AT&T Announces Fourth-Quarter and Full-Year 2025 Results: Driven by Converged Fiber and 5G Subscriber Growth, All Consolidated Financial Guidance Targets Met

Dallas, January 28, 2026 — AT&T Inc. (NYSE: T) reported fourth-quarter and full-year 2025 financial results. The company said all metrics in its full-year 2025 consolidated financial guidance were met or exceeded, consumer broadband subscriber growth was the best in a decade, and performance was primarily driven by subscriber growth in converged fiber and 5G services.

The company noted that more and more customers are choosing AT&T as their single provider for all connectivity needs. The percentage of AT&T Fiber households that also choose AT&T wireless service rose to 42%, driving the company’s fastest annual growth rate in convergence. In areas where converged services are offered, AT&T ranked first in customer satisfaction scores for wireless and internet connectivity in both the consumer and small and medium business markets (based on brand affinity and Net Promoter Score, NPS). The company believes this progress reflects the continued effectiveness of its investment-driven, customer-centric strategy.

AT&T Chairman and CEO John Stankey said: “We met or exceeded all targets in our full-year 2025 consolidated guidance. With new investments in spectrum and fiber, we are positioned to win more customers across more categories and regions in the U.S. With best-in-class assets in the industry, we are accelerating strategy execution to deliver stronger growth, the best customer experience, and higher shareholder returns over the next three years.”

Fourth-Quarter Segment Performance

Communications: Revenue of $32.1 billion, up 3.2% year over year; operating income of $6.8 billion, up 9.5%.

Mobility: Revenue up 5.3% year over year, with service revenue up 2.4% and equipment revenue up 12.7%, the latter primarily driven by higher wireless equipment sales. Operating expenses increased 5.6% year over year, mainly due to higher equipment, advertising, selling, and bad debt expenses driven by increased sales volumes, partially offset by lower content licensing costs and cost savings from transformation initiatives. Operating income was $6.4 billion, up 4.5% year over year; EBITDA* was $9.2 billion, up $275 million year over year. Service revenue growth drove operating income growth of 4.5% and EBITDA* growth of 3.1%; operating margin decreased 20 basis points year over year, while EBITDA* service margin increased 30 basis points year over year.Business Wireline: Revenue decreased 7.5% year over year, primarily due to a 17.5% continued decline in legacy and other transitional services, partially offset by 6.8% growth in fiber and advanced connectivity services revenue. Operating expenses decreased 8.2% year over year, primarily due to lower personnel costs, savings from transformation initiatives, and lower network costs; depreciation expense decreased year over year due to certain legacy assets becoming fully depreciated, partially offset by continued capital investment in strategic initiatives such as fiber. Operating loss was $163 million, compared with a loss of $211 million in the prior-year period; EBITDA* was $1.1 billion, down $80 million year over year.

Consumer Wireline: Revenue increased 2.9% year over year, including 6.7% growth in broadband revenue and 13.6% growth in fiber revenue; declines in legacy voice and data services and other services partially offset these increases. Operating expenses decreased 5.1% year over year, primarily due to lower depreciation expense from certain legacy assets becoming fully depreciated, partially offset by continued capital investment in strategic initiatives, including fiber and network upgrades and expansion; lower content licensing costs and customer support costs also drove lower expenses, partially offset by higher network costs. Operating income was $538 million, compared with $276 million in the prior-year period; EBITDA* was $1.4 billion, up $152 million year over year. The segment achieved net broadband subscriber growth for the tenth consecutive quarter, including net additions of 283,000 AT&T Fiber subscribers and 221,000 AT&T Internet Air subscribers.

Latin America: Revenue increased 20.6% year over year, primarily driven by higher equipment sales, growth in subscribers and ARPU, and favorable foreign exchange effects. Operating expenses increased 19.7% year over year, primarily due to unfavorable foreign exchange effects, higher equipment and bad debt expenses from subscriber growth, and increased depreciation expense. Operating income was $34 million, compared with $21 million in the prior-year period; EBITDA* was $223 million, compared with $171 million in the prior-year period. For the full year, the segment’s operating income increased by more than $100 million, with profitability continuing to improve.

