After Reviewing AT&T's 2025 Results, We've Moved Our Fair Value Estimate Up Slightly to $27

We believe AT&T's investment in its fiber and 5G wireless networks has strengthened its competitive position. These investments don't come cheap, however. Maintaining pricing discipline will be crucial to earning attractive returns on capital, but competitive intensity is ratcheting up, with firms pushing to maintain growth as the wireless and broadband markets rapidly mature. We expect rational competition to prevail over the longer term, with minimal impact from new technologies like satellite. However, irrational pricing and promotion — more likely from rivals than from AT&T — remains a risk as the shape of the telecom industry changes.