AT&T CEO on economy: There's stress in some consumer segments

Core Insights - The US economy is experiencing uncertainty, particularly due to tariffs and rising costs, which may impact consumer spending and economic growth [2][4] - AT&T's second quarter performance was strong, with significant postpaid net additions and minimal signs of economic softness compared to competitors [3][4] - AT&T is expected to benefit from substantial tax savings and plans to invest heavily in its network, positioning itself favorably for future growth [5][6] Economic Context - AT&T CEO John Stankey noted that while customers are still purchasing products and services, there is stress in some consumer segments due to rising costs [1][2] - Goldman Sachs' chief economist described the US economy as being in "stall speed," while JPMorgan's CEO indicated a weakening economy [2] Company Performance - In the second quarter, AT&T gained 410,000 postpaid net additions, while T-Mobile gained 1.7 million, and Verizon experienced a loss of 51,000 [4] - AT&T's postpaid churn increased to 1.24% from 1.11% year-over-year, indicating some customer turnover [4] Future Outlook - The One Big Beautiful Bill Act is projected to provide AT&T with $6.5 billion to $8 billion in cash tax savings from 2025 to 2027 [5] - The company plans to invest $23 billion to $24 billion annually into its network, enhancing its fiber footprint and capacity to handle future network traffic growth [6] Stock Performance - AT&T shares have increased by 30% year-to-date, significantly outperforming the S&P 500's 10% gain [7]