cash flow for 2026. According to reports, the company is testing price hikes on specific unlimited plans to bolster service revenue and maintain profitability margins.

The sentiment follows Bernstein's decision to cut its price target for AT&T, citing competitive risks from satellite-based internet services. In comparison, peer Verizon (VZ) reported a 3.3% increase in wireless service revenue in its latest quarterly results per earnings data, highlighting the competitive environment. Per market data, AT&T currently trades at a free cash flow yield of approximately 12%, significantly higher than the telecom sector average of 8% according to Bloomberg data.

From a technical perspective, the T instrument stood at $21.55 (at close July 13, 2026), having traded between a day low of $21.24 and a high of $21.63 per market data. Investors are now looking toward fiber-optic growth updates as a primary catalyst, as the upcoming economic calendar remains light on direct U.S. telecom sector events for the immediate period.