AT&T on Wednesday reported second-quarter earnings and revenue that beat Wall Street targets while wireless postpaid phone subscriber additions topped expectations. AT&T stock, which has advanced about 50% from a year ago, amid elevated expectations.
Further, AT&T earnings were 54 cents on an adjusted basis, excluding one-time items, up 3 cents from a year earlier. Revenue rose 3.5% to $30.8 billion.
Analysts had projected AT&T earnings of 53 cents a share on revenue of $30.46 billion, according to FactSet.
Also, the company said it added 401,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 302,000 gain. A year earlier, AT&T added 419,000 postpaid phone subscribers.
Meanwhile, AT&T reiterated 2025 guidance for adjusted earnings per share in a range of $1.97 to $2.07. Verizon Communications on Monday hiked its 2025 profit outlook.
Meanwhile, Verizon said it lost 9,000 wireless postpaid phone business and consumer subscribers. T-Mobile US reports earnings after the market close on Wednesday.
On the stock market today, AT&T stock fell nearly 4% to 26.36 in early trading. Heading into the AT&T earnings report, shares were up 20% in 2025. AT&T had been hitting resistance this week at the 50-day line.
AT&T Stock: Free Cash Flow Outlook
In addition, AT&T reported Q2 free cash flow of $4.4 billion. Free cash flow growth supports AT&T's dividend.
Also, AT&T said it expects $6.5 billion to $8.0 billion in cash tax savings between this year and 2027, due to new policies enacted by President Donald Trump's recent tax-and-spending bill.
In addition, AT&T raised its free-cash-flow guidance and now expects cash flow in the low-to-mid $16 billion range for 2025, compared with the prior forecast of $16 billion-plus.
Meanwhile, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and WarnerMedia. The company in early July closed a deal to sell its stake in DirecTV to private equity firm TPG. AT&T's June quarter free cash flow excluded DirecTV.
AT&T said it added 243,000 fiber internet customers in Q2, below FactSet's estimate of 252,000.
AT&T has refocused on "convergence"— selling landline broadband and wireless services in product bundles. Also, AT&T said it has reached a goal to expand its own fiber-optic network to 30 million-plus homes and businesses.
Heading into the AT&T earnings report, T stock had a Composite Rating of 67 out of a possible 99, according to IBD Stock Checkup.
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