Shares of AT&T (T) rose 4.8% to close at $24.06 on Friday after the telecommunications provider reported second-quarter results that exceeded analyst expectations. Trading volume surpassed 80 million shares, approximately 57% higher than typical daily activity.

The Dallas-based company reported adjusted earnings of $0.65 per share, outpacing the consensus estimate of $0.59. While quarterly revenue of $31.56 billion was slightly below the projected $31.80 billion, strong bottom-line performance and robust cash generation drove positive market reception. The results come as AT&T continues to execute on its strategy of focusing on its core telecommunications businesses following the 2022 spin-off of WarnerMedia, a move aimed at reducing complexity and redirecting capital toward 5G and fiber infrastructure.

Free cash flow for the quarter reached $4.7 billion, a 6.3% increase year-over-year, exceeding the company's prior guidance range of $4.0 billion to $4.5 billion. Adjusted EBITDA also climbed 5.2% to $12.3 billion compared to the same quarter last quarter, with the adjusted EBITDA margin expanding by 110 basis points to 39.1%.

Customer growth remained a significant highlight. AT&T added 432,000 new postpaid phone subscribers, substantially beating the Street's forecast of 338,500. Postpaid phone net additions are widely regarded as the wireless industry's most closely watched growth metric, as these customers carry higher lifetime value and lower churn rates than prepaid subscribers. Total advanced connectivity additions surpassed one million, supported by growth in both fiber and fixed wireless segments, areas where AT&T, Verizon, and T-Mobile are all competing heavily for long-term broadband market share.

Looking forward, management raised its full-year 2026 earnings per share guidance to a range of $2.25 to $2.35. The current analyst consensus for the full year sits at $2.31.

Analyst Reactions

Following the earnings release, Wolfe Research upgraded its rating on AT&T. Sanford C. Bernstein maintained an "outperform" recommendation with a $25.00 price objective. TD Cowen increased its price target to $33.00 from $32.00 while holding a "hold" stance, and Argus reduced its target to $30.00 from $33.00 but preserved its "buy" recommendation. Barclays lowered its price target to $24.00 from $26.00, maintaining an "equal weight" position.

Overall, the analyst community rates the stock as a Moderate Buy, with a mean price target of $29.19. The stock trades at approximately 6.7x forward enterprise value-to-EBITDA, representing a valuation discount compared to Verizon at 7.3x and T-Mobile at 8.8x, and trading below AT&T's own five-year historical range of 7.5x to 8x.

Shareholder Returns and Metrics

AT&T announced a quarterly dividend of $0.2775 per share, scheduled for payment on August 3rd. This translates to an annualized dividend of $1.11 and a current yield of 4.6%, with a payout ratio of 37.25%. The company maintains an active $10 billion share buyback authorization.

Short interest remains minimal at 1.81% of shares outstanding, while institutional ownership represents 57.10% of total shares. Technical indicators show the 50-day moving average at $22.79 and the 200-day moving average at $24.24. AT&T carries a market capitalization of $167.14 billion, trades at a price-to-earnings ratio of 7.97, and exhibits a beta of 0.24, reflecting historically low correlation to broader equity market movements. Options market activity following the earnings release showed unusually elevated call volume.