AT&TFRA:SOBA -0.49%74 Pretax Margin % is 17.13% as of Mar. 2026, which is 33% above its 10-year median of 12.88. GuruFocus rates FRA:SOBA with a GF Score™ of 74/100 and a GF Value™ of €18.93 (Fairly Valued). The stock has 3 warning signs investors should review. Among 368 Telecommunication Services companies, AT&T ranks better than 83.15% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. AT&T's Pre-Tax Income for the
three
months ended in Mar. 2026 was €4,669 Mil. AT&T's Revenue for the
three
months ended in Mar. 2026 was €27,253 Mil. Therefore, AT&T's pretax margin for the quarter that ended in Mar. 2026 was 17.13%.
The historical rank and industry rank for AT&T's Pretax Margin % or its related term are showing as below:
FRA:SOBA'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.56 Med: 12.88 Max: 21.76
Current: 20.88
FRA:SOBA's Pretax Margin % is ranked better than 83.15% of 368
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs FRA:SOBA: 20.88
AT&T (FRA:SOBA) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
AT&T Pretax Margin % Related Terms
AT&T Pretax Margin % Historical Data
* Premium members only.
The historical data trend for AT&T's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:SOBA vs VZ, TMUS, CMCSA: Pretax Margin % Comparison
For the Telecom Services subindustry, AT&T's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AT&T Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, AT&T's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where AT&T's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AT&T (FRA:SOBA) has a Pretax Margin % of 17.13% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AT&T and its competitors. This is 33% above median its historical median of 12.88. According to the industry distribution chart, AT&T ranks #62 out of 368 companies in the Telecommunication Services industry, placing it in the top 16.8%.
Is AT&T's Pretax Margin % too high?
AT&T's current Pretax Margin % of 17.13% is 33% above median its 10-year median of 12.88. The Telecommunication Services industry median Pretax Margin % is 7.64. AT&T's value of 17.13% is 124.2% above this industry median. Based on the distribution chart, AT&T ranks #62 out of 368 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, AT&T has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AT&T's Pretax Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, AT&T ranks #62 out of 368 companies for Pretax Margin %. This places AT&T in the top 17% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.64. AT&T's value of 17.13% is 124.2% above this benchmark. While the company's 10-year median is 12.88 vs. the industry median of 7.64, AT&T has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.64, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AT&T's current Pretax Margin % of 17.13% is 124.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AT&T and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AT&T's current Pretax Margin % is 17.13%, which is 33% above median its own 10-year median of 12.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AT&T stock overvalued right now?
Based on GuruFocus' analysis, AT&T (FRA:SOBA) is currently considered Fairly Valued. The stock's GF Value™ is €18.93, compared to a current price of €19.72 — trading 4.2% above its estimated fair value. The current Pretax Margin % is 17.13%, which is 33% above median its 10-year median of 12.88 and 124.2% above the Telecommunication Services industry median of 7.64. AT&T's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For AT&T (FRA:SOBA), the current Pretax Margin % is 17.13% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AT&T (FRA:SOBA) Overvalued in 2026?
Based on GuruFocus' analysis, AT&T stock appears to be overvalued.
The current stock price of €19.72 is trading 4.2% above its estimated GF Value™ of €18.93.
GuruFocus considers AT&T to be Fairly Valued.
Key valuation signals for FRA:SOBA:
Pretax Margin %: 17.13% (33% above median its 10-year median of 12.88)
GF Value™: €18.93 vs. price of €19.72 (4.2% above fair value)
Industry Position: 124.2% above the Telecommunication Services median (#62 of 368)
No single metric tells the full story. See the FRA:SOBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The wireless business contributes nearly 70% of AT&T's revenue. The company is the third-largest US wireless carrier, connecting 74 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 14% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential services, about 11% of revenue, primarily consist of in-home broadband internet access, serving 15 million customers. AT&T also has a sizable presence in Mexico, with 25 million wireless customers, but this business only accounts for 3% of revenue. The company recently sold its 70% equity stake in satellite television provider DirecTV to its partner, private equity firm TPG.
74GF Score
Get the complete analysis for FRA:SOBA
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:SOBA has been successfully added to your 
