- AT&T Inc.
- 23 July 2025 14:00:58
Source: Sharecast
The Dallas-based telecom giant added 401,000 postpaid phone subscribers in the quarter, exceeding analyst forecasts of just over 300,000.
“We are winning in a highly competitive marketplace,” said CEO John Stankey, highlighting the company’s leading wireless and fiber networks and the success of its ‘AT&T Guarantee’ initiative, which promises customers reliable service and competitive deals.
Revenue rose 3.4% to $30.8bn, driven by a 3.5% increase in mobility service revenue to $16.9bn.
Adjusted earnings per share climbed to 54 cents from 51 cents a year ago, beating estimates.
Free cash flow reached $4.4bn, also ahead of projections.
The company credited its promotions and bundled offerings for the robust mobile performance, which came as rival Verizon posted a decline in subscribers earlier in the week.
AT&T’s fixed wireless service, Internet Air, added 203,000 customers, surpassing expectations, while fibre broadband net adds totalled 243,000.
Consumer fibre revenue jumped 18.9% to $2.1bn.
AT&T also confirmed plans to ramp up its fibre buildout following the passage of president Donald Trump’s controversial once-named ‘One Big Beautiful Bill Act’, which it expected would yield $6.5bn to $8bn in tax savings between 2025 and 2027.
Of that, $3.5bn would be reinvested to accelerate its fibre rollout to four million locations annually by 2026.
It also planned to contribute $1.5bn to its employee pension fund and allocate the remainder to strategic investments, share repurchases, and debt reduction.
On 2 July, AT&T completed the sale of its remaining 70% stake in DirecTV to TPG, generating a gain that would be reflected in third-quarter results.
The company repurchased $1bn in stock during the second quarter, and said it planned to buy back $4bn in total this year.
AT&T reiterated its full-year guidance, including adjusted earnings of $1.97 to $2.07 per share, mobility revenue growth of at least 3%, and free cash flow in the low-to-mid $16bn range.
Long-term forecasts were also lifted, with projected free cash flow of more than $18bn in 2026 and $19bn in 2027, up from earlier estimates.
Despite the beat, AT&T shares dipped slightly in premarket trading.
The stock had gained 20% year-to-date, outpacing the S&P 500 and its telecom peers.
Competitor T-Mobile is set to report later on Wednesday.
At 0848 EDT (1348 BST), shares in AT&T were down 3.23% in premarket trading in New York, at $26.52.
Reporting by Josh White for Sharecast.com.