AT&T (T) Stock Forecast & Price Target

AT&T's wireless business, which contributes nearly 70% of total revenue, has shown resilient performance with a 2.3% year-over-year increase in service revenue, attributed to a 2.1% growth in postpaid phone subscribers. The company has also experienced notable broadband revenue growth of 8.2%, driven by a 17% increase in fiber revenue, indicating a strong demand for its fixed-line services. Furthermore, forecasts suggest an acceleration in fiber deployment will enhance subscriber growth and lead to approximately 3% growth in service revenue for FY26, supported by increased postpaid phone net additions.

AT&T's wireless business, which constitutes approximately 70% of its revenue, generated mobility revenue of $21.7 billion, falling about 1% short of consensus expectations amidst rising equipment revenues, with management projecting lower growth for the upcoming quarter. The Business Wireline segment showed some positive performance, yet the forecast suggests a low double-digit revenue decline for the remainder of the year, indicating underlying weaknesses. Compounding AT&T's challenges are significant competitive pressures from various service providers, coupled with risks from economic uncertainties, high debt levels, and increasing operational expenses, all of which could severely affect the company's revenue and earnings prospects.