AT&T reported a strong start to 2025, delivering Q1 revenue of $30.6 billion, up 2.0% from a year ago, alongside $4.7 billion in net income. The company’s performance was buoyed by continued growth in 5G and fiber, as it added 324,000 postpaid phone subscribers and 261,000 new AT&T Fiber customers. Adjusted EBITDA rose to $11.5 billion, and free cash flow reached $3.1 billion. Based on progress in debt reduction and its solid outlook, AT&T confirmed plans to resume share repurchases in Q2.
AT&T’s Mobility unit saw service revenue grow 4.1% year over year to $16.7 billion, driven by subscriber gains and a 1.8% increase in postpaid phone ARPU. Equipment revenue also rose 6.9% due to higher device volumes. Meanwhile, Consumer Wireline revenue increased 5.1% thanks to a 19% surge in fiber broadband revenue. Consumer net adds included 261,000 fiber and 181,000 Internet Air subscribers. Fiber now reaches 29.5 million business and consumer locations, and more than 40% of fiber customers also subscribe to AT&T wireless.
Despite continued secular decline in legacy services, Business Wireline grew its fiber and advanced connectivity services by 4.5%. However, overall revenue for the unit dropped 9.1% year over year. AT&T reaffirmed its full-year 2025 guidance, projecting continued revenue growth in fiber and 5G, adjusted EBITDA growth of 3% or more, and free cash flow of at least $16 billion. The company also reiterated plans to complete the sale of its 70% stake in DIRECTV to TPG by mid-year.
- Total Q1 2025 revenue: $30.6 billion (+2.0% YoY)
- Net income: $4.7 billion; adjusted EPS: $0.51
- Adjusted EBITDA: $11.5 billion (+$500 million YoY)
- Free cash flow: $3.1 billion (+$300 million YoY)
- Capital investment: $4.5 billion
- Net debt reduced to $119.1 billion
- Mobility segment:
- Service revenue: $16.7 billion (+4.1%)
- Postpaid phone net adds: 324,000
- Postpaid phone ARPU: +1.8% YoY
- EBITDA: $9.3 billion (+3.5%)
- Consumer Wireline:
- Revenue: $3.9 billion (+5.1%)
- Fiber revenue: $2.1 billion (+19%)
- AT&T Fiber net adds: 261,000
- AT&T Internet Air net adds: 181,000
- EBITDA: $1.3 billion (+$204 million YoY)
- Business Wireline:
- Revenue: down 9.1%
- Fiber/advanced services: +4.5%
- EBITDA: $1.4 billion (slightly down YoY)
- Latin America: Revenue down 8.7% YoY; EBITDA: $193 million
- 2025 Guidance:
- Mobility service revenue growth: 2%–3%
- Fiber broadband revenue growth: mid-teens
- Adjusted EBITDA growth: ≥3%
- Free cash flow: $16 billion+
- Capex: ~$22 billion
- Adjusted EPS: $1.97–$2.07
- DIRECTV sale expected by mid-2025
“We are growing the right way as customers continue to choose AT&T Fiber and 5G wireless for connectivity they can rely on,” said AT&T CEO John Stankey. “The priorities we laid out remain unchanged, and we’re on track to deliver the financial plan and capital returns we outlined.”
