AT&T (NYSE:T) Trading Up 5.4% After Strong Earnings

AT&T Inc. (NYSE:T) rose 5.4% on Wednesday following a better than expected earnings announcement. The company traded as high as $24.24 and last traded at $24.2450. Approximately 37,835,765 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 43,651,855 shares. The stock had previously closed at $23.00.

The technology company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.06. AT&T had a return on equity of 12.72% and a net margin of 17.87%.The company had revenue of $33.47 billion for the quarter, compared to the consensus estimate of $32.91 billion. During the same quarter in the previous year, the business earned $0.43 earnings per share. The company’s revenue for the quarter was up 3.6% on a year-over-year basis. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS.

AT&T Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 12th will be given a $0.2775 dividend. The ex-dividend date of this dividend is Monday, January 12th. This represents a $1.11 dividend on an annualized basis and a yield of 4.6%. AT&T’s dividend payout ratio (DPR) is currently 36.04%.

Key AT&T News

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: Q4 results beat consensus — adjusted EPS of $0.52 topped estimates and revenue (~$33.5B) came in above most Street expectations, driving the initial rally. AT&T Stock Charges Higher on Upbeat Results, Forecast
• Positive Sentiment: Subscriber momentum: AT&T added meaningful net postpaid phone subscribers (421k) and strong fiber broadband adds (~283k), and its “convergence” rate increased — signs of revenue mix improvement and higher customer lifetime value. AT&T’s earnings impress as subscriber growth booms and the stock soars
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $2.25–$2.35 (slightly above consensus) and outlined sizable capital returns — including multi-year plans to return ~$45B+ (2026–2028) and a near-term buyback authorization — supporting shareholder yield and valuation re-rating. AT&T Reports Strong Fourth-Quarter and Full-Year 2025 Financial Performance Driven by Growth in Converged Fiber and 5G Customers
• Neutral Sentiment: Analysts and metric checks show nuance — some writeups compare key line items to estimates (and year-ago comps) highlighting that while the headline beat is clear, margins and certain metrics warrant close parsing. Investors should watch the conference call for detail. Compared to Estimates, AT&T (T) Q4 Earnings: A Look at Key Metrics
• Negative Sentiment: Legacy-business pressure remains — several reports note a legacy/voice/infrastructure slump that management is offsetting with wireless and fiber growth; that structural drag could cap margin upside if connectivity growth slows. AT&T Offsets Legacy Slump With Solid Wireless Growth

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on T shares. Wells Fargo & Company decreased their price target on AT&T from $29.00 to $27.00 and set an “overweight” rating for the company in a report on Monday. Loop Capital set a $29.00 price objective on shares of AT&T in a research note on Friday, December 19th. The Goldman Sachs Group decreased their price target on AT&T from $33.00 to $29.00 and set a “buy” rating for the company in a report on Friday, December 19th. Scotiabank reissued a “sector perform” rating and issued a $29.50 price objective on shares of AT&T in a research note on Wednesday, January 7th. Finally, Citigroup reduced their target price on shares of AT&T from $32.00 to $29.00 and set a “buy” rating for the company in a research note on Monday, December 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $29.67.

Institutional Investors Weigh In On AT&T

Several hedge funds and other institutional investors have recently bought and sold shares of T. Vanguard Group Inc. increased its position in shares of AT&T by 1.6% in the 2nd quarter. Vanguard Group Inc. now owns 661,355,210 shares of the technology company’s stock worth $19,139,620,000 after purchasing an additional 10,310,560 shares during the last quarter. State Street Corp grew its holdings in AT&T by 0.8% in the 3rd quarter. State Street Corp now owns 323,775,045 shares of the technology company’s stock worth $9,143,407,000 after buying an additional 2,704,536 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of AT&T by 1.2% during the second quarter. Geode Capital Management LLC now owns 172,039,872 shares of the technology company’s stock valued at $4,958,066,000 after purchasing an additional 2,066,026 shares during the period. Norges Bank bought a new stake in shares of AT&T during the 2nd quarter worth about $2,228,655,000. Finally, Capital Research Global Investors lifted its stake in shares of AT&T by 0.6% in the 3rd quarter. Capital Research Global Investors now owns 65,607,835 shares of the technology company’s stock worth $1,852,765,000 after acquiring an additional 370,455 shares during the period. 57.10% of the stock is currently owned by hedge funds and other institutional investors.

AT&T Stock Performance

The stock has a market cap of $172.08 billion, a P/E ratio of 7.86, a PEG ratio of 1.28 and a beta of 0.39. The company has a fifty day moving average of $24.53 and a 200 day moving average of $26.37. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.01 and a quick ratio of 0.96.

About AT&T

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.