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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 Q3 2025 Earnings: Solid Performance and Strategic Focus

AT&T Inc.'s third-quarter 2025 earnings report showcased a solid financial performance, with revenue growth of 1.6% year over year, adjusted EBITDA growth of 2.4%, and adjusted EBITDA margins expanding by 30 basis points. The company's adjusted EPS was $0.54, consistent with the prior year and slightly above analyst estimates of $0.537. The company's free cash flow was $4.9 billion, and capital investment was $5.3 billion, with $3.5 billion returned to shareholders, including nearly $1.5 billion in stock repurchases.

Publication Date: Oct -23

📋 Highlights
  • Postpaid Phone Growth:: Achieved over 400,000 net adds, exceeding prior year's performance.
  • Consumer Broadband Expansion:: Added 550,000 new broadband subscribers, highest in eight years, with 31M+ fiber-pass locations.
  • Financial Performance:: Revenue up 1.6% YoY, adjusted EBITDA grew 2.4%, and free cash flow reached $4.9B despite $5.3B capital investment.
  • Fiber Revenue Surge:: Consumer Wireline revenue grew 4.1%, driven by 16.8% fiber revenue increase, contrasting with 7.8% decline in business wireline.
  • Full-Year Guidance:: Maintains service revenue growth in low single digits, adjusted EBITDA growth ≥3%, and free cash flow of $16B–$16.5B.

Segment Performance

The company's Mobility service revenue grew 2.3% year over year, contributing to EBITDA growth of 2.2%. Consumer Wireline total revenues grew 4.1% year over year, driven by 16.8% growth in fiber revenue, with over 550,000 new subscribers added to advanced broadband services. Business wireline revenues declined 7.8% year over year, while EBITDA declined about 13%. CEO John Stankey emphasized the company's focus on organic growth, stating that "AT&T is focused on organic growth, with a strong product that has allowed the company to gain a quarter of the market."

Guidance and Outlook

AT&T reiterated its full-year financial guidance, including service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better. The company expects full-year free cash flow in the low to mid $16 billion range and capital investment in the $22 billion to $22.5 billion range. Adjusted EPS is expected to be $1.97 to $2.07, with expectations to come in closer to the high end of this range. Analysts estimate next year's revenue growth at 1.4%.

Valuation

With a P/E Ratio of 14.44, P/B Ratio of 1.45, and EV/EBITDA of 6.93, AT&T's valuation appears reasonable. The company's Dividend Yield is 4.34%, and Free Cash Flow Yield is 10.74%, indicating a decent return for shareholders. The ROE is 11.59%, and ROIC is 4.88%, suggesting a relatively efficient use of capital.

Strategic Focus

AT&T is focused on organic growth, with a strategy centered around converged customers, fiber, and fixed wireless. The company is segmenting the broadband market correctly between fiber and fixed wireless, using digital marketing to target specific geographies and offer the best product. The company's management team is confident in its path forward, citing its strong asset base and plans to lead in retail service revenues by 2030.

3. NewsRoom

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FCC approves AT&T $1 billion purchase of spectrum from US Cellular

Dec -04

Source: reuters.com

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AT&T Drops DEI To Push Spectrum Deal Forward

Dec -03

Source: gurufocus.com

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Building An Income Portfolio? 3 Picks To Start With For An Average Yield Of 6%+

Dec -03

Source: seekingalpha.com

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AT&T commits to ending DEI programs

Dec -02

Source: reuters.com

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AT&T to Webcast Fireside Chat with John Stankey at the UBS Global Media and Communications Conference on Dec. 9

Dec -02

Source: prnewswire.com

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AT&T Stock Declines 7.8% in Six Months: Should You Buy in the Dip?

Dec -02

Source: zacks.com

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Amazon's 30-Minute Delivery Test Could Blow Up the Retail Playbook

Dec -02

Source: gurufocus.com

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68 Graham Value All-Star (GVAS) November Dividend Dogs Show 27 'Safer' And 17 Ideal Buys

Dec -02

Source: seekingalpha.com

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: 7.1

Growth: 2.6

Quality: 5.7

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 7.0

Growth: 3.1

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Alphabet

A-Score: 5.9/10

Value: 1.8

Growth: 8.3

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

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

25.39$

Current Price

25.39$

Potential

-0.00%

Expected Cash-Flows