AT&T (T) Stock Forecast & Price Target

AT&T reported a consolidated revenue increase of 1.6% year-over-year, reaching $30.7 billion, driven primarily by a 2.3% year-over-year rise in service revenue to $16.9 billion and supported by postpaid phone subscriber growth of 2.1%. The company's Consumer segment experienced a notable revenue increase of 4.1% year-over-year, bolstered by an 8.2% growth in broadband revenue, emphasizing the positive trajectory in fiber deployment, which is expected to further accelerate in 2026. Additionally, AT&T demonstrated strong customer acquisition in its postpaid phone segment, with net additions of 405,000 exceeding expectations and reflecting a 17% year-over-year growth in gross additions, highlighting the company's strategic focus on subscriber growth and cost efficiencies.

AT&T's wireless business, representing nearly 70% of its revenue, demonstrated a mobility revenue of $21.7 billion, which was approximately 1% below consensus estimates, indicating potential challenges in maintaining growth. The company is cautioning on future performance, with guidance pointing to a low double-digit decline for its Business Wireline unit and expectations of lower sequential growth in the fourth quarter. Additionally, AT&T faces substantial competitive pressures from other wireless and cable providers, alongside economic and regulatory risks, which could adversely affect its revenue, earnings, and cost management efforts in a highly leveraged environment.