AT&T Launches End-to-End IoT Solution on AWS Marketplace for SMBs
AT&T launched an end-to-end IoT solution on AWS Marketplace, enabling small and medium enterprises to integrate devices across industries via preconfigured connectivity and simplified deployment. The new offering could expand AT&T’s advanced connectivity service revenues by tapping growing SMB IoT demand.
1. Subscriber Growth Surges in Q4
AT&T added 283,000 fiber subscribers and 421,000 net postpaid phone subscribers in the fourth quarter, marking its strongest broadband growth in a decade. Consumer wireline fiber revenues rose 13.6% year-over-year to $2.2 billion, while mobility service revenues climbed 2.4% to $17.0 billion. The company reported postpaid phone churn of just 0.98%, reflecting elevated customer satisfaction. In regions offering both fiber and wireless, AT&T achieved a convergence rate of 42%, with those households choosing AT&T as their sole connectivity provider.
2. Fourth-Quarter Financial Performance
Consolidated revenues reached $33.5 billion in the quarter. GAAP diluted earnings per share (EPS) were $0.53, compared with $0.56 a year earlier, while adjusted EPS grew to $0.52 from $0.43. Operating income came in at $5.8 billion and adjusted operating income at $6.1 billion. Adjusted EBITDA totaled $11.2 billion. Cash from operating activities was $11.3 billion, and free cash flow rose to $4.2 billion, up from $4.0 billion year-over-year, despite capital investments of $7.1 billion.
3. Full-Year 2025 Results and Shareholder Returns
For 2025, AT&T delivered revenues of $125.6 billion and GAAP diluted EPS of $3.04, more than doubling from $1.49 in 2024; adjusted EPS increased to $2.12 from $1.95. Net income reached $23.4 billion, and adjusted EBITDA was $46.4 billion. Full-year cash from operations rose to $40.3 billion, and free cash flow climbed to $16.6 billion. The company returned over $12 billion to shareholders through dividends and share repurchases and expects to deploy an additional $45 billion+ from 2026 through 2028.
4. Long-Term Outlook and Strategic Segments
AT&T projects low-single-digit annual service revenue growth and 3%–4% adjusted EBITDA growth in 2026, accelerating to 5%+ by 2028. Adjusted EPS is forecast at $2.25–$2.35 for 2026 with double-digit CAGR through 2028. Free cash flow targets are $18 billion+ in 2026, rising to $21 billion+ by 2028. The company will reorganize into Advanced Connectivity, Legacy and Latin America segments, with Advanced Connectivity—comprising 5G and fiber services—accounting for roughly 90% of 2025 revenues. Planned acquisitions of Lumen’s mass-markets fiber business and EchoStar spectrum licenses are expected to bolster connectivity growth and returns beginning in 2028.