AT&T, IBD Stock Of The Day, Near Buy Point After Surging On Earnings

2026-03-06 18:19:19

			AT&T

				AT&T

$ 28.61

IBD Stock Analysis

										*   Stock with 29.30 cup-with-handle base
										*   T surged on Q4 earnings
										*   Relative Strength line improving after long decline

IBD Composite Rating

73/99

Industry Group Ranking

103/197

Emerging Pattern

				Cup with Handle

Cup with Handle

				A positive chart pattern named such because it resembles the outline of a coffee cup with a handle. The pattern can last from seven weeks to as long as a year, but most are three to six months.

Not real-time data. All data shown was captured at 11:31AM EST on 03/06/2026.

AT&T (T) is the IBD Stock of the Day as the telecom leader’s relative strength line improves amid volatility in artificial intelligence stocks and the U.S.-Iran war as some investors rotate into high dividend paying companies. Shares of AT&T stock have gained about 16% in 2026 after advancing 9% last year.

On the stock market today, AT&T shares dipped nearly 2% to 28.41 in afternoon trading, but were still up slightly for the week. Having divested assets such as satellite TV broadcaster DirecTV and WarnerMedia, AT&T has pivoted back to its telecom roots. AT&T has refocused on “convergence” — selling landline broadband and wireless services in product bundles.

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While Wall Street analysts have generally been upbeat on the strategy, there’s still investor concern over price discounting in product bundles, which would impact profit margins. Another worry is a price war involving wireless rivals Verizon Communications (VZ) and T-Mobile (TMUS) or broadband service providers, such as cable TV firm** Comcast** (CMCSA).

At a recent Morgan Stanley financial conference, AT&T Chief Operating Officer Jeff McElfresh said the company remains focused on sustainable growth.

“We’re not competing on promos and we’re not competing on just pricing actions. We’re competing on performance and value,” McElfresh said. “And the more we do, the better the brand performs. During this competitive environment, as we continue to drive convergence, we’ve delivered in the fourth quarter very strong wireless growth, strong fiber growth, strong EBITDA, expanding margins. And we’re able to do all of that while maintaining our commitment to our capital returns program with share buybacks and attractive dividends. And so, this is a working formula.”

AT&T Stock Near Buy Point

According to technical analysis on IBD’s MarketSurge, AT&T stock has forged a cup-with-handle base with an entry point of 29.30.

The relative strength line has improved dramatically over the past several weeks, reflecting AT&T’s outperformance vs. the S&P 500. But the RS line remains in a decades-long downtrend.

AT&T stock owns an IBD Composite Rating of 73 out of a possible 99, according to IBD Stock Checkup. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Further, AT&T stock holds an Accumulation/Distribution Rating of A-minus. That rating gauges institutional buying and selling of the stock over the past 13 weeks. A+ signifies heavy institutional buying. E means heavy selling. Think of a C grade as neutral.

AT&T Earnings Strong

AT&T stock surged from a 52-week low following its Q4 financial results. Earnings for AT&T in the December-ended quarter were 52 cents on an adjusted basis, down 3.7% vs. 54 cents a year earlier. Revenue rose 3.7% to $33.5 billion, the telecom company said.

Analysts had projected AT&T earnings of 46 cents a share on revenue of $32.87 billion, according to FactSet. The telecom company said it added 421,000 postpaid wireless phone customers vs. estimates for a 425,000 gain. AT&T said it added 283,000 fiber optic network internet customers in Q3, edging by FactSet’s estimate of 272,000. AT&T said it added 221,000 5G fixed wireless internet customers versus estimates of 260,000.

Importantly, AT&T said 42% of fiber network broadband customers also buy its wireless service. At the end of 2025, AT&T had 10.4 million fiber network broadband subscribers, 109.2 million wireless subscribers and over 2 million 5G fixed wireless broadband subscribers.

“AT&T Q4 results support our view that the company is best positioned to win share based on best-in-class assets and drive higher profitability and returns to shareholders,” said Bank of America analyst Michael Funk in a report. “Recent AT&T and T-Mobile wireless plan changes combined with management commentary suggest a reduction in competitive intensity.”

AT&T Stock: Financial Targets

In addition, AT&T reported Q4 free cash flow of $4.2 billion vs. estimates of $3.88 billion. Free cash flow growth supports AT&T’s dividend.

AT&T has a hefty 3.9% dividend yield.

Meanwhile, AT&T recently announced new financial targets through 2028. The company expects service revenue growth in the “low-single-digit range annually.” AT&T forecast adjusted EPS of $2.25 to $2.35 in 2026 with double-digit average growth through 2028.

Also, AT&T predicted free cash flow of $18 billion or more in 2026, $19 billion in 2027, and $21 billion in 2028.

At Citi, analyst Michael Rollins said in a recent report: “AT&T reported Q4 solid results with strategic key metrics generally in-line and an upbeat multiyear financial outlook. We believe the expanding broadband and convergence total addressable market should support solid financial growth.”

EchoStar Spectrum Deal

Rollins added: “Within this context, we continue to expect stronger broadband contributions and slower wireless growth during 2026. We still forecast wireless is at risk of growing service revenue at the low-end or below its 2% to 3% target given some of the incremental (average revenue per user) pressures from convergence, value segments, and incremental handset promotional amortization.”

Further, AT&T recently closed the acquisition of Lumen Technologies’ (LUMN) consumer fiber-optic network business, which serves 4 million homes, for $5.5 billion.

Also, AT&T continues to invest in wireless spectrum. AT&T in 2025 agreed to buy wireless spectrum licenses from EchoStar (SATS) in a $23 billion, all-cash deal, which is expected to close by midyear. AT&T will acquire roughly 30 MHz of nationwide 3.45 GHz midband spectrum and roughly 20 MHz of nationwide 600 MHz low-band spectrum.

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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