About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, with adjusted EBITDA increasing by 2.4% and adjusted EBITDA margins expanding by 30 basis points [11] - Adjusted EPS was $0.54, consistent with the prior year, while free cash flow was $4.9 billion compared to $4.6 billion a year ago [11] - Capital investment decreased by $200 million year over year to $5.3 billion, with a $400 million contribution to the employee pension plan impacting free cash flow [11][12] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to EBITDA growth of 2.2% [13] - Consumer wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue, with consumer wireline EBITDA growing over 15% [17] - Business wireline revenues declined by 7.8% year over year, while fiber and advanced connectivity service revenues grew by 6% [19][20] Market Data and Key Metrics Changes - Over 550,000 new subscribers were added to AT&T's advanced broadband services, marking the highest total broadband net adds in over eight years [4] - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from a year ago [18] - The company passed more than 31 million locations with fiber and expects to reach over 60 million by the end of 2030 [4][5] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America, focusing on convergence and expanding its advanced connectivity portfolio through acquisitions [7][10] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the company's connectivity capabilities [9][10] - The strategy includes transitioning away from legacy copper infrastructure and investing in AI-ready connectivity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial guidance, with expectations for service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better [21] - The competitive environment remains challenging, but the company believes its focus on converged customer relationships will drive profitability and reduce churn [56][59] - Management anticipates continued pressure on ARPU due to targeting underpenetrated segments, but expects overall service revenue growth [60][61] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases, and ended the quarter with over $20 billion in cash [20][21] - The company expects to achieve full-year free cash flow in the low to mid-$16 billion range, with capital investments projected at $22 to $22.5 billion [22] Q&A Session Summary Question: Concerns about broadband competition and DSL base decline - Management reassured that they have a strong product and scalable build engine, allowing them to effectively compete against new entrants [28][30][32] Question: Market segmentation between fiber and fixed wireless - The company is focused on ensuring that marketing efforts are targeted and that customers are directed to the appropriate service based on geography [42][44] Question: Positioning in a competitive wireless market - Management believes they are well-positioned to compete and will adjust strategies as necessary to maintain market share [54][56] Question: Long-term organic growth and M&A strategy - Management emphasized a focus on organic growth and internal efficiencies rather than pursuing additional acquisitions at this time [68][69] Question: Confidence in Lumen and EchoStar transactions - Management expressed confidence in the expected benefits from the Lumen and EchoStar transactions, with no unexpected issues arising during planning [78][80]

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, while adjusted EBITDA increased by 2.4%, leading to a 30 basis point expansion in adjusted EBITDA margins [11] - Adjusted EPS remained consistent at $0.54, and free cash flow for the quarter was $4.9 billion, up from $4.6 billion a year ago [11] - Capital investment decreased by $200 million year over year to $5.3 billion, with a $400 million contribution to the employee pension plan impacting free cash flow [11][12] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to a 2.2% increase in EBITDA [13] - Consumer wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue, with consumer wireline EBITDA growing over 15% [17] - Business wireline revenues declined by 7.8% year over year, while fiber and advanced connectivity service revenues grew by 6% [19][20] Market Data and Key Metrics Changes - The company passed over 31 million locations with fiber and aims to reach over 60 million by the end of 2030 [4] - AT&T Fiber subscribers exceeded 10 million, with a significant increase in broadband net adds, marking the highest total in eight years [5][18] - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from the previous year [18] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America, focusing on convergence and expanding its advanced connectivity portfolio through acquisitions [7][10] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the company's connectivity capabilities [9][10] - The strategy includes transitioning away from legacy copper infrastructure to invest in AI-ready connectivity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial guidance, with expectations for service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better [21][22] - The competitive environment remains challenging, but the company believes its focus on converged customer relationships will drive profitability and reduce churn [56][60] - Management anticipates continued pressure on ARPU due to targeting underpenetrated segments, but expects overall service revenue growth [54][61] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases, maintaining a target of $4 billion for the year [20] - The company ended the quarter with a net debt to adjusted EBITDA ratio of 2.59x, reflecting strong cash generation [20] - The company expects to provide an update on its long-term financial outlook early next year, following the completion of key acquisitions [23] Q&A Session Summary Question: Concerns about broadband competition and DSL base decline - Management reassured that they have a strong product and scalable build engine, allowing them to effectively compete against new entrants [28][30][32] Question: Market segmentation between fiber and fixed wireless - Management emphasized targeted marketing strategies to ensure efficient segmentation and avoid overlap between fiber and fixed wireless customers [42][44] Question: Positioning in a competitive wireless market - Management expressed confidence in their ability to navigate competitive pressures and focus on converged customer strategies to enhance profitability [55][59] Question: Long-term outlook on M&A and succession planning - Management indicated a focus on organic growth and internal operations, with no immediate plans for further acquisitions [68][70] Question: Confidence in Lumen and EchoStar acquisitions - Management confirmed confidence in the strategic value of the Lumen and EchoStar assets, expecting them to enhance organic growth and profitability [78][80]

