AT&T (T) Stock Forecast & Price Target

AT&T's wireless business, constituting nearly 70% of its revenue, achieved a year-over-year service revenue growth of 2.3%, bolstered by a 2.1% increase in postpaid phone subscribers despite a slight decline in average revenue per user (ARPU). The consumer segment exhibited a robust revenue increase of 4.1% year-over-year, with broadband revenue surging by 8.2%, driven by a significant 17% growth in fiber revenue. The outlook for fiber deployment anticipates a significant increase in net additions, estimated at 1.35 million in 2026, alongside improved projections for postpaid phone net additions, contributing to a projected service revenue growth of approximately 3%.

AT&T's wireless business, which generates nearly 70% of its revenue, experienced mobility revenue of $21.7 billion, falling approximately 1% short of consensus expectations, which raises concerns about the company's growth prospects. The management's forecast indicates a projected sequential decline in growth for the fourth quarter of 2025, compounded by a guide of a low double-digit revenue decline in the business wireline unit, suggesting persistent weakness. Additionally, AT&T confronts intense competition from various providers, coupled with economic pressures, a substantial debt burden, and an environment of weak business spending, all contributing to a negative outlook for the company's financial performance.