Wireless numbers underpin Q2 beat for AT&T
By Josh White
Date: Wednesday 23 Jul 2025
(Sharecast News) - AT&T reported better-than-expected second-quarter results on Wednesday, buoyed by strong wireless subscriber growth and rising service revenues, while outlining how it would channel billions in anticipated tax savings into fiber infrastructure and pension funding.
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.
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