Key Financial Indicators
- Revenue: $30.7 billion (+1.6% year-over-year)
- Operating income: $6.1 billion
- Net income: $9.7 billion
- Diluted EPS: $1.29
- Adjusted EPS: $0.54
- Adjusted EBITDA: $11.9 billion (+2.6%)
- Cash from operations: $10.2 billion
AT&T posted strong financial results for its third quarter (Q3) of the year as new and existing customers flocked to AT&T’s stores and websites to take advantage of upgrade offers for the latest Apple iPhone and other devices.
Total revenue during Q3 clocked in at $30.7 billion, up 1.6 percent from $30.2 billion a year earlier. AT&T said the increase was primarily driven by higher wireless and broadband Internet sales, which offset higher churn in its business landline and broadband services.
Operating income rose to $6.1 billion from $2.1 billion a year ago, aided by lower costs and the absence of a large goodwill impairment that weighed on the 2024 period. Adjusted operating income came in at $6.6 billion, compared to $6.5 billion last year. Net income jumped to $9.7 billion, including a $5.5 billion gain from the sale of AT&T’s remaining 70 percent stake in DIRECTV. Excluding that one-time item and other adjustments. Adjusted earnings per share (EPS) were $0.54 flat from the same quarter last year.
Cash flow from operations was steady at $10.2 billion. Free cash flow rose to $4.9 billion from $4.6 billion in the prior-year quarter. Capital expenditures were $4.9 billion, while total capital investment reached $5.3 billion, including vendor financing.
AT&T closed the quarter with total debt of $139.5 billion and net debt of $118.8 billion. The company repurchased $1.5 billion in stock during the quarter and $2.4 billion year to date under its current authorization.
The company reaffirmed its full-year 2025 outlook, calling for low single-digit consolidated service revenue growth adjusted EBITDA growth of 3 percent or better and free cash flow in the low-to-mid $16 billion range. Adjusted earnings per share are expected near the top of the $1.97 to $2.07 guidance range. AT&T also plans about $22 billion to $22.5 billion in capital investment for the year and $4 billion in share buybacks.
Wireless Unit Maintains Momentum
AT&T’s mobility segment posted revenue of $21.7 billion, up 3.1 percent year over year with service revenue rising 2.3 percent and equipment sales increasing 6.1 percent. The company added 405,000 postpaid phone customers and reported a postpaid phone churn rate of 0.92 percent. Operating income for the mobility unit rose 1.7 percent to $7.1 billion, and segment EBITDA improved 2.2 percent to $9.7 billion.
Executives said the wireless business continues to benefit from customer retention through bundled offerings and higher sales of premium devices like the new Apple iPhone 17.
Fiber Gains Support Consumer Wireline Segment
The consumer wireline unit delivered revenue of $3.56 billion, up 4.1 percent from a year earlier. Fiber broadband revenue jumped 16.8 percent, driving overall broadband growth of 8.2 percent. AT&T added 288,000 fiber customers and 270,000 Internet Air subscribers, marking its ninth consecutive quarter of broadband net adds. Operating income climbed 66 percent to $325 million, while EBITDA increased 15 percent to $1.29 billion.
Business Wireline Remains a Drag
The business wireline segment continued to shrink, with revenue falling 7.8 percent to $4.25 billion as enterprise customers moved away from legacy services. The unit posted an operating loss of $354 million and EBITDA of $1.18 billion, down nearly 13 percent from a year earlier.
Latin America Segment Expands
In its Latin America operations, AT&T reported revenue of $1.1 billion, up 7.1 percent year over year with operating income of $22 million and EBITDA of $199 million. Growth was supported by higher equipment sales subscriber additions and favorable foreign exchange effects.
