TLDR
- AT&T added 405,000 postpaid wireless subscribers in Q3, surpassing analyst predictions of 334,100
- Third quarter earnings per share hit $0.54, matching estimates, while revenue of $30.7 billion missed the $30.87 billion target
- iPhone 17 promotions and bundled service packages drove subscriber growth during the competitive fall quarter
- Equipment revenue increased 6.1% from higher phone sales, though operating costs rose 3.8%
- The company’s $23 billion EchoStar spectrum acquisition aims to enhance network capacity
AT&T delivered mixed third quarter results with wireless subscriber additions beating expectations while overall revenue came up short. The telecommunications company added 405,000 monthly bill paying wireless customers during the quarter.
Analysts had projected 334,100 new subscribers. The better-than-expected performance sent shares up 2% in premarket trading.
The third quarter represents a crucial period for wireless carriers. Competition intensifies around Apple’s September iPhone launch each year.
AT&T offered promotional deals on the iPhone 17 lineup to capture new customers. The offers also encouraged current subscribers to move to higher-priced plans.
Bundled Services Drive Customer Retention
The company’s strategy of combining wireless and fiber broadband services is paying off. Customers receive discounts when they purchase multiple services together.
This bundling approach has helped lower customer churn rates. Over 41% of AT&T’s fiber broadband customers now also subscribe to mobile services.
Equipment revenue grew 6.1% during the quarter. Increased phone sales fueled the gains.
However, operating expenses in the mobility division climbed 3.8%. Higher costs came from selling more devices and ramped-up marketing spending.
Financial Results and Future Outlook
AT&T reported adjusted earnings of 54 cents per share. This figure aligned with Wall Street estimates from LSEG data.
Third quarter revenue totaled $30.7 billion. The number fell below the consensus estimate of $30.87 billion.
The company’s business wireline segment faced challenges. Revenue from this division declined 7.8% as legacy voice and data services continued shrinking.
Network Expansion Plans
AT&T recently unveiled plans to acquire wireless spectrum licenses from EchoStar. The $23 billion transaction will bolster the company’s network infrastructure.
Additional spectrum provides more capacity for wireless services. This supports growing data demands from subscribers.
For full year 2025, AT&T projects earnings per share between $1.97 and $2.07. Analyst consensus stands at $2.06 for the year.
The stock closed at $26.05 before the earnings release. Over the past 12 months, AT&T shares have climbed 15.83%. However, the stock has dropped 6.96% in the last three months.
In the past 90 days, AT&T received five upward EPS revisions from analysts. Eight analysts revised their estimates downward during the same period.
AT&T’s wireless subscriber additions of 405,000 beat expectations by more than 20%. The company maintains its position in the competitive U.S. wireless market through bundled offerings and promotional campaigns.
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