AT&T INC. (T)

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AI: Undervalued

Price checkAt $23.06, AT&T looks undervalued if its cash guidance proves broadly durable.

Yahoo Finance reported a $23.06 close on August 5, the freshest verifiable quote found before the research timestamp, implying a $158.0 billion market value. Against management’s 2026 adjusted earnings guidance midpoint of $2.30 a share, that is about 10 times earnings. Its $18 billion-plus cash-flow target equals an 11.4% yield on that value; free cash flow means cash left after running and investing in the business. The $1.11 annual dividend adds a 4.8% yield. These signals outweigh the debt risk and support an undervalued verdict.

Big pictureSubscription revenue supports cash, though reported earnings have been uneven and investment remains heavy.

Revenue rose to $125.6 billion in 2025 from $122.3 billion in 2024, while operating cash flow stayed between $35.8 billion and $43.1 billion every year from 2020 through 2025. After subtracting capital spending, cash remained $19.4 billion in 2025 and $18.5 billion in 2024. First-half 2026 revenue grew about 2.6% year over year. Recurring phone and internet bills soften economic swings, but accounting earnings are less dependable: net losses appeared in 2020 and 2022, while network investment reached $20.8 billion in 2025.

Business strengthCustomer growth is improving, but debt and generous payouts weaken the safety cushion.

Second-quarter 2026 added 432,000 billed phone customers and 646,000 advanced internet customers; company-defined free cash flow rose to $4.7 billion from $4.4 billion. Yet the supplied balance sheet shows $134.6 billion of debt against $17.6 billion of cash, and short-term assets still slightly trail short-term liabilities. AT&T spent $4.7 billion on buybacks and $4.0 billion on dividends in first-half 2026. Buybacks far exceeded 2025 stock-based pay of $0.5 billion, limiting dilution, but the EchoStar purchase should lift debt relative to earnings to about 3.2 times.

What could change the storyFiber gains could prove the bargain, while slower growth or delayed debt reduction could erase it.

The bull case is measurable: advanced-connectivity service revenue grew 5.1% and its operating cash-profit measure grew 8.0% in the second quarter; fiber coverage is targeted above 60 million locations by 2030. The bear case is equally concrete: legacy service revenue fell 25.9%, acquired customers lowered fiber revenue per customer, and the $23 billion spectrum purchase raises financial strain. The valuation needs roughly $18 billion of annual free cash flow and debt reduction toward 2.5 times earnings within three years. Sustained cash below about $16 billion or leverage above 3 times into 2029 would weaken the bargain case.

$23.06 price considered

AI: News

Quarterly beat and buybacksStronger cash flow and a larger buyback plan lifted expectations despite a small sales miss.

On July 22, 2026, AT&T reported revenue of $31.6 billion, up 2.3%, adjusted earnings of $0.65 a share, and $4.7 billion of free cash flow. It also raised planned 2026 repurchases from $8 billion to about $10 billion while keeping full-year guidance. Investing.com reported shares about 5% higher before trading, attributing interest to the earnings beat, stronger cash flow, and larger buyback; the regular session closed 3.5% higher. That reaction is consistent with improved expectations, though one day cannot prove cause.

Spectrum purchase closesAT&T added nationwide wireless capacity, but the $23 billion cost delays balance-sheet repair.

On July 28, 2026, AT&T closed its roughly $23 billion purchase of about 50 megahertz of nationwide low- and mid-band wireless licenses; megahertz measures radio capacity. The frequencies can add network capacity and support home wireless growth without constructing fiber everywhere. The cost is the trade-off: management expects net debt divided by adjusted operating cash profit to rise from 2.68 times to about 3.2 times, then return near 2.5 within roughly three years. No reliable isolated AT&T share-price reaction was found.

Copper shutdown approvalRegulatory approval speeds copper retirement, offering cost savings as old-service revenue shrinks.

In June 2026, AT&T said federal regulators allowed it to discontinue legacy copper voice service in about 60% of its California wire centers. By July 22, management said nationwide approvals covered over 30% of wire centers and would take effect by late 2026. Moving customers to fiber, wireless, or newer phone service can remove duplicated maintenance and power costs, important because legacy revenue fell 25.9% in the quarter while costs fell only 10.8%. Management reported the approval; no dependable event-specific market reaction was identified.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$125.65B	$122.34B	$122.43B	$120.74B	$134.04B	$143.05B	$181.19B	$170.76B	$160.55B	$163.79B	$146.80B	$132.45B	$128.75B	$127.43B	$126.72B	$124.28B	$122.51B	$123.44B	$118.93B
Operating expenses	—	—	—	—	—	—	—	—	—	—	—	—	$98.27B	$114.44B	$117.50B	$104.71B	$101.51B	$125.13B	$98.52B
Operating income	$24.16B	$19.05B	$23.46B	−$4.59B	$25.90B	$8.37B	$27.95B	$26.10B	$19.97B	$23.54B	$24.79B	$12.21B	$30.75B	$13.00B	$9.22B	$19.57B	$21.00B	−$1.69B	$20.40B
EBITDAderived	$45.05B	$39.63B	$42.24B	$13.43B	$43.75B	$30.89B	$56.17B	$54.53B	$44.36B	$49.39B	$46.80B	$30.48B	$49.15B	$31.14B	$27.59B	$38.95B	$40.52B	$17.98B	$41.98B
Net income	$21.95B	$10.95B	$14.40B	−$8.52B	$20.08B	−$5.18B	$13.90B	$19.37B	$29.45B	$12.98B	$13.35B	$6.44B	$18.42B	$7.26B	$3.94B	$19.86B	$12.14B	−$2.63B	$11.95B
Basic EPSper diluted share	$3.04	$1.49	$1.97	-$1.13	$2.77	-$0.75	$1.90	$2.85	$4.77	$2.10	$2.37	$1.24	$3.42	$1.25	$0.66	$3.36	$2.06	-$0.44	$1.95
Diluted EPSper diluted share	$3.04	$1.49	$1.97	-$1.13	$2.73	-$0.75	$1.89	$2.85	$4.76	$2.10	$2.37	$1.24	$3.42	$1.25	$0.66	$3.35	$2.05	-$0.44	$1.94

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)1$41.4K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 28, 2025Form 4	Sabrina Sanders SSVP-ChiefActngOfcr&Controller	SellCommon Stock	1.5K	$27.57	$41.4K	162.5K

Review ownership filings at SEC.gov ↗

AT&T INC. (T)

Financial charts

Financial statements

Insider buys & sells