Quality score · T · Communication Services

Is AT&T Inc. a quality business?

AT&T Inc. (T) scored on five pillars from its reported financial statements, and ranked against 80 Communication Services companies.

5.0/ 10
Mixed quality
as of October 19, 2026
Profitability
6.2 Average
Solvency
5.1 Average
Growth
3.4 Weak
Efficiency
6.2 Average
Predictability
4.4 Average
Strongest pillar: Profitability · Weakest: Growth

AT&T Inc. (T) scores 5.0 out of 10 as of , computed from its reported financial statements. That reads as mixed quality. The reading rests on profitability, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does AT&T Inc. have an economic moat?

No moat

AT&T Inc.’s filings do not show enough of the signs a moat leaves: 1 of 5 indicators passed.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How AT&T Inc. scores

AT&T Inc. (T) has a Lemma Quality Score of 5.0 out of 10 as of October 19, 2026, which reads as mixed quality. A mixed reading means the strengths and weaknesses roughly cancel out, and the case for the business depends on which pillars you care about most. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.

Set against 80 Communication Services companies, AT&T Inc. lands at the 58th percentile, above the middle of the group. For reference, the middle of the group scores 4.6 and a company needs 6.0 to reach its top quarter, which leaves AT&T Inc. in line with the median.

Pillar by pillar

Profitability

AT&T Inc.’s profitability score is 6.2 out of 10 (average). Against a median of 3.7 among 77 Communication Services companies, that is well above the group and the 74th percentile. An average profitability reading usually means the company earns a fair return without obvious pricing power, so the other pillars decide more of the story.

Solvency

AT&T Inc.’s solvency score is 5.1 out of 10 (average). Against a median of 4.8 among 62 Communication Services companies, that is in line with the group and the 56th percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.

Growth

Growth scores 3.4 out of 10, which reads as weak. The median across 64 Communication Services companies is 4.7, so AT&T Inc. is below its peers on this pillar and ranks at the 30th percentile. A low growth score is common for large, established companies and is not a verdict on quality on its own, but it limits how the business can compound.

Efficiency

Efficiency scores 6.2 out of 10, which reads as average. The median across 76 Communication Services companies is 6.1, so AT&T Inc. is in line with its peers on this pillar and ranks at the 53rd percentile. Efficiency near the median says the operation is neither unusually lean nor unusually capital hungry.

Predictability

On predictability, AT&T Inc. scores 4.4, an average reading. Its peers have a median of 4.5 across 80 Communication Services companies, which places it in line with them, at the 48th percentile. Consistency near the median is typical, and it is worth checking whether the swings came from the business itself or from one-off items.

Strongest and weakest pillar

The profile is uneven. Profitability leads at 6.2 while growth trails at 3.4, a gap of 2.8 points, so the overall averages a clear strength against a clear soft spot. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.

What would move the score

Closing the gap on growth would do the most for the overall. At the median of Communication Services companies, 4.7, AT&T Inc. would score about 5.3 instead of 5.0. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

AT&T Inc. and similar companies

These are the Communication Services companies closest to AT&T Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

6.2 / 10

How much profit the company generates from its capital and sales.

Solvency

5.1 / 10

The company’s ability to service debt and meet its obligations.

Growth

3.4 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.2 / 10

How well assets and earnings convert into cash and output.

Predictability

4.4 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is AT&T Inc. a quality business?

On this reading AT&T Inc. scores 5.0 out of 10, which reads as mixed quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does AT&T Inc. compare with other Communication Services companies?

AT&T Inc. ranks at the 58th percentile of the 80 Communication Services companies Lemma publishes a score for. The median there is 4.6 and the top quarter starts at 6.0, against AT&T Inc.’s 5.0.

What does the T quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for T are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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