How AT&T's Partnership With Gigs Could Shape Long-Term Subscriber Growth and Recurring Revenue (T)

• On September 12, 2025, Gigs announced a partnership with AT&T allowing technology brands like Klarna to embed phone plans directly into their apps using AT&T’s network, with plans managed in-app and supported by AI-driven service.
• This collaboration signals a shift in mobile services distribution, enabling network providers to access new subscribers by integrating connectivity within everyday digital platforms rather than relying on traditional marketing channels.
• We'll explore how embedded phone plans through digital storefronts may alter AT&T's long-term growth opportunities and recurring revenue outlook.

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AT&T Investment Narrative Recap

To be an AT&T shareholder, you need to believe that investments in 5G, fiber expansion, and partnerships like the recent deal with Gigs can unlock fresh growth while shoring up recurring revenue. The headline risk remains wireless subscriber churn and pricing pressure from competitive offers, especially as device financing cycles mature. The Gigs collaboration is intriguing but not likely to materially alter these immediate market risks or the most important catalyst, steady mobility segment growth.

Among recent company moves, AT&T’s new share buyback program is particularly relevant. By announcing a repurchase of 47.2 million shares for US$1.3 billion, the company is showing commitment to returning capital even as it pursues new digital and network investments. How effectively this improves shareholder value depends on long-term revenue stability, especially if the digital distribution play raises, rather than alleviates, churn and margin challenges.

In contrast, investors should be aware that intensified competitive activity and device upgrade cycles may drive higher-than-expected churn rates and pressure margins...

Read the full narrative on AT&T (it's free!)

AT&T's narrative projects $130.6 billion revenue and $17.0 billion earnings by 2028. This requires 1.7% yearly revenue growth and a $4.3 billion earnings increase from $12.7 billion currently.

Uncover how AT&T's forecasts yield a $30.62 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Some analysts are much more optimistic, expecting AT&T’s annual revenue to hit US$130.2 billion and earnings to grow to US$17.6 billion by 2028. These bullish forecasts assume efficient fiber deployment and strong cost reductions, but events like the Gigs partnership could shift expectations further. As an investor, it’s important to weigh how each news event may affect these projections, since analyst opinions and future company results can diverge significantly.

Explore 16 other fair value estimates on AT&T - why the stock might be worth 36% less than the current price!

Build Your Own AT&T Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AT&T research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free AT&T research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AT&T's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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