AT&T Inc (NYSE:T, ETR:SOBA) posted mixed first-quarter results, with stronger-than-expected subscriber growth and revenue offset by a slight earnings miss.
The company reported adjusted earnings per share of $0.51, missing estimates by $0.01, while revenue rose 2% to $30.63 billion, beating forecasts by $270 million.
Strong performance in its wireless and fiber businesses helped drive the top-line growth, with 324,000 postpaid phone net additions, well above expectations.
AT&T said it will resume share buybacks in the second quarter, with plans to repurchase at least $3 billion of stock in 2025 and complete the remaining portion of its $10 billion authorization next year.
Free cash flow rose to $3.1 billion from $2.8 billion a year earlier, while adjusted EBITDA climbed to $11.5 billion. Capital investment totaled $4.5 billion, and net debt stood at $119.1 billion at the end of the quarter.
CEO John Stankey said the company remains on solid footing. “We’re growing the right way—through high-quality, profitable 5G and fiber additions,” he said.
AT&T reiterated its full-year guidance, including adjusted EPS of $1.97 to $2.07, free cash flow of over $16 billion, and capital investment of around $22 billion. Mobility service revenue is expected to grow at the high end of the 2% to 3% range, while consumer fiber broadband revenue is projected to rise in the mid-teens.
The company also said its sale of a 70% stake in DIRECTV to TPG remains on track to close by mid-2025.
Shares of AT&T were flat just after the opening bell Wednesday.