Earnings Alerts

AT&T Inc (T) Earnings Surpass Expectations with Strong 2Q Wireless Postpaid Gains

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  • AT&T’s wireless postpaid phone net additions were 401,000 for the quarter, surpassing the estimate of 300,876.
  • Quarterly revenue reached $30.8 billion, beating the estimated $30.43 billion.
  • Adjusted Earnings Per Share (EPS) stood at 54 cents, slightly above the forecast of 52 cents.
  • Adjusted EBITDA was $11.7 billion, exceeding the expected $11.6 billion.
  • Wireless postpaid overall net adds were 479,000, outperforming the projection of 437,844.
  • AT&T Fiber net additions totaled 243,000, just under the anticipated 252,040.
  • Postpaid phone-only churn rate was 0.87%, higher than the expected 0.82%.
  • The company forecasts capital expenditure between $22 billion and $22.5 billion for the year, up from a previous estimate of about $22 billion.
  • AT&T anticipates $6.5 to $8.0 billion in cash tax savings between 2025 and 2027, leveraging tax provisions from the One Big Beautiful Bill Act.
  • In 2025, estimated savings range from $1.5 to $2.0 billion, increasing to $2.5 to $3.0 billion annually in 2026 and 2027.
  • Plans are in place to reinvest $3.5 billion of these savings into network upgrades, accelerating fiber internet expansion to 4 million locations per year by the end of 2026.
  • AT&T maintains long-term growth strategy targets, expecting consolidated service revenue growth in low-single digits and adjusted EBITDA growth of at least 3% annually from 2026-2027.
  • Projections for adjusted EPS show an acceleration to double-digit growth by 2027.
  • Capital investments are anticipated to be in the $23 to $24 billion range annually for 2026-2027.
  • Free cash flow is expected to exceed $18 billion in 2026 and surpass $19 billion in 2027.

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At&T Inc on Smartkarma

Analyst coverage of AT&T Inc on Smartkarma by Baptista Research provides bullish insights on the company’s recent strategic moves and financial performance. In the report titled “AT&T Just Snatched the Deal of the Decade—Here’s Why The $5.75B Lumen Acquisition Could Reshape U.S. Fiber Access!“, analysts highlight AT&T’s significant acquisition of Lumen Technologies’ Mass Markets fiber business, expected to expand its fiber footprint across key states and contribute to its growth strategy to double fiber coverage by 2030.

Furthermore, Baptista Research‘s report “AT&T: 5G Network Expansion & Modernization to Strengthen Its Footprint & Revenue Streams!” emphasizes AT&T’s positive momentum in the first quarter of 2025, with growth in consolidated service revenue and adjusted EBITDA. Despite market challenges, AT&T’s strategic adjustments in promotional strategies, particularly in the expanding fiber segment, position the company competitively in the telecommunications sector. These insights underscore AT&T’s efforts to enhance its infrastructure and revenue streams for sustained growth.


A look at At&T Inc Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience3
Momentum3
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

AT&T Inc. seems to be positioned well for the long term, based on an analysis utilizing Smartkarma Smart Scores. With a solid Dividend score of 4, investors can expect a reliable income stream from the company. In terms of Value, Growth, Resilience, and Momentum, At&T Inc. scores a respectable 3 across the board. This indicates that the company is stable, has potential for growth, and is able to adapt to changing market conditions. Overall, AT&T Inc. appears to be a strong contender in the communications industry.

AT&T Inc. is a communications holding company that offers a diverse range of services through its subsidiaries and affiliates. These services include local and long-distance phone service, wireless and data communications, Internet access and messaging, IP-based and satellite television, security services, telecommunications equipment, and directory advertising and publishing. With its balanced Smart Scores indicating strength in dividend payouts, stability, growth potential, and adaptability, AT&T Inc. seems to have a promising future ahead in the ever-evolving communications sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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