PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) AT&T's unaudited consolidated financial statements for Q2 2025, including income, balance sheet, cash flows, and equity Key Financial Highlights (Q2 & H1 2025 vs 2024) | Financial Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $30,847 M | $29,797 M | $61,473 M | $59,825 M | | **Operating Income** | $6,501 M | $5,760 M | $12,255 M | $11,607 M | | **Net Income Attributable to AT&T** | $4,500 M | $3,597 M | $8,851 M | $7,042 M | | **Diluted EPS** | $0.62 | $0.49 | $1.22 | $0.96 | Key Balance Sheet Data (as of June 30, 2025) | Balance Sheet Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $405,491 M | $394,795 M | | **Total Liabilities** | $283,914 M | $276,550 M | | **Long-Term Debt** | $123,057 M | $118,443 M | | **Total Stockholders' Equity** | $121,394 M | $118,245 M | Cash Flow Summary (Six months ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $18,812 M | $16,640 M | | **Net Cash Used in Investing Activities** | $(11,044) M | $(6,977) M | | **Net Cash Used in Financing Activities** | $(598) M | $(13,293) M | - In December 2024, the Board authorized a **$10 billion** stock repurchase program. In the first six months of 2025, the company repurchased approximately **34 million shares** for **$958 million**[19](index=19&type=chunk) - On May 21, 2025, AT&T agreed to acquire substantially all of Lumen's mass markets fiber business for **$5.75 billion** in cash, a transaction expected to close in the first half of 2026[98](index=98&type=chunk) - The sale of AT&T's interest in DIRECTV to TPG Capital was completed on July 2, 2025. The company expects to record a significant gain on the sale in the third quarter of 2025[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q2 and H1 2025 financial results, segment performance, liquidity, and capital resources [Consolidated Results of Operations](index=29&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated revenues and income increased in Q2 and H1 2025, driven by Mobility and Consumer Wireline growth Consolidated Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $30,847 M | $29,797 M | 3.5% | | Service Revenues | $25,292 M | $25,006 M | 1.1% | | Equipment Revenues | $5,555 M | $4,791 M | 15.9% | | **Operating Income** | $6,501 M | $5,760 M | 12.9% | | **Net Income Attributable to AT&T** | $4,500 M | $3,597 M | 25.1% | - Revenue growth was driven by Mobility and Consumer Wireline, partially offset by declines in Business Wireline and unfavorable foreign exchange in Mexico[104](index=104&type=chunk) - Equity in net income of affiliates increased significantly, reflecting cash distributions from DIRECTV in excess of the investment's carrying amount. The interest in DIRECTV was sold on July 2, 2025[108](index=108&type=chunk) - A gain in the range of **$5.5 billion** is expected to be recognized in Q3 2025 from the sale of DIRECTV[110](index=110&type=chunk) [Communications Segment Results](index=30&type=section&id=Communications%20Segment%20Results) Communications segment revenue grew in Q2 2025, driven by Mobility and Consumer Wireline, despite Business Wireline decline Communications Segment Performance (Q2 2025 vs Q2 2024) | Business Unit | Revenue (Q2 2025) | % Change YoY | Operating Income (Q2 2025) | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | **Mobility** | $21,845 M | 6.7% | $6,931 M | 3.2% | | **Business Wireline** | $4,313 M | (9.3)% | $(201) M | - | | **Consumer Wireline** | $3,541 M | 5.8% | $335 M | 82.1% | | **Total Communications** | **$29,699 M** | **3.9%** | **$7,065 M** | **0.9%** | Mobility Key Metrics (Q2 2025) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Postpaid Phone Net Additions | 401,000 | (4.3)% | | Postpaid Phone-Only Churn | 0.87% | +17 BP | Consumer Wireline Key Metrics (Q2 2025) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Fiber Broadband Net Additions | 243,000 | 1.7% | | Fiber Broadband Connections | 9.8 million | 11.8% | - Business Wireline's revenue decline was driven by a **17.3%** drop in legacy and other transitional services, which was partially offset by **3.5%** growth in fiber and advanced connectivity services[125](index=125&type=chunk) [Latin America Segment Results](index=35&type=section&id=Latin%20America%20Segment%20Results) Latin America revenue decreased due to FX, but operating income and EBITDA margin improved with subscriber growth Latin America (Mexico) Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Segment Revenues** | $1,054 M | $1,103 M | (4.4)% | | Service Revenues | $662 M | $699 M | (5.3)% | | Equipment Revenues | $392 M | $404 M | (3.0)% | | **Operating Income** | $46 M | $6 M | — | | **EBITDA** | $201 M | $178 M | 12.9% | - Revenue decreases were primarily driven by unfavorable foreign exchange impacts, which were partially offset by subscriber growth[140](index=140&type=chunk) - Total Mexico wireless subscribers grew **5.3%** year-over-year to **23.8 million**, with postpaid net additions of **183,000** in the quarter[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) AT&T's liquidity improved in H1 2025, funding capital expenditures, dividends, and stock repurchases Capital Resources Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $10,499 M | $3,298 M | | **Total debt** | $132,311 M | $123,532 M | - Cash from operating activities for H1 2025 was **$18.8 billion**, an increase from **$16.6 billion** in H1 2024[147](index=147&type=chunk)[149](index=149&type=chunk) - Capital investment, including capital expenditures (**$9.2B**) and cash paid for vendor financing (**$0.4B**), totaled **$9.6 billion** in H1 2025[151](index=151&type=chunk)[152](index=152&type=chunk) - During H1 2025, the company repurchased **$958 million** of common stock and paid **$4.1 billion** in dividends[159](index=159&type=chunk)[160](index=160&type=chunk) - The company maintains a **$12 billion** revolving credit agreement, which was undrawn as of June 30, 2025[162](index=162&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) AT&T manages market risks using derivative instruments, primarily cross-currency swaps for foreign-denominated debt - The company uses cross-currency swaps to hedge exposure to foreign currency exchange rates and interest rates on its foreign-denominated debt[169](index=169&type=chunk) - As of June 30, 2025, the notional value of these cross-currency swaps was **$36,499 million**, with a net fair value of **$(890) million**[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[170](index=170&type=chunk) - No material changes to internal control over financial reporting were identified during the most recent fiscal quarter[171](index=171&type=chunk) PART II – OTHER INFORMATION [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors highlight challenges in business transformation and AI integration, including incorrect AI outputs and data breaches - The company may not realize the expected benefits from its business transformation initiatives, which are designed to reduce costs, streamline operations, and improve customer experience[177](index=177&type=chunk) - The use of artificial intelligence (AI) introduces risks, including the potential for incorrect or harmful outputs, the release of private information, and infringement of intellectual property, which could expose the company to liability and reputational damage[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q2 2025 common stock repurchases: **34.5 million shares** for **$960 million** under a **$10 billion** authorization Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | April 2025 | 16,756 | $28.44 | — | | May 2025 | 6,491,464 | $27.43 | 6,400,000 | | June 2025 | 27,977,713 | $27.96 | 27,974,887 | | **Total Q2** | **34,485,933** | **$27.86** | **34,374,887** | - The repurchases were made under a **$10 billion** authorization approved in December 2024, which has no expiration date. As of June 30, 2025, approximately **$9.04 billion** remained available under this program[178](index=178&type=chunk)[179](index=179&type=chunk)

