What factors drove the changes in AT&T's revenue and profit?

What does AT&T do and what are its main business segments?

What were the key takeaways from AT&T’s earnings call?

What were the key takeaways from AT&T's earnings call?

What is the revenue and EPS growth rate for AT&T year over year?

What is the market's earnings forecast for AT&T next quarter?

Did AT&T beat or miss consensus estimates last quarter?

What is AT&T's gross profit margin?

- **Broadband Growth**: 550,000 new broadband subscribers, highest in 8 years, with 10 million+ fiber subscribers.
- **Strategic Acquisitions**: EchoStar spectrum deployment and Lumen deal to boost connectivity and growth.
- **Financial Resilience**: Free cash flow $4.9B, on track for $16B annual target.
- **Convergence Success**: 41.5% of fiber households use AT&T wireless, driving lower churn.
- **Future Expansion**: 60 million fiber locations by 2030, enhancing connectivity leadership.

**【CEO Summary Section】**
- Delivered strong Q3 performance, with 405,000 postpaid phone net adds and 550,000 new broadband subscribers, the highest in 8 years.
- Consumer Wireline revenue grew 4.1%, driven by 16.8% fiber revenue growth, reaching over 10 million fiber subscribers.
- Convergence strategy success: 41.5% of fiber households use AT&T wireless, with lower churn and higher lifetime value.
- Strategic acquisitions: EchoStar spectrum deployment to expand Internet Air, and Lumen deal expected to close early 2026.
- Aiming to lead in advanced connectivity by 2030, with 60 million fiber locations by 2030.

**【CFO Financial Commentary】**
- Total revenue up 1.6% to $42.0 billion, adjusted EBITDA up 2.4%, and free cash flow of $4.9 billion.
- Consumer Wireline EBITDA grew 15%, driven by fiber and fixed wireless expansion.
- Full year guidance: service revenue growth in low single digits, adjusted EBITDA up 3%.
- Returned $3.5 billion to shareholders, with $4 billion buyback target.

**【Q&A Highlights】**
- Broadband expansion: 31 million fiber locations, targeting 60 million by 2030, with 2/3 U.S. population covered by EchoStar spectrum by mid-November.
- Managing competition through convergence, with ARPU pressure offset by long-term value from underpenetrated segments.
- LEO satellites seen as complementary, with plans for direct-to-device offering.
- Legal settlements impact Q4 free cash flow by $0.5 billion, but annual guidance remains intact.

AT&T Inc. (T) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 3.5% service revenue growth driven by 401K postpaid phone adds and 450K new broadband subscribers. 
- **Fiber Expansion**: Accelerating to 4M locations/year, targeting 60M passings by 2030. 
- **Tax Savings**: $6.5-$8B in cash tax savings to fund network build and $1.5B pension contribution. 
- **Churn Management**: 17bps YoY churn increase offset by 40.9% converged customer rate. 
- **Financial Strength**: $4.4B free cash flow, 3.5% EBITDA growth, and 2.64x net debt/EBITDA. 
- **Strategic Moves**: Retiring 10% of copper wire centers, improving cost efficiency through legacy network modernization. 
- **Customer Engagement**: AT&T Guarantee program boosts retention with 6%+ EPS growth and improved customer satisfaction metrics. 


**【CEO Summary Section】**
- AT&T achieved 3.5% year-over-year growth in service revenue, driven by 401,000 postpaid phone net adds and 450,000 new broadband subscribers. 
- The company is accelerating fiber deployment to 4 million locations annually by 2026, targeting 60 million fiber-passing locations by 2030. 
- Recent tax legislation will enable $6.5-$8 billion in cash tax savings, with $1.5 billion allocated to pension contributions and the rest reinvested in network expansion. 
- AT&T is discontinuing 10% of its copper wire centers, aiming to retire 90% of legacy copper by 2029. 
- The AT&T Guarantee program has improved customer retention and Net Promoter Scores during network events. 

