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AT&T Q2 2025 · Earnings

AT&T (T) delivered a strong second quarter of 2025, showcasing solid execution across its core businesses and continued strategic transformation. Consolidated revenues reached $30.8 billion, a 3.5% increase year-over-year, driven by gains in Mobility and Consumer Wireline, partially offset by weakness in Business Wireline and FX headwinds in Mexico. Operating income grew 12.9% to $6.5 billion, while net income rose to $4.9 billion, up from $3.9 billion a year ago. Adjusted EPS came in at $0.54, up from $0.51, and free cash flow improved to $4.4 billion.

The Communications segment—AT&T’s core business—posted $29.7 billion in revenue, a 3.9% increase, with Mobility remaining the standout performer. Mobility revenues climbed 6.7% to $21.8 billion, driven by an 18.8% increase in equipment revenue and 3.5% growth in service revenue. While postpaid phone net adds came in at 401,000, slightly below the prior year, ARPU rose 1.1% to $57.04. EBITDA for the segment was $9.5 billion, also up 3.2%, though margins compressed slightly due to growth-related investments.

In Consumer Wireline, revenues advanced 5.8% to $3.54 billion, supported by strong broadband growth. Notably, fiber revenues jumped 18.9%, driving a sharp 82.1% increase in operating income to $335 million. The unit added 243,000 fiber subscribers, up modestly YoY, and broadband ARPU rose 7.5% to $71.16, reflecting the company’s pricing power and mix shift toward higher-value services.

Meanwhile, Business Wireline continued to contract, with revenues down 9.3% due to ongoing declines in legacy services. The segment posted an operating loss of $201 million, a reversal from a profit last year, though cost initiatives helped offset some pressure. In Mexico, revenues fell 4.4% due to FX impacts, but operating income improved to $46 million, reflecting better execution and cost control.

Strategically, AT&T accelerated its fiber expansion, passing 30 million customer locations ahead of schedule and announcing a $5.75 billion acquisition of Lumen’s Mass Markets fiber assets, which is expected to close in the first half of 2026. The company also crossed the 1 million subscriber mark for AT&T Internet Air, with 203,000 net adds in Q2 alone. Importantly, converged customers—those using both fiber and wireless—now make up 40.9% of the fiber base, a 140 bps increase YoY, underscoring AT&T’s cross-selling success and improved retention.

The quarter also marked continued progress on capital allocation, with $1 billion in share repurchases and updated full-year guidance reflecting operational momentum. AT&T now expects Mobility service revenue growth of 3%+, mid-to-high teens growth in fiber broadband, and adjusted EBITDA growth of at least 3%. Full-year free cash flow is projected in the low-to-mid $16 billion range, slightly ahead of previous expectations.

The recently enacted One Big Beautiful Bill Act is set to provide $6.5–$8.0 billion in cash tax savings over three years, enabling faster fiber deployment, increased pension funding, and more room for capital returns. CEO John Stankey reiterated the company’s focus on becoming the top connectivity provider in America, emphasizing investment in 5G, fiber, and customer-first strategies as key to sustainable growth.

Overall, AT&T’s Q2 2025 results demonstrate clear progress on strategic initiatives, margin discipline amid growth investments, and a sharpened focus on long-term value creation through convergence, network expansion, and balanced capital allocation.

July 25, 2025
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