Key Financial Data
- Q4 Revenue: $33.5 billion (+3.6% year-over)
- Q4 Operating income: $5.8 billion (+9.4%)
- Q4 Adjusted operating income: $6.1 billion (+13%)
- Q4 Net income: $4.2 billion (-4.5%)
- Q4 Mobility services revenue: $17 billion (+2.4%)
- Q4 Operating expenses: $27.7 billion (+2.6%)
- FY25 Revenue: $125.6 billion (+2.7%)
- FY25 Operating income: $24.2 billion (+27.4%)
- FY25 Net income: $23.4 billion (+90.2%)
- FY25 Operating expenses: $101.5 billion (-1.7%)
- Mobility customers: 120.1 million
- Postpaid net additions: 641,000
- Prepaid net additions: -183,000
- Wireline customers: 14.7 million
- Fiber net additions: 283,000
- Broadband net additions: 210,000
- Read more Q4 financial earnings coverage
AT&T posted a strong fourth quarter (Q4) earnings report driven by higher interest in its wireless and fiber broadband products and rising customer convergence across its businesses.
The telecom posted $33.5 billion in revenue during Q4, up 3.6 percent from a year earlier, on gains in its mobility, consumer wireline and Mexico business units that offset declines in its business-to-business and enterprise sectors.
Operating income rose to $5.8 billion from $5.3 billion a year ago, while adjusted operating income increased to $6.1 billion. Net income for the quarter slipped to $4.2 billion from $4.4 billion, reflecting the absence of income tied to AT&T’s former stake in satellite broadcaster DIRECTV.
Adjusted earnings per share came in at $0.52, up from $0.43 a year earlier, while diluted earnings per share declined to $0.53 from $0.56. Adjusted EBITDA totaled $11.2 billion, up from $10.8 billion in the year-ago period. Free cash flow rose to $4.2 billion from $4.0 billion.
Shares of AT&T were 5 percent higher in mid-afternoon trading on Wednesday.
Stock Price
For the full year, AT&T reported revenue of $125.6 billion, an increase of 2.7 percent from 2024. Operating income climbed sharply to $24.2 billion, compared with $19.0 billion a year earlier. Net income reached $23.4 billion, nearly doubling year over year, boosted by a $5.6 billion gain from the sale of the company’s DIRECTV investment. Adjusted EBITDA for the year rose to $46.4 billion from $44.8 billion, while free cash flow increased to $16.6 billion from $15.3 billion.
Wireless remained a key driver of growth. In the fourth quarter, AT&T added 421,000 postpaid phone subscribers and more than 1.1 million total wireless net adds. Mobility service revenue grew 2.4 percent year over year, while postpaid phone churn was 0.98 percent. Consumer Wireline continued to benefit from fiber expansion, with 283,000 fiber net adds in the quarter and fiber revenue up 13.6 percent.
AT&T recorded more than 1.5 million postpaid phone net adds, marking the fifth straight year it exceeded 1 million additions. The company added more than 1 million fiber customers for the eighth consecutive year and ended 2025 with 32.0 million consumer and business locations passed with fiber.
AT&T said customer convergence continued to improve, with 42 percent of fiber households also subscribing to AT&T wireless services.
“We achieved or surpassed all of our consolidated full-year guidance for 2025,” John Stankey, the Chairman and CEO of AT&T, said in a statement. “With new investments in spectrum and fiber, we’re set to win more customers in more categories and geographies across the U.S. Backed by the best assets in the industry, we are accelerating our strategy to deliver improved growth, the best customer experience and enhanced returns for shareholders over the next three years.”
Looking forward, AT&T said it expects to close on its acquisition of Lumen this year and finalize the transfer of wireless spectrum licenses from Dish Network parent company Echostar.
Service revenue is expected to grow in the low single digits over the next two years, and AT&T projects free cash flow of more than $18 billion this year that grows to over $21 billion by 2028.
