AT&T reported sturdy fourth-quarter and full-year outcomes, assembly or exceeding its 2025 steerage because it doubled down on fiber and 5G growth with offers for Lumen and EchoStar property, plus sharpened its give attention to higher-margin enterprise companies, and restructured reporting round its converged connectivity technique.
In sum – what to know:
Development delivered – AT&T revenues rose 3.6% in This fall and a couple of.7% for the 12 months, supported by sustained post-paid cellular and fiber subscriber progress.
Technique in movement – AT&T bolstered its ambition to be the main US supplier of “superior connectivity”, backed by new spectrum and fibers.
Quick convergence – fiber-mobile bundling climbed sharply; extra anticipated in the long run as fiber attain expands past 40 million areas.
AT&T has claimed “sturdy” fourth-quarter and full-year outcomes, hitting its 2025 targets, even beating them on some counts – because it pursues its acknowledged technique to “turn out to be the perfect superior connectivity supplier in America”. John Stankey, chairman and chief government on the agency, acknowledged: “[We] executed effectively towards this technique in 2025.” Revenues climbed 3.6 % within the quarter to $33.5 billion, versus $32.3 billion within the year-ago interval; they had been up 2.7 % within the 12 months to $125.6 billion. Stankey cited “one other strong 12 months of 5G and fiber subscriber progress”.
Its post-paid cellular base was up by 1.5 million subscribers on the finish of 2025 (for the “fifth consecutive 12 months”, stated Stankey); it additionally added over a million net-new fiber subscribers within the 12 months (for the “eighth consecutive 12 months”). Stankey referred to as it AT&T’s “finest 12 months for shopper broadband subscriber progress in a decade”. He stated the agency’s higher “monetary flexibility” had seen it make “opportunistic strategic investments” in 2025, together with offers to amass spectrum licenses from EchoStar ($23 billion) and fiber property from Lumen Applied sciences ($5.75 billion).
The latter, for Lumen’s shopper fiber enterprise (‘mass markets’, comprising a million subs and 4 million websites), will shut shortly. “These transactions symbolize key constructing blocks [to] broaden the entire addressable marketplace for ‘superior connectivity’ companies within the years forward,” stated Stankey. For ‘superior connectivity’, learn fiber and 5G/6G for the brand new AI period, together with higher-margin personal companies (MPLS, SD-WAN, VPNs) for big nationwide, multi-national, and public sector companies. AT&T will report otherwise subsequent quarter.
The agency is grouping its shopper/enterprise 5G and fiber companies within the US, chargeable for 90 % of its revenues, collectively going ahead, and individually of its ‘legacy’ considerations, housing the corporate’s home voice and knowledge companies supplied over its copper-based community to shopper and enterprise clients, and its ‘Latin America’ unit, which is principally all of its Mexican stuff. Its EchoStar and Lumen offers, along with Gigapower, its 50/50 fibre-to-the-premise joint-venture with Blackrock, introduced in 2023, are about amping up its primary propositions.
Stankey stated on an earnings name: “Together with (50/50 fibre-to-the-premise joint-venture with Blackrock) Gigapower and the fiber property we’re buying from Lumen, we anticipate to achieve over 40 million buyer areas with our fiber companies by the tip of this 12 months, up from 32 million on the finish of 2025. Past 2026, we plan to broaden our fiber attain by roughly 5 million areas yearly by means of the tip of this decade. We anticipate this to drive fast growth of our alternative to promote fiber and 5G collectively to each households and companies at unmatched scale.”
AT&T claimed the “quickest annual enhance” in its “convergence charge”, up 200 foundation factors year-over-year, with 42 % of households taking fiber broadband additionally now taking cellular broadband, it stated. Stankey responded to analysts on its name: “We’re going to drive that to 50 %… I don’t anticipate it to cease there…. We’re in a structural realignment… and that is going to be an trade of converged suppliers… Should you look again… when there have been compelling bundles available in the market, we approached durations the place 80 % of shoppers had been bundling. And I might anticipate that sooner or later in time, over the lengthy haul, you would possibly see one thing just like that happen.
All instructed, AT&T’s revenues climbed 3.6 % within the quarter to $33.5 billion, versus $32.3 billion on the finish of 2024; it put the uplift right down to larger gross sales in its normal cellular/wi-fi (‘mobility’, overlaying shopper and enterprise 4G/5G gross sales, plus IoT on the facet) and ‘shopper wireline’ (fixed-line telephony, house broadband, fixed-wireless entry; FWA) companies, plus from its Mexican unit. These offset a decline in its ‘enterprise wireline’ unit. Revenues for the total 12 months had been $125.6 billion, up 2.7 % from $122.3 billion a 12 months in the past; the reason was the identical.
Cell income was up 5.3 % within the quarter of 2025, due to a 2.4 % soar in service income and 12.7 % larger gear gross sales. Shopper wireline revenues had been up 2.9 %, pushed by broadband income progress of 6.7 % (due to fiber income progress of 13.6 %), partially offset by declines in legacy voice and knowledge companies. Mounted-line gross sales to enterprises had been down 7.5 % within the quarter, versus 2024, principally attributed to decrease fastened phone (“legacy”) and “different transitional companies” (down 17.5 %) – even because the agency noticed 6.8 % progress in fiber and new ‘superior connectivity’ companies.
Working bills within the fourth quarter had been $27.7 billion, up marginally primarily (from $27 billion on the finish of 2024) due to larger cellular gross sales – driving larger gear, promoting, promoting, dangerous debt bills, plus some restructuring/transformation prices, it stated. They had been $101.5 billion for the 12 months, versus $103.3 billion in 2024. Working earnings was $5.8 billion within the quarter (versus $5.3 billion a 12 months in the past); internet earnings was $4.2 billion for the entire of 2025 (versus $4.4 billion).
Revenue, as adjusted EBITDA, was $11.2 billion on the quarter and $46.4 billion within the 12 months, up over each durations ($10.8 billion and $44.8 billion in 2024). The corporate’s whole debt on the finish of 2025 was $136.1 billion. Pascal Desroches, chief monetary officer at AT&T, stated the agency achieved over 4 % progress in consolidated adjusted EBITDA throughout the fourth quarter, whereas increasing adjusted EBITDA margins by 20 foundation factors. As effectively, he acknowledged: “Adjusted EPS grew by over 20 % within the fourth quarter to $0.52 and practically 9 % for the 12 months to $2.12.”
AT&T reported over $1 billion in value financial savings for 2025, with a plan to attain an extra $4 billion in annual value financial savings by the tip of 2028. Full-year free money stream was $16.6 billion.