Segment Reporting Changes

Beginning with first-quarter 2026 results, AT&T plans to change its operating segments to reflect the evolution of its business model toward converged advanced connectivity services across 5G and fiber for consumer and business customers. To help investors and analysts understand this reporting structure transition, the company provided recast historical results for each quarter and full year from 2023 to 2025 under the new segment basis in a Form 8-K filed on January 28, 2026. More information is available at investors.att.com.

2026—2028 Long-Term OutlookBased on its investments in 5G and fiber, including two previously announced transactions expected to close in early 2026—the acquisition of the vast majority of Lumen’s mass-market fiber business and the acquisition of EchoStar’s wireless spectrum licenses—AT&T expects to achieve improved growth in adjusted EBITDA* and adjusted EPS*, as well as higher free cash flow*, by 2028.

The company’s consolidated financial outlook expects the Advanced Connectivity segment’s financial performance to remain strong and continue growing in 2026–2028. At the same time, the company expects service revenue in the Legacy segment to continue declining: as the company progresses toward shutting down its high-energy-consuming copper network across most of its footprint by the end of 2029 and upgrading customers to 5G- and fiber-based Advanced Connectivity services, Legacy segment service revenue is expected to decline by more than 20% in 2026 and become immaterial by the end of 2029; the segment is expected to generate negative EBITDA* after 2027 until direct costs related to copper network operations are substantially eliminated. The company also notes that obtaining approval from California regulators could delay the copper network shutdown beyond 2029.

Regarding the Lumen transaction, AT&T said: after the transaction closes, the company will place the acquired fiber network assets, including some fiber network construction capabilities, into a wholly owned subsidiary, and plans to sell a partial ownership stake in that subsidiary to an equity partner, with the latter co-investing in the ongoing business. From the closing of the Lumen transaction, AT&T expects to report the business as held for sale and discontinued operations, with its operating results and direct cash flows excluded from the company’s continuing operations. After completing the sale of a partial ownership stake to the equity partner, AT&T’s share of equity earnings (losses) in the subsidiary will be included in adjusted EPS* for continuing operations. The above long-term outlook is on a continuing operations basis and excludes discontinued operations.

Long-Term Capital Allocation Plan

AT&T expects to return more than $45 billion to shareholders through dividends and share repurchases in 2026–2028. Under this capital return plan, the company expects to maintain its current annualized common stock dividend of $1.11 per share. Management also expects to complete repurchases under the existing $10 billion repurchase authorization by the end of 2026 and to initiate repurchases under a subsequent $10 billion authorization approved by the company’s board of directors. The company expects to repurchase approximately $8 billion of common stock in 2026 under the above authorizations and, subject to further board authorization, to maintain a steady repurchase pace through 2028.After the completion of the transactions with Lumen and EchoStar, AT&T expects its net debt-to-adjusted EBITDA ratio* to rise to approximately 3.2x and to decline to approximately 3x by the end of 2026. The company continues to expect net leverage to return to its target range of around 2.5x within approximately three years after the closing of the aforementioned acquisitions. The company said it will maintain a consistent capital return strategy while reducing net leverage to the target range.

2025 Shareholder Returns and Strategic Execution

In 2025, AT&T returned more than $12 billion to shareholders through dividends and share repurchases. The company said that continued execution of its customer-centric, investment-driven strategy increased its convergence rate and drove profitability growth; among customers with both wireless and internet connectivity, the company achieved industry-leading customer satisfaction performance.

Conference Call Information

AT&T's fourth-quarter and full-year 2025 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, January 28, 2026. The webcast and related materials (including financial summary) can be accessed at investors.att.com.

About AT&T

AT&T Inc. is listed on the New York Stock Exchange under the ticker symbol T. Company information is available at about.att.com, and investor information is available at investors.att.com.

Note: Metrics marked with * in this document are non-GAAP financial measures. For definitions of the relevant metrics and reconciliations to GAAP financial measures, please see the earnings materials posted on the company's investor relations website. This document contains forward-looking statements, and actual results may differ from expectations due to risks and uncertainties.