AT&T Inc.
TBusiness Overview
ticker: T step: 01 generated: 2026-05-12 source: quick-research
AT&T Inc. (T) — Business Overview
Business Description
AT&T is one of the three major US wireless carriers (with Verizon and T-Mobile), a fast-scaling fiber broadband network operator, and (since the 2022 WarnerMedia spin-off) a focused communications-infrastructure company. After divesting WarnerMedia (Warner Bros Discovery), DirecTV (TPG joint venture, fully exited 2024), Vrio (Latin America video), and Crunchyroll, today's AT&T is a pure-play telecom focused on convergence — bundling wireless + fiber broadband under the AT&T OneConnect brand. The fiber strategy is the most ambitious of the three carriers (target: 60M fiber locations by 2030), including the acquisition of Lumen's mass-market fiber business ($5.75B, 4M+ locations added in 2025). CEO John Stankey is doubling down on convergence; 42% of broadband customers also take wireless service.
Revenue Model
Three reportable segments (being revised starting Q1 2026):
- Mobility (~$70.1B service revenue FY25, +3.0%) — Postpaid + prepaid wireless service + equipment (handsets). 5G core service.
- Consumer Wireline (~$13.7B; Fiber $8.6B +17%) — AT&T Fiber broadband + Internet Air (fixed wireless access) + legacy DSL/copper (declining).
- Business Wireline (~$16.0B, declining ~-12% YoY) — Enterprise + government wireline; legacy voice + VPN + advanced connectivity. Structurally declining.
- Other — Mexico mobility, smaller wholesale, etc.
Beginning Q1 2026, AT&T plans to revise segments to reflect convergence — likely Mobility + Consumer Wireline merged, plus Business standalone.
Products & Services
- Wireless (Mobility): Postpaid + prepaid plans; 5G network coverage; phone + tablet + IoT. AT&T Unlimited Starter/Extra/Premium. Cricket Wireless (subsidiary prepaid).
- AT&T Fiber: Symmetric fiber broadband; speeds up to 5 Gbps; 32M locations passed (YE 2025), targeting 40M YE 2026.
- AT&T Internet Air: Fixed wireless access; supplementary to fiber in unserved areas.
- AT&T OneConnect: Bundled wireless + fiber broadband — first US "hard bundle"; mobile + home internet at single price.
- Business: Enterprise mobility, fiber, dedicated internet access, SD-WAN, cloud connectivity, AT&T Network-as-a-Service.
- Devices: iPhone, Galaxy, Pixel; postpaid lease + EIP financing.
- Legacy: U-verse (declining); copper voice; DSL.
Customer Base & Go-to-Market
- Wireless subscribers: ~73M postpaid phone + ~20M prepaid; Q1 2026 added 294K postpaid phone (decelerated from 2024 highs); postpaid churn 0.89% (up from 0.83% prior year).
- Fiber subscribers: ~9.5M consumer fiber subscribers; ~1.5M Internet Air; growing 1M+ net adds per year for 8 consecutive years.
- Business: Most Fortune 500 use AT&T for some combination of mobility, fiber, dedicated internet, MPLS, SD-WAN.
- Convergence customers: 42% of broadband customers also take wireless (excluding Lumen-acquired customers); 45% on legacy AT&T footprint.
Distribution: Retail (~5,000+ stores nationwide); online/digital direct; B2B sales force for enterprise; channel partners; carrier billing.
Competitive Position
AT&T is structurally positioned as the fiber + wireless convergence leader:
- Largest US fiber footprint — 32M locations + Lumen acquisition (~36M total) targeting 40M YE 2026 and 60M by 2030. Significantly ahead of Verizon Fios (~17M) and T-Mobile (~10M including Lumos).
- AT&T OneConnect "hard bundle" — First US carrier to offer single-price mobile + home internet; high net promoter score; lower churn for converged customers (~50% lower).
- 5G network coverage — Nationwide 5G; mid-band C-band deployment ongoing.
- Cost reductions — Multi-year cost-out program (~$8B+ achieved since 2022) supporting margin expansion.
Competitive challenges:
- Verizon — Completed Frontier acquisition (early 2026); now ~25M fiber locations. Aggressive convergence push under new CEO Hans Vestberg.
- T-Mobile — Strongest postpaid wireless growth + 5G UC mid-band lead; Lumos acquisition (2025) for fiber convergence. Continues to take share.
- Cable convergence — Comcast Xfinity Mobile + Charter Spectrum Mobile bundling broadband + wireless as MVNO; targeting AT&T converged customers.
- Postpaid wireless deceleration — Q1 2026 postpaid net adds 294K (vs. 349K Q1 2025); rising churn.
