AT&T Inc (NYSE:T, ETR:SOBA) reported better-than-expected second-quarter results on Wednesday, driven by strength in its mobility and consumer wireline segments.
Revenue rose 3.5% year-over-year to $30.88 billion, beating Wall Street expectations of $30.43 billion.
Adjusted earnings per share came in at $0.54, topping estimates of $0.52. Adjusted EBITDA was $11.78 billion, also ahead of forecasts.
The telecom giant added 401,000 postpaid phone subscribers in the quarter, exceeding the 300,000 expected.
Mobility revenue rose 6.7% to $21.86 billion, with service revenue up 3.5%. Consumer wireline revenue climbed 5.8% to $3.54 billion, while fiber revenue jumped nearly 19% to $2.1 billion. AT&T added 243,000 fiber customers and 203,000 Internet Air subscribers.
CEO John Stankey said AT&T is “winning in a highly competitive marketplace,” with strong demand for its wireless and broadband offerings.
Business wireline remained a weak spot, with revenue down 9.3% and EBITDA down 11.3%. In Mexico, revenue declined 4.4% due to foreign exchange, but EBITDA rose nearly 13% to $201 million.
AT&T affirmed its 2025 outlook for adjusted EPS of $1.97 to $2.07 and EBITDA growth of 3% or more. Free cash flow is now expected in the low-to-mid $16 billion range, slightly softer than earlier guidance. Capital spending was raised to as much as $22.5 billion.
The company also expects $6.5 billion to $8 billion in cash tax savings from 2025 to 2027 due to the “One Big Beautiful Bill Act.” It plans to invest $3.5 billion to expand fiber coverage and contribute $1.5 billion to pensions.