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Should AT&T's (T) Strong Subscriber Gains and Share Buyback Spur Investor Reassessment?

Simply Wall St · 10/25/2025 13:31
  • AT&T recently reported third quarter results, highlighting robust growth in postpaid phone and broadband subscribers along with renewed fiber and 5G investments, and completed a significant share buyback of over 52.79 million shares for US$1.5 billion between July and September 2025.
  • The company also debuted Connectopia, an interactive AI-powered experience at a major sports venue, underscoring its commitment to next-generation connectivity and technology consumer engagement.
  • We'll now look at how AT&T's strong subscriber growth and recent technology investments influence its long-term investment narrative.

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AT&T Investment Narrative Recap

To be a shareholder in AT&T, you need to believe in the long-term value of expanding 5G and fiber networks, maintaining competitive subscriber growth, and disciplined capital returns amid an evolving market. While the company’s latest quarterly results underline gains in net income and subscriber additions, these do not appear to meaningfully alter the most important short-term catalyst (subscriber growth and retention) or address the prevailing risk of heightened competition pressuring margins.

Of the recent announcements, the multi-billion dollar share buyback stands out in relation to current events. While buybacks reflect management's confidence in future cash flows and can help support the stock, their material impact will ultimately depend on AT&T’s ability to deliver sustained operating improvements alongside subscriber and revenue growth.

In contrast, investors should be aware that expanded share repurchase plans may be helpful in the near-term, but if margin pressure accelerates, the longer-term impact on...

Read the full narrative on AT&T (it's free!)

AT&T's narrative projects $130.6 billion in revenue and $17.0 billion in earnings by 2028. This requires 1.7% yearly revenue growth and a $4.3 billion earnings increase from current earnings of $12.7 billion.

Uncover how AT&T's forecasts yield a $30.99 fair value, a 23% upside to its current price.

Exploring Other Perspectives

T Community Fair Values as at Oct 2025
T Community Fair Values as at Oct 2025

Some of the most optimistic analysts were forecasting AT&T earnings to reach US$17.6 billion and annual revenues of US$130.2 billion by 2028, driven by aggressive expansion in 5G and fiber while expecting significant cost savings from the transition away from legacy networks. This much more bullish view highlights how differently opinions can range, especially as recent news on subscriber growth and capital allocation could shift both risks and catalysts for the company. Comparing these perspectives can help you see where your own expectations might fit.

Explore 14 other fair value estimates on AT&T - why the stock might be worth 26% less than the current price!

Build Your Own AT&T Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your AT&T research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
  • Our free AT&T research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AT&T's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.