Key Facts
- Founded: 1885 (American Telephone and Telegraph Company)
- Headquarters: Dallas, Texas
- Employees: ~141,000
- Exchange: NYSE
- Sector / Industry: Communication Services / Diversified Telecom Services
- Market Cap: ~$215B
- FY2025 Revenue: $125.6B (+2.7%)
- Mobility Service Revenue: $70.1B (+3%)
- Fiber Revenue: $8.6B (+17%)
- Postpaid Phone Subscribers: ~73M
- Consumer Fiber Subscribers: ~9.5M
- Fiber Locations Passed: 32M (YE 2025), targeting 40M YE 2026
- Dividend Yield: ~4.2%
- Major Recent M&A: Lumen mass-market fiber ($5.75B, 2025)
- WarnerMedia spin-off: April 2022
- DirecTV exit: Completed 2024
Financial Snapshot
ticker: T step: 04 generated: 2026-05-12 source: quick-research
AT&T Inc. (T) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Revenue | $122.4B | $122.3B | $125.6B | +2.7% |
| Mobility Service Revenue | $63.7B | $68.0B | $70.1B | +3.0% |
| Consumer Wireline Revenue | $13.0B | $13.5B | $13.7B | +1.5% |
| Fiber Revenue (within CW) | $6.0B | $7.4B | $8.6B | +17% |
| Business Wireline Revenue | $21.6B | $18.1B | $16.0B | -11.6% (legacy decline) |
| Adjusted EPS | $2.41 | $2.26 | $2.02 (midpoint of $1.97–2.07 guide range) | -11% |
| GAAP EPS | $2.32 | $1.49 | ~$1.85 | recovery |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$38B |
| Capital Expenditures | $22–22.5B |
| Free Cash Flow | ~$16.5B (low-to-mid $16B range) |
| Dividend (Quarterly) | $0.2775 |
| Annual Dividend Yield | ~4.2% |
| Total Debt | ~$130B (net debt ~$118B) |
| Net Debt / Adjusted EBITDA | ~2.8x |
Subscriber Metrics (Q1 2026)
| Metric | Q1 2026 |
|---|---|
| Postpaid Phone Net Adds | 294K |
| Postpaid Phone Churn | 0.89% (up from 0.83%) |
| Fiber Net Adds | 1M+ for 8th consecutive year |
| Fiber Locations Passed | 32M (YE 2025) |
| Internet Air Net Adds | 875K (FY25) |
| Converged Customer % (BB + Wireless) | 42% (45% ex-Lumen acquired) |
FY2026 Guidance
| Metric | 2026 Guide |
|---|---|
| Adjusted EPS | $2.25–2.35 (+12–17% YoY) |
| Adjusted EBITDA Growth | +3–4% (improving to 5%+ by 2028) |
| Free Cash Flow | $18B+ |
| Capital Expenditures | $23–24B |
| Fiber Locations Target (YE 2026) | 40M |
| 3-Year EPS CAGR Through 2028 | Double-digit |
Multi-Year Shareholder Return Plan (2026-2028)
| Item | Amount |
|---|---|
| Total Capital Return | $45B+ |
| Dividends | ~$28B (current cadence) |
| Share Repurchases | $20B+ |
Key Ratios (approximate)
- P/E: ~13x (FY26 adjusted EPS midpoint) | EV/EBITDA: ~7x | FCF Yield: ~7%
- Revenue Growth (FY25): +2.7% | Adjusted EBITDA Growth: ~3%
- Operating Margin: ~21%
- Dividend Yield: ~4.2% | Buyback Yield: ~3–4% (when active)
- Net Debt / EBITDA: ~2.8x targeting 2.5x
Growth Profile
FY25 marked operational consistency: revenue +2.7%, fiber +17%, mobility +3%, all guidance achieved. The strategic story is convergence + fiber scaling:
- Fiber 32M → 40M passed in 2026 (incl. Lumen-acquired 4M); targeting 60M by 2030.
- AT&T OneConnect (first US hard-bundle of mobile + home internet).
- Converged customers churn ~50% lower than single-product customers.
- Postpaid wireless decelerating but stable (294K net adds Q1 2026).
The FY26 guide accelerates: Adjusted EPS +12–17%, FCF $18B+, EBITDA +3–4%. Multi-year plan envisions $45B+ shareholder returns through 2028, supported by double-digit EPS CAGR.
Forward Estimates
FY2026 Guide:
- Revenue: ~$129B (+3%)
- Adjusted EPS: $2.25–2.35
- FCF: $18B+
Bull case: Fiber scales to 40M locations + share gains compound; OneConnect drives convergence churn benefit; cost-out exceeds plan; EBITDA reaches +5%+ growth in 2027–28 setting up multi-year EPS double-digit growth; multiple re-rates from ~13x to 15–16x. Bear case: Wireless competition from T-Mobile intensifies; fiber capex stays elevated as Lumen integration drags; postpaid churn rises further; multiple stays compressed. Consensus targets $31–35 vs. trading ~$28–30 (~10–20% upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $T.