AT&T (T) Stock Forecast & Price Target

AT&T's wireless business, which constitutes nearly 70% of its revenue, has demonstrated resilience with a 2.3% year-over-year increase in service revenue to $16.9 billion, driven by 2.1% growth in postpaid phone subscribers. The company has also experienced impressive growth in its broadband segment, with revenue rising 8.2% due to a 17% increase in fiber revenue, indicating a strong demand for high-speed internet services. Overall, consolidated revenue grew by 1.6% year-over-year to $30.7 billion, and expectations for accelerated fiber deployment and subscriber growth suggest a positive trajectory for future profitability.

AT&T's wireless business, which constitutes nearly 70% of its revenue, is experiencing performance challenges, as evidenced by a mobility revenue of $21.7 billion that fell approximately 1% short of expectations. Despite some positive results from the Business Wireline unit, management's guidance predicts a low double-digit revenue decline for the full year, highlighting potential weaknesses ahead. The company also faces heightened competitive pressures from other telecom providers and cable companies, alongside significant risks related to its large debt load, pension expenses, and a persistently weak business spending environment that could adversely impact its overall financial performance.