| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 8.4x | 17.6x | Top tier | |
Growth | 39 | 2.6% | 7.1% | Bottom tier | |
Quality | 74 | 8.5% | 4.5% | Top tier | |
Safety | 46 | 3.2x | 2.6x | Around median | |
Capital Return | 41 | 4.37% | 2.15% | Around median | |
Momentum | 41 | -15.1% | 2.3% | Around median | |
Sentiment | 86 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AT&T Inc. (T) operates as a provider of advanced connectivity through 5G and fiber networks, wireless phone services, and fixed wireless internet service, serving consumer and business channels. Its financial model relies primarily on recurring service revenue, with the Advanced Connectivity segment accounting for more than 90% of service revenue and nearly all adjusted earnings before interest, taxes, depreciation, and amortization in Q2 FY2026. The company aims to increase customer relationship value by combining AT&T Fiber and wireless services in a single account, with convergence reaching 42.5% among advanced home internet customers at the end of the quarter, or 45% excluding the acquired Lumen footprint.
In Q2 FY2026, revenue was $31.6 billion, net income was $4.6 billion, and diluted earnings per share were $0.66, equivalent to an approximate net income margin of 14.6%. According to the adjusted figures from the earnings call, total revenue grew 2.3% and service revenue grew 2.7% year over year, while adjusted earnings before interest, taxes, depreciation, and amortization increased 5.2%, with the margin reaching 39.1% after improving by 110 basis points. Adjusted earnings per share were $0.65, up more than 20% from $0.54 in the corresponding period.
Quarterly momentum came from Advanced Connectivity, where segment service revenue grew 5.1% and adjusted earnings before interest, taxes, depreciation, and amortization grew 8% year over year. Wireless service revenue increased 3.3%, with 432 thousand postpaid phone net additions, while advanced home internet revenue grew by more than 27%, and the segment's business services recorded growth of 1.8%. In contrast, legacy segment service revenue declined 26% and adjusted earnings before interest, taxes, depreciation, and amortization fell by about 46% as the shutdown of the legacy copper network accelerated.
The analyst consensus on T stock is "Neutral," with an average target of $26.69 and a wide range between $20 and $30; the average is below the 52-week range high of $29.79 and well above its low of $19.89. No stated price-to-earnings multiple is available in the data, so the available valuation rests on balancing Advanced Connectivity growth and free cash flow against the impact of the $23 billion EchoStar deal and the expected increase in leverage to about 3.2 times.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
AT&T's revenue was about $31.6 billion, net income was $4.6 billion, and diluted earnings per share were $0.66. Service revenue grew 2.7% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization increased 5.2%, with the margin reaching 39.1%. The acceleration came primarily from Advanced Connectivity, where service revenue grew 5.1% and the segment's adjusted earnings before interest, taxes, depreciation, and amortization grew 8%.
AT&T added more than one million fiber locations during Q2 FY2026 and plans to reach 8 million new locations during the year, including more than 4 million locations from the Lumen footprint. The convergence rate was 45% when excluding Lumen customers, compared with 42.5% for all advanced home internet customers at the end of the quarter. In the acquired areas, gross converged account additions in June 2026 increased 45% compared with February 2026 as the markets were converted to the AT&T Fiber brand and systems.
AT&T completed the deal on July 28, 2026, with the aim of expanding its spectrum resources and strengthening wireless network capacity. Management believes the low-band position, particularly the 600 MHz band, can support better indoor coverage and greater uplink capacity for AI applications. In contrast, the company expects net debt to adjusted earnings before interest, taxes, depreciation, and amortization to rise to about 3.2 times, then return to the 2.5 times range within approximately three years.
Automated analysis for informational purposes only — not investment advice.
AT&T expects consolidated service revenue growth in the low-single-digit range and adjusted earnings before interest, taxes, depreciation, and amortization growth of between 3% and 4%. Adjusted earnings per share guidance ranges between $2.25 and $2.35, with free cash flow of more than $18 billion and capital investment of between $23 billion and $24 billion. The company also expects Advanced Connectivity service revenue growth of more than 5% and adjusted earnings before interest, taxes, depreciation, and amortization growth of more than 6%.
SpaceX announced in August 2026 Starlink Mobile's ambition to capture a share of the global telecommunications market estimated at about $600 billion annually, following the emergence of direct competition plans in July 2026. Direct-to-phone services raised concerns about the market share and margins of terrestrial network operators such as AT&T. In contrast, AT&T is working with AST SpaceMobile on a seamless transition service to satellite coverage for cases representing about 2% of its customers' traffic outside its network, and it expects to launch this capability during 2027.
The company returned $4.1 billion to shareholders during Q2 FY2026, including about $2.2 billion in share repurchases. AT&T raised its annual repurchase target from $8 billion to approximately $10 billion. It expects total repurchases and dividends to reach about $18 billion, which is approximately equal to the full-year free cash flow outlook.
