Key Takeaways Shares of AT&T climbed 4.8% to $24.06 following a second-quarter earnings report that exceeded analyst projections, delivering $0.65 per share versus the $0.59 consensus estimat
Shares of AT&T (T) experienced a notable rally on Friday, advancing 4.8% to close at $24.06, after the telecommunications giant delivered second-quarter financial results that comfortably exceeded analyst expectations. Trading volume surged past 80 million shares, approximately 57% higher than typical daily activity.
The Dallas-based carrier reported adjusted earnings per share of $0.65, surpassing the Street’s $0.59 forecast. While quarterly revenue of $31.56 billion fell modestly short of the $31.80 billion consensus, the shortfall did little to dampen market enthusiasm.
The quarter’s most impressive metric was free cash flow generation. AT&T produced $4.7 billion during the three-month period — representing a 6.3% year-over-year increase — and exceeding the company’s previously stated guidance range of $4.0 billion to $4.5 billion.
Adjusted EBITDA rose 5.2% compared to the same quarter last year, reaching $12.3 billion. The company’s adjusted EBITDA margin expanded by 110 basis points to 39.1%, reflecting improved operational efficiency.
Customer acquisition momentum remained strong. The carrier welcomed 432,000 new postpaid phone subscribers during the quarter, substantially beating the 338,500 consensus forecast. Total advanced connectivity subscriber additions exceeded one million, powered by robust growth in both fiber and fixed wireless segments.
Looking ahead, AT&T elevated its full-year 2026 earnings per share guidance to $2.25–$2.35. The current analyst consensus for the full year sits at $2.31.
Following the quarterly report, Wolfe Research upgraded its rating on AT&T. Sanford C. Bernstein maintained its “outperform” recommendation with a $25.00 price objective. TD Cowen increased its price target to $33.00 from $32.00, while holding its “hold” stance. Argus reduced its target to $30.00 from $33.00 but preserved its “buy” recommendation.
Barclays lowered its price target to $24.00 from $26.00, maintaining an “equal weight” position. Overall, the analyst community rates the stock as a Moderate Buy, with a mean price target of $29.19.
The stock currently trades at approximately 6.7x forward enterprise value-to-EBITDA — representing a valuation discount compared to Verizon at 7.3x and T-Mobile at 8.8x, and trading below AT&T’s own five-year historical range of 7.5x to 8x.
AT&T announced a quarterly dividend of $0.2775 per share, scheduled for payment on August 3rd. This translates to an annualized dividend of $1.11 and a current yield of 4.6%. The dividend payout ratio stands at 37.25%.
The company maintains an active $10 billion share buyback authorization.
Short interest in the stock remains minimal at 1.81% of shares outstanding. Institutional ownership represents 57.10% of total shares.
Technical indicators show the 50-day moving average at $22.79, with the 200-day moving average at $24.24. AT&T carries a market capitalization of $167.14 billion, trades at a price-to-earnings ratio of 7.97, and exhibits a beta of 0.24.
Options market activity following the earnings release showed unusually elevated call volume, suggesting traders are positioning for continued upward momentum.
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