AT&T Q2 2025 Earnings Preview: Analyst Estimates, Past Performance, and Market Sentiments

AT&T is set to release its quarterly earnings report on July 23, 2025, with analysts expecting an EPS of $0.52. The company has beaten EPS estimates in the past, leading to a positive price change. Shares are currently trading at $27.38 and have risen 44.12% over the last 52-week period. Analysts favor an Outperform rating for AT&T, with a consensus rating of 11.8% upside.

AT&T (NYSE:T) is set to release its quarterly earnings report on July 23, 2025, with analysts expecting an earnings per share (EPS) of $0.52. The company has a history of beating EPS estimates, which has led to positive price changes in the past. Currently, shares are trading at $27.38 and have risen by 44.12% over the last 52-week period. Analysts favor an Outperform rating for AT&T, with a consensus rating of 11.8% upside [1].

The focus of the earnings report will be on wireless service revenue and postpaid net adds. While these metrics are expected to remain positive, they are anticipated to be slower than the robust growth seen last year. In Q1 2025, AT&T added 324,000 postpaid phone customers and grew mobility service revenue by 4.1% year over year (YoY) [2].

Free cash flow will also be a critical metric. AT&T generated $3.1 billion in the previous quarter and reaffirmed full-year guidance of $16 billion. Any deviation from this target or signs of increased capital expenditure (CapEx) could challenge investor confidence in the dividend [2].

Investors will be watching for comments on fiber expansion, debt reduction, and whether the recent stabilization in churn reflects improving customer retention or just seasonality. Management's read on pricing, free cash flow trajectory, and wireless competition will shape how shares trade post-earnings [2].

AT&T's wireless business contributes nearly 70% of its revenue, making it a key driver of the company's performance. The firm is the third-largest US wireless carrier, connecting 73 million postpaid and 17 million prepaid phone customers [3].

Analysts predict AT&T to report Q2 2025 revenue of approximately $31.2 billion, with net income reaching around $4.85 billion and EPS projected at $0.63. Several major banks have upgraded AT&T's stock, citing strategic divestitures and increased 5G adoption as key growth drivers. Price targets have been adjusted upwards, with a consensus around $22 per share [4].

In summary, AT&T's earnings report will be closely watched for signs of continued growth and operational efficiency. The company's focus on strategic initiatives, such as 5G expansion and divestitures, positions it well for future success. However, competitive pressures in the telecommunications market could impact profitability margins. The outlook is cautiously bullish, given the company's robust financial health and strategic focus [4].

References:
[1] https://ca.finance.yahoo.com/news/t-q2-preview-wireless-growth-124320226.html
[2] https://sg.finance.yahoo.com/news/t-q2-preview-wireless-growth-124320226.html
[3] https://www.benzinga.com/insights/earnings/25/07/46545981/insights-into-at-ts-upcoming-earnings
[4] https://www.ainvest.com/news/att-q2-2025-earnings-preview-upside-potential-strategic-divestitures-5g-expansion-2507/