VALUATION HIGHLIGHTS

1. Communication constitutes 98% of the Trefis price estimate for AT&T's stock.

WHAT HAS CHANGED?

Latest Earnings: Q2 FY'26

AT&T reported total consolidated revenues of $31.6 billion for Q2 FY'26, up 2.3% year-over-year, driven by strength in Advanced Connectivity fiber and wireless services. Adjusted EPS rose 20.4% year-over-year to $0.65, topping market estimates behind robust margin expansion, cost transformation efficiencies, and 432,000 postpaid phone net additions.

Note: AT&T's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.

Share Repurchase Plan Raised to $10 Billion on Strong Free Cash Flow

Reflecting strong operational execution and robust cash generation, AT&T increased its 2026 share repurchase target to approximately $10 billion, up from $8 billion previously. The company generated $4.7 billion in free cash flow during the quarter while continuing to expand its fiber footprint to 38.6 million total locations.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of AT&T's value that present opportunities for upside or downside to the current Trefis price estimate:

Mobility & Broadband Communications

• Postpaid Phone ARPU and Low Churn: Sustained growth in wireless service revenue and low postpaid phone churn of 0.86% support ongoing margin expansion. If subscriber retention and premium unlimited tier adoption outpace expectations, there is upside potential to valuation.


• Fiber and Fixed Wireless Net Additions: AT&T recorded 646,000 total broadband net adds across fiber and fixed wireless during the quarter. Accelerating fiber buildouts toward the 40+ million location target by late 2026 presents strong upside for high-margin recurring revenues.

For additional details, select a division from the interactive Trefis split for AT&T at the top of the page.

BUSINESS SUMMARY

AT&T is a leading telecommunications provider offering wireless voice and data communications, fiber broadband, and enterprise technology services primarily across North America.

SOURCES OF VALUE

Mobility services and expanding fiber operations represent the core source of enterprise value and stable cash flow generation for AT&T.

Nationwide 5G Subscriber Base

AT&T maintains a massive, recurring subscriber base of high-quality postpaid phone customers, providing strong operating cash flow and high revenue predictability.

Premier Fiber Infrastructure Network

The company's owned fiber network gives it a distinct cost and performance advantage, driving superior customer satisfaction and higher broadband ARPU.

High Free Cash Flow Generation

Consistently strong free cash flow supports significant dividend coverage and expanded share repurchases while maintaining balance sheet deleveraging targets.

KEY TRENDS

Convergence of Mobile and Fixed Broadband

Increasing consumer preference for converged internet and mobile packages plays directly to AT&T's strengths, with 42.5% of advanced home internet households also choosing AT&T wireless.

Accelerated Capital Returns and Balance Sheet Discipline

Management continues to prioritize capital efficiency, targeting over $45 billion returned to shareholders between 2026 and 2028 through dividends and buybacks.