AT&T TodayTAT&T$27.40 -0.02 (-0.05%) 52-Week Range$18.14▼$29.19Dividend Yield4.05%P/E Ratio16.81Price Target$29.17Add to WatchlistThe communication services sector is having a strong year. Its 11.41% gain in 2025 makes it the third-best performer among the S&P 500’s 11 sectors, easily outpacing the index’s 7.28% gain. It’s been a similar story for legacy telecom company AT&T NYSE: T, which has seen its stock rise by more than 19%.   That strong performance was bolstered on Wednesday when the company report ...

Financial Data and Key Metrics Changes - Total revenues and adjusted EBITDA each grew by 3.5% year over year during the second quarter [16] - Adjusted EPS was $0.54, up approximately 6% from $0.51 the prior year [16] - Second quarter free cash flow was $4.4 billion, an increase from $4.0 billion the prior year [16] - Capital investment was $5.1 billion, showing modest year-over-year growth [16] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 3.5% with EBITDA growth of 3.2% year over year [18] - The company added 401,000 postpaid phone customers in the second quarter, exceeding expectations [18] - Consumer Wireline revenue grew by 5.8% year over year, driven by approximately 19% growth in fiber revenue [22] - Fiber customer additions were 243,000 in the second quarter, with a convergence rate of 40.9% for fiber and 5G services [23] Market Data and Key Metrics Changes - The company added 243,000 fiber subscribers and over 200,000 Internet Air subscribers, marking a significant increase in broadband service adoption [7][24] - The mobility subscriber growth is increasingly driven by customers taking both wireless and broadband services [19] - The company expects higher Internet Air net additions in the second half of the year compared to the first half [24] Company Strategy and Development Direction - The company aims to invest in next-generation networks, planning to accelerate fiber deployment to 4 million new locations per year by the end of 2026 [10] - The strategy focuses on becoming the best connectivity provider in America, emphasizing customer-first initiatives and advanced technology investments [4][5] - The company is transitioning away from legacy copper infrastructure, with plans to discontinue service across approximately 10% of wire centers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year consolidated financial guidance for 2025, citing steady growth in service revenues and free cash flow [5] - The operating environment is expected to remain competitive, with management planning for a more active second half of the year [40][72] - Management highlighted strong policy tailwinds for investment, noting unprecedented support for organic growth in the telecommunications sector [88] Other Important Information - The company plans to contribute $1.5 billion to its pension plan by the end of next year, enhancing the plan's funded status [12] - The company expects to realize between $6.5 billion and $8 billion in cash tax savings from 2025 through 2027 due to recent tax legislation [31] - The company is evaluating options for allocating capital, including strategic investments and share repurchases [34] Q&A Session Summary Question: Wireless churn and its impact - Management acknowledged the 17 basis point increase in phone churn and discussed expectations for a competitive environment in the second half of the year [38][40] Question: Pricing strategy and spectrum acquisitions - Management indicated that pricing is not the primary issue affecting churn and discussed the potential for spectrum acquisitions in the future [46][51] Question: Fiber build returns and mobility customer quality - Management expressed confidence in the profitability of new fiber builds and the quality of incremental mobility customers, emphasizing the importance of converged services [58][64] Question: EBITDA growth guidance and cost efficiencies - Management noted that while growth-related spending is expected to be lumpy, they anticipate continued operating leverage and margin performance in mobility [70][87] Question: Consumer wireline subscriber expectations - Management expects typical seasonality in fiber net additions and noted strong performance against cable competitors [78][80]

AT&T (T) Q2 2025 Earnings Call July 23, 2025 08:30 AM ET Speaker0Good morning, everyone, and welcome to AT and T's Second Quarter twenty twenty five Earnings Call. And as a reminder, this conference is being recorded. I would now like to turn the floor over to your host, Brett Senior Vice President, Finance and Investor Relations. Please go ahead.Speaker1Thank you, and good morning. Welcome to our second quarter call. I'm Brett Feldman, Head of Investor Relations for AT and T. Joining me on the call today a ...

