AT&T (T) Q4 2025 earnings summary

Executive summary

• Met or exceeded all 2025 consolidated financial guidance, driven by strong 5G and fiber subscriber growth and best consumer broadband subscriber growth in a decade.

• Achieved over 1.5 million postpaid phone net adds and over 1 million fiber net adds, with fiber reach expanded by over 3 million locations, totaling 10.4 million fiber subscribers.

• Convergence rate increased by 200 basis points year-over-year to 42%, the fastest annual increase since tracking began.

• Returned over $12 billion to shareholders in 2025 via dividends and share repurchases, a 50%+ increase from 2024.

• Announced new segment reporting to separate Advanced Connectivity (5G and fiber), Legacy, and Latin America operations, enhancing transparency.

Financial highlights

• Fourth-quarter revenues of $33.5 billion, up 3.6% year-over-year; full-year revenues of $125.6 billion, up 2.7%.

• Adjusted EBITDA rose 4.1% year-over-year to $11.2 billion in Q4, with margin expansion to 38.6%.

• Adjusted EPS was $0.52 for Q4 and $2.12 for 2025, exceeding guidance.

• Free cash flow reached $16.6 billion for 2025, up over $1 billion year-over-year.

• Net debt at year-end 2025 was $117.4 billion; net debt-to-adjusted EBITDA ratio improved to 2.53x.

Outlook and guidance

• Expects to return $45 billion+ to shareholders from 2026–2028, nearly 30% of market cap and over 75% of expected free cash flow.

• Service revenue projected to grow in the low-single-digit range annually through 2028.

• Advanced home internet revenue growth in 2026 expected to exceed 30% with Lumen asset integration.

• Adjusted EBITDA growth forecasted at 3%-4% in 2026, improving to 5%+ in 2028.

• Adjusted EPS expected in the $2.25-$2.35 range for 2026, with double-digit CAGR through 2028.

• Free cash flow projected at $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028.

• Capital investment expected at $23–24 billion annually during 2026–2028.