Zacks Research Lowers AT&T Earnings Forecast for Q1 2026
Investment analysts at Zacks Research have revised their earnings per share (EPS) estimates for AT&T Inc. (NYSE: T) for the first quarter of 2026. The updated forecast, released on November 25, 2023, anticipates earnings of $0.54 per share, a decrease from the previous estimate of $0.56. This adjustment reflects a cautious outlook amid a competitive telecommunications landscape.
The consensus estimate for AT&T’s full-year earnings currently stands at $2.14 per share. Looking further ahead, Zacks Research has projected earnings of $0.56 for the first quarter of 2027. Other brokerages have also weighed in on AT&T’s performance. UBS Group recently reaffirmed a “buy” rating for the stock, while Scotiabank set a price target of $30.25 with a “sector perform” rating.
The outlook from Barclays has been less optimistic, as they lowered their price target from $30.00 to $28.00 and maintained an “equal weight” rating. Conversely, Goldman Sachs Group initiated coverage on AT&T with a “buy” rating and a price target of $32.00. Wells Fargo & Company has also adjusted their price objective from $31.00 to $29.00, giving the stock an “overweight” rating.
As it stands, one analyst has issued a Strong Buy rating for AT&T, while seventeen others have given it a Buy rating and eight have issued a Hold rating. According to data from MarketBeat, AT&T maintains an average rating of “Moderate Buy” with a projected average price target of $30.64.
Current Stock Performance and Financials
On November 23, 2023, AT&T shares opened at $25.99. The company holds a market capitalization of $184.25 billion and reports a price-to-earnings (PE) ratio of 8.44. AT&T’s twelve-month low and high stand at $21.38 and $29.79, respectively. The company’s financial health is reflected in its quick ratio of 0.96, a current ratio of 1.01, and a debt-to-equity ratio of 1.01.
In its most recent earnings report on October 22, 2023, AT&T announced earnings of $0.54 per share, aligning with analyst expectations. The company reported revenues of $30.71 billion, slightly below the anticipated $30.85 billion. Notably, AT&T achieved a return on equity of 12.72% and a net margin of 17.87%, with revenue increasing by 1.7% year-over-year.
Dividend and Institutional Investment
AT&T recently declared a quarterly dividend of $0.2775 per share, which was paid out on November 3, 2023. Shareholders on record as of October 10, 2023 received this dividend, representing an annualized rate of $1.11 and yielding 4.3%. The company’s dividend payout ratio currently stands at 36.04%.
In terms of institutional investment, hedge funds and other institutional investors have actively adjusted their stakes in AT&T. For instance, J. L. Bainbridge & Co. Inc. increased its holdings by 1.7% during the second quarter, now owning 21,253 shares valued at approximately $615,000. Similarly, Financial & Tax Architects LLC raised its stake by 4.9%, while Roberts Glore & Co. Inc. increased its position by 2.0%.
Overall, institutional investors and hedge funds collectively own 57.10% of AT&T’s stock, indicating significant confidence in the company’s long-term prospects.
AT&T, a prominent telecommunications and technology provider, operates through its Communications and Latin America segments, delivering a range of wireless, wireline, and broadband services to both businesses and consumers across the globe.
