AT&T Surpasses Expectations and Focuses on Growth
AT&T achieved a 2% year-over-year revenue increase in the first quarter of 2025, exceeding analysts’ expectations with total revenue of $30.6 billion compared to a forecast of $30.39 billion.
Solid Operating Performance Despite Slight EPS Decline
Service revenues rose by 1.2%, indicating solid operational performance. Earnings per share (EPS) stood at $0.51, just missing the estimate of $0.52. Despite this slight drop in earnings, the company remains optimistic and reaffirms its positive outlook for the current year.
Strategic Developments and Market Progress
Key strategic developments include the continued expansion of the fiber optic network, aiming to reach around 50 million connections by 2029. AT&T also reported a significant increase in free cash flow to about $3.1 billion during the quarter. Additionally, the company announced a share buyback program totaling $10 billion.
In the mobile segment, AT&T exceeded expectations by adding approximately 324,000 new paying customers. Moreover, more than 40% of fiber optic customers have also subscribed to mobile plans with AT&T, indicating successful cross-selling strategies.
Stock Performance and Outlook
The positive trends are also reflected in stock performance: the stock rose about three percent pre-market to around $27.80, and is up over +18% compared to a year ago. For private investors and retail shareholders, these results are relevant as they demonstrate stable revenue growth despite a slightly below-expectation EPS.
These factors could potentially contribute to continued positive stock performance.