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

by
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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References

1. www.prnewswire.com, 2. www.prnewswire.com, 3. www.reuters.com, 4. www.prnewswire.com, 5. www.prnewswire.com, 6. www.reuters.com, 7. www.reuters.com, 8. ts2.tech, 9. www.reuters.com, 10. www.prnewswire.com, 11. www.prnewswire.com, 12. www.prnewswire.com, 13. www.prnewswire.com, 14. ts2.tech, 15. www.prnewswire.com, 16. www.prnewswire.com, 17. www.prnewswire.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. ts2.tech, 23. ts2.tech, 24. www.prnewswire.com, 25. www.reuters.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.prnewswire.com, 29. www.prnewswire.com, 30. www.prnewswire.com, 31. www.prnewswire.com, 32. www.prnewswire.com, 33. ts2.tech, 34. www.prnewswire.com, 35. ts2.tech, 36. ts2.tech, 37. ts2.tech, 38. ts2.tech, 39. ts2.tech, 40. stockanalysis.com, 41. stockanalysis.com, 42. stockanalysis.com, 43. www.prnewswire.com, 44. ts2.tech, 45. www.prnewswire.com, 46. www.reuters.com, 47. www.prnewswire.com, 48. ts2.tech, 49. ts2.tech, 50. ts2.tech

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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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