AT&T Earnings Beat Estimates As Subscribers Rise

AT&T (T) reported fourth-quarter results on Jan. 28, 2026, showing stronger-than-expected revenue and subscriber growth that supported a multi-year shareholder-return plan through 2028 and reinforced management’s medium-term service-revenue and EBITDA outlook.

Quarterly and Full-Year Results

The company said in a press release that fourth-quarter revenue reached $33.5 billion, up 3.6% year over year, while adjusted earnings per share rose to $0.52 from $0.43 a year earlier, both exceeding analyst estimates.

For full-year 2025, revenue increased 2.7% to $125.6 billion, and diluted earnings per share came to $3.04. Results included a $5.6 billion gain from the sale of a 70% stake in DIRECTV to TPG in the third quarter.

Cash flow remained strong, with fourth-quarter cash from operations at $11.3 billion and free cash flow at $4.2 billion. For the full year, cash from operations totaled $40.3 billion, and adjusted EBITDA, a proxy for operating profit, was $46.4 billion.

Subscriber Growth and Convergence Trends

AT&T reported its best year for consumer broadband subscriber growth in a decade, adding 504,000 broadband connections in the quarter, including 283,000 fiber net adds. Total broadband connections reached 14.7 million, reflecting accelerating growth.

Mobile gains complemented wireline results, with 421,000 postpaid phone net additions. Total postpaid wireless subscribers reached 120.1 million, and churn was 0.98%. The company ranked No. 1 in wireless and internet customer satisfaction. It highlighted rising convergence, noting, "More customers are increasingly choosing AT&T as their one trusted provider for all of their connectivity needs — driving the fastest annual increase in its convergence rate with 42% of AT&T Fiber households also choosing AT&T for wireless."

Shareholder Returns and Outlook

AT&T returned more than $12 billion to shareholders in 2025, including $4.3 billion in share repurchases. The board approved a new $10 billion share buyback authorization and an additional $10 billion repurchase approval. Management plans to return over $45 billion to shareholders from 2026 through 2028 through dividends at $1.11 per share and the announced buyback program.

The company met or exceeded its 2025 consolidated guidance and provided a medium-term outlook calling for low single-digit annual service-revenue growth, adjusted EBITDA growth of 3% to 4%, and adjusted EPS of $2.25 to $2.35 by 2028. It will continue investing in 5G and fiber to support its convergence strategy.