Mixed Analyst Ratings Reflect Competitive Concerns
AT&T received mixed assessments from Wall Street analysts in early October 2026, reflecting divergent views on the telecommunications company's competitive positioning and growth prospects as it prepares to report third-quarter earnings.
On October 13, Sanford C. Bernstein downgraded AT&T from "outperform" to "market perform" with a $24.00 price target, citing concerns about intensifying wireless competition from SpaceX following the satellite operator's $17 billion spectrum acquisition from EchoStar in late 2025. The downgrade comes as AT&T's stock has declined to $22.49 as of October 12, representing a nearly 20% drop from its all-time high closing price of $28.10 reached on March 27, 2026.
Meanwhile, KeyCorp reaffirmed its "overweight" rating on October 7 with a $36.00 price target, maintaining a bullish stance on the company's long-term prospects. Morgan Stanley raised its price target from $27.00 to $28.00 on September 28 while keeping an "overweight" rating, and BNP Paribas Exane upgraded the stock from "neutral" to "outperform" on September 21, lifting its target from $26.00 to $30.00.
Scotiabank took a more cautious approach, lowering its price target twice in early October—first from $29.25 to $27.50 on October 2, then from $27.50 to $26.50 on October 9—while maintaining a "sector perform" rating on both occasions.
Strategic Investments and Network Expansion
The rating adjustments come amid significant strategic moves by AT&T to strengthen its competitive position. In July 2026, the company completed a $23 billion acquisition of EchoStar spectrum licenses, marking one of the largest spectrum transactions in the telecommunications industry. Additionally, AT&T acquired Lumen's consumer fiber business for $5.75 billion, adding approximately 1 million existing and 7 million planned fiber locations to its network.
AT&T is pursuing an aggressive fiber expansion strategy, planning to reach 8 million new locations in 2026—its largest annual fiber buildout ever. The company aims to achieve 60 million total fiber locations by 2030, positioning itself to compete more effectively in the broadband market.
Financial Performance and Outlook
The company reported second-quarter 2026 revenues of $31.6 billion, up 2.3% year-over-year, with Advanced Connectivity operating income reaching $7.3 billion, up 20.3% year-over-year. Effective Q1 2026, AT&T realigned its reporting structure into three segments: Advanced Connectivity (accounting for approximately 90% of operating revenues), Legacy, and Latin America.
AT&T has reaffirmed full-year 2026 guidance for adjusted EBITDA growth of 3-4%, adjusted earnings per share of $2.25-$2.35, and free cash flow of $18 billion or more. The company is scheduled to report third-quarter earnings on October 21, 2026, with analysts expecting earnings per share of $0.61, representing 13% year-over-year growth.
Shareholder Returns
AT&T recently disclosed a quarterly dividend that will be paid on November 2 to stockholders of record as of October 12. Shareholders will receive a $0.2775 dividend, representing a $1.11 annualized dividend and a 4.9% dividend yield. The company's dividend payout ratio stands at 36.75%.
The telecommunications company has also increased its share buyback program to $10 billion for 2026, having already repurchased more than $2.4 billion through the third quarter. This accelerated capital return program reflects management's confidence in the business despite competitive headwinds.
AT&T operates as a major telecommunications provider offering wireless communications, broadband, and connectivity services primarily in the United States. The company serves consumers, businesses, government agencies, and organizations through its wireless network services, fiber-optic internet, and business communications solutions. AT&T traces its history to the Bell System and has operated under its current corporate name since 2005.
