AT&T Bets on Fiber Growth While Verizon Cuts 15% of Workforce

Core Insights - AT&T and Verizon reported Q3 earnings, showcasing contrasting trajectories in the telecom sector, with AT&T focusing on fiber-wireless convergence and Verizon indicating a need for transformation [1] AT&T Performance - AT&T reported revenue of $30.70 billion, missing estimates by $190 million but achieving a year-over-year growth of 1.6% [2] - Consumer fiber broadband revenue surged by 16.8% to $2.2 billion, with 41% of AT&T Fiber households also subscribing to AT&T Mobility, supporting the convergence strategy [2][4] - Mobility service revenue increased by 2.3% to $16.9 billion [2] - The company invested $23 billion in acquiring low-band and mid-band spectrum from EchoStar, indicating a commitment to enhancing network capacity [5] - AT&T repurchased $1.5 billion in shares during Q3, totaling $2.4 billion in buybacks year-to-date, with free cash flow rising to $4.9 billion from $4.6 billion the previous year [5] Verizon Performance - Verizon reported revenue of $33.82 billion, falling short of the $35.31 billion consensus by $1.49 billion [3] - Wireless service revenue grew by only 2.1% to $21.0 billion, while equipment revenue increased by 5.2% to $5.6 billion [3][4] - Net income surged by 48% to $5.06 billion, attributed to margin expansion rather than revenue growth [3] - Verizon's CEO described the company as at a "critical inflection point," announcing plans to eliminate 15,000 jobs, which is 15% of its workforce, marking the largest layoffs in company history [6] - The company will also convert 200 stores to franchises as part of its restructuring efforts [6]