With a market cap of $144.2 billion, AT&T Inc. (T) is a leading telecommunications company that connects more than 100 million U.S. consumers and nearly 2.5 million businesses. With a history spanning 150 years, the company continues to innovate through its 5G wireless and multi-gig internet services to improve lives and keep people connected.
Shares of the Dallas, Texas-based company have underperformed the broader market over the past 52 weeks. The stock has declined 13.3% over this time frame, while the broader S&P 500 Index ($SPX) has returned 11.1%. In addition, shares of AT&T are down 13.8% on a YTD basis, compared to SPX’s 10.7% gain.
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Moreover, the telecom giant stock has lagged behind the State Street Communication Services Select Sector SPDR ETF’s (XLC) 12.6% decrease over the past 52 weeks.
www.barchart.com AT&T shares fell 6.5% on Oct. 21 after management warned that average revenue per fiber customer would continue declining in Q4, following a 4% drop in Q3 2026, as discounted bundles, introductory pricing and the addition of lower-priced Lumen customers weighed on spending per user. Investors worried that AT&T’s aggressive strategy of bundling wireless and fiber services to attract customers was sacrificing revenue per subscriber, despite approximately 43% of new internet households also signing up for wireless plans.
The outlook overshadowed AT&T’s better-than-expected quarterly revenue and profit, its addition of 379,000 wireless subscribers and an increase in its full-year adjusted EPS forecast to approximately $2.40 from the previous $2.25 - $2.35 range.
For the fiscal year ending in December 2026, analysts expect AT&T's adjusted EPS to grow 12.7% year-over-year to $2.39. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 29 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, three “Moderate Buys,” 11 “Holds,” and one “Strong Sell.”
www.barchart.com This configuration has remained unchanged over the past three months.
On Oct. 22, Morgan Stanley analyst Sean Diffley cut AT&T’s price target to $25 while maintaining an “Overweight rating.
The mean price target of $27.64, representing a premium of 29.1% to AT&T's current price. The Street-high price target of $34 suggests a 58.8% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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