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, while adjusted EBITDA increased by 2.4%, leading to a 30 basis point expansion in adjusted EBITDA margins [10] - Adjusted EPS remained consistent at $0.54, excluding certain gains and costs [10] - Free cash flow for the third quarter was $4.9 billion, up from $4.6 billion a year ago [10] - Capital investment decreased by $200 million year over year to $5.3 billion [10] - Net debt to adjusted EBITDA ratio improved slightly to 2.59 times from 2.64 times in the previous quarter [19] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to a 2.2% increase in EBITDA [11] - The company added 405,000 postpaid phone net adds, slightly up from the previous year [12] - Consumer wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue [16] - Consumer wireline EBITDA grew over 15%, with margins expanding by 350 basis points year over year [16] - AT&T Fiber customer base reached over 10 million, with 288,000 new Fiber customers added in the third quarter [17] Market Data and Key Metrics Changes - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from a year ago [17] - Business wireline revenues declined by 7.8% year over year, while EBITDA decreased by about 13% [18] - Fiber and advanced connectivity service revenues grew by 6% year over year, accelerating from 3.5% growth in the second quarter [18] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America and lead in retail connectivity service revenue by the end of the decade [6] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the connectivity portfolio [6][8] - The company is transitioning away from legacy copper infrastructure to invest in AI-ready connectivity [8] - The focus is on organic growth and improving operational efficiency without the need for further acquisitions [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with service revenue growth expected in the low single-digit range and adjusted EBITDA growth of 3% or better [20][21] - The competitive environment remains challenging, but the company is well-positioned to manage through it by focusing on converged customer relationships [56] - Management anticipates continued pressure on ARPU due to targeting underpenetrated segments, but overall service revenue growth is expected to remain strong [58] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases [19] - The company expects to achieve full-year free cash flow in the low to mid-$16 billion range, with capital investments projected at $22 to $22.5 billion [22] Q&A Session Summary Question: Concerns about fiber expansion and competition - Management reassured that they have a strong build strategy and are confident in their ability to penetrate markets effectively, despite competition [28][29][31] Question: Fixed Wireless Access (FWA) market segmentation - Management highlighted a targeted marketing approach to ensure efficient segmentation between fiber and fixed wireless offerings [42][44] Question: Future promotional activity and ARPU pressure - Management indicated that they are well-positioned for competitive markets and expect to manage ARPU pressure through a focus on converged services [56][58] Question: Confidence in Lumen and EchoStar acquisitions - Management expressed confidence in the accretion from these acquisitions, noting that they are on track with their conservative modeling [70][73]

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, adjusted EBITDA increased by 2.4%, and adjusted EBITDA margins expanded by 30 basis points [12] - Adjusted EPS was $0.54, consistent with the prior year, while free cash flow was $4.9 billion compared to $4.6 billion a year ago [12][26] - Capital investment decreased to $5.3 billion, down $200 million year over year [13] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to EBITDA growth of 2.2% [14] - Consumer Wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue, with Consumer Wireline EBITDA growing over 15% [19] - Business Wireline revenues declined by 7.8% year over year, while EBITDA decreased by about 13% [22] Market Data and Key Metrics Changes - Over 400,000 postpaid phone net adds were recorded, slightly ahead of the previous year's performance [3] - AT&T Fiber subscribers surpassed 10 million, with the company achieving its highest total broadband net adds in over eight years [5][21] - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from a year ago [21] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America and lead the industry in retail connectivity service revenue by the end of the decade [7] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the advanced connectivity portfolio [7][9] - The company is focused on transitioning away from legacy infrastructure and investing in AI-ready connectivity [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial guidance, with expectations for service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better [26] - The competitive environment remains challenging, but the company believes its focus on converged customer relationships will drive profitability and reduce churn [61][65] - Management is optimistic about the impact of upcoming acquisitions on organic growth and profitability [28][90] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases [23] - The company ended the quarter with over $20 billion in cash, positioning it well for capital returns and pending acquisitions [24] - The company expects to achieve full-year free cash flow in the low to mid-$16 billion range [26] Q&A Session Summary Question: Concerns about fiber expansion and competition - Management expressed confidence in their ability to build effectively and penetrate markets, stating that they have a scalable build engine and can manage capital allocation strategically [31][35] Question: Fixed Wireless Access (FWA) market segmentation - Management highlighted the importance of targeted marketing and operational support to ensure effective segmentation between fiber and fixed wireless offerings [43][46] Question: Impact of competitive activity on wireless margins - Management believes they are well-positioned for a competitive market and will continue to focus on converged customers to drive profitability [60][62] Question: Confidence in Lumen and EchoStar acquisitions - Management reiterated confidence in the strategic value of the Lumen and EchoStar assets, expecting them to enhance organic growth and profitability [81][84]

Key Points AT&T reported mixed results relative to expectations, but the news was generally positive. AT&T added subscribers across wireless, fiber, and Internet Air, and its converged strategy made progress. With the stock trading in bargain territory, it looks like a solid value. 10 stocks we like better than AT&T › Telecom giant AT&T (NYSE: T) has a simple growth strategy: Win high-value customers who use its wireless and fiber services together. The company picked up plenty of those so-called ...

