AT&T (NYSE:T) Shares Gap Up Following Strong Earnings

AT&T Inc. (NYSE:T)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.26, but opened at $23.38. AT&T shares last traded at $23.1640, with a volume of 23,849,498 shares changing hands.

The technology company reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The company had revenue of $31.56 billion during the quarter, compared to analyst estimates of $31.80 billion. During the same quarter last year, the business posted $0.54 EPS. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS.

AT&T Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.2775 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.8%. AT&T’s dividend payout ratio (DPR) is 37.25%.

Key Headlines Impacting AT&T

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T beat Q2 earnings estimates with adjusted EPS of $0.65 versus expectations near $0.59, helping reinforce the case that its wireless and fiber strategy is working. AT&T Earnings Beat. CEO Stankey: Starlink Deal Not Needed At All
• Positive Sentiment: Revenue missed estimates, but investors focused more on the strong operational details: more than 1 million advanced connectivity customer additions, including solid postpaid wireless and broadband growth, plus improving free cash flow. AT&T’s stock rises after earnings. Here’s why investors are cheering.
• Positive Sentiment: Management reiterated its 2026 outlook and said it plans faster share repurchases, which supports the bull case for AT&T’s valuation and dividend/capital-return story. AT&T Delivers Strong Second-Quarter Results as Investment-Led Strategy Gains Momentum
• Positive Sentiment: Several analyst notes turned more constructive after the report, with commentary saying SpaceX/Starlink fears may be exaggerated and that AT&T’s wireless execution remains strong. AT&T Stock Gets Upgraded. SpaceX Worries Are Overblown.
• Neutral Sentiment: Some reports still highlighted the revenue miss and heavy capital spending as ongoing risks, even as the company’s growth narrative improved. AT&T Stock Outlook Hinges on Fiber Growth and Wireless Risks in 2026
• Neutral Sentiment: AT&T also faced a modest analyst price-target cut from Argus, though the firm kept a buy rating, suggesting valuation remains supportive but not without caution. Argus price target update

Analyst Ratings Changes

A number of analysts recently issued reports on T shares. Wall Street Zen upgraded AT&T from a “sell” rating to a “hold” rating in a report on Saturday, June 20th. Weiss Ratings downgraded AT&T from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday. Wells Fargo & Company lifted their target price on AT&T from $18.00 to $20.00 and gave the company an “underweight” rating in a research report on Thursday. BNP Paribas Exane decreased their target price on AT&T from $28.00 to $26.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Finally, Barclays lowered their target price on AT&T from $26.00 to $24.00 and set an “equal weight” rating for the company in a report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $29.19.

Hedge Funds Weigh In On AT&T

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of AT&T by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 664,055,700 shares of the technology company’s stock worth $16,495,144,000 after buying an additional 3,585,661 shares during the last quarter. State Street Corp lifted its position in AT&T by 2.6% during the fourth quarter. State Street Corp now owns 332,089,723 shares of the technology company’s stock valued at $8,249,109,000 after acquiring an additional 8,314,678 shares during the last quarter. Bank of America Corp DE boosted its stake in AT&T by 4.6% in the first quarter. Bank of America Corp DE now owns 125,191,700 shares of the technology company’s stock valued at $3,629,307,000 after acquiring an additional 5,449,222 shares in the last quarter. Norges Bank acquired a new stake in AT&T in the fourth quarter valued at approximately $2,181,977,000. Finally, Bank of New York Mellon Corp grew its holdings in AT&T by 12.7% in the first quarter. Bank of New York Mellon Corp now owns 72,764,509 shares of the technology company’s stock worth $2,109,443,000 after purchasing an additional 8,197,935 shares during the last quarter. Hedge funds and other institutional investors own 57.10% of the company’s stock.

AT&T Stock Down 0.4%

The company’s fifty day simple moving average is $22.79 and its 200-day simple moving average is $25.24. The firm has a market capitalization of $159.44 billion, a PE ratio of 7.60, a price-to-earnings-growth ratio of 0.91 and a beta of 0.24. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.97 and a quick ratio of 0.87.

About AT&T

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T’s product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.