AT&T (NYSE:T) Stock Jumps 3.7% After Strong Earnings
by Michael Walen · The Markets DailyShares of AT&T Inc. (NYSE:T – Get Free Report) rose 3.7% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $22.91 and last traded at $22.7250. 53,143,063 shares were traded during trading, an increase of 9% from the average daily volume of 48,673,777 shares. The stock had previously closed at $21.91.
The technology company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.05. The company had revenue of $32.32 billion for the quarter, compared to analysts’ expectations of $31.69 billion. AT&T had a return on equity of 12.86% and a net margin of 16.94%. The firm’s revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.54 earnings per share.
AT&T Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be paid a $0.2775 dividend. The ex-dividend date is Friday, October 9th. This represents a $1.11 dividend on an annualized basis and a yield of 4.9%. AT&T’s payout ratio is 36.75%.
Key AT&T News
Here are the key news stories impacting AT&T this week:
- Positive Sentiment: Strong Q3 operating performance: AT&T reported adjusted earnings of $0.65 per share and revenue of $32.32 billion, exceeding consensus estimates. Advanced Connectivity produced a record 769,000 internet net additions, including 442,000 fiber additions and 327,000 fixed-wireless additions. AT&T third-quarter results
- Positive Sentiment: Higher outlook and shareholder returns: Management raised its 2026 adjusted EPS outlook to approximately $2.40 and continues to target strong buybacks, supporting the stock’s income and valuation appeal. Analysts at Argus reaffirmed a Buy rating with a $30 target, while JPMorgan and KeyCorp maintained Overweight ratings despite reducing their targets. AT&T raises 2026 earnings outlook
- Positive Sentiment: Lower future capital spending: AT&T plans to reduce annual capital investment to roughly $22 billion-$23 billion in 2027 and 2028 while retaining its goal of reaching more than 60 million fiber locations by 2030. The move could improve free-cash-flow generation and help fund dividends and repurchases. AT&T fiber spending strategy
- Neutral Sentiment: Technical rebound, but support remains important: Traders are watching the $20 area as potential support after a roughly 13% monthly decline. The latest increase may reflect bargain hunting rather than a confirmed trend reversal. AT&T technical analysis
- Negative Sentiment: Debt and impairment concerns overshadowed the earnings beat: Net debt rose following the EchoStar spectrum transaction, with management not expecting leverage to return to its target range until 2029. A $2.6 billion Mexico-related impairment also weakened reported profit, raising concerns about balance-sheet flexibility and interest costs. AT&T debt and spending analysis
- Negative Sentiment: Starlink competition is an overhang: Investors fear SpaceX’s Starlink Mobile could pressure AT&T’s wireless subscriber growth, pricing and customer-acquisition costs, even though CEO John Stankey has downplayed the threat. Introductory fiber offers are also weighing on pricing. AT&T and SpaceX competition
Wall Street Analyst Weigh In
Several analysts recently issued reports on T shares. The Goldman Sachs Group set a $27.00 price objective on shares of AT&T in a report on Wednesday. Sanford C. Bernstein lowered AT&T from an “outperform” rating to a “market perform” rating and set a $24.00 price target on the stock. in a research report on Tuesday, October 13th. Scotiabank dropped their price objective on shares of AT&T from $27.50 to $26.50 and set a “sector perform” rating for the company in a research report on Friday, October 9th. BNP Paribas Exane raised AT&T from a “neutral” rating to an “outperform” rating and increased their price target for the company from $26.00 to $30.00 in a research note on Monday, September 21st. Finally, Argus reaffirmed a “buy” rating and issued a $30.00 target price on shares of AT&T in a research note on Thursday. Twelve investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $28.55.
Check Out Our Latest Research Report on AT&T
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently made changes to their positions in T. Bar Harbor Wealth Management increased its holdings in AT&T by 1.1% in the 1st quarter. Bar Harbor Wealth Management now owns 35,102 shares of the technology company’s stock worth $1,018,000 after purchasing an additional 386 shares in the last quarter. Hibernia Wealth Partners LLC boosted its position in AT&T by 4.5% during the first quarter. Hibernia Wealth Partners LLC now owns 9,105 shares of the technology company’s stock valued at $264,000 after acquiring an additional 392 shares during the last quarter. M.E. Allison & CO. Inc. grew its stake in AT&T by 0.5% during the second quarter. M.E. Allison & CO. Inc. now owns 76,978 shares of the technology company’s stock worth $1,593,000 after purchasing an additional 397 shares during the period. Accredited Investors Inc. increased its stake in shares of AT&T by 3.5% in the 1st quarter. Accredited Investors Inc. now owns 11,901 shares of the technology company’s stock valued at $345,000 after acquiring an additional 400 shares in the last quarter. Finally, Nicholas Hoffman & Company LLC. raised its holdings in shares of AT&T by 0.4% during the first quarter. Nicholas Hoffman & Company LLC. now owns 97,209 shares of the technology company’s stock valued at $2,818,000 after purchasing an additional 402 shares during the period. Institutional investors own 57.10% of the company’s stock.
AT&T Trading Up 3.7%
The business has a 50 day moving average of $24.90 and a two-hundred day moving average of $24.29. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97. The firm has a market capitalization of $155.72 billion, a price-to-earnings ratio of 7.52, a P/E/G ratio of 1.14 and a beta of 0.25.
About AT&T
AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.
The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.
AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.