AT&T Surpasses Q1 Revenue Estimates

Core Insights - AT&T's Q1 2025 financial results met earnings estimates and slightly exceeded revenue expectations, with revenue of $30.63 billion, a 2% year-over-year increase, and adjusted EPS of $0.51, aligning with market expectations [1][3] Financial Performance - Revenue for Q1 2025 was $30.63 billion, surpassing the forecast of $30.36 billion and increasing from $30 billion in Q1 2024 [3] - Adjusted EPS was $0.51, consistent with analysts' estimates, but down from $0.54 in Q1 2024, reflecting a 6.3% decrease [3] - Net income rose to $4.7 billion, a 23.7% increase from $3.8 billion in Q1 2024 [3] - Free cash flow increased by 10.7% to $3.1 billion compared to $2.8 billion in Q1 2024 [3] Strategic Focus - AT&T is concentrating on enhancing its 5G and fiber optic services, which contributed positively to its performance despite challenges in the Business Wireline segment [2][4] - The company aims to solidify its market position through technological advancements and operational efficiency improvements, with a focus on debt reduction [5] Operational Highlights - AT&T added 324,000 postpaid phone net additions, exceeding the expected 255,000 [6] - Mobility service revenue increased by 4.1% year over year [6] - Consumer broadband revenue grew by 19% to $2.1 billion, driven by fiber optic network expansion [7] - The Consumer Wireline segment reported a 5.1% revenue increase, primarily due to broadband and fiber growth [7] - The Business Wireline segment experienced a 9.1% revenue decline, indicating a shift from legacy services to modern alternatives [8] Future Outlook - Management targets low single-digit growth in consolidated service revenue for the remainder of 2025, with mobility service revenue expected to grow between 2% to 3% [10] - Adjusted EBITDA is projected to grow by 3% or more for the full year, reflecting AT&T's commitment to expanding fiber and 5G capabilities [10] - Anticipated share repurchases in Q2 2025 may indicate a strategic reallocation of resources to enhance shareholder value [11]