AT&T early Wednesday reported first-quarter earnings that met estimates while revenue edged by Wall Street targets. AT&T stock climbed amid wireless postpaid phone subscriber additions that beat expectations.
Further, AT&T earnings were 51 cents on an adjusted basis, excluding one-time items, up 6% from a year earlier. Revenue rose 1.5% to $30.6 billion.
Analysts had projected AT&T earnings of 51 cents a share on revenue of $30.4 billion, according to FactSet.
Also, the company said it added 324,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 255,000 gain. In Q1 2024, AT&T added 349,000 wireless postpaid phone subscribers.
Verizon Communications on Tuesday said it lost 289,000 wireless postpaid phone business and consumer subscribers, versus estimates for a loss of 197,000 subscribers.
AT&T Stock Out-Performs In 2025
On the stock market today, AT&T stock climbed 0.8% to 27.20 in afternoon trading. Heading into the AT&T earnings report, shares were up 19% in 2025, retaking their 50-day line on Monday.
Also, some analysts view telecom firms as defensive plays as Donald Trump's tariff-based trade policies spark worries over a possible U.S. recession.
Free Cash Flow Growth
In addition, AT&T reported Q1 free cash flow of $3.1 billion, slightly below estimates of $3.17 billion. Free cash flow growth supports AT&T's dividend.
Meanwhile, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and WarnerMedia. The company expects the sale of its entire 70% stake in DirecTV to private equity firm TPG to close in mid-2025.
AT&T's March quarter free cash flow excluded DirecTV.
AT&T has refocused on "convergence"— selling landline broadband and wireless services in product bundles. In Q1, AT&T said it added 261,000 fiber broadband subscribers, with consumer fiber broadband revenues rising 19% to $2.1 billion.
"Management is achieving 40% mobility sell-through on fiber implying it AT&T could have almost 16 million handsets tethered to a fiber connection," said Frank Louthan, a Raymond James analyst, in a report.
Also, AT&T plans to expand its own fiber-optic network to 30 million-plus homes and businesses by the end of 2025.
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Heading into the AT&T earnings report, T stock had a Relative Strength Rating of 96 out of a possible 99, according to IBD Stock Checkup.
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