AT&T Reports Q2 Profit Increase, Revenue Rises 3.5%

AT&T reported a Q2 profit of $4.464 billion, up from $3.546 billion last year, with earnings per share of $0.62, up from $0.49. Revenue increased 3.5% to $30.847 billion. The company also raised its full-year EPS guidance to $1.97 to $2.07.

AT&T Inc. (NYSE: T) reported robust second-quarter earnings, exceeding Wall Street expectations and signaling a strong recovery in its wireless business. The Dallas-based company announced a 401,000 increase in mobile-phone customers, surpassing analysts' estimates by 100,000. This growth was driven by the company's "customer guarantee" initiative, which promises better network reliability and customer service, along with competitive smartphone deals [1].

The company's wireless revenue grew by 3.5% to $16.9 billion, with mobility service revenues up 3.5% year-over-year. AT&T also added 243,000 fiber-optic subscribers and 203,000 Internet Air customers, demonstrating strong performance in its home internet service segment [1].

AT&T's earnings per share (EPS) for the quarter rose to $0.54, beating estimates of $0.52. The company reported revenue of $30.85 billion, up 3.6% year-over-year, and free cash flow of $4.4 billion. The shares were down less than 1% in premarket trading after closing at $27.42 on Tuesday [1].

The company has benefited from recent tax and spending legislation, which is expected to provide $6.5 billion to $8 billion in cash tax savings through 2027. AT&T 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 [1].

AT&T's full-year EPS guidance was raised to $1.97 to $2.07, reflecting its strong performance and the expected benefits from tax savings. The company also plans to repurchase $4 billion worth of shares this year, with $1.3 billion already completed [1].

AT&T's results come on the heels of Verizon Communications Inc. reporting a loss of subscribers in the same period. The company is the second of the three major US telecom companies to report second-quarter results, with T-Mobile US Inc. expected to follow later in the week [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-23/at-t-promotions-deliver-surge-in-second-quarter-phone-customers
[2] https://finance.yahoo.com/news/earn-500-month-t-stock-121313916.html