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With a market cap of $182.5 billion, AT&T Inc. (T) is a leading telecommunications and technology services provider. The company operates across various segments, offering wireless, broadband, and entertainment services to customers worldwide. Shares of the Dallas, Texas-based company have underperformed the broader market over the past 52 weeks. The stock has increased 16.2% over this time frame, while the broader S&P 500 Index ($SPX) has returned 18.3%. In addition, shares of AT&T are up 12.9% on a YTD basis, compared to SPX’s 17.2% rise. Moreover, shares of the telecom giant have lagged behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 27.5% surge over the past 52 weeks. AT&T shares fell 1.9% on Oct. 22 after the company reported Q3 2025 revenue of $30.7 billion and adjusted EPS of $0.54, below the consensus. The revenue miss was driven by lower-than-expected equipment sales in its mobility business, despite a 6.1% rise in equipment revenue to $4.79 billion. Additionally, operating costs rose 3.8% due to higher marketing and promotion expenses, raising investor concerns about margin pressure heading into the high-cost Q4 upgrade cycle. For the current fiscal year, ending in December 2025, analysts expect AT&T's adjusted EPS to decline 8.9% year-over-year to $2.06. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions. Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, three “Moderate Buys,” 11 “Holds,” and one “Strong Sell.” This configuration is less bullish than it was three months ago, when AT&T had a total of 17 “Strong Buys.” On Oct. 23, Goldman Sachs raised AT&T’s price target to $33 with a “Buy” rating, The mean price target of $30.46 represents a premium of 18.5% to AT&T's current price. The Street-high price target of $34 suggests a 32.3% potential upside.
