Prediction: After a Record Quarter, Here’s Where AT&T Will End The Year
AT&T just posted its fifth straight earnings beat while accelerating buybacks to $10 billion, but the stock still sits nearly 20% below its 52-week high. Whether that gap closes depends on two risks that bulls keep brushing aside.
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AT&T (NYSE: T | T Price Prediction) just posted its fifth consecutive earnings beat, with management accelerating buybacks to roughly $10 billion for the year.
Our 24/7 Wall St. price target for the next 12 months is $27.91, implying 21.81% upside from the current $22.91 quote. Confidence in this call is high at 90%, and the recommendation is a buy.
24/7 Wall St. Price Target Summary
| Metric | Value |
|---|---|
| Current Price | $22.91 |
| 24/7 Wall St. Price Target | $27.91 |
| Upside | 21.81% |
| Recommendation | BUY |
| Confidence Level | 90% |
A Record Quarter Sets the Stage
AT&T reported Q2 2026 adjusted EPS of $0.65 against a $0.5871 consensus, a 10.71% beat. Revenue of $31.56 billion came in 0.79% light of estimates but grew 2.3% year over year. Operating income climbed 7.45% and net income rose 11.96% to $5.04 billion. Subscriber trends were strong: 432,000 postpaid phone net adds, 367,000 fiber net adds, and postpaid phone churn of just 0.86%.
Shares are up 6.21% over the past week and 4.04% over one month, though T remains down 5.76% year to date. The stock sits well below its 52-week high of $28.75 and above the $19.63 low.
The Case for $30 and Above
The bull scenario points to $30.20, a 31.8% total return. Advanced Connectivity service revenue is up 5.1% with operating income surging 20.3% to $7.34 billion. Fiber locations reached 38.6 million, tracking a 40 million year-end target and 60 million by 2030. Fixed wireless subscribers jumped 77.4% to 2.611 million.
CEO John Stankey told investors, “We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position.” Combined with $45 billion+ in total shareholder returns targeted through 2028, this supports a re-rating toward the $29.03 analyst consensus and beyond.
The Risks Worth Watching
The bear scenario lands at $24.84. Legacy copper revenue fell 25.9%, net debt to EBITDA of 2.68x exceeds the 2.5x target, and interest expense rose 13.8%.
Regulatory delays on the pending EchoStar spectrum deal could weigh on sentiment. Bulls counter that capex jumped 16.4% to $5.70 billion to fund fiber and spectrum investments driving out-year free cash flow to $21 billion+ by 2028.
How AT&T Compares to Verizon and T-Mobile
Verizon (NYSE: VZ) trades at a forward P/E of 9x with a 6.36% dividend yield and an analyst target of $51.12. AT&T’s forward P/E of 10x is slightly richer, but T’s fiber footprint and stronger EPS growth trajectory justify the premium.
T-Mobile US (NASDAQ: TMUS) trades at a forward P/E of 19x with an analyst target of $252.73, reflecting faster subscriber growth. Against that peer, AT&T’s implied 12x forward multiple at our target leaves substantial room, making our 24/7 Wall St. price target look conservative.
| Company | Forward P/E | Dividend Yield |
|---|---|---|
| AT&T | 10x | 5.06% |
| Verizon | 9x | 6.36% |
| T-Mobile | 19x | 2.01% |
Our Bottom Line
The 24/7 Wall St. price target of $27.91 and buy rating, backed by 90% confidence, reflects a business generating record profits at an attractive multiple. The setup remains constructive so long as the fiber build stays on pace toward 40 million locations by year-end.
The thesis weakens if net debt to EBITDA drifts further above 2.5x or the EchoStar spectrum deal stalls. On balance, the risk-reward at $22.91 skews positive.
| Year | 24/7 Wall St. Price Target |
|---|---|
| 2026 | $27.91 |
| 2027 | $31.50 |
| 2028 | $35.00 |
| 2029 | $38.25 |
| 2030 | $41.54 |
These projections assume AT&T executes on its 60 million+ fiber location target by 2030 and its double-digit EPS CAGR guidance holds. Upside or downside could come from EchoStar spectrum integration, copper decommissioning by 2029, or interest rate shifts affecting the $144 billion debt load.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.