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

Group 1 - AT&T Inc. reported better-than-expected earnings for the second fiscal quarter, surpassing both bottom and top line expectations [1] - The strong performance was driven by significant growth in the company's core broadband operations [1] - AT&T added 243 thousand new subscribers to its broadband service during the quarter [1]

Group 1 - AT&T has been the best-performing stock among the three major US telecommunications companies since the rollout of its 3-year plan in December 2024 [1] - The author has a long-term investment strategy focused on matching S&P 500 returns with lower volatility and higher income [1] - The investment approach emphasizes buying when prices are low relative to intrinsic value, regardless of asset class, market cap, sector, or yield [1] Group 2 - The article expresses the author's personal opinions and does not involve compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [3]

AT&T beat second-quarter financial estimates on Wednesday morning, as it added more phone but fewer internet subscribers than analysts had forecast. https://t.co/hDAalcgnv1 ...

Core Viewpoint - The communication services sector, including AT&T, is performing strongly in 2025, with AT&T's stock rising over 19% and the sector gaining 11.41% compared to the S&P 500's 7.28% gain [1][2]. Financial Performance - AT&T reported Q2 EPS of 54 cents, exceeding the consensus estimate of 51 cents, resulting in a trailing 12-month P/E ratio of 16.79 [2]. - The company expects earnings to grow by 6.07% next year, from an annualized $2.14 per share to $2.27 per share, with a forward P/E ratio of 13.30, indicating a 20.78% improvement [3]. - Q2 revenues were $30.8 billion, up from $29.8 billion in Q2 2024, with net income of $4.9 billion compared to $3.9 billion in the same period [4]. Business Segments - Mobility service revenues increased by 3.5% year-over-year to $16.9 billion, while consumer fiber broadband revenues rose by 18.9% year-over-year to $2.1 billion [4][5]. - The company added 401,000 postpaid phone subscribers, 243,000 AT&T Fiber subscribers, and 203,000 AT&T Internet Air subscribers in Q2 [5]. Shareholder Returns - AT&T repurchased approximately $1 billion of its common shares as part of a $10 billion share repurchase authorization [5]. - The company maintains a dividend yield of 4.06%, with an annual dividend of $1.11 per share and a payout ratio of 68.10% [7]. Market Position and Competition - AT&T is the third-largest wireless provider in the U.S., with a communications infrastructure reaching 290 million people across approximately 24,000 cities and towns [10]. - The company has invested over $145 billion in network buildout since 2019, enhancing its competitive position against rivals like T-Mobile and Verizon [10][9]. Analyst Ratings and Price Target - Analysts have a consensus Moderate Buy rating for AT&T, with 18 out of 25 analysts assigning a Buy rating and an average price target of $29.17, indicating a potential upside of 6.04% [11].

