AT&T (T) Q3 2025 earnings summary

Executive summary

• Achieved strong third-quarter results with continued customer growth in wireless and fiber segments, supporting full-year financial outlook and a disciplined customer-first strategy.

• Executed on convergence strategy, with over 41% of fiber households also using mobility services.

• Closed sale of remaining DIRECTV stake, resulting in a $5.5B gain, and announced major spectrum and fiber asset acquisitions expected to close in 2026.

• Focused on cost savings, AI integration for efficiency, and network modernization with peak investment in 2025.

• Strategic investments in fiber and 5G, as well as planned acquisitions of spectrum and fiber assets, are expected to drive future growth and competitive advantage.

Financial highlights

• Revenues reached $30.7B, up 1.6% year-over-year, driven by Mobility, Consumer Wireline, and Mexico; adjusted EBITDA was $11.9B, up from $11.6B.

• Net income was $9.7B, including a $5.5B gain from the DIRECTV sale; adjusted EPS was $0.54, flat year-over-year.

• Free cash flow was $4.9B, up from $4.6B year-over-year; capital investment totaled $5.3B.

• Returned $3.5B to shareholders in Q3, including $1.5B in stock repurchases; $2.4B spent YTD under a $10B buyback program.

• Total debt at quarter-end was $139.5B; net debt was $118.8B; net debt-to-adjusted EBITDA improved to 2.59x.

Outlook and guidance

• Reiterated full-year 2025 guidance: low-single-digit consolidated service revenue growth, mobility service revenue growth of 3%+, and consumer fiber broadband revenue growth in the mid-to-high teens.

• Adjusted EBITDA growth of 3%+ and adjusted EPS at the higher end of $1.97–$2.07; free cash flow in the low-to-mid $16B range.

• Capital investment expected at $22–$22.5B; depreciation expense expected to decline in Q4 as legacy assets become fully depreciated.

• 2026–2027 outlook includes continued low-single-digit revenue growth, 3%+ adjusted EBITDA growth, and double-digit adjusted EPS growth in 2027.

• Updated long-term financial outlook to be provided after closing pending acquisitions.