AT&T Reports Minor Q3 Miss, Keeps Full-Year Outlook

AT&T Inc. (NYSE: T) has released its financial results for the third quarter of 2025, showing steady performance despite slightly missing market expectations. The company reported continued growth in its wireless and fiber segments while reaffirming full-year guidance, underscoring confidence in its long-term strategy.

Strong Subscriber Gains Power Q3 Results Despite Modest Revenue Shortfall

AT&T Inc. reported revenues of $30.7 billion for the third quarter of 2025, just shy of the expected $30.95 billion. The diluted earnings per share (EPS) was $1.29, significantly influenced by a gain from the sale of the DIRECTV investment. However, when adjusted for this and other factors, the EPS was $0.54, slightly below the anticipated $0.55. Despite this, the company’s performance reflects strong customer demand for its leading wireless and fiber offerings.

Operating income for the quarter was $6.1 billion, with an adjusted operating income of $6.6 billion. Net income reached $9.7 billion, bolstered by a $5.5 billion gain from the DIRECTV sale. Free cash flow stood at $4.9 billion, an increase from $4.6 billion in the previous year. These figures indicate a stable financial position, driven by AT&T’s strategic focus on expanding its wireless and fiber networks.

In terms of customer growth, AT&T added 405,000 postpaid phone subscribers and 288,000 AT&T Fiber customers. The company’s mobility service revenues increased by 2.3% year-over-year to $16.9 billion. This growth was complemented by a 16.8% rise in consumer fiber broadband revenues. These metrics highlight AT&T’s successful execution of its convergence strategy, which aims to integrate its wireless and fiber services.

Join our Telegram group and never miss a breaking digital asset story.

AT&T Maintains Confident Outlook With Continued Network Investments

Looking ahead, AT&T has reiterated its full-year 2025 financial guidance. The company expects consolidated service revenue growth in the low-single-digit range, with mobility service revenue growth projected at 3% or better. Consumer fiber broadband revenue is anticipated to grow in the mid-to-high teens, reflecting continued demand for high-speed internet services.

AT&T’s capital investment for the year is projected to be between $22 billion and $22.5 billion, supporting its network expansion and strategic initiatives. The company also plans to repurchase $4 billion in common shares under the 2024 authorization, indicating a commitment to returning value to shareholders. The adjusted EPS is expected to be at the higher end of the $1.97 to $2.07 range, driven by operational efficiencies and strategic investments.

Beyond 2025, AT&T aims to maintain steady growth with consolidated service revenue growth in the low-single-digit range annually from 2026 to 2027. The company projects adjusted EBITDA growth of 3% or better annually during this period, with adjusted EPS accelerating to double-digit percentage growth by 2027. These projections underscore AT&T’s confidence in its strategic direction and its ability to adapt to changing market conditions while focusing on long-term value creation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.