AT&T Inc. (NYSE: T) shares climbed 1.2% to $19.84 in early trading on Wednesday after the telecom firm reported fourth-quarter and full-year 2025 results that met or exceeded guidance. AT&T’s market capitalization stands around $168 billion, placing it solidly within the large-cap telecom cohort.
Q4 and Full-Year Financial Results
AT&T reported revenue of $33.5 billion for the fourth quarter of 2025, up 3.6% from the prior year, driven by growth in Mobility, Consumer Wireline and Mexico operations. Full-year revenue was $125.6 billion, a 2.7% increase from 2024.
Adjusted EPS for the quarter was $0.52, while full-year adjusted EPS rose to $2.12 from $1.95 in 2024. Net income for the year was $23.4 billion. Free cash flow totaled $16.6 billion for the full year and $4.2 billion in the fourth quarter.
Segment Operational Performance
Mobility: The wireless unit reported 421,000 postpaid phone net additions in the quarter, contributing to 1.55 million postpaid phone net adds for the full year, the fifth straight year above 1.5 million. Churn remained low at 0.98%. Mobility service revenues rose 2.4% in Q4 to $17.0 billion and 3.1% for the year to $67.4 billion. Mobility EBITDA in the quarter climbed 3.1% to $9.2 billion.
Consumer Wireline: Fueled by fiber expansion, the company added 1.08 million AT&T Fiber subscribers in 2025, the eighth consecutive year above 1 million. AT&T also added 875,000 AT&T Internet Air subscribers. Fiber revenue in Q4 increased 13.6% to $2.2 billion, with fiber passing 32.0 million locations by year-end.
Business Wireline: Revenues declined 7.5% in Q4 to $4.2 billion as legacy services continue to wind down, though growth in fiber and advanced connectivity helped offset losses with a 6.8% increase.
Latin America (Mexico): Revenues grew 20.6% to $1.3 billion in the quarter, supported by equipment sales and subscriber additions, with 531,000 wireless net adds.
Capital Allocation and Balance Sheet
In 2025, AT&T returned $12.4 billion to shareholders through dividends and $4.3 billion in share repurchases under its 2024 authorization. Net debt declined $2.7 billion to $117.4 billion, with the net debt-to-adjusted EBITDA ratio at approximately 2.53x. Total capital investment, including capital expenditures and vendor financing payments, was $22.0 billion.
Outlook and Reporting Changes
AT&T will reorganize its reporting structure in Q1 2026 into three segments: Advanced Connectivity (5G and fiber services), Legacy (copper-based services) and Latin America. For the 2026–28 period, the company forecasts: shareholder returns of more than $45 billion through dividends and buybacks; free cash flow of $18 billion+ in 2026, rising above $21 billion by 2028; annual capital investment of $23 billion–$24 billion; adjusted EBITDA growth of 3–4% in 2026, improving to 5%+ by 2028; and adjusted EPS of $2.25 to $2.35 in 2026 with double-digit CAGR through 2028. Net leverage is expected to temporarily rise to about 3.2x following the Lumen and EchoStar transactions before returning toward a 2.5x target.
Competitive and Macro Pressures
The U.S. wireless market remains intensely competitive, with Verizon Communications (VZ.N) and T-Mobile US (TMUS.O) pressing on pricing and subscriber gain. Cable operators continue to challenge fiber broadband growth. Broader macroeconomic conditions, including higher interest rates and inflationary cost pressures, persist as headwinds for capital-intensive telecom operators.
Market Reaction and Analyst Activity
Investors responded positively to the results, lifting shares near recent multi-month highs; no synchronous analyst upgrades, downgrades or price-target changes were reported in connection with the earnings release. The performance underscores resilience in AT&T’s Mobility and fiber businesses, with free cash flow and capital allocations supporting dividends and debt reduction.
Summary
AT&T delivered a solid finish to 2025, posting revenue and earnings that topped forecasts and providing a stable outlook backed by subscriber growth, disciplined capital management and expanded connectivity offerings. The firm’s restructured reporting and multi-year targets show a strategic emphasis on 5G and fiber platforms as competitive focal points.