AT&T Q1 Revenue Rises 2.9% to $31.5B, Free Cash Flow Drops to $2.5B
AT&T reported Q1 revenue of $31.5 billion, up 2.9% year-over-year, and adjusted EPS of $0.57, beating estimates while adding 294 000 net mobile and 512 000 residential internet customers through its newly acquired fiber business. Free cash flow declined to $2.5 billion from $3.1 billion as capital spending accelerated.
1. First-Quarter Financial Results
AT&T generated $31.5 billion in Q1 revenue, marking a 2.9% year-over-year increase, and delivered adjusted EPS of $0.57, outpacing the $0.55 consensus. The company maintained full-year targets of $18 billion or more in free cash flow and 3%–4% adjusted EBITDA growth.
2. Subscriber Growth Drivers
The company added 294 000 net mobile customers and 512 000 residential internet subscribers, fueled by the February acquisition of Lumen’s fiber business. Nearly 45% of new home internet subscribers also adopted AT&T wireless services, highlighting cross-sell effectiveness.
3. Cash Flow and Capital Spending
Free cash flow declined from $3.1 billion last year to $2.5 billion as AT&T accelerated fiber deployment spending. Management reiterated its commitment to infrastructure investment while balancing near-term cash generation.
4. Strategic Infrastructure Outlook
AT&T targets 40 million fiber locations by year-end and 60 million by 2030, backed by $250 billion in five-year infrastructure spending. The new reporting framework separates legacy copper operations and combines fiber with home wireless under an advanced connectivity segment.