(Jan 28): AT&T Inc reported fourth-quarter (4Q) profit and revenue that beat analysts’ estimates, buoyed by what it described as the best broadband subscriber growth in a decade.
The third-largest US wireless provider showed quarterly revenue rose 3.7% to US$33.5 billion, beating analysts’ projections of US$32.8 billion. Adjusted earnings increased to 52 cents a share, beating estimates of 46 cents. The shares jumped 4.8% in premarket trading in New York.
As the Big Three mobile carriers are locked in a fierce battle for customers in a saturated market, AT&T has shifted its focus to becoming a one-stop shop for all of people’s connectivity needs.
The company’s strategy relies heavily on customers who take more than one product — a mobile phone plan and home internet service, for example.
AT&T’s home fibre service added 283,000 new customers, topping the 277,000 expected by analysts. The company said 42% of households who use AT&T fibre also choose it for their wireless service. And AT&T is pushing ahead with another fast-growing home internet offering, known as Internet Air, which uses the carrier’s 5G mobile network. It picked up 221,000 new customers in the quarter, though that was below Wall Street expectations of 272,000.
To compete with Verizon Communications Inc and T-Mobile US Inc for mobile phone subscribers, AT&T has been offering a spate of perks and discounts to woo new customers and keep existing ones, including giving away the latest iPhone 17 Pro with a device trade-in.
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But the Dallas-based carrier on Wednesday reported 421,000 new wireless subscribers in the period, missing Wall Street projections of 440,000, a sign that it’s feeling the squeeze in an intense promotional war.
Chief executive officer John Stankey said in October his company was up against “increased marketplace activity” that showed no sign of slowing through the end of 2025.
AT&T also extended its long-term forecast through 2028, saying it expects to return US$45 billion to shareholders through dividends and share repurchases over the next few years.
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AT&T is the first of the major telecom providers to report financial results. Verizon reports on Jan 30, and T-Mobile follows on Feb 11. Verizon and T-Mobile both replaced their CEOs last year, and Verizon recently struggled with a major service outage that stretched across the country for a full day.
Shares of all three carriers are down this year. AT&T stock was down 7.4% in 2026 through the close Tuesday in New York, compared with a 9.1% loss for T-Mobile and a 3.5% drop for Verizon. T-Mobile and Verizon also rose early on Wednesday morning following AT&T’s results.
Uploaded by Felyx Teoh
