AT&T (T) Stock Forecast & Price Target

AT&T's wireless business remains a significant driver of its financial performance, accounting for nearly 70% of total revenue and showcasing a healthy growth in postpaid phone subscribers, which increased by 2.1% year-over-year. The company's consolidated revenue grew 1.6% year-over-year to $30.7 billion, with broadband revenue experiencing a robust 8.2% increase, primarily fueled by a 17% rise in fiber revenue. Furthermore, AT&T is poised for continued growth with expectations for a notable acceleration in fiber deployment and improved postpaid phone net additions forecasted for FY26, suggesting a strategic focus on expanding subscriber and wholesale revenue.

AT&T's wireless business, which constitutes nearly 70% of its revenue, is experiencing competitive pressures that could adversely affect its financial performance, with recent mobility revenue falling approximately 1% short of expectations. Additionally, the company's guidance of a low double-digit decline in the Business Wireline unit foreshadows potential weaknesses, particularly in the fourth quarter. AT&T's challenges are compounded by a substantial debt load, increasing pension expenses, and a business environment that remains weak, raising concerns about its ability to achieve cost-cutting and margin expansion goals.