Core Insights - AT&T reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.55 per share, and down from $0.60 per share a year ago, resulting in an earnings surprise of -1.82% [1] - The company posted revenues of $30.71 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.81%, but an increase from $30.21 billion year-over-year [2] - AT&T's stock has increased by approximately 14.4% since the beginning of the year, slightly underperforming the S&P 500's gain of 14.5% [3] Earnings Outlook - The future performance of AT&T's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.45, with expected revenues of $32.56 billion, and for the current fiscal year, the EPS estimate is $2.05 on revenues of $125 billion [7] Estimate Revisions - The trend of estimate revisions for AT&T was mixed prior to the earnings release, leading to a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Industry Context - The Wireless National industry, to which AT&T belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Spok Holdings, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year increase of 5.6% [9]

Financial Performance - AT&T reported $49 billion in free cash flow for 3Q25[19], excluding DIRECTV - The company's consolidated service revenue grew by 08% year-over-year (YoY)[16, 21] - Adjusted EBITDA increased by 24% YoY[18, 24] - Adjusted EPS remained at $054, excluding DIRECTV[26] Mobility Segment - AT&T gained 405K postpaid phone subscribers in net adds[11, 29] - Mobility service revenue experienced a growth of 23% YoY[12, 30] - Mobility EBITDA increased by 22% YoY[31, 36] Consumer Wireline (Fiber) - AT&T Fiber gained 288K net adds[14, 40] - AT&T Internet Air added 270K net adds[41] - AT&T Fiber revenue grew by 168% YoY[14, 42, 44] Business Wireline - FirstNet connections increased with 316K additions[53] - Business Wireline revenue decreased by 93% YoY[54] - Business Wireline EBITDA declined by 129% YoY[56, 59] Capital Allocation - AT&T repurchased $15 billion worth of shares in 3Q25[61] - Net debt saw a year-over-year reduction[62] - Capital investment totaled $53 billion[64] 2025 Financial Guidance - The company anticipates low-single-digit growth in consolidated service revenues[69] - Mobility service revenues are projected to grow by 3% or better[69] - Consumer Fiber broadband revenues are expected to increase in the mid-to-high teens[69]

Market Overview - US stock index futures are all down ahead of the market opening, with Dow futures down 0.00%, S&P 500 futures down 0.04%, and Nasdaq futures down 0.27% [1] - European indices show mixed results, with Germany's DAX down 0.21%, UK's FTSE 100 up 0.90%, France's CAC40 down 0.33%, and the Euro Stoxx 50 down 0.21% [2][3] - WTI crude oil increased by 1.96% to $58.36 per barrel, while Brent crude oil rose by 1.83% to $62.44 per barrel [3][4] Market Sentiment - Bank of America warns of five emerging risks that could impact the S&P 500 index, including high valuations, signals of an impending bear market, data gaps, speculative activities, and liquidity shocks [5] - The Federal Reserve is expected to cut rates by 25 basis points next week, but there is significant uncertainty regarding the interest rate path for next year, with predictions ranging from 2.25%-2.50% to 3.75%-4.00% [6] - Goldman Sachs cautions that market estimates for US GDP may be overly optimistic due to data voids during the government shutdown, with GDP estimates for Q2 and Q3 at 3.8% and 3.3% respectively [7] Company News - Netflix (NFLX.US) missed earnings expectations due to a tax dispute in Brazil, reporting Q3 revenue growth of 17% to $11.5 billion but earnings per share of $5.87, below the expected $6.94 [9][10] - Texas Instruments (TXN.US) reported Q3 revenue growth of 14% to $4.74 billion, slightly above market expectations, but provided a weaker outlook for Q4, leading to an 8% pre-market drop [10] - Alliance West Bank (WAL.US) reported a 15.2% increase in Q3 revenue to $938.2 million and a net profit surge of over 27% to $250.2 million, alleviating market concerns [11] - Intuitive Surgical (ISRG.US) saw a 23% increase in Q3 revenue to $2.51 billion, driven by a strong increase in surgical procedures [11] - Barclays (BCS.US) announced a £235 million provision for auto credit but raised its profit guidance for the year, leading to a 4% pre-market increase [12] - AT&T (T.US) reported mixed Q3 results, with revenue of $30.7 billion slightly below expectations, but exceeded new wireless subscriber growth forecasts [12] - Teck Resources (TECK.US) reported a nearly 20% increase in Q3 adjusted core earnings to CAD 1.17 billion, benefiting from rising metal prices [13] - Beyond Meat (BYND.US) experienced a significant stock price increase due to a short squeeze, despite concerns about its fundamental outlook [13]

U.S. telecom AT&T (NYSE:T) beat expectations for key subscriber metrics in the third quarter, which helped investors overlook the in-line profit and revenue miss. Shares of the company were up 1% in premarket NYSE trading on Wednesday. In Q3, the company ...