AT&T (NYSE:T) Shares Climb 3.7% on Strong Earnings

Posted by Stanley Muller on Oct 22nd, 2026

AT&T logo AT&T Inc. (NYSE:T – Get Free Report) traded up 3.7% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $22.91 and last traded at $22.7250. 53,143,063 shares changed hands during trading, an increase of 9% from the average session volume of 48,673,777 shares. The stock had previously closed at $21.91.

The technology company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.60 by $0.05. The business had revenue of $32.32 billion for the quarter, compared to analysts’ expectations of $31.69 billion. AT&T had a return on equity of 12.86% and a net margin of 16.94%. The company’s revenue was up 5.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.54 earnings per share.

AT&T Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be paid a dividend of $0.2775 per share. This represents a $1.11 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date is Friday, October 9th. AT&T’s dividend payout ratio is 36.75%.

Key AT&T News

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

Positive Sentiment: Strong Q3 operating performance: AT&T reported adjusted earnings of $0.65 per share and revenue of $32.32 billion, exceeding consensus estimates. Advanced Connectivity produced a record 769,000 internet net additions, including 442,000 fiber additions and 327,000 fixed-wireless additions. AT&T third-quarter results
Positive Sentiment: Higher outlook and shareholder returns: Management raised its 2026 adjusted EPS outlook to approximately $2.40 and continues to target strong buybacks, supporting the stock’s income and valuation appeal. Analysts at Argus reaffirmed a Buy rating with a $30 target, while JPMorgan and KeyCorp maintained Overweight ratings despite reducing their targets. AT&T raises 2026 earnings outlook
Positive Sentiment: Lower future capital spending: AT&T plans to reduce annual capital investment to roughly $22 billion-$23 billion in 2027 and 2028 while retaining its goal of reaching more than 60 million fiber locations by 2030. The move could improve free-cash-flow generation and help fund dividends and repurchases. AT&T fiber spending strategy
Neutral Sentiment: Technical rebound, but support remains important: Traders are watching the $20 area as potential support after a roughly 13% monthly decline. The latest increase may reflect bargain hunting rather than a confirmed trend reversal. AT&T technical analysis
Negative Sentiment: Debt and impairment concerns overshadowed the earnings beat: Net debt rose following the EchoStar spectrum transaction, with management not expecting leverage to return to its target range until 2029. A $2.6 billion Mexico-related impairment also weakened reported profit, raising concerns about balance-sheet flexibility and interest costs. AT&T debt and spending analysis
Negative Sentiment: Starlink competition is an overhang: Investors fear SpaceX’s Starlink Mobile could pressure AT&T’s wireless subscriber growth, pricing and customer-acquisition costs, even though CEO John Stankey has downplayed the threat. Introductory fiber offers are also weighing on pricing. AT&T and SpaceX competition

Analyst Ratings Changes

T has been the topic of a number of recent analyst reports. Argus restated a “buy” rating and issued a $30.00 target price on shares of AT&T in a research note on Thursday. KeyCorp decreased their price target on AT&T from $36.00 to $33.00 and set an “overweight” rating for the company in a research note on Thursday. Scotiabank lowered their price objective on AT&T from $27.50 to $26.50 and set a “sector perform” rating for the company in a report on Friday, October 9th. Barclays reduced their target price on AT&T from $24.00 to $21.00 and set an “equal weight” rating on the stock in a report on Thursday. Finally, Wolfe Research upgraded AT&T from a “peer perform” rating to an “outperform” rating and set a $29.00 target price for the company in a research report on Thursday, July 23rd. Twelve research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $28.55.

Check Out Our Latest Analysis on AT&T

Hedge Funds Weigh In On AT&T

Several institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE acquired a new stake in shares of AT&T in the 2nd quarter worth about $2,310,898,000. GQG Partners LLC acquired a new stake in shares of AT&T in the second quarter valued at approximately $1,223,364,000. Legal & General Group Plc bought a new stake in shares of AT&T during the second quarter valued at approximately $960,695,000. State Street Corp raised its holdings in shares of AT&T by 5.8% during the second quarter. State Street Corp now owns 334,273,613 shares of the technology company’s stock valued at $6,919,464,000 after buying an additional 18,468,679 shares during the last quarter. Finally, Nykredit A S bought a new position in shares of AT&T in the second quarter worth $259,954,000. 57.10% of the stock is owned by institutional investors.

AT&T Stock Performance

The company has a market cap of $155.72 billion, a P/E ratio of 7.52, a PEG ratio of 1.14 and a beta of 0.25. The company has a 50 day moving average price of $24.90 and a 200-day moving average price of $24.29. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06.

About AT&T

(Get Free Report)

AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.