AT&T (T) Stock Forecast & Price Target

AT&T's wireless business, constituting nearly 70% of its revenue, reported a year-over-year service revenue increase of 2.3% to $16.9 billion, driven by a 2.1% growth in postpaid phone subscribers amidst an evolving market landscape. The company's Consumer segment experienced a notable revenue uplift of 4.1%, with broadband revenue alone growing by 8.2% due to a significant 17% rise in fiber revenue, positioning AT&T favorably for future growth. Looking ahead, a projected acceleration in fiber deployment is expected to contribute to increased net additions, further supporting an anticipated ~3% growth in service revenue, underscoring AT&T’s positive trajectory in the telecommunications sector.

AT&T's wireless business, which constitutes nearly 70% of the company's revenue, reported mobility earnings that fell approximately 1% short of consensus expectations, indicating potential challenges in sustaining growth. Although the Business Wireline unit outperformed expectations, management's guidance for a low double-digit revenue decline throughout the year suggests upcoming weaknesses, particularly in Q4. Furthermore, the company faces intense competition from other telecom and cable operators, alongside various operational risks like high debt levels and increasing pension expenses, which could negatively impact future revenue and earnings.