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AT&T (NYSE:T) has reported impressive financial results for the second quarter, showcasing significant growth in subscriber numbers and service revenues. This article delves into the company’s current quarter performance, comparing it against market expectations, and provides insights into its future guidance.
AT&T Reports Better-than-Expected Results for Second Quarter of 2025
AT&T’s performance in the second quarter of 2025 has been noteworthy, with the company reporting revenues of $30.8 billion, surpassing the market expectation of $30.53 billion. The company’s diluted earnings per share (EPS) stood at $0.62, exceeding the anticipated $0.51. This strong financial showing is attributed to the substantial growth in high-quality 5G and fiber subscribers, as well as an increase in service revenues. The company’s operating income reached $6.5 billion, with an adjusted operating income of the same amount, indicating a stable operational performance.
Compared to the previous year, AT&T’s adjusted EPS rose from $0.51 to $0.54, highlighting the company’s consistent growth trajectory. The net income for the quarter was $4.9 billion, up from $3.9 billion in the same quarter last year. This increase in profitability is further supported by a rise in cash from operating activities, which amounted to $9.8 billion, compared to $9.1 billion a year ago. The company’s capital expenditures were reported at $4.9 billion, with a capital investment of $5.1 billion, reflecting its continued investment in network expansion and upgrades.
AT&T’s mobility service revenues grew by 3.5% year over year, driven by a 401,000 increase in postpaid phone net additions and a postpaid phone churn rate of 0.87%. The consumer fiber broadband segment also experienced significant growth, with revenues increasing by 18.9% year over year. These results underscore AT&T’s ability to attract and retain customers in a competitive market, reinforcing its position as a leader in wireless and broadband connectivity.
AT&T Updates Financial Guidance for 2025-27
Looking ahead, AT&T has updated its financial guidance for 2025-2027, reflecting the impact of expected cash tax savings from the One Big Beautiful Bill Act, along with its year-to-date performance. For the full year 2025, the company anticipates consolidated service revenue growth in the low-single-digit range, with mobility service revenue growth of 3% or better.
Consumer fiber broadband revenue is expected to grow in the mid-to-high teens, indicating continued demand for high-speed internet services.
AT&T projects adjusted EBITDA growth of 3% or better for 2025, with mobility EBITDA growth of approximately 3%. However, the company expects a decline in Business Wireline EBITDA in the low-double-digit range, reflecting ongoing challenges in this segment. On the other hand, Consumer Wireline EBITDA is anticipated to grow in the low-to-mid-teens range, driven by the strong performance of the fiber segment.
The company has outlined a capital investment plan in the range of $22 to $22.5 billion for 2025, with free cash flow expected to be in the low-to-mid $16 billion range. This includes over half of the planned pension funding through 2026. AT&T aims to achieve adjusted EPS of $1.97 to $2.07 for the year, with share repurchases totaling $4 billion, including approximately $1.3 billion completed year to date.
These strategic investments and financial targets demonstrate AT&T’s commitment to sustaining growth and delivering value to shareholders.
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