AT&T (T) Stock Forecast & Price Target

AT&T's wireless business, contributing nearly 70% of the company's revenue, demonstrated resilience with a 2.1% growth in postpaid phone subscribers and an overall service revenue increase of 2.3% year-over-year to $16.9 billion. The Consumer segment also showed promise, with revenue rising 4.1% year-over-year, bolstered by significant 8.2% growth in broadband revenue, particularly from fiber services which surged by 17%. Furthermore, expectations for an acceleration in fiber deployment in 2026, alongside revised estimates for postpaid phone net additions, indicate a positive trajectory for the company’s service revenue growth moving forward.

AT&T's wireless business, which constitutes nearly 70% of total revenue, is experiencing pressures as evidenced by a mobility revenue of $21.7 billion, falling approximately 1% below consensus expectations, and a projected lower sequential growth rate for the fourth quarter of 2025. Additionally, the company's Legacy segment poses a significant challenge, with EBITDA expected to turn negative beyond 2027 as it phases out copper-based products, contrasting with an uptick anticipated in overall EBITDA through 2026. Compounding these issues are various risks, including competitive impacts, regulatory challenges, and economic factors that may lead to a decline in revenue growth and hinder cost-cutting efforts.