AT&T Inc (NYSE:T) Reports Q2 2025 Earnings: Mixed Results with Revenue Miss and EPS Beat Amid Strong Subscriber Growth

AT&T Inc (NYSE:T) reported its second-quarter earnings for 2025, posting revenue of $30.85 billion and earnings per share (EPS) of $0.54. While the company demonstrated strong subscriber growth and improved profitability, the market reaction in pre-market trading showed a decline of approximately 1.9%, suggesting mixed sentiment among investors.

Earnings vs. Estimates

• Revenue: AT&T’s Q2 revenue of $30.85 billion came in slightly below analyst expectations of $31.07 billion, a miss of about 0.7%.
• EPS: The company outperformed on profitability, with EPS of $0.54 beating the consensus estimate of $0.525 by 2.8%.

Despite the revenue shortfall, the higher-than-expected EPS suggests improved cost management or operational efficiencies. However, the pre-market dip indicates investor focus may be more attuned to the top-line performance, particularly in a competitive telecom landscape.

Key Highlights from the Earnings Report

• Strong Subscriber Growth: AT&T added 401,000 net monthly wireless phone subscribers, significantly surpassing FactSet estimates of 295,700. This contrasts with rival Verizon, which reported a loss of 9,000 customers in the same period.
• Fiber Expansion Plans: The company announced plans to invest $3.5 billion in fiber network expansion, leveraging tax savings from recent legislation. This aligns with its strategy to capitalize on growing broadband demand as wireless growth slows.
• Converged Services Driving Growth: The press release emphasized success in bundled 5G and fiber offerings, attracting high-value customers and improving service revenue.

Market Reaction & Outlook

The slight revenue miss appears to have outweighed the EPS beat in early trading, though the stock has remained relatively stable over the past month, with a marginal weekly gain of 0.01% and a modest monthly decline of 2.8%.

Looking ahead, analysts project Q3 2025 revenue at $31.20 billion and full-year sales at $126.69 billion. AT&T’s aggressive fiber investment and strong wireless performance could position it well for future quarters, but competition and macroeconomic factors remain key risks.

For a deeper dive into AT&T’s earnings estimates and historical performance, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.