AT&T Kicks Off 2025 with Strong Results: Improved Profitability, Steady Guidance, and a 3% Stock Rally

Share price rises 3% following earnings—investors reward the company’s fiber and 5G growth strategy

AT&T Inc. (NYSE: T), a telecommunications giant serving over 100 million U.S. consumers and 2.5 million businesses, opened 2025 with solid financial results that underscore its strategic focus and operational discipline. The company operates through three main pillars: wireless services (5G and equipment), fiber-optic broadband, and enterprise connectivity solutions. AT&T is also progressing with a multi-year transformation plan that includes deleveraging and divesting non-core assets, such as its majority stake in DIRECTV.

The Q1 report, released on April 23, exceeded market expectations on several fronts—highlighting robust free cash flow, double-digit net income growth, and improved EBITDA. The stock responded favorably, rising approximately 3% in post-earnings trading—a sign of investor confidence in AT&T’s quality-over-quantity approach to growth.

Financial Results: Stable Top Line, Expanding Bottom Line

In the first quarter of 2025, AT&T reported revenue of $30.6 billion, up 2% year over year. Net income surged to $4.7 billion, a 24% increase compared to the same period last year. Diluted EPS came in at $0.61, beating consensus estimates, while adjusted EPS stood at $0.51. Adjusted EBITDA rose 4.5% to $11.5 billion. Free cash flow reached $3.1 billion, compared to $2.8 billion a year earlier. The net debt-to-EBITDA ratio improved to 2.5x, in line with management’s long-term target.

Mobility Segment Leads the Way with Consistent Growth

Mobility continues to be AT&T’s primary growth engine, with segment revenue increasing 4.7% year over year to $21.6 billion. Service revenue rose 4.1% to $16.7 billion, driven by subscriber growth and a 1.8% increase in average revenue per user (ARPU). The company added 324,000 postpaid phone subscribers in the quarter, outperforming internal benchmarks.

AT&T’s wireless business remains differentiated by a “reliability guarantee” model and integrated service offerings—allowing it to compete not just on pricing, but on trust and performance.

Fiber Remains a Key Growth Driver

Consumer Wireline, anchored by fiber broadband, posted a 19% year-over-year increase in fiber revenue and added 261,000 fiber subscribers. This marks the 21st consecutive quarter with at least 200,000 net fiber additions. Total consumer wireline revenue reached $3.5 billion, a 5.1% increase.

The segment’s operating margin improved to 9.9% (up from 6.4%), and EBITDA rose 18.6% to $1.3 billion. ARPU for fiber services climbed to $72.85, reflecting sustained demand for premium connectivity. Over 40% of AT&T Fiber households now also subscribe to AT&T wireless services—a strong testament to the company’s bundling strategy.

Business Wireline Faces Structural Headwinds

The Business Wireline segment remains under pressure, with revenue declining 9.1% year over year to $4.5 billion. The segment posted an operating loss of $98 million, reflecting ongoing erosion in legacy services. However, the company highlighted growth in advanced connectivity solutions and business fiber.

Cost reductions and transformation initiatives have helped mitigate some of the decline, but this remains a segment in structural transition.

How AT&T Stands Against the Competition

Against peers such as Verizon and T-Mobile, AT&T emphasizes its superior fiber rollout and integrated service ecosystem. While Verizon maintains strength in enterprise services and T-Mobile continues to aggressively court consumers with pricing, AT&T is positioning itself as the premium, high-reliability provider—focused on sustainable growth and customer loyalty.

2025 Outlook: Conservative but Firm

AT&T reiterated its full-year guidance for 2025, expecting:

• Mobility service revenue growth of 2–3%
• Mid-teens growth in consumer fiber broadband
• Adjusted EBITDA growth of 3% or more
• Free cash flow exceeding $16 billion

The company also announced plans to commence share repurchases in Q2, signaling confidence in its financial foundation and capital return strategy.