In the fourth quarter of 2025, AT&T reported adjusted earnings per share of $0.52 and consolidated revenue of $33.5 billion, surpassing consensus expectations. Operating income reached $5.8 billion, while adjusted EBITDA totaled $11.2 billion, driven by a 3.7% year-over-year increase in total service revenues. Gross margin held steady at approximately 43%, reflecting disciplined cost management and the ongoing shift toward higher-margin wireless and fiber services.

During the quarter, AT&T added 421,000 postpaid phone subscribers, 283,000 fiber broadband connections and 221,000 fixed wireless access customers, marking the second consecutive period with more than half a million advanced-internet net additions. Postpaid churn improved to 0.98%. Trading volume surged to 62.3 million shares, 37% above the three-month average of 45.6 million, underscoring renewed investor interest. The company’s dividend yield stands at 4.61%, supported by steady free cash flow of $4.2 billion in the quarter.

Following the earnings release, multiple analysts upgraded their ratings, citing stronger-than-expected cash flow and subscriber trends. This led to a single-day stock advance exceeding 4%, outpacing peers such as Verizon and T-Mobile. Market participants highlighted the benefits of recent bond issuances that enhanced balance-sheet flexibility and affirmed management’s commitment to deploying capital toward network expansion rather than debt build-up.

Management reiterated guidance for low-single-digit annual service revenue growth and projected adjusted EBITDA expansion of 3%–4% in 2026, improving to 5% or more by 2028. Adjusted EPS is forecast between $2.25 and $2.35 in 2026, with a double-digit compound annual growth rate through 2028. Free cash flow is expected to exceed $18 billion in 2026 and rise to $21 billion by 2028, enabling the return of over $45 billion to shareholders via dividends and repurchases without materially increasing leverage.