**【CFO Financial Commentary】**
- Q2 2025 results: 
  - Total revenue and adjusted EBITDA each grew 3.5% YoY. 
  - Adjusted EPS was $0.54 (up 6% YoY). 
  - Free cash flow reached $4.4 billion (up 10% YoY). 
  - Capital investment was $5.1 billion (up modestly YoY). 
- Updated guidance: 
  - Full-year free cash flow expected in the low to mid-$16 billion range. 
  - Mobility service revenue growth raised to 3%+ (from 2-3%). 
  - Consumer Wireline EBITDA growth updated to low- to mid-teens (from high-single to low-double digits). 
- Cost initiatives reduced operating expenses by $275 million YoY in Business Wireline. 

**【Q&A Key Highlights】**
- **Churn Dynamics**: 
  - Postpaid phone churn increased 17bps YoY due to expiring device financing contracts and competitive activity. 
  - Management expects seasonal churn pressure to persist but sees long-term benefits from converged customer growth (40.9% of fiber customers now use 5G). 
- **Fiber Economics**: 
  - All fiber builds meet return thresholds, with 40%+ of new fiber customers adding 5G services. 
  - Open access partnerships and overbuilder opportunities could add 10-20 million locations beyond owned footprint. 
- **Spectrum Strategy**: 
  - FCC pipeline provides disciplined spectrum valuation; AT&T will balance organic builds with strategic spectrum purchases. 
  - Current capital allocation allows flexibility to invest in growth while maintaining 2.5x net debt/EBITDA target. 
- **Macroeconomic Risks**: 
  - Public sector spending cuts and immigration trends impacting prepaid market, but manageable within guidance. 
  - Tariff uncertainty could affect consumer spending but not yet materializing in results. 


AT&T Inc. (T) Q2 2025 Earnings Call Transcript

- **Fiber leadership**: 261K Q1 fiber net adds, 18.6% EBITDA growth; 30M locations by mid-2025 vs. 2025 target.
- **Converged growth**: 15%+ LTV uplift for fiber+wireless households, 324K postpaid phone net adds.
- **Financial resilience**: $3.1B free cash flow, 2025 buyback program starts Q2 with $3B+ by year-end.
- **Tariff mitigation**: Strong cost control, 2025 guidance achievable despite potential device cost increases.
- **Wireless strength**: 1.8% ARPU growth, 3.5% Mobility EBITDA expansion despite 13% gross adds increase.


**【CEO Opening Remarks】**
- Q1 2025: Consolidated service revenue up 1.2%, adjusted EBITDA up 4.4%, driven by postpaid phone and fiber net adds.
- Fiber expansion target: 30M locations by mid-2025 (originally 2025), 50M+ by 2029. Copper retirement accelerating with FCC support.
- AT&T Guarantee: First carrier to offer network performance guarantees for wireless and fiber, with 15%+ lifetime value uplift for converged customers.
- Tariff risks: Potential smartphone/device cost increases, but 2025 guidance remains achievable with cost control.

**【CFO Financial Details】**
- Q1 2025: Adjusted EPS $0.51 (ex-DIRECTV), +$0.03 YoY; Free cash flow $3.1B, +$350M YoY.
- Mobility: 324K postpaid phone net adds, ARPU +1.8%, EBITDA +3.5% despite 13% gross adds increase.
- Consumer Wireline: 261K fiber net adds (vs. 252K Q1 2024), ARPU +6.2%, EBITDA +18.6%.
- Business Wireline: EBITDA down <2% YoY, 4.5% growth in fiber/advanced services offset 17.4% legacy decline.
- 2025 capex: $22B target, $4.5B-$5B Q2 spend.
- Share buybacks: $3B+ by year-end, $10B program to begin Q2.

