AT&T posts regular Q3 outcomes because it advances fiber enlargement, spectrum acquisitions, and nationwide 5G deployment plans
In sum — what to know:
Regular financials: AT&T reported Q3 income of $30.7B and adjusted EPS of $0.54, with sturdy free money circulation and steady mobility development.
Broadband momentum: Fiber subscribers surpassed 10 million, with fiber revenues up practically 17% 12 months over 12 months.
Strategic enlargement: Deliberate acquisitions of Lumen’s fiber belongings and EchoStar spectrum will broaden community capability and speed up 5G rollout.
AT&T reported regular third-quarter outcomes, underscoring the corporate’s progress in broadband and mobility whereas making ready for main infrastructure investments in fiber and spectrum to help its long-term community technique.
For the quarter ending September 30, the provider posted revenues of $30.7 billion and web earnings of $9.7 billion, up considerably from a loss a 12 months in the past on account of a achieve from the sale of its DIRECTV funding. Diluted EPS got here in at $1.29, in contrast with a lack of $(0.03) within the year-ago interval, whereas adjusted EPS held regular at $0.54.
Working earnings reached $6.1 billion and adjusted working earnings was $6.6 billion. Adjusted EBITDA got here in at $11.9 billion. Free money circulation rose to $4.9 billion, up from $4.6 billion a 12 months earlier, with capital expenditures totaling $4.9 billion.
The corporate continued to point out energy in broadband and wi-fi, with 405,000 postpaid telephone web provides and postpaid telephone churn at 0.92%. Mobility service revenues grew 2.3% year-over-year to $16.9 billion, whereas shopper fiber broadband revenues elevated 16.8% to $2.2 billion. AT&T added 288,000 new fiber prospects and 270,000 Web Air prospects, reaching greater than 10 million AT&T Fiber subscribers.
On an earnings name, CEO John Stankey mentioned that AT&T now has Mounted Wi-fi Entry (FWA) service in elements of 47 states, with availability persevering with to broaden into new areas. He additionally shared a key milestone: “We achieved our highest complete broadband web provides in eight years,” he mentioned (twice, for emphasis).
As well as, the corporate highlighted two main transactions anticipated to broaden its infrastructure footprint. In Could, AT&T introduced an settlement to purchase Lumen Applied sciences’ Mass Markets fiber belongings for $5.75 billion, a deal anticipated to shut in early 2026. The belongings will likely be held underneath a brand new wholly owned subsidiary, NetworkCo, with plans to herald an fairness accomplice inside a 12 months of closing. AT&T expects the transaction to be accretive over the long run.
In August, AT&T unveiled plans to purchase roughly 50 MHz of nationwide spectrum from EchoStar — together with 30 MHz of mid-band (3.45 GHz) and 20 MHz of low-band (600 MHz) frequencies — for about $23 billion in money. The deal, additionally anticipated to shut within the first half of 2026, will likely be financed by means of money and borrowings, briefly pushing AT&T’s web debt-to-adjusted EBITDA ratio to round 3.0x.
“The EchoStar spectrum will enhance our 5G wi-fi efficiency in a cost-efficient method whereas permitting us to develop Web Air at a quicker tempo,” Stankey mentioned. “We’re already making nice progress on our dedication to deploy this invaluable spectrum… we anticipate these midband licenses will likely be deployed in cell websites masking practically two-thirds of the U.S. inhabitants by mid-November.”
Stankey added that each acquisitions “considerably improve and broaden our superior connectivity portfolio,” aligning with AT&T’s objective of “constructing probably the most environment friendly, high-performance community with the power to ship site visitors on the lowest marginal price.”
