Is the business good?
How good a business is T?
AT&T earns 8.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.0%
Return on invested capital · cost of capital 9.0% · 1.0 points below what the capital costs: growth destroys value
- Operating margin
- 20%
Operating margin · Communication Services median 12% · 12 months to Q2 2026
- Cash conversion
- 0.82×
Cash conversion · 1.54× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −3.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.9% |
| FY2021 | 19% |
| FY2022 | −3.8% |
| FY2023 | 19% |
| FY2024 | 16% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q2 2026
- 80%
- Operating margin12 months to Q2 2026
- 20%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $127.2B
- Free cash flow, trailing twelve months
- $17.6B
- Net income, trailing twelve months
- $21.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.