AT&T (NYSE:T) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

AT&T (NYSE:T) posted its quarterly earnings results on Wednesday. The technology company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.06, Zacks reports. AT&T had a return on equity of 12.33% and a net margin of 17.47%.The firm had revenue of $33.47 billion for the quarter, compared to the consensus estimate of $32.91 billion. During the same period in the previous year, the business earned $0.43 earnings per share. The company’s revenue for the quarter was up 3.6% compared to the same quarter last year. AT&T updated its FY 2026 guidance to 2.250-2.350 EPS.

Here are the key takeaways from AT&T’s conference call:

• AT&T reported strong subscriber momentum — over 1.5M postpaid phone net adds (fifth straight year) and over 1M AT&T Fiber net adds (eighth straight year), plus 875k Internet Air adds, producing the best consumer broadband subscriber growth in a decade.
• Management is accelerating network expansion via spectrum and fiber deals — the EchoStar spectrum and the planned Lumen fiber acquisition (adds ~$900M annualized fiber revenue) — targeting >40 million fiber-capable locations by end-2026 and a long-term ~5M new locations/year rollout.
• Financial results and capital returns are strong — AT&T beat 2025 guidance, generated $16.6B free cash flow in 2025, expects $18B+ FCF in 2026, and plans to return $45B+ to shareholders (2026–2028) while maintaining the dividend and sizable buybacks.
• Near-term leverage and integration drag — net debt/Adjusted EBITDA will rise to ~3.2x immediately after the Lumen/EchoStar closes (then decline to ~3.0x by year-end), with ~$0.05 of EPS dilution in 2026 from standup costs and higher interest and acquisitions not materially accretive to EBITDA until ~2028.
• Reporting and cost-transformation changes — AT&T will recast results into a new Advanced Connectivity segment (5G/fiber) separate from Legacy copper, and targets $4B+ of additional annual cost savings by end-2028 to drive margin improvement.

AT&T Stock Performance

Shares of NYSE:T traded up $0.63 during midday trading on Friday, reaching $25.76. 20,135,106 shares of the company traded hands, compared to its average volume of 46,184,262. AT&T has a 12 month low of $22.95 and a 12 month high of $29.79. The firm’s fifty day moving average price is $24.49 and its two-hundred day moving average price is $26.34. The company has a quick ratio of 0.96, a current ratio of 0.91 and a debt-to-equity ratio of 1.00. The firm has a market capitalization of $182.59 billion, a price-to-earnings ratio of 8.44, a price-to-earnings-growth ratio of 1.31 and a beta of 0.39.

AT&T Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 12th will be given a $0.2775 dividend. The ex-dividend date is Monday, January 12th. This represents a $1.11 annualized dividend and a dividend yield of 4.3%. AT&T’s payout ratio is 36.04%.

Institutional Trading of AT&T

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Tcfg Wealth Management LLC increased its stake in shares of AT&T by 50.9% in the third quarter. Tcfg Wealth Management LLC now owns 21,997 shares of the technology company’s stock worth $621,000 after buying an additional 7,420 shares during the period. Opulen Financial Group LLC raised its stake in shares of AT&T by 5.3% during the third quarter. Opulen Financial Group LLC now owns 10,140 shares of the technology company’s stock valued at $286,000 after acquiring an additional 508 shares during the last quarter. Keystone Financial Group increased its stake in shares of AT&T by 11.0% in the 3rd quarter. Keystone Financial Group now owns 251,375 shares of the technology company’s stock worth $6,643,000 after acquiring an additional 24,963 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of AT&T by 8.9% in the 3rd quarter. NewEdge Advisors LLC now owns 1,980,018 shares of the technology company’s stock worth $55,916,000 after purchasing an additional 161,572 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co raised its stake in shares of AT&T by 3.1% in the third quarter. CANADA LIFE ASSURANCE Co now owns 9,195,592 shares of the technology company’s stock worth $258,073,000 after buying an additional 279,197 shares during the period. Institutional investors own 57.10% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. KeyCorp reiterated an “overweight” rating on shares of AT&T in a research report on Wednesday, January 21st. Weiss Ratings reiterated a “buy (b-)” rating on shares of AT&T in a report on Monday, December 29th. Barclays decreased their price target on AT&T from $28.00 to $26.00 and set an “equal weight” rating on the stock in a research note on Tuesday, January 13th. TD Cowen reiterated a “hold” rating on shares of AT&T in a report on Thursday. Finally, Citigroup decreased their target price on shares of AT&T from $32.00 to $29.00 and set a “buy” rating on the stock in a research report on Monday, December 22nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, AT&T has a consensus rating of “Moderate Buy” and a consensus price target of $29.83.

Key Headlines Impacting AT&T

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

• Positive Sentiment: Q4 beat and upbeat guidance — AT&T posted adjusted EPS of $0.52 vs. $0.46 expected and revenue roughly $33.47B, and management set FY2026 EPS guidance of $2.25–$2.35, which supported the rally. AT&T (NYSE:T) Trading Up 5.4% After Earnings Beat
• Positive Sentiment: Large buyback and shareholder returns — management announced an $8B buyback for 2026 and reiterated strong dividend support, boosting cash-return expectations. Why AT&T Stock Climbed Today
• Positive Sentiment: Customer momentum — AT&T added meaningful postpaid subscribers (reported ~421k) with lower churn, showing strength in wireless revenue trends. AT&T (T) Stock: Wireless Carrier Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Fiber/5G growth and strategic deals — management plans to reach ~40M fiber locations and analysts point to the Lumen-related deal as a catalyst that could lift both fiber and wireless profitability over time. AT&T beats targets, plans 40m fiber locations, more convergence
• Neutral Sentiment: Wall Street reaction is mixed but improving — some upgrades and a “moderate buy” trend appear, though several firms remain cautious and keep hold ratings as they model the fiber/5G transition. AT&T Stock Forecast: Trending Moderate Buy Among Analysts
• Neutral Sentiment: Mixed-quarter notes — some analysts call the quarter mixed due to one-time tax items boosting cash flow and emphasize that long-term benefits depend on execution of fiber/5G plans. AT&T: Mixed Quarter, Tax-Driven Cash Flow Support, and Long-Term Fiber/5G Upside Keep Rating at Hold
• Negative Sentiment: Legacy revenue pressure and capital intensity — legacy wireline declines persist and aggressive fiber buildouts require heavy capex, which could constrain free cash flow near-term and complicate dividend/buyback pacing. AT&T Beats Q4 Earnings Estimates on Solid Wireless & Fiber Demand
• Negative Sentiment: Potential capital allocation changes — commentary and some analysis raise the possibility that future acquisitions or strategic moves could reset dividend and buyback expectations. AT&T: Upcoming Acquisitions Reset The Dividend And Buyback Outlook

AT&T Company Profile

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.