AT&T Versus Verizon: Evaluating Telecom Giants for 2027
As major US telecom carriers vie for subscribers through 2027, everyday investors weigh AT&T's streamlined fiber expansion against Verizon's massive network scale and higher dividend yield.
💼InvestingPhoto: Motley Fool
Key points
- AT&T reported $128.9 billion in revenue for the 12 months ending Sept. 30, 2026, up 3.5% year-over-year.
- Verizon generated $139.4 billion in revenue over the same period, reflecting a 1.4% increase.
- Dividend yields stand at 5% for AT&T and 6% for Verizon as of mid-November 2026.
Telecom Leaders Face Off
US telecom mainstays AT&T and Verizon are continuing their long-standing competition for American smartphone users and internet subscribers, with both firms focusing on infrastructure investments and capital management as they look toward 2027. Operating in a capital-intensive sector, both companies rely on consistent cash flow and reliable network performance to drive investor returns.
For the twelve months ending September 30, 2026, AT&T reported revenue of $128.9 billion, marking a 3.5% increase from the prior period, alongside a net income of $13.1 billion and a net margin of 10.1%. The company serves over 100 million retail wireless subscribers while actively expanding its fiber footprint and managing the FirstNet network for first responders. Its December 2025 balance sheet showed a debt-to-equity ratio of 1.6x, a current ratio of 0.9x, and fiscal year 2025 free cash flow of $19.4 billion.
Meanwhile, Verizon posted higher revenue of $139.4 billion for the same twelve-month period, representing a 1.4% year-over-year growth, with net income reaching $16.4 billion and a net margin of 11.8%. Supporting roughly 147 million total retail connections, Verizon recently bolstered its market position through the acquisition of Frontier Communications and an artificial intelligence partnership with Amazon. Its December 2025 metrics included a debt-to-equity ratio of 1.7x, a current ratio of 0.9x, and free cash flow of $19.7 billion for the 2025 fiscal year.
Both corporations encounter distinct market headwinds. AT&T deals with intense pricing competition from cable providers, legacy legal liabilities, and debt servicing costs. Verizon faces pricing pressures from satellite operators, potential integration challenges from its Frontier acquisition, and regulatory scrutiny regarding legacy infrastructure materials.
Both mature telecom operators offer robust forward dividend yields, with AT&T providing a 5% yield and Verizon offering a higher 6% payout as of mid-November 2026.
What to watch next: Monitor upcoming quarterly subscriber additions, debt reduction progress, and potential shifts in interest rates that could impact capital-intensive infrastructure financing.
Source Motley Fool — fool.com/coverage/better-buy/2026/11/14/at-and-t-vs-verizon-which-t… ↗
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