Core Insights - AT&T Inc. reported strong second-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1][8] Financial Performance - Net income on a GAAP basis was $4.46 billion or 62 cents per share, up from $3.55 billion or 49 cents per share in the same quarter last year, primarily due to higher contributions from DIRECTV investments [3] - Quarterly GAAP operating revenues increased by 3.5% year over year to $30.85 billion, driven by higher Mobility service and equipment sales, as well as Consumer Wireline revenues [4] - Adjusted operating income rose to $6.49 billion from $6.28 billion, with adjusted operating income margins at 21% [4] - Adjusted EBITDA improved to $11.73 billion from $11.34 billion [4] Subscriber Growth - AT&T added 479,000 post-paid subscribers, including 401,000 postpaid wireless phone additions, with a postpaid churn rate of 1.02% [5] - Postpaid phone-only average revenue per user (ARPU) increased by 1.1% year over year to $57.04 [5] Segment Performance - Communications segment operating revenues were $29.7 billion, up from $28.58 billion, with Mobility business revenues increasing by 6.7% to $21.84 billion [6] - Service revenues from the Mobility unit improved by 3.5% to $16.85 billion, while equipment revenues rose by 18.8% year over year to $4.99 billion [7] - Revenues from the Consumer Wireline business increased due to fiber broadband gains, with net fiber additions of 243,000 [7] Cash Flow and Liquidity - For the first six months of 2025, AT&T generated $18.81 billion in cash from operations, compared to $16.64 billion a year ago [10] - Free cash flow for the quarter was $4.39 billion, up from $3.95 billion in the previous year [10] - As of June 30, 2025, AT&T had $10.5 billion in cash and cash equivalents, with long-term debt of $123.06 billion [10] Future Guidance - AT&T expects wireless service revenues to improve by 3% or more in 2025, with broadband revenues anticipated to grow in the mid to high-teens [11] - Adjusted earnings are projected to be between $1.97 and $2.07 per share, with free cash flow expected to exceed $16 billion [12]

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades with a proven track record of success [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, allowing for comprehensive market analysis [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic investment approach [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides educational resources for learning basic options trading and extensive trading tools to enhance investor proficiency [2] - The goal of BAD BEAT Investing is to save time for investors by delivering high-quality research with clear entry and exit targets [1][2]

Core Insights - AT&T reported revenue of $30.85 billion for the quarter ended June 2025, reflecting a 3.5% increase year-over-year, and an EPS of $0.54, down from $0.57 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $30.53 billion by 1.02%, while the EPS surpassed the consensus estimate of $0.51 by 5.88% [1] Financial Performance Metrics - AT&T's shares have returned -3% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, indicating underperformance relative to the broader market [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Consumer Wireline Performance - Fiber Broadband Connections reached 9.84 million, slightly above the average estimate of 9.83 million [4] - Fiber Broadband Net Additions were 243 thousand, exceeding the average estimate of 239.75 thousand [4] - Non-Fiber Broadband Connections totaled 4.43 million, surpassing the average estimate of 4.36 million [4] - Non-Fiber Broadband Net Additions were -93 thousand, better than the estimated -157.3 thousand [4] Revenue Breakdown - Business Wireline revenues were $4.31 billion, slightly below the average estimate of $4.33 billion, representing a year-over-year decline of 9.3% [4] - Consumer Wireline revenues were $3.54 billion, slightly above the estimate of $3.53 billion, reflecting a 5.8% increase year-over-year [4] - Corporate and Other revenues were $94 million, significantly exceeding the average estimate of $20.56 million, but down 16.1% year-over-year [4] - Mobility revenues reached $21.85 billion, above the estimate of $21.54 billion, marking a 6.7% increase year-over-year [4] - Total Communications revenues were $29.7 billion, exceeding the estimate of $29.4 billion, with a year-over-year increase of 3.9% [4] - Latin America revenues were $1.05 billion, below the estimate of $1.09 billion, reflecting a 4.4% decline year-over-year [4] - Latin America Wireless equipment revenues were $392 million, slightly below the estimate of $396.12 million, down 3% year-over-year [4] - Latin America Wireless service revenues were $662 million, below the estimate of $685.89 million, representing a 5.3% year-over-year decline [4]

Subscriber Growth - AT&T gained wireless subscribers [1] - AT&T gained internet subscribers [1] Investment Plans - AT&T announced plans to further invest in fiber-cable build-out [1]