AT&T Inc‘s (NYSE:T) third-quarter results came in higher than expectations almost across the board. Here are some key analyst takeaways:
- KeyBanc Capital Markets analyst Brandon Nispel reiterated an Overweight rating, while cutting the price target from $36 to $33.
- TD Cowen analyst Gregory Williams reiterated a Hold rating and price target of $33.
Check out other analyst stock ratings.
KeyBanc Capital Markets: AT&T’s Advanced Home Internet ARPU is "part of the Convergence playbook to win share," Nispel said in a note. The company reported a convergence rate of 42.8%, up from the second quarter’s 42.5%, adding around 350,000 converged accounts, he added. AT&T reported:
- Postpaid phone net adds of 379,000, missing consensus of 381,000
- Postpaid phone churn of 0.92%, versus Street expectation of 0.91%
- Postpaid phone ARPU growth of 4% year-on-year, higher than consensus of 1.6%
AT&T also raised its 2026 adjusted earnings guidance to $2.40 per share, from its prior projection of $2.25-$2.35 per share, he further noted.
TD Cowen: AT&T reported its third-quarter revenue and EBITDA results higher than expectations, Williams said. "The EBITDA performance is encouraging despite slightly higher activity levels," he wrote.
The analyst stated that shares came under pressure as management indicated:
- Incremental free cash flow pressure in 2027 and beyond
- Higher CAC (customer acquisition cost)
- Continued pressure on Fiber ARPU
- Space Exploration Technologies Corp’s (NASDAQ:SPCX) (SpaceX) latest plans to expand into wireless telecommunications
"AT&T’s convergence should prove the winning strategy but admittedly tough to invest until we see what SPCX ultimately does," he further wrote.
T Price Action: Shares of AT&T closed at $22.74 on Thursday, October 22, up 83 cents (3.79%) for the day.
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