Financial Performance - AT&T's Q2 revenue increased by 3.4% to $30.8 billion, exceeding market expectations of $30.4 billion [1] - Adjusted earnings per share were $0.54, better than the anticipated $0.52 [1] - Free cash flow for the quarter was reported at $4.4 billion [1] Customer Growth - The company added 401,000 mobile phone users, surpassing the market expectation of 301,000 [1] - AT&T's "Internet Air" fixed wireless service gained 203,000 new customers, exceeding the forecast of 169,000 [1] - The company also added 243,000 fiber users [1] Strategic Initiatives - AT&T launched a new "customer assurance" policy aimed at expanding market share by providing stable network services and quality customer service [1] - The company plans to invest $3.5 billion of the expected tax savings from the tax and spending bill into fiber network construction, targeting 4 million new access points annually by the end of 2026 [2] - AT&T is acquiring Lumen Technologies' consumer fiber division to enhance its wired network coverage [2] Updated Guidance - The company raised its full-year guidance for mobile service revenue and profit, as well as capital expenditure expectations, while lowering the growth forecast for fiber business revenue [2] - AT&T maintains its adjusted earnings per share forecast of $1.97 to $2.07 [2] - The company plans to repurchase $4 billion in stock, having already repurchased $1.3 billion [2] Market Position - AT&T is the second of the three major U.S. telecom companies to report Q2 results, with T-Mobile US set to report later [2] - Despite a 3.8% pre-market drop, AT&T's stock has risen over 20% year-to-date, outperforming the S&P 500 and its telecom competitors [2]

Company delivers robust, high-quality 5G and fiber subscriber growth as more customers choose converged connectivity servicesDALLAS, July 23, 2025 /PRNewswire/ -- AT&T Inc. (NYSE: T) reported strong second-quarter results that demonstrate its ability to grow the right way by attracting high-quality 5G and fiber subscribers, while growing service revenues, resulting in improved consolidated revenues and earnings growth."We are winning in a highly competitive marketplace, with the nation's largest wireless an ...

Key Takeaways T debuts 55+ plans at $40 for one line or $35 each for two, with broadband bundles at $99/month. New plans feature 10 GB hotspot data, ActiveArmor security and the AT&T Guarantee for reliability. T's pricing undercuts T-Mobile and Verizon, targeting simplicity and better value for senior customers.AT&T, Inc. (T) recently announced the launch of new wireless plans with enticing features tailored for people aged 55 and above. By opting for the plan, customers can get one line for $40/month or ...

Financial Data and Key Metrics Changes - In Q1 2025, total revenues increased by 2%, service revenues rose by 1.2%, and adjusted EBITDA grew by 4.4% [23] - Adjusted EPS was $0.51, up $0.03 from the previous year, excluding DIRECTV [24] - Free cash flow for Q1 was $3.1 billion, an increase of over $350 million year-over-year [25] Business Line Data and Key Metrics Changes - Mobility revenues increased by 4.7% year-over-year, with service revenues up by 4.1% [26] - The mobility segment saw 324,000 postpaid phone net adds, with postpaid phone ARPU growing by 1.8% year-over-year [27][30] - Consumer wireline revenue grew by 5.1%, driven by a 19% increase in fiber revenue [35] Market Data and Key Metrics Changes - The fiber network is expected to reach over 30 million locations by mid-2025, with a long-term goal of over 50 million by 2029 [10] - The company reported 261,000 fiber net adds, up from 252,000 in the same quarter last year [32] - Business wireline revenues declined by approximately 9% year-over-year, primarily due to pressures on legacy services [37] Company Strategy and Development Direction - The company focuses on being the largest converged provider of 5G and fiber, enhancing customer relationships [7] - Plans to commence share repurchases in Q2 2025, with a total authorization of $10 billion [46] - The company aims to maintain a net debt to adjusted EBITDA ratio in the range of 2.5 times [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 financial guidance despite a macro environment with diminished visibility [17] - The company is closely monitoring the impact of potential tariffs on costs and consumer demand [18] - Management highlighted the importance of maintaining flexibility in operations to adapt to changing economic conditions [129] Other Important Information - The company is making significant investments in fiber expansion and network modernization [10] - The first quarter results benefited from vendor settlements that positively impacted operating expenses by approximately $100 million [36] - The company has reduced net debt by about $1 billion, driven by strong free cash flow and asset sales [44] Q&A Session Summary Question: Impact of tariffs and growth environment - Management indicated that if tariffs increase handset costs, they would need to adjust their business model to support customers while maintaining profitability [52][54] - They are actively managing costs across the business, not just in consumer wireline, to adapt to a slower growth environment [58][60] Question: Acquisition talks and inorganic investments - Management refrained from commenting on specific acquisition rumors but remains open to opportunities that enhance shareholder value [67][70] Question: Higher upgrade rates and wireless margins - Management expects elevated upgrade levels in Q2, potentially impacting wireless margins positively [81] - They noted that price increases on legacy plans could lead to higher churn in subsequent quarters [84] Question: Fixed wireless access and broadband share - Management confirmed that network enhancements are expanding opportunities for fixed wireless access, which is expected to drive growth in broadband [90][96] Question: ARPU improvement opportunities - Management plans to continue finding opportunities to improve ARPU through enhanced product offerings and customer value [101][104]