At&t Stock Earnings Reports

AT&T reported a solid Q3 2025 marked by strong broadband momentum, stable mobility performance, reiterated full‑year guidance, and continued progress on strategic acquisitions. Key financials: consolidated revenue +1.6% YoY, adjusted EBITDA +2.4%, adjusted EPS $0.54, Q3 free cash flow $4.9B, capital expenditures $5.3B. Broadband strength: passed >31M locations with fiber, reached >10M AT&T Fiber subscribers, added ~288K Fiber and ~270K Internet Air customers in Q3 (highest total broadband net adds in 8 years), and plans to reach >60M customer locations with fiber by 2030. Convergence is rising (41.5% of Fiber households also take AT&T wireless; >50% of Internet Air subs take AT&T wireless), which management says drives lower churn and higher lifetime value. Mobility: 405K postpaid phone net adds, postpaid phone churn 0.92%, service revenue +2.3% YoY; ARPU pressure from targeted growth in underpenetrated, lower‑ARPUs segments but focus remains on maximizing service revenue and convergence. Strategic M&A: planned EchoStar spectrum and Lumen fiber asset purchases (expected to close in 2026) intended to accelerate fixed wireless scale, improve 5G performance and improve long‑term margin/capex efficiency; AT&T has already begun deploying EchoStar 3.45 GHz under lease and expects coverage of ~two‑thirds of U.S. population with that mid‑band deployment by mid‑November. Capital allocation & balance sheet: returned $3.5B to shareholders in Q3 (including ~$1.5B buybacks), net debt/adjusted EBITDA 2.59x, ended Q3 with >$20B cash, reiterated full‑year targets (service revenue low single‑digit growth, adjusted EBITDA ≥3% growth, adjusted EPS $1.97–$2.07 with expectation toward the high end, full‑year FCF low‑mid $16B). Other items: ~$500M of out‑of‑pattern legal settlements will impact Q4 cash flow (accrued in Q3 and excluded from adjusted EPS); pension contributions planned totaling $1.5B by 2026 (including $400M in Q4). Management emphasized continued focus on executing organic plans, improving efficiencies as legacy copper and wireless modernization proceed, and leveraging convergence and new spectrum/fiber to drive durable returns.