AT&T Inc (T  ) reported strong first-quarter results and announced a share buyback program.

Stock reaction remains subdued, as investors focus on competition in the wireless market and await projections of the impact of tariffs, according to Goldman Sachs.

The AT&T Analyst: Analyst James Schneider maintained a Buy rating and price target of $31.

The AT&T Thesis: The company reported revenues of $30.6 billion and adjusted EBITDA of $11.5 billion, beating consensus estimates of $30.3 billion and $11.32 billion, respectively, Schneider said in the note.

AT&T's postpaid phone net adds came in at 324,000, significantly above Street expectations of 253,000, the analyst stated. He added, however, that postpaid phone churn was elevated during the quarter.

Taking into consideration the postpaid phone net adds of AT&T and rival Verizon Communications Inc (VZ  ), the trend represents a significant slowdown in the overall wireless market, Schneider said.

Verizon had indicated that it expects the impact of tariffs on its business to be minimal and that it plans to transfer the cost to consumers, the analyst stated. "We also expect AT&T management to provide an update on the health of the consumer as well as enterprise spending," he further wrote.

T Price Action: Shares of AT&T had risen by 0.46% to $27.08 at the time of publication on Wednesday.