AT&T Inc (NYSE:T) stock rose 0.56% (As on July 24, 11:30:48 AM UTC-4, Source: Google Finance) after the company surpassed Wall Street expectations in its second-quarter earnings report, delivering better-than-expected revenue and subscriber growth. The company added fewer fiber customers than expected in the second quarter, stoking concerns about intense competition and eclipsing a surge in wireless subscribers fueled by its discounted bundles. Texas-based AT&T added 243,000 fiber customers in the June quarter, as compared to 261,000 customers during the January-March period. Its bundled plans helped the company add 401,000 net monthly bill-paying wireless phone subscribers in the second quarter, while 302,000 net additions projected. The company said it is spending heavily to advance its fiber optic network across the United States and will use cash savings from President Donald Trump’s tax and spending bill to accelerate those plans. AT&T further said it expects to realize $6.5 billion to $8 billion of cash tax savings through 2027 as a result of the bill. It plans to invest $3.5 billion of these savings into building out its fiber internet network to a pace of 4 million locations per year by the end of 2026.
Moreover, to expand its wired footprint, the telco is in the process of acquiring Lumen Technologies Inc.’s consumer fiber unit. AT&T’s rival Verizon raised the lower end of its annual profit forecast, as strong demand for its higher-tier plans powered better-than-expected second quarter earnings. It posted a 2.2% rise in wireless service revenue as more users opted for its add-ons such as access to streaming service like Netflix. In addition, the company exited DirecTV and WarnerMedia, completing the sale of its DirecTV stake to TPG in early July. The company continued pushing its “convergence” strategy, bundling landline broadband and wireless services to improve customer retention.
T in the second quarter of FY25 has reported the adjusted earnings per share of 54 cents, beating the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported the adjusted revenue growth of 3.4 percent to $30.8 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $30.46 billion.
AT&T reaffirmed its full-year 2025 EPS guidance in the range of $1.97 to $2.07, lower from the Street’s forecast of $2.09 on average. The company also increased its free cash flow forecast, now expecting to generate $16–$16.5 billion in 2025, up from its previous “$16 billion-plus” outlook.