AT&T Inc.

T
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$31.5B
Q1 2026 · +2.9% YoY
TTM ROIC
7.1%
FY2025 · NOPAT (Adj. Operating Income × (1 − 24% statutory tax)) / Invested Capital (Total Debt + Equity incl. NCI − Cash & Equivalents) · WACC ~6.2% · Moat spread +0.9pp

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.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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