AT&T Inc.'s Net Income Jumps 25.6% on Strong Q2 2025 Performance

AT&T Inc. reported strong second-quarter results for Q2 2025, with revenues reaching $30.8 billion, marking a 3.5% increase from $29.8 billion in the prior year quarter. The company's net income significantly rose to $4.9 billion, up 25.6% from $3.9 billion in the second quarter of 2024. Diluted EPS stood at $0.62, exceeding the analyst estimate of $0.51.

Key Business Drivers

Mobility service revenues were a significant contributor to growth, increasing 3.5% year over year to $16.9 billion, primarily driven by 401,000 postpaid phone net adds and a 1.1% increase in postpaid phone ARPU. Additionally, equipment revenue growth of 18.8% resulted from higher wireless device sales volumes. In the Consumer Wireline segment, strong broadband revenue growth was observed, up 10.5%, with fiber revenue specifically increasing 18.9%.

Strategic Achievements and Investments

The company achieved 243,000 AT&T Fiber net adds and 203,000 AT&T Internet Air net adds, demonstrating continued momentum in its broadband expansion. Management highlighted the agreement to acquire substantially all of Lumen's Mass Markets fiber business, which is expected to strengthen its connectivity portfolio. Furthermore, AT&T plans to invest $3.5 billion of expected cash tax savings from the One Big Beautiful Bill Act into its network, accelerating its fiber internet build-out to 4 million locations per year by the end of 2026.

Updated Financial Outlook

For the full year 2025, AT&T expects consolidated service revenue growth in the low-single-digit range, with mobility service revenue growth of 3% or better. Consumer fiber broadband revenue is projected to grow in the mid-to-high teens. Adjusted EPS is forecasted to be between $1.97 and $2.07, and the company plans for $4 billion in share repurchases for the year.