New York, June 16, 2026, 07:02 ET
- AT&T closed Monday down 1.23% at $23.29. In early premarket action Tuesday, shares moved up to $23.31.
- Shares dropped while the broader market was up. Telecom names were weak, with rate changes doing more than fresh company news to move the group.
- AT&T’s Q2 earnings call is coming up July 22 at 8:30 a.m. ET.
AT&T Inc. shares fell Monday as the stock lagged the broader market. Investors moved out of telecoms like AT&T and into tech names before the Federal Reserve’s latest rate decision. AT&T lost 29 cents, or 1.23%, closing at $23.29, with a $23.31 indication for early Tuesday, according to Google Finance. Verizon shares dropped 2.16%. The S&P 500 rose 1.65%, and the Dow gained 0.92%. Losses weren’t just limited to AT&T.
AT&T is often seen as a pick for yield and defense, drawing investors seeking stable returns but lagging when growth names lead. Reuters reported Tuesday that U.S. futures stayed muted with traders focused on the Fed, while chip and AI stocks outperformed. Telecoms react to interest rates, with investors weighing dividends against bond yields, and big firms like AT&T carry heavy debt loads.
AT&T bulls still have numbers to point to. First-quarter sales hit $31.5 billion. Free cash flow was $2.5 billion. The company added 294,000 postpaid phone customers. AT&T said it’s tracking toward more than 40 million fiber locations by 2026 and 60 million by 2030. The company is sticking to its targets: over $18 billion in free cash flow for 2026, $1.11 per share on the annual common dividend, and $8 billion for share buybacks.
Bearish arguments are still on the table. AT&T ended Q1 with $138.4 billion in total debt and $126.4 billion in net debt—netting out cash and equivalents. The company is guiding for $23 billion to $24 billion in capital investment this year, with spending on fiber and wireless upgrades still carrying a heavy price tag. If rates hold higher or if competition in wireless and broadband ramps up, leading to bigger promos, the stock could still trade at a discount.
AT&T shares trade at roughly 7.8 times earnings, with a dividend yield of 4.77%, Google Finance data show. The stock has some draw for those after yield, but it isn’t an easy call on risk. Analysts tracked by Google Finance give it 13 buys, 6 holds, and no sells, with a 12-month price target averaging $31.07. The upcoming July 22 earnings call is the next watch item. Investors want to see free cash flow, fiber net adds and postpaid phone metrics, hoping these numbers help steady nerves over debt, interest rates and spending.
