AT&T reported sturdy fourth-quarter and full-year outcomes, assembly or exceeding its 2025 steerage because it doubled down on fiber and 5G enlargement with offers for Lumen and EchoStar belongings, plus sharpened its concentrate on higher-margin enterprise providers, and restructured reporting round its converged connectivity technique.
In sum – what to know:
Progress delivered – AT&T revenues rose 3.6% in This fall and a pair of.7% for the 12 months, supported by sustained post-paid cellular and fiber subscriber development.
Technique in movement – AT&T bolstered its ambition to be the main US supplier of “superior connectivity”, backed by new spectrum and fibers.
Quick convergence – fiber-mobile bundling climbed sharply; extra anticipated in the long run as fiber attain expands past 40 million areas.
AT&T has claimed “sturdy” fourth-quarter and full-year outcomes, hitting its 2025 targets, even beating them on some counts – because it pursues its said technique to “develop into the perfect superior connectivity supplier in America”. John Stankey, chairman and chief govt on the agency, said: “[We] executed nicely in opposition to this technique in 2025.” Revenues climbed 3.6 % within the quarter to $33.5 billion, versus $32.3 billion within the year-ago interval; they have been up 2.7 % within the 12 months to $125.6 billion. Stankey cited “one other strong 12 months of 5G and fiber subscriber development”.
Its post-paid cellular base was up by 1.5 million subscribers on the finish of 2025 (for the “fifth consecutive 12 months”, mentioned Stankey); it additionally added over a million net-new fiber subscribers within the 12 months (for the “eighth consecutive 12 months”). Stankey known as it AT&T’s “finest 12 months for shopper broadband subscriber development in a decade”. He mentioned the agency’s higher “monetary flexibility” had seen it make “opportunistic strategic investments” in 2025, together with offers to accumulate spectrum licenses from EchoStar ($23 billion) and fiber belongings from Lumen Applied sciences ($5.75 billion).
The latter, for Lumen’s shopper fiber enterprise (‘mass markets’, comprising a million subs and 4 million websites), will shut shortly. “These transactions characterize key constructing blocks [to] develop the entire addressable marketplace for ‘superior connectivity’ providers within the years forward,” mentioned Stankey. For ‘superior connectivity’, learn fiber and 5G/6G for the brand new AI period, together with higher-margin personal providers (MPLS, SD-WAN, VPNs) for giant nationwide, multi-national, and public sector corporations. AT&T will report otherwise subsequent quarter.
The agency is grouping its shopper/enterprise 5G and fiber companies within the US, chargeable for 90 % of its revenues, collectively going ahead, and individually of its ‘legacy’ issues, housing the corporate’s home voice and knowledge providers offered over its copper-based community to shopper and enterprise clients, and its ‘Latin America’ unit, which is mainly all of its Mexican stuff. Its EchoStar and Lumen offers, along with Gigapower, its 50/50 fibre-to-the-premise joint-venture with Blackrock, introduced in 2023, are about amping up its essential propositions.
Stankey mentioned on an earnings name: “Together with (50/50 fibre-to-the-premise joint-venture with Blackrock) Gigapower and the fiber belongings we’re buying from Lumen, we anticipate to succeed in over 40 million buyer areas with our fiber providers by the top of this 12 months, up from 32 million on the finish of 2025. Past 2026, we plan to develop our fiber attain by roughly 5 million areas yearly by way of the top of this decade. We anticipate this to drive fast enlargement of our alternative to promote fiber and 5G collectively to each households and companies at unmatched scale.”
AT&T claimed the “quickest annual improve” in its “convergence fee”, up 200 foundation factors year-over-year, with 42 % of households taking fiber broadband additionally now taking cellular broadband, it mentioned. Stankey responded to analysts on its name: “We’re going to drive that to 50 %… I don’t anticipate it to cease there…. We’re in a structural realignment… and that is going to be an trade of converged suppliers… In the event you look again… when there have been compelling bundles out there, we approached durations the place 80 % of shoppers have been bundling. And I might anticipate that in some unspecified time in the future in time, over the lengthy haul, you would possibly see one thing just like that happen.
All informed, AT&T’s revenues climbed 3.6 % within the quarter to $33.5 billion, versus $32.3 billion on the finish of 2024; it put the uplift right down to greater gross sales in its common cellular/wi-fi (‘mobility’, protecting shopper and enterprise 4G/5G gross sales, plus IoT on the aspect) and ‘shopper wireline’ (fixed-line telephony, residence broadband, fixed-wireless entry; FWA) companies, plus from its Mexican unit. These offset a decline in its ‘enterprise wireline’ unit. Revenues for the total 12 months have been $125.6 billion, up 2.7 % from $122.3 billion a 12 months in the past; the reason was the identical.
Cell income was up 5.3 % within the quarter of 2025, because of a 2.4 % leap in service income and 12.7 % greater tools gross sales. Shopper wireline revenues have been up 2.9 %, pushed by broadband income development of 6.7 % (because of fiber income development of 13.6 %), partially offset by declines in legacy voice and knowledge providers. Fastened-line gross sales to enterprises have been down 7.5 % within the quarter, versus 2024, largely attributed to decrease fastened phone (“legacy”) and “different transitional providers” (down 17.5 %) – even because the agency noticed 6.8 % development in fiber and new ‘superior connectivity’ providers.
Working bills within the fourth quarter have been $27.7 billion, up marginally primarily (from $27 billion on the finish of 2024) due to greater cellular gross sales – driving greater tools, promoting, promoting, dangerous debt bills, plus some restructuring/transformation prices, it mentioned. They have been $101.5 billion for the 12 months, versus $103.3 billion in 2024. Working revenue was $5.8 billion within the quarter (versus $5.3 billion a 12 months in the past); internet revenue was $4.2 billion for the entire of 2025 (versus $4.4 billion).
Revenue, as adjusted EBITDA, was $11.2 billion on the quarter and $46.4 billion within the 12 months, up over each durations ($10.8 billion and $44.8 billion in 2024). The corporate’s whole debt on the finish of 2025 was $136.1 billion. Pascal Desroches, chief monetary officer at AT&T, mentioned the agency achieved over 4 % development in consolidated adjusted EBITDA in the course of the fourth quarter, whereas increasing adjusted EBITDA margins by 20 foundation factors. As nicely, he said: “Adjusted EPS grew by over 20 % within the fourth quarter to $0.52 and almost 9 % for the 12 months to $2.12.”
AT&T reported over $1 billion in value financial savings for 2025, with a plan to realize an extra $4 billion in annual value financial savings by the top of 2028. Full-year free money stream was $16.6 billion.
