TNEUTRAL

T Return on Equity (ROE) Analysis

18.3%

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at 18.3%, T is earning $0.183 for every dollar of equity.

Sector Performance

64th percentile

18.3%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

18.4%(Jul 2026)

→ Stable

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at 18.3%, T is earning $0.183 for every dollar of equity.

This sits well above the sector median of 13.8%, placing T in the 64th percentile among its peers. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of 0.5% and no year-over-year data available. The combination of a strong but shrinking ROE indicates that while T currently outperforms most sector peers, the downward trend introduces some pressure on future profitability, creating a balanced risk profile. This supports the overall NEUTRAL verdict: the above-median level argues for stability, but the persistent decline tempers the outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about T?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are T's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.