AT&T (T) Stock Jumps on Fresh Earnings Beat—Is Now the Perfect Time to Buy?

AT&T Inc. (NYSE: T) rewarded patient shareholders on Wednesday with a stronger-than-expected jump in wireless customers that sent T stock up 4 % in pre-market trading, even as total revenue came in a touch light versus Wall Street’s forecast. The telecom giant added 405,000 post-paid phone subscribers in the third quarter, easily topping the 334,000 additions analysts had modeled. Management credited aggressive iPhone 17 promotions and discounted “mobility + fiber” bundles that now persuade more than 41 % of its fiber households to take a wireless line—a sticky, high-margin mix that helps blunt churn. Q3 by the numbers • Revenue: $30.7 billion (vs. $30.9 billion consensus) • Adjusted EPS: $0.54, in line with estimates • Mobility equipment revenue: +6.1 % year over year • Business wireline revenue: –7.8 % as legacy services fade Why the market shrugged off the small revenue miss Investors focused on subscriber momentum, stable free-cash-flow guidance, and reaffirmed 2025 EPS targets. AT&T remains on track to generate $16 billion-plus in free cash flow this year—ample coverage for its 7 % dividend yield, a key pillar for income investors seeking steady payouts from T stock. Network firepower gets a boost To support surging data traffic, AT&T recently struck a $23 billion deal to acquire prime 700 MHz and 3.45 GHz spectrum from EchoStar, beefing up mid-band capacity ahead of full-scale 5G Stand-Alone rollouts. The transaction is expected to close in early 2026 pending FCC approval. Stock price outlook Analyst price targets cluster in the low-$30s, implying high-teen percentage upside from today’s $26–27 range. Bulls argue that relentless fiber build-outs and disciplined cost controls can push EBITDA higher, while bears point to lingering debt and competitive pressure from Verizon and T-Mobile. Key catalysts to watch in the next 6-12 months 1. Fiber passings set to cross the 30 million mark by year-end. 2. Ongoing cost-takeout in business wireline as copper networks are decommissioned. 3. Potential $3–4 billion in incremental share buybacks once net-debt-to-EBITDA dips below 2.5×. 4. December quarter holiday upgrade cycle for iPhone 17 Pro models, where early indicators remain robust. Bottom line With fresh subscriber momentum, an enviable dividend, and spectrum muscle for the 5G era, AT&T stock is regaining its appeal as a defensive-growth hybrid. For investors hunting yield plus a potential re-rating story, keeping T stock on the watch-list—and the watch-list of your watch—looks increasingly smart heading into 2026.