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.
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