**【Q&A Highlights】**
- Tariff impact: Potential device cost pass-through, but AT&T has demonstrated ability to manage handset cost cycles.
- Upgrade acceleration: Q2 upgrades 20%+ higher than normal, may pull 2H demand forward.
- Fiber strategy: FCC wire center approvals allow 25% faster copper retirement, 2025 fiber passings on track.
- M&A: Open to inorganic opportunities that accelerate converged connectivity, but focused on organic growth.
- ARPU trends: Fiber ARPU growth to continue, wireless ARPU stable with converged customer focus.


AT&T (T)-23 Apr 25-2025 Q1 Earnings call transcript

- **Record Subscriber Growth**: 1.7M postpaid phone net adds and 7th straight year of >1M Fiber adds, with AT&T Fiber named fastest in US. 
- **Profitable Expansion**: 3.5% Mobility service revenue growth, 10% Consumer Wireline EBITDA growth, and $17.6B free cash flow. 
- **Cost Efficiency**: $3B+ annualized cost savings by 2027 through AI and legacy copper transition, 30% reduction in customer service calls via AI. 
- **Shareholder Returns**: $40B+ capital returns through 2027, including $10B+ buybacks starting H2 2025. 
- **Strategic Differentiation**: Industry-first AT&T Guarantee covering both wireless and fiber, with 40% of Fiber households now converged. 
- **Tax Reform Catalyst**: Potential $24B+ capital investment if tax incentives extended, accelerating fiber and 5G build. 


**【CEO Summary Section】**
- AT&T delivered full-year 2024 results in-line or better than all consolidated financial guidance, with strong 5G and fiber subscriber growth. 
- Mobility postpaid phone net adds of 1.7M and service revenue growth of 3.5%, leading industry churn for the 14th consecutive quarter. 
- 7th straight year of >1M AT&T Fiber net adds, with Ookla naming AT&T Fiber America's fastest Internet. 
- 2025 priorities include growing converged 5G and fiber subscribers, achieving $3B+ annualized cost savings by 2027, and accelerating legacy copper network transition. 
- Introduced AT&T Guarantee, the first converged wireless and fiber network guarantee in the industry, covering both consumers and small businesses. 

**【CFO Financial Commentary】**
- Q4 2024 revenue up 1% YoY, driven by wireless service and equipment, with adjusted EBITDA up 2.2%. 
- Full-year 2024 adjusted EPS of $2.26 (excluding DIRECTV, $1.95), exceeding high end of guidance range. 
- Free cash flow of $17.6B, with $22B capital investment in 2024, maintaining industry-leading network build. 
- 2025 guidance: adjusted EPS $1.97-$2.07 (excluding DIRECTV), free cash flow $16B+, net debt/adjusted EBITDA <2.5x by mid-2025. 
- Expect to commence $10B share buybacks in H2 2025, part of $40B+ shareholder return plan through 2027. 

**【Q&A Highlights】**
- **Regulatory & Cost Savings**: FCC approval to transition legacy voice services; 1,300 wire centers targeted for 2025 filings. $3B+ annualized cost savings by 2027 through AI integration and copper network exit. 
- **Tax Reform Impact**: Potential $24B+ capital investment if tax incentives extended; focus on accelerating fiber build and modernizing wireless network. 
- **Fiber Growth**: 307K Q4 Fiber net adds (highest ever), 17.8% fiber revenue growth. 40% of AT&T Fiber households now converged with wireless. 
- **Mobility Resale Growth**: 13.5% QoQ increase in resale subs driven by DISH migration and MVNO partnerships. 
- **AI & Cloud**: Using generative AI to reduce 30% call volume YoY, optimize RF network performance, and improve code development efficiency. 

**【Key Risks】**
- Business Wireline EBITDA decline of 18% YoY due to legacy service secular trends. 
- Regulatory uncertainty around legacy network transitions. 
- Economic headwinds impacting consumer spending on connectivity. 


T

T fundamentals

Earnings Call

You can ask Aime