AT&T's John Stankey Leads Company's Transformation to Meet 21st-Century Demands

AT&T CEO John Stankey is transforming the 140-year-old telecom company to be leaner and more agile like Verizon and T-Mobile. Stankey's hard-charging leadership style has won over Wall Street, with the company's stock outperforming rivals this year. To achieve this, Stankey has made big bets, such as sunsetting most of its copper network by 2029 and shifting the company's culture to a more market-based approach. The strategy is paying off, with many analysts boosting their price targets and AT&T shares up 22% this year. Stankey believes this transformation is crucial for the company's future and will take time to accomplish.

AT&T CEO John Stankey is leading a significant transformation of the 140-year-old telecom giant, aiming to make it leaner and more agile, similar to competitors like Verizon and T-Mobile. His aggressive approach, which includes sunsetting most of the company's copper network by 2029 and shifting to a more market-based culture, has garnered approval from Wall Street. AT&T's stock has outperformed rivals this year, with shares up 22% compared to 8.25% for T-Mobile and 6.7% for Verizon [1].

Stankey, who took the helm in July 2020, has shown a willingness to make big bets. He has prioritized the company's future by investing in fiber optic networks and wireless spectrum, essential for meeting 21st-century demands for speed and mobility. AT&T's strong performance in the second quarter of 2025, driven by wireless and fiber subscriber growth, underscores the effectiveness of this strategy [1].

The transformation includes a cultural shift away from traditional corporate values like loyalty and tenure, reflecting a more tech-focused, market-driven approach. This shift has been well-received by analysts, who have boosted their price targets for the stock. BNP Paribas telecom analyst Sam McHugh noted that investors appreciate the company's focus on core competencies, which is delivering financially [1].

However, AT&T faces challenges. The company's gross margin is low at 60.61%, and its debt-to-equity ratio is high at 1.43, indicating financial strain. Additionally, the company may face higher customer churn in the latter half of 2025. Despite these challenges, Stankey's approach seems to be paying off, as seen in the insider purchase of 2,291 shares by Chief Operating Officer Jeffery McElfresh on August 4, 2025, valued at $62,812 [2].

The transformation is expected to take time, and Stankey has emphasized that AT&T is midstream on a multi-year journey to build the company it wants. The company's focus on expanding wireless and fiber networks and reducing its workforce aligns with the goal of becoming more competitive and relevant in the market [1].

References:
[1] https://www.businessinsider.com/att-ceo-john-stankey-company-transition-wall-street-2025-8
[2] https://www.benzinga.com/insights/news/25/08/46861276/62k-reasons-to-be-bullish-on-at-t-stock