One-glance verdict
Undervalued
$59.44 our estimate vs market $23.44
Wall Street consensus: $28.76 (-51.6% lower than our fair-value estimate)
61% below our estimate, below the bear case
Fundamentals snapshot
AT&T Inc.
T · NYQ · Communication Services · Telecom Services
Current price
$23.44
52-week range
$19.89 - $29.44
Market cap
$160.62B
Balance sheet
Stretched
3.67x Stretched
Net debt $148.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.3% last year.
- Reward Returns 18.3% on equity, ahead of 60% of its peers.
- Risk Forward P/E (9.1x) is higher than trailing (7.7x) - earnings are expected to drop.
- Risk Insider ownership is only 0.1% (peer median: 3.1%).
What this company does
AT&T Inc.
AT&T provides phone, internet, and TV services, with most of its money coming from its Communications segment that offers wireless and broadband services to both individuals and businesses. This is important because steady sales from these services, often called recurring revenue (money customers pay regularly), help the company plan its future spending and investments.
How the company got here
AT&T's story is a long one, with roots stretching back to Alexander Graham Bell and the invention of the telephone in the 1870s. The company, originally known as American Telephone and Telegraph Company, grew to become a near-monopoly in U.S. telecommunications for much of the 20th century. In 1984, a government antitrust ruling broke up the original AT&T, creating seven smaller "Baby Bells." One of these was Southwestern Bell Corporation, which eventually acquired the original AT&T in 2005 and adopted the AT&T name. This modern AT&T has since undergone significant transformations, including shedding its media and entertainment businesses, to refocus on its core telecommunications services.
What it actually does
AT&T is a major provider of telecommunications and technology services. Think of them as the company that connects you. They offer wireless phone and data services, home internet, and business networking solutions. You likely recognize their brand from your cell phone plan or home internet service, and they also provide critical infrastructure for businesses and even first responders through a dedicated network called FirstNet.
Communications
This is AT&T's largest business segment, focusing on connecting people and businesses across the United States. It includes their wireless services, which provide mobile phone and data plans to millions of consumers and businesses. This segment also encompasses their wireline services, offering high-speed internet through fiber optic cables (AT&T Fiber) and other broadband technologies to homes and businesses. Additionally, it provides business solutions like dedicated internet access and networking services for companies of all sizes.
Latin America
This segment represents AT&T's wireless operations in Mexico. It offers both postpaid (where you pay after using the service) and prepaid (where you pay in advance) wireless plans and sells smartphones. While smaller than the U.S. communications business, it's a key part of AT&T's international presence, allowing them to offer seamless service across North America.
What management is betting on now
AT&T's current strategy is heavily focused on expanding its high-speed fiber optic internet network and enhancing its 5G wireless capabilities. They believe that by offering the best and most reliable connectivity, they can attract and keep more customers, especially by bundling wireless and internet services together. This approach aims to create stronger customer relationships, reduce the likelihood of customers switching providers (known as churn), and ultimately drive long-term growth by investing in the foundational infrastructure of communication.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$4.93B
FY2024 Q4
$5.05B
FY2025 Q1
$4.77B
FY2025 Q2
$4.87B
FY2025 Q3
$5.26B
FY2025 Q4
$4.54B
FY2026 Q1
$2.72B
FY2026 Q2
$5.10B
Revenue
$31.56B
Net income
$4.63B
Diluted EPS
0.66
Operating cash flow
$10.80B
Free cash flow
$5.10B
Fetching…
Sources
Revenue
$31.51B
Net income
$3.83B
Diluted EPS
0.54
Operating cash flow
$7.59B
Free cash flow
$2.72B
Fetching…
Sources
Revenue
$33.47B
Net income
$3.79B
Diluted EPS
0.52
Operating cash flow
$11.32B
Free cash flow
$4.54B
Fetching…
Sources
Revenue
$30.71B
Net income
$9.31B
Diluted EPS
1.29
Operating cash flow
$10.15B
Free cash flow
$5.26B
Fetching…
Sources
Revenue
$30.85B
Net income
$4.50B
Diluted EPS
0.62
Operating cash flow
$9.76B
Free cash flow
$4.87B
Fetching…
Sources
Revenue
$30.63B
Net income
$4.35B
Diluted EPS
0.61
Operating cash flow
$9.05B
Free cash flow
$4.77B
Fetching…
Sources
Revenue
$32.30B
Net income
$4.08B
Diluted EPS
0.56
Operating cash flow
$11.90B
Free cash flow
$5.05B
Fetching…
Sources
Revenue
$30.21B
Net income
$-174.00M
Diluted EPS
-0.03
Operating cash flow
$10.23B
Free cash flow
$4.93B
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.44 vs current price $23.44
Wall Street consensus is the average analyst price target: $28.76 (-51.6% lower than our fair-value estimate).
Our most-likely fair value is $59.44 a share — about 153.6% above today's price of $23.44, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $148.2B. Interest coverage 3.7x.
Net debt
$148.19B
Interest coverage
3.67x
AT&T Inc.'s profit covers its interest bill about 3.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
T
BASELINE
AT&T Inc.
Total debt $165.76B Interest coverage 3.67x This is the baseline the peer rows are being compared against.
Total debt $193.65B Interest coverage 4.37x +19% vs T Carries about 1.2x more debt cushion than T.
Total debt $120.43B Interest coverage 4.92x +34% vs T Carries about 1.3x more debt cushion than T.
Total debt $90.38B Interest coverage 4.69x +28% vs T Carries about 1.3x more debt cushion than T.
Total debt $96.71B Interest coverage 2.64x -28% vs T Carries about 1.4x less debt cushion than T.
Total debt $13.50B Interest coverage -0.14x -100% vs T This peer has almost no interest-payment cushion compared with T.
What you should know
The case for and against T
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.3% last year.
-
Returns 18.3% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (9.1x) is higher than trailing (7.7x) - earnings are expected to drop.
-
Insider ownership is only 0.1% (peer median: 3.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
7.74x
Forward P/E
9.12x
P/B
1.46x
P/S
1.26x
EV/EBITDA
7.27x
PEG ratio
1.42x
Profitability
How much profit each dollar creates
Gross margin
59.7%
Operating margin
24.8%
Net margin
16.9%
ROE
18.3%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.29x
Current ratio
0.97x
Quick ratio
0.60x
Total debt
$165.76B
Total cash
$17.57B
Growth
How the business has been compounding
Revenue TTM
$127.24B
Revenue 5Y CAGR
-1.6%
EPS TTM
3.03
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$39.87B
Free CF TTM
$19.44B
FCF margin
15.3%
Dividend
Shareholder payout
Yield
4.7%
Payout ratio
36.6%
Last ex-div date
2026-10-09