AT&T Beat on Earnings, Announced a $10 Billion Buyback, and Still Trades at 8 Times Earnings With a 4.6% Yield.

AT&T reported second-quarter adjusted earnings per share of $0.65, up 20% year-over-year, and authorized a $10 billion increase to its share buyback program. The company added 432,000 postpaid phone subscribers and 646,000 internet customers during the quarter, with fiber expansion contributing to margin improvement.

The stock trades at 8 times earnings and offers a 4.6% dividend yield. Revenue growth remains modest at 2% year-over-year, reflecting the company's mature market position. The subscriber additions signal steady demand for both wireless and broadband services, with the fiber buildout strategy showing traction in customer acquisition.

The buyback authorization represents fresh capital return alongside the dividend, providing multiple income streams for shareholders. Management's willingness to deploy $10 billion into repurchases at current valuations suggests confidence in cash flow stability despite the slow top-line growth.