DALLAS, September 3, 2026, 05:52 EDT
- AT&T closed at $25.95 on September 2, slipping 0.25%.
- The company projects free cash flow to top $18 billion in 2026, implying an equity cash yield of 10.1%.
- Over one million fiber, fixed-wireless, and telephone connections were added during the second quarter.
AT&T Inc. NYSE:T closed Wednesday at $25.95, bringing its market capitalization to $177.82 billion. The company forecasts free cash flow to exceed $18 billion in 2026, pointing to a projected cash yield of around 10.1% Google Finance.
The central concern for the stock centers on its yield. The annual dividend requires an outlay of about $7.6 billion, given a share count of 6.85 billion. This leaves $10.4 billion available prior to covering debt and other obligations. Management plans to execute around $10 billion in share repurchases in 2026 AT&T second-quarter release.
The stock fell 0.25% during Wednesday’s regular session, before rising 0.15% to $25.99 after the bell. The report was filed before the start of regular market hours.
AT&T four-session close
USD per share; the narrow range left the cash-return case, not momentum, as the main valuation driver.
As of
Sources: Google Finance; Tallac daily history
Second-quarter free cash flow reached $4.7 billion, up 6.8% compared to the same period last year. Capital investment rose 19.6% to $6.1 billion. Operating cash flow was $10.8 billion.
The unit drove growth beyond the overall rise in revenue. Revenue from Advanced Connectivity services grew 5.1%. Segment operating income advanced 20.3%. The segment’s operating margin increased by 350 basis points, reaching 25.7% AT&T operating schedules.
Cash-return capacity at the current price
USD billions. Dividend cost is a TS2 calculation using $1.11 per share and 6.85 billion shares.
The two planned returns total about $17.6 billion. This is an illustrative comparison, not a company cash-allocation waterfall. Source: AT&T, July 22, 2026.
AT&T said fiber subscribers grew by 367,000 during the quarter. The company saw 279,000 net new fixed-wireless service customers. Postpaid phone lines added 432,000 users. The postpaid phone churn rate remained unchanged at 0.86%.
Convergence offers a further choice. Among advanced-home-internet subscribers, 42.5% also purchased AT&T wireless. Revenues from advanced-home-internet rose by 27.3%. Average fiber revenue per user dropped 1.3%, partly reflecting the integration of Lumen customers earnings-call transcript.
AT&T will accelerate its planned share buybacks in the current year, Chief Executive John Stankey stated. The company paid out $4.1 billion over the quarter, allocating roughly $2.2 billion to share repurchases.
Debt limits yield. Net debt stood at $126.4 billion as of June. AT&T intends to maintain leverage near 2.5 times for about three years after finalizing its EchoStar acquisition. Annual capital expenditures are expected to remain in the $23 billion to $24 billion range.
Wall Street still leans positive
Eighteen analyst ratings and the latest 12-month target range, compared with AT&T’s $25.95 close.
Recommendation split
12-month target range
$20Close
$25.95Average
$29.02High
$36
As of September 3, 2026, 05:52 EDT. Source: Google Finance.
Analysts remain optimistic. Of 18 experts, eleven rate the shares as Buy, six advise Hold, and one recommends Sell. The average price target stands at $29.02, implying an 11.8% upside. Target projections, ranging from $20 to $36, reflect notable execution risk.
Risks: Legacy EBITDA could turn negative after 2027 if copper costs remain elevated. Deleveraging may be delayed due to the EchoStar integration. Elevated promotions and a larger subscriber base led to increased bad-debt expense in the second quarter.
Key dates are on the horizon. Stankey will speak at a Goldman Sachs forum on September 9, while finance head Pascal Desroches appears twice on September 10. Third-quarter results are scheduled before the market opens on October 21 AT&T events calendar.
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