AT&T released its fourth-quarter and full-year 2025 earnings on Wednesday, showing solid revenue growth and big jumps in fiber and phone subscribers. The telecom giant added hundreds of thousands of new customers, pushing its shares higher in after-hours trading as it focuses on blending its wireless and internet services.
Background
AT&T has spent years building out its fiber network while holding a large share of the U.S. wireless market. This mix lets the company offer phone, internet, and TV bundles to homes and businesses. In 2025, more customers picked AT&T for all their home and mobile needs, a shift the company calls convergence. This marked the best year for consumer broadband growth in ten years, with the convergence rate hitting 42%, the fastest rise on record.
The company faced headwinds like falling demand for old copper phone lines and rising costs from network upgrades. It sold its stake in DIRECTV during the year, which brought in a $5.6 billion gain and sharpened its focus on core services. Full-year revenues reached $125.6 billion, a 2.7% increase from 2024's $122.3 billion. Net income hit $23.4 billion, up from $12.3 billion the prior year, helped by that sale and better operations.
Cash from operations came in at $40.3 billion, up from $38.8 billion in 2024. The firm spent $20.8 billion on capital items like fiber lines and 5G towers, with free cash flow at $16.6 billion. These numbers met or beat AT&T's own targets for the year, showing steady progress in a tough industry.
Key Details
In the fourth quarter, revenues totaled $33.5 billion, up 3.6% from $32.3 billion a year earlier. This came from gains in mobility, consumer wireline, and Mexico operations, though business wireline dipped. Net income attributable to common stock was $3.8 billion, or $0.53 per diluted share, compared to $4.0 billion or $0.56 last year. Adjusted earnings per share rose to $0.52 from $0.43.
Operating income stood at $5.8 billion, with adjusted figures at $6.1 billion. Adjusted EBITDA reached $11.2 billion, up from $10.8 billion. Cash from operations was $11.3 billion, and free cash flow hit $4.2 billion.
Subscriber and Segment Growth
Mobility service revenues grew 2.4%, lifting operating income 4.5% to $6.4 billion and EBITDA 3.1% to $9.2 billion. Postpaid phone subscribers added 421,000 net in the quarter, building on strong wireless demand. Fiber internet gained 283,000 subscribers, part of a decade-high broadband push.
Consumer wireline saw revenue increases from these fiber adds and higher sales of advanced services. Business wireline revenues fell due to less use of legacy services, but fiber growth helped offset that. Latin America revenues jumped 20.6%, with operating income at $34 million and EBITDA at $223 million.
"More customers are choosing AT&T as their one trusted provider for all of their connectivity needs." – AT&T spokesperson
Full-year communications segment revenues were $32.1 billion in Q4, up 3.2%, with operating income up 9.5% to $6.8 billion. Operating expenses for the year dropped to $101.5 billion from $103.3 billion, thanks to lower costs in some areas.
What This Means
The subscriber gains signal AT&T is winning in the race for bundled services, where one bill covers phone, internet, and more. Fiber expansion directly fights competitors like Verizon and new entrants in broadband. With 5G upgrades ongoing, mobility keeps delivering steady revenue.
Higher cash flow gives room for debt reduction or shareholder returns. The company announced a new $10 billion stock buyback, following a $4.3 billion program earlier. Shares rose in premarket and after-hours trading, reflecting investor approval.
Convergence at 42% means more revenue per customer over time, as bundles lock in loyalty. But challenges remain: business wireline declines point to ongoing shifts away from old tech. Rising depreciation from fiber spend and legal costs added pressure, though efficiencies helped.
For 2026, AT&T eyes continued fiber rollout and 5G growth. Broadband net adds could top prior years if trends hold. Mexico's double-digit revenue rise shows international potential. Overall, these results position the company for stable growth in a market shifting to high-speed, all-in-one plans.
Operating income for the full year was $24.2 billion, adjusted to $25.5 billion. Net income attributable to common stock reached $21.9 billion. These figures underline a year of recovery and investment payoff.
