Key Takeaways
- J.P. Morgan reaffirmed AT&T as a top investment choice, highlighting its fiber infrastructure and 5G deployment alongside superior cost structure
- The telecommunications giant exceeded first-quarter projections with earnings per share of $0.57 compared to consensus estimates of $0.55, while revenue reached $31.51 billion
- Convergence metrics show 45% of premium home internet subscribers now bundle with AT&T wireless service, reflecting a 3-point annual increase
- The J.P. Morgan analyst boosted the 2026 EBITDA projection to $48.1 billion while maintaining the $33 share price objective
- Year-to-date performance shows AT&T shares climbing approximately 5%; the current dividend yield stands near 4.2%
AT&T (T) stock began Monday’s trading session at $26.15, marking an increase of roughly 5% year-to-date through the previous Friday’s closing bell. This performance closely mirrors the S&P 500 index, which has advanced 5.8% during the identical timeframe.
J.P. Morgan reaffirmed its top picks designation for AT&T on Monday, with equity analyst Sebastiano Petti emphasizing the telecommunications provider’s ongoing fiber network expansion and 5G infrastructure investments, along with favorable cost dynamics compared to competitors T-Mobile and Verizon.
“We believe AT&T’s asset mix, strengthened by years of investment in fiber and 5G, and its marginal cost relative to competitors, positions the company well to drive share gains,” Petti wrote.
AT&T unveiled its first-quarter financial results on April 22nd. The telecommunications operator delivered earnings per share of $0.57, surpassing the analyst consensus expectation of $0.55. Total revenue registered at $31.51 billion, exceeding the $31.29 billion forecast and representing a 2.9% year-over-year expansion.
Looking ahead to fiscal 2026, AT&T provided full-year earnings per share guidance ranging from $2.25 to $2.35. Wall Street’s consensus estimate currently stands at $2.31.
A particularly noteworthy metric highlighted by Petti: 45% of the company’s premium home internet subscriber base now also maintains AT&T wireless subscriptions. This figure represents a three-percentage-point improvement from the prior year and excludes newly acquired fiber customers from the Lumen transaction.
Petti interprets this data as validation that AT&T’s convergence approach is delivering results — creating bundled packages that combine 5G mobile service, fiber broadband, and Wi-Fi connectivity to enhance customer retention.
Financial Projections and Cash Generation
In response to the quarterly performance, Petti increased his 2026 adjusted EBITDA forecast to $48.1 billion, incorporating expectations for converged customer growth, recent pricing adjustments, and contributions from the Lumen acquisition.
The analyst also elevated his second-quarter net postpaid phone subscriber addition estimate to 330,000 units from the previous 320,000 projection. His Overweight investment recommendation and year-end share price target of $33 remain intact.
Petti anticipates EBITDA and free cash flow per share will expand at compound annual growth rates of 4% and 12%, respectively, extending through the conclusion of 2028.
AT&T distributed a quarterly dividend payment of $0.2775 per share on May 1st, translating to an annualized yield of approximately 4.2%. The company’s payout ratio currently measures 37.25%.
Wall Street Consensus and Institutional Holdings
The overall analyst community maintains a predominantly positive stance. Among 21 analysts monitored by MarketBeat, one rates the stock Strong Buy, thirteen recommend Buy, and seven assign Hold ratings. The average target price across all analysts is $30.55.
Citigroup elevated its price target to $31.50 with a Buy recommendation in March. Scotiabank reduced its objective to $31.00 in late April while retaining a Sector Perform rating.
Regarding institutional investment activity, Truist Financial expanded its AT&T holdings by 3% during the fourth quarter, purchasing 163,766 additional shares to reach a total position of 5,694,478 shares valued at approximately $141.45 million. Multiple other institutional investors similarly increased their stakes during the third quarter.
AT&T’s 52-week trading range extends from $22.95 to $29.79. The stock’s 50-day moving average currently sits at $27.52, while the 200-day moving average is positioned at $26.05.
AT&T additionally introduced new cybersecurity solutions targeting small business customers this week, including Dynamic Defense available on AT&T Business Fiber connections.
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