AT&T Beats Q2 Earnings and Revenue Estimates, But Stock Slips After Strong Run

AT&T Inc. (NYSE: T) surpassed Wall Street expectations in its second-quarter earnings report released Wednesday, delivering better-than-expected revenue and subscriber growth, yet saw its stock dip nearly 4% in early trading following a robust year-to-date surge.

📊 Q2 2025 Highlights:

• Adjusted EPS: $0.54 (vs. expected $0.53), up from $0.51 last year
• Revenue: $30.8 billion (vs. $30.46 billion expected), up 3.5% YoY
• Postpaid Phone Net Adds: 401,000 (vs. 302,000 projected)
• Fiber Internet Adds: 243,000 (below 252,000 estimate)
• Free Cash Flow: $4.4 billion for Q2

📈 Stock Performance & Market Response

Despite delivering a strong report, AT&T shares fell to $26.36, down nearly 4% in early trading. The stock had risen about 20% year-to-date, and 50% over the past 12 months, driven by high investor expectations and signs of a sustained turnaround. However, shares encountered resistance at the 50-day moving average ahead of earnings.

💰 Guidance and Financial Outlook

AT&T reaffirmed its full-year 2025 EPS guidance in the range of $1.97 to $2.07. The company also increased its free cash flow forecast, now expecting to generate $16–$16.5 billion in 2025, up from its previous “$16 billion-plus” outlook. It also projected $6.5–$8 billion in cash tax savings through 2027, thanks to new tax policies introduced under President Trump’s latest fiscal legislation.

🔄 Strategic Focus: Fiber and Convergence

With a renewed focus on its core telecom services, AT&T has:

• Exited DirecTV and WarnerMedia, completing the sale of its DirecTV stake to TPG in early July.
• Accelerated fiber rollout, surpassing its goal to cover over 30 million homes and businesses.
• Continued pushing its "convergence" strategy, bundling landline broadband and wireless services to improve customer retention.

🆚 Industry Snapshot

Verizon recently raised its 2025 earnings outlook but reported a net loss of 9,000 postpaid subscribers.

T-Mobile US (TMUS) is set to report its earnings later today.

📉 AT&T Rating & Investor Sentiment

According to IBD Stock Checkup, AT&T holds a Composite Rating of 67/99, reflecting solid but not outstanding performance metrics as it transitions further into fiber and mobile services.