AT&T(US:T) ZACKS·2026-01-28 16:15Core Insights - AT&T Inc. reported solid fourth-quarter 2025 results with strong mobility and broadband demand trends, surpassing both adjusted earnings and revenues estimates [1][3] Financial Performance - On a GAAP basis, AT&T's net income for Q4 2025 was $3.75 billion or 53 cents per share, down from $4.03 billion or 56 cents per share in Q4 2024, primarily due to higher operating expenses [3] - For the full year 2025, AT&T's net income was $21.89 billion or $3.04 per share, compared to $10.75 billion or $1.49 per share in 2024 [4] - Quarterly GAAP operating revenues increased by 3.6% year over year to $33.47 billion, driven by higher Mobility service and equipment sales, beating the consensus estimate of $32.73 billion [5] Subscriber Growth - AT&T experienced solid wireless traction with 641,000 post-paid net additions, including 421,000 postpaid wireless phone additions, while postpaid churn was 1.12% [6][9] - The company recorded net fiber additions of 283,000 and 221,000 subscribers for Internet Air during the quarter [8][9] Segment Performance - Total segment operating revenues for Communications were $32.12 billion, up from $31.14 billion, with Mobility revenues increasing by 5.3% to $24.35 billion [7] - Service revenues from the Mobility unit improved by 2.4% to $16.95 billion, while equipment revenues rose by 12.7% year over year to $7.4 billion [8] Cash Flow and Liquidity - For 2025, AT&T generated $40.3 billion in cash from operations, compared to $38.8 billion in the previous year, with free cash flow for Q4 at $4.18 billion [12] - As of December 31, 2025, AT&T had $18.23 billion in cash and cash equivalents, with long-term debt of $127.09 billion [12] Future Guidance - For 2026, AT&T expects wireless service revenues to improve in low single digits and broadband revenues to grow in the mid to high-teens [13] - Adjusted earnings are projected to be between $2.25 and $2.35 per share, with free cash flow expected to exceed $18 billion [14]