AT&T Beats Subscriber Forecasts with Strong Q1 Wireless Growth

AT&T (NYSE:T) outperformed expectations in the first quarter of 2025, driven by higher-than-expected wireless postpaid subscriber gains and steady revenue growth. The U.S. telecom giant reported 290,000 net additions in wireless postpaid customers, topping Bloomberg estimates of 280,272. Although this figure marks a 25% decline from the previous year, it reflects resilient consumer demand amid strategic bundling of 5G and fiber internet plans.

The company’s aggressive push to attract customers through discounted premium packages has supported its earnings trajectory. Adjusted earnings per share rose to $0.51 from $0.48 a year earlier, narrowly missing analyst projections of $0.52. Total revenue grew 2% year-over-year to $30.6 billion, surpassing the expected $30.38 billion. Gains in mobility services helped offset softness in its Latin American business.

AT&T reiterated its full-year guidance, forecasting low single-digit growth in consolidated service revenue and a 3% or greater increase in adjusted EBITDA. The firm also confirmed its plan to complete the sale of its 70% stake in DirecTV to TPG by mid-2025.

CEO John Stankey emphasized the company's competitive edge in the evolving telecom market, noting, “Our business fundamentals remain strong, and we are uniquely positioned to win.”

AT&T shares climbed over 3% in premarket trading on Wednesday, reflecting investor confidence in its performance and strategic direction.

This strong quarter underscores AT&T’s ability to adapt in a competitive telecom landscape, balancing profitability with subscriber growth through bundled offerings and 5G-fiber integration. As the company gears up for the DirecTV divestment and focuses on expanding its high-speed network, it remains a key player in the wireless and broadband space.