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AT&T Reports Strong Financials in Q4 2025

AT&T Inc. has reported strong financial performance for the fourth quarter and full year of 2025. In Q4 2025, the company achieved revenues of $33.5 billion, up from $32.3 billion in the year-ago quarter. The diluted earnings per share (EPS) for Q4 2025 was $0.53, compared to $0.56 in the year-ago quarter, while adjusted EPS was $0.52, compared to $0.43 in the year-ago quarter. The operating income for Q4 2025 was $5.8 billion, with adjusted operating income of $6.1 billion.

For the full year of 2025, AT&T reported revenues of $125.6 billion, up from $122.3 billion in 2024. The diluted EPS for the full year was $3.04, compared to $1.49 a year ago, and adjusted EPS was $2.12, compared to $1.95 a year ago. The company achieved an operating income of $24.2 billion, with adjusted operating income of $25.5 billion.

In terms of customer growth, AT&T reported 421,000 postpaid phone net adds in Q4 2025, with mobility service revenues reaching $17.0 billion, up 2.4% year over year. Additionally, there were 283,000 AT&T Fiber net adds and 221,000 AT&T Internet net adds in Q4 2025.

AT&T also highlighted its long-term outlook, with expectations for service revenue growth in the low-single-digit range annually and adjusted EBITDA growth in the 3% to 4% range in 2026, improving to 5% or better in 2028. The company also anticipates free cash flow of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028.

Furthermore, AT&T plans to return over $12 billion to shareholders in 2025 through dividends and share repurchases and expects to return an additional $45 billion+ from 2026-2028. The company also expects to maintain its current annualized common stock dividend of $1.11 per share and to repurchase approximately $8 billion of common stock during 2026.

AT&T's financial outlook anticipates strong and sustained growth in advanced connectivity segment financial performance during 2026-2028, including expected mid-single-digit annual growth in advanced connectivity service revenue and mid-to-high-single-digit annual growth in advanced connectivity EBITDA*.

The company's long-term capital allocation plan includes expectations for the net debt-to-adjusted EBITDA ratio* to increase to approximately 3.2x following its transactions with Lumen and Echostar and to decline to approximately 3x by the end of 2026. AT&T also aims to reduce net leverage to its target range in the 2.5x range within approximately three years following the closing of these acquisitions.

Today the company's shares have moved -1.01% to a price of $23.49. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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