Verizon, AT&T to Report Q1 2025 Earnings, Focus on User Growth

Verizon and AT&T, two of the largest telecommunications companies in the United States, are on the verge of releasing their first-quarter earnings reports for 2025. The primary focus for investors will be on the user growth metrics of these companies, as these figures will offer critical insights into their market performance and competitive positioning.

Verizon's fourth-quarter 2024 results, released in January, revealed a net increase of 568,000 postpaid phone users, surpassing analysts' average expectations of 498,000. Additionally, the company added 408,000 net broadband users in the same period, nearly double the analyst consensus of 227,000. These figures underscore Verizon's robust performance in both mobile and broadband services, which are essential for sustaining revenue growth.

Similarly, AT&T's fourth-quarter 2024 earnings exceeded expectations, driven by seasonal promotions and bundled product discounts that boosted the number of mobile and fiber internet users. The company's strategic initiatives, particularly its focus on fiber optics and wireless services, have been pivotal in driving user growth and enhancing customer satisfaction.

Analysts hold a generally optimistic view of both companies' prospects. Evercore, for instance, is bullish on Verizon's broadband strategy in the fiber and fixed wireless sectors. The firm notes that Verizon's efforts in fiber optics are often underappreciated compared to its competitors, particularly AT&T. Despite fluctuations in net growth, Verizon's wireless service revenue is expected to remain resilient, while the overall industry's postpaid mobile user growth is anticipated to be cautious.

Michael Dion, an analyst, predicts that AT&T's first-quarter performance will be robust, citing the company's recent track record of reliable execution. In March, AT&T's Chief Financial Officer, Pascal Desroches, stated that the company expects to report strong free cash flow for the first quarter and remains on track to achieve its financial and operational goals for 2025 and beyond.

Investors will also closely monitor the capital expenditure plans of both companies. These expenditures are crucial for maintaining and expanding their network infrastructure, which is essential for supporting the growing demand for high-speed internet and mobile services.

In summary, the upcoming earnings reports from Verizon and AT&T will provide valuable insights into their user growth strategies and financial health. The focus on user growth metrics underscores the importance of these companies' ability to attract and retain customers in a competitive market. As both companies continue to invest in their networks and services, they are well-positioned to capitalize on the growing demand for advanced telecommunications solutions.