AT&T Inc. reported third-quarter 2025 revenues of $30.7 billion, up 1.6% year over year, as strong fiber and wireless performance continued to drive growth in converged connectivity. The company delivered adjusted EPS of $0.54 and free cash flow of $4.9 billion, both consistent with last year, while operating income rose to $6.1 billion. Mobility service revenue increased 2.3% to $16.9 billion, fueled by 405,000 postpaid phone net adds and a postpaid churn rate of just 0.92%. Consumer fiber revenues grew 16.8% year over year to $2.2 billion, with 288,000 new fiber customers and 270,000 AT&T Internet Air net adds.
AT&T is reinforcing its long-term strategy to lead in network convergence, powered by simultaneous investments in fiber and 5G spectrum. The company confirmed plans to acquire Lumen’s Mass Markets fiber internet business for $5.75 billion, forming a new subsidiary called NetworkCo to manage and expand these assets. AT&T also announced a $23 billion acquisition of 50 MHz of nationwide spectrum from EchoStar, including 3.45 GHz and 600 MHz bands, aimed at bolstering its mid-band and low-band 5G coverage across virtually every U.S. market. Both transactions are expected to close in 2026 and to become accretive to EBITDA and EPS by year three.
Looking ahead, AT&T reaffirmed its full-year 2025 outlook, targeting mobility revenue growth of 3% or better, consumer fiber broadband growth in the mid-to-high teens, and free cash flow in the $16 billion range. From 2026 through 2027, the company projects continued low-single-digit service revenue growth, 3%+ annual EBITDA gains, and double-digit EPS growth by 2027. The operator plans to invest $22–$24 billion annually in network expansion and modernization while maintaining disciplined capital returns and reducing its net debt-to-EBITDA ratio toward 2.5x.
• Q3 revenue: $30.7B (+1.6% YoY)
• Adjusted EPS: $0.54; Free cash flow: $4.9B
• Mobility service revenue: $16.9B (+2.3% YoY)
• 405K postpaid phone net adds; churn 0.92%
• Fiber revenue: $2.2B (+16.8% YoY); 288K fiber net adds
• Lumen fiber acquisition: $5.75B, closing early 2026
• EchoStar spectrum acquisition: $23B, closing 1H 2026
• Capital investment 2025: $22–$22.5B
“Our differentiated investment-led strategy is working,” said John Stankey, AT&T Chairman and CEO. “We’re winning the race to lead in convergence by adding highly profitable customers who choose AT&T for all their connectivity needs on the country’s fastest and largest wireless and fiber networks.”
🌐 Analysis: AT&T’s dual investment strategy—pairing national fiber expansion with significant mid- and low-band spectrum purchases—signals an aggressive push to unify fixed and mobile broadband services. The creation of NetworkCo mirrors trends seen at Verizon and Frontier, separating fiber infrastructure for capital efficiency and co-investment opportunities. Together, these moves position AT&T to compete more effectively against cable broadband and to sustain growth in both residential and enterprise connectivity markets through the late 2020s.
