Key Highlights

  • AT&T reported Q2 2025 adjusted EPS of $0.65, topping the $0.59 consensus.
  • Revenue of $31.56 billion rose 2.3% year-over-year but slightly missed estimates of roughly $31.8 billion.
  • The company added over 1 million fiber locations in Q2 and posted its strongest postpaid wireless subscriber growth in over three years.
  • AT&T raised its share repurchase target by up to 25% to approximately $10 billion for 2025.

AT&T (NYSE: T) shares are trading higher after the company reported second-quarter results that topped Wall Street's profit expectations, with adjusted EPS of $0.65 versus the $0.59 consensus, driven by record combined fiber and fixed wireless net additions and its strongest postpaid wireless subscriber growth in over three years.

What Happened

AT&T reported Q2 2025 consolidated revenue growth of 2.3% year-over-year, service revenue growth of 2.7%, adjusted EBITDA up 5.2% with margin expansion to 39.1%, and adjusted EPS of $0.65, up from $0.54 a year earlier. Revenue of $31.56 billion rose 2.3% year-over-year but slightly missed analyst estimates of roughly $31.8 billion.

The Advanced Connectivity segment, over 90% of service revenue, grew 5.1% year-over-year with EBITDA up 8%; wireless service revenue grew 3.3% and advanced home internet revenue grew over 27% year-over-year, driven by fiber and Lumen acquisition contributions.

The company added over 1 million fiber locations in Q2, targeting 8 million new fiber locations for the year, including 4 million from the Lumen acquisition; the convergence rate of home internet customers with postpaid wireless reached 42.5% overall, or 45% excluding the Lumen footprint, with June converged gross adds in Lumen territories up 45% versus February.

Market Reaction

Capital returns increased, with the share repurchase target raised by up to 25% to approximately $10 billion for 2025, up from a prior $8 billion target, with dividends and buybacks together totaling approximately $18 billion for the year.

Net debt to adjusted EBITDA was 2.68x, expected to rise to approximately 3.2x after the EchoStar spectrum transaction closes by the end of July, then return to a roughly 2.5x target within about three years.

Outlook

Management reiterated full-year guidance at low single-digit service revenue growth, 3-4% EBITDA growth, and adjusted EPS of $2.25-$2.35, with $18 billion free cash flow and $23-24 billion capital investment expected for the year.

Management highlighted progress on legacy copper network retirement, with more than 30% of wire centers approved for discontinuation effective by late 2026, and emphasized AI-driven network demand, up to 450% more traffic per AI task and roughly 9x enterprise and 7x consumer traffic growth by 2035, as a strategic driver for continued fiber and 5G investment. CFO Pascal Desroches announced his retirement at year-end, with Jennifer Berry set to succeed him.

Why did AT&T shares rise despite a revenue miss?

Shares rose on an adjusted EPS beat driven by record fiber and fixed wireless net additions and the strongest postpaid wireless subscriber growth in over three years.

How much did AT&T raise its buyback target?

The company raised its share repurchase target by up to 25% to approximately $10 billion for 2025.

Who is succeeding CFO Pascal Desroches?

Jennifer Berry is set to succeed Desroches, who announced his retirement at year-end.