AT&T It has the fastest and most reliable wireless network in the United States. AT&T Mobility offers nationwide high-speed 5G wireless voice and data services to residential, business and wholesale customers within the United States. Additionally, AT&T Internet Air is now available to consumers in parts of 47 states and, nationwide, to businesses.
AT&T EN CIFRAS
AT&T presented strong financial results in the second quarter of 2025driven by sustained growth in subscribers of 5G and fiber services, as well as the increase in service revenues. The company posted revenue of $30.8 billion and net income of $4.9 billion, with diluted earnings per share (EPS) of $0.62 ($0.54 adjusted). It also generated free cash flow of 4.4 billion, higher than the same period of the previous year.
Among the operational achievements, it added 401,000 new postpaid mobile lines, 243,000 new fiber optic customers and 203,000 new users of its AT&T Internet Air fixed wireless service. Revenue from mobile services grew 3.5% year-on-year, reaching 16.9 billion, while consumer fiber revenue increased 18.9%, to 2.1 billion. Additionally, the company repurchased $1 billion worth of stock and completed the sale of its remaining stake in DIRECTV. It also closed in 2025 the acquisition of most of Lumen’s residential fiber business.
Note that thanks to the