Key Points:

• AT&T Q2 revenue rose 3.5 % to $30.8 billion, with net income up to $4.9 billion from $3.9 billion last year, driven by wireless and fiber broadband growth.
• The company added 401,000 postpaid phone lines and 243,000 fiber subscribers, with fiber revenue up 18.9% year over year.
• Free cash flow reached $4.4 billion, capital spending increased to $4.9 billion and AT&T expects up to $8 billion in tax savings through 2027 under new legislation.

AT&T reported strong financial earnings for the company’s second quarter (Q2) of the year, fueled by lower churn in its wireless segment and higher revenue across its mobility and consumer wireline businesses.

The telecom saw consolidated revenues of $30.8 billion in the second quarter, up 3.5 percent from $29.8 billion in the same period a year ago. AT&T said the increase was the result of higher consumer wireless and broadband revenue, partially offset by lower revenue from its business in Latin America.

Net income rose to $4.9 billion, compared to $3.9 billion a year earlier. Diluted earnings per share increased to $0.62 from $0.49, while adjusted EPS was $0.54, up from $0.51 in Q2 2024. Adjusted EBITDA reached $11.7 billion, a 3.5 percent increase over last year’s $11.3 billion.

Operating income climbed to $6.5 billion from $5.8 billion, with free cash flow rising to $4.4 billion, compared to $4.0 billion in the prior-year quarter. AT&T also increased capital expenditures to $4.9 billion, up from $4.4 billion in Q2 2024.

“We are winning in a highly competitive marketplace, with the nation’s largest wireless and fiber networks,” said John Stankey, AT&T Chairman and CEO. “Customers are increasingly choosing AT&T because we have the best technology and options for wireless and broadband connectivity, backed by the AT&T Guarantee.”

AT&T added 401,000 postpaid phone subscribers in the quarter, down slightly from 419,000 a year ago, and reported postpaid phone churn of 0.9 percent, up from 0.7 percent in Q2 2024. Average revenue per postpaid phone user rose 1.1 percent year over year to $57.04.

Segment EBITDA grew to $9.5 billion, up 3.2 percent from $9.2 billion, despite a 110-basis-point decline in operating margin to 31.7 percent, largely due to increased network, equipment, and promotional costs.

AT&T’s land-based broadband business reported a 5.8 percent increase in revenue to $3.5 billion, driven by an 18.9 percent increase in fiber broadband revenues. The company added 243,000 AT&T Fiber subscribers, up slightly from 239,000 a year ago, and logged 203,000 AT&T Internet Air subscribers during Q2.

Broadband average revenue per user rose 7.5 percent to $71.16, while fiber ARPU increased 6.2 percent to $73.26. Segment EBITDA improved 17.8 percent to $1.3 billion.

Business Wireline revenue fell 9.3 percent to $4.3 billion due to continued declines in legacy services. The unit reported a loss of $201 million compared to income of $102 million a year ago, with EBITDA dropping 11.3 percent to $1.3 billion.

AT&T’s Latin America operations also saw a 4.4 percent revenue decline to $1.05 billion, impacted by unfavorable foreign exchange rates. However, EBITDA rose 12.9 percent to $201 million, and the region added 235,000 wireless net adds.

AT&T reaffirmed its full-year 2025 guidance, including mobility service revenue growth of three percent or better and consumer fiber broadband growth in the mid-to-high teens. Adjusted EBITDA is expected to grow at least three percent for the year, with capital investment between $22 billion and $22.5 billion.

The company also expects to realize between $6.5 billion and $8.0 billion in cash tax savings through 2027 under the recently-passed federal spending bill, with $3.5 billion earmarked for accelerating its fiber network build out.

“AT&T’s strategy remains focused on long-term value creation through targeted growth, operational discipline, and continued investment in best-in-class connectivity,” Stankey said.