AT&T Beats Q3 Forecast with 405K New Subs – Is Its 5G Bet Paying Off?

22 October 2025

Q3 Revenue & EPS: $30.7B revenue (+1.6% YoY) and $1.29 GAAP EPS ^[1] (includes ~$5.5B DIRECTV gain); adjusted EPS $0.54, in line with forecasts ^[2].
Subscriber Growth: +405K postpaid phone customers (vs. ~334K expected) ^[3]; fiber net adds +288K and fixed-wireless (Internet Air) +270K ^[4]. Churn remains low (~0.92%).
Segment Trends: Mobility service revenue $16.9B (+2.3% YoY); consumer fiber broadband revenue $2.2B (+16.8%) ^[5]. Business wireline sales fell ~7.8% ^[6]. Over 41% of AT&T fiber households now bundle a wireless plan ^[7].
Stock & Guidance: AT&T stock trades around $26 (≈4.2% dividend yield ^[8]). Shares jumped ~4% in pre-market after the report ^[9]. The company reaffirmed full-year 2025 guidance (adj. EPS ~$1.97–$2.07) ^[10], targeting low-single-digit consolidated revenue growth and mid-teens fiber revenue growth ^[11].
Strategic Moves: In 2025 AT&T agreed to buy EchoStar spectrum licenses (~$23B) and Lumen’s consumer fiber assets ($5.75B) ^[12] ^[13]. Management says these 5G and fiber investments “bolster and expand our spectrum portfolio” and will enhance customers’ 5G and home internet experience ^[14].

In its Oct. 22 earnings release, AT&T (NYSE:T) reported solid Q3 results highlighted by strong subscriber growth, even as revenue growth stayed modest. The telecom giant earned $30.7 billion in revenue (up 1.6% year-on-year ^[15]) and GAAP EPS of $1.29 ^[16]. Adjusted EPS was $0.54, in line with analyst estimates ^[17]. Crucially, AT&T added 405,000 postpaid wireless customers in Q3, far above the ~334,000 additions analysts had expected ^[18]. This subscription surge drove AT&T’s stock up about 4% in pre-market trading ^[19]. The results underscore the resilience of AT&T’s core wireless and broadband businesses.

Much of the upside came from iPhone promotions and bundled offerings. Reuters notes that AT&T’s attractive bundle discounts – combining mobile and home internet – and “heavy promotions around the latest iPhone launch” helped the company draw new users in a competitive market ^[20]. In fact, over 41% of AT&T’s fiber broadband customers also took an AT&T mobile plan ^[21], reflecting strong cross-selling. CEO John Stankey hailed these moves as reinforcing the company’s converged strategy: “This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience,” he said of the recent spectrum deal ^[22]. Stankey even remarked confidently that “no one brings wireless and fiber internet to more places or does it better than AT&T” ^[23]. On the results call, mobility (wireless) revenue rose 2.3% to $16.9B, and consumer fiber revenue jumped 16.8% to $2.2B ^[24] – clear evidence that customers are taking more fiber service and staying on wireless.

However, total revenue came in just below estimates ($30.7B vs. ~$30.87B expected ^[25]), as equipment sales softened. AT&T’s business wireline revenues continue to decline (down ~7.8% in the quarter ^[26]) as companies shift away from legacy services. Higher handset upgrade subsidies drove equipment sales up ~6.1%, but also raised marketing costs ^[27]. Importantly, churn stayed very low (about 0.92%), indicating customer loyalty ^[28]. The company reiterated its full-year outlook, maintaining projected full-year adjusted EPS of roughly $1.97–$2.07 and guidance for only low-single-digit revenue growth in 2025 ^[29] ^[30]. Cash flow remained healthy (>$10B operating cash in Q3 ^[31]) and AT&T bought back $1.5B of stock in Q3 ^[32], supporting its dividend.

Beyond the quarter, investors have been focused on AT&T’s big strategic bets. In August, AT&T agreed to buy EchoStar’s mid-band and low-band spectrum for ~$23 billion, a move Goldman Sachs praised as “a smart long-term move” that, despite the high price, “strengthens the company’s position in the mobile market” ^[33]. In May, AT&T announced a $5.75 billion deal to acquire Lumen Technologies’ consumer fiber assets ^[34]. That purchase will bring roughly 1 million new fiber locations into AT&T’s network ^[35], greatly expanding its high-speed Internet footprint in new metro areas. These investments in 5G spectrum and fiber are meant to fuel future growth – as Stankey put it after Q2, “We are winning in a highly competitive marketplace, with the nation’s largest wireless and fiber networks” ^[36].

Analysts note that AT&T’s stock is inexpensive by historical standards: it trades around 13–14× forward earnings, well below the ~21× telecom average ^[37], and yields roughly 4–4.2% ^[38]. Wall Street’s consensus rating on AT&T is a “moderate buy,” with an average price target near $30.80 ^[39] ^[40]. For context, analysts forecast 2025 revenue around $127.5B and EPS ~$2.09, rising to ~$129.3B and $2.25 in 2026 ^[41] ^[42] – reflecting modest mid-single-digit growth. Many investors are attracted by AT&T’s high dividend and value metrics, though some worry about tough competition and debt levels.

In summary, AT&T’s Q3 report delivered on its promise of subscriber growth and steady profits, even as top-line growth remains challenged. The company is doubling down on fiber broadband and 5G, betting these will drive long-term upside. With full-year guidance intact and major infrastructure deals in place, AT&T’s near-term outlook looks cautiously optimistic. Markets will be watching how AT&T integrates its new spectrum and fiber assets – and how peer carriers (Verizon, T-Mobile) report their results – but for now the strong net additions and reaffirmed strategy are bolstering confidence in the stock ^[43] ^[44].

Sources: AT&T Q3 2025 earnings release and analyst reports ^[45] ^[46] ^[47] ^[48] ^[49] ^[50]. (Additional context from Reuters, Bloomberg, TS2.Tech, and StockAnalysis.)

AT&T delivers a big subscriber beat, They gettin' that bag💰

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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