AT&T Inc. (NYSE: T) Q1 2025 Earnings Analysis

 

AT&T Inc. (NYSE: T) Q1 2025 Earnings Analysis

AT&T Inc. reported its Q1 2025 earnings on April 23, 2025, demonstrating strong performance driven by growth in its 5G and fiber broadband services.

Financial Summary

Metric	Q1 2025	Q1 2024	YoY Change
Revenue	$30.63 billion	$30.03 billion	+2.0%
Net Income	$4.7 billion	$3.8 billion	+23.7%
Diluted EPS	$0.61	$0.47	+29.8%
Adjusted EPS	$0.51	$0.48	+6.3%
Operating Income	$5.8 billion	$5.8 billion	—
Adjusted Operating Income	$6.4 billion	$6.0 billion	+6.7%
Adjusted EBITDA	$11.5 billion	$11.0 billion	+4.5%
Operating Cash Flow	$9.0 billion	$7.5 billion	+20.0%
Free Cash Flow	$3.1 billion	$2.8 billion	+10.7%
Capital Expenditures	$4.3 billion	$3.8 billion	+13.2%

Segment Performance Highlights

Mobility

• Postpaid phone net additions: 324,000
• Postpaid phone churn: 0.83%
• Mobility service revenue: $16.7 billion (+4.1% YoY)
• Mobility EBITDA: $9.3 billion (+3.5% YoY)

Consumer Wireline (Fiber)

• AT&T Fiber net additions: 261,000
• Consumer fiber broadband revenue: $2.1 billion (+19.0% YoY)
• Fiber locations passed: 29.5 million
• Over 40% of AT&T Fiber households also subscribe to wireless

Business Wireline

• Revenue: $4.5 billion (-9.1% YoY)
• EBITDA: $1.4 billion (-1.8% YoY)

2025 Full-Year Guidance

• Service revenue growth: Low-single digits
• Mobility revenue growth: 2% to 3%
• Consumer fiber broadband revenue growth: Mid-teens percentage
• Adjusted EBITDA growth: At least 3%
• Adjusted EPS: $1.97 to $2.07
• Free cash flow: Over $16 billion
• Capital investment: ~$22 billion

Strategic Updates

AT&T plans to start share repurchases in Q2 2025 after achieving its net leverage target. The company has approved a $10 billion buyback program, expecting to repurchase at least $3 billion in shares by year-end. AT&T is also on track to complete the sale of its remaining 70% stake in DIRECTV to TPG by mid-2025.

Next Earnings Release

AT&T is expected to report Q2 2025 earnings in late July 2025.