AT&T (NYSE:T) Shares Up 1% - Still a Buy?

Key Points

• AT&T shares rose 1% to $24.67 amid increased trading volume, while analysts maintain a consensus “Moderate Buy” rating and an average price target of $29.19.
• The company reported adjusted quarterly EPS of $0.65, beating expectations, with revenue up 2.3% year over year. Management also increased its 2026 share-repurchase plan to approximately $10 billion.
• AT&T expanded its partnership with D-Wave Quantum to apply quantum computing to network operations; early testing cut one optimization task from about an hour to 15 seconds. The stock also offers a 4.5% dividend yield, though debt, mature growth and satellite-based wireless competition remain risks.

Shares of AT&T Inc. (NYSE:T - Get Free Report) were up 1% during trading on Tuesday . The stock traded as high as $25.32 and last traded at $24.67. Approximately 57,282,534 shares changed hands during trading, an increase of 11% from the average session volume of 51,392,309 shares. The stock had previously closed at $24.42.

Key AT&T News

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T expanded its agreement with D-Wave Quantum NASDAQ: QBTS to deploy quantum-annealing technology across network operations, including outage detection, technician routing, traffic management and other optimization tasks. Initial testing reportedly reduced a network optimization process from roughly one hour to 15 seconds, highlighting potential efficiency gains. D-Wave Wins Wider AT&T Deal After 15-Second Test
• Positive Sentiment: The agreement reinforces AT&T’s broader artificial-intelligence strategy. Faster network planning, outage response and traffic management could eventually lower operating and capital costs, although the company has not disclosed a specific financial benefit from the D-Wave expansion. Quantum Computing Is Helping AT&T Solve Network Problems in Seconds
• Positive Sentiment: Recent earnings remain a key support for the stock. AT&T reported adjusted earnings of $0.65 per share, above the $0.59 consensus estimate, while revenue increased 2.3% year over year. Management also raised its 2026 share-repurchase plan to approximately $10 billion, improving the shareholder-return outlook. AT&T Beat on Earnings and Announced a $10 Billion Buyback
• Neutral Sentiment: Analysts and income-focused investors continue to view AT&T as a relatively inexpensive, high-yield telecom stock, with a forward outlook centered on fiber growth, cash-flow generation and its dividend. The company’s low valuation supports the shares, but also reflects AT&T’s sizable debt burden and mature-growth profile. AT&T: Keep Adding This Reliable Income Provider
• Negative Sentiment: Investors remain concerned that satellite-based connectivity could intensify competition in wireless services. AT&T is viewed as competitive, but the technology may pressure pricing or reduce the differentiation of traditional mobile networks over time. AT&T Remains Competitive Despite Satellite Connectivity Concerns

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on T shares. Royal Bank Of Canada decreased their price target on shares of AT&T from $31.00 to $27.00 and set an "outperform" rating on the stock in a report on Monday, July 20th. Wolfe Research upgraded AT&T from a "peer perform" rating to an "outperform" rating and set a $29.00 price objective for the company in a report on Thursday, July 23rd. Barclays cut their target price on AT&T from $26.00 to $24.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 8th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $25.00 target price on shares of AT&T in a report on Monday, July 13th. Finally, TD Cowen boosted their price target on AT&T from $32.00 to $33.00 and gave the company a "hold" rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, AT&T presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.19.

AT&T Stock Performance

The stock's 50 day moving average price is $22.79 and its 200 day moving average price is $25.24. The company has a current ratio of 0.97, a quick ratio of 0.93 and a debt-to-equity ratio of 1.06. The firm has a market cap of $169.05 billion, a PE ratio of 8.17, a P/E/G ratio of 0.98 and a beta of 0.24.

AT&T (NYSE:T - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The business had revenue of $31.56 billion for the quarter, compared to analyst estimates of $31.80 billion. During the same quarter in the previous year, the business posted $0.54 EPS. The business's quarterly revenue was up 2.3% on a year-over-year basis. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, equities analysts forecast that AT&T Inc. will post 2.34 earnings per share for the current fiscal year.

AT&T Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a dividend of $0.2775 per share. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Friday, July 10th. AT&T's payout ratio is currently 36.75%.

Institutional Investors Weigh In On AT&T

Several hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new stake in shares of AT&T during the fourth quarter valued at approximately $2,181,977,000. Amundi boosted its stake in shares of AT&T by 67.5% in the third quarter. Amundi now owns 42,295,492 shares of the technology company's stock valued at $1,094,184,000 after purchasing an additional 17,040,328 shares during the period. Alyeska Investment Group L.P. grew its holdings in AT&T by 620.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 11,891,778 shares of the technology company's stock valued at $295,392,000 after purchasing an additional 10,241,949 shares in the last quarter. State Street Corp grew its holdings in AT&T by 2.6% during the 4th quarter. State Street Corp now owns 332,089,723 shares of the technology company's stock valued at $8,249,109,000 after purchasing an additional 8,314,678 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in AT&T by 49.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 25,155,597 shares of the technology company's stock worth $624,865,000 after buying an additional 8,297,201 shares during the period. 57.10% of the stock is currently owned by hedge funds and other institutional investors.

AT&T Company Profile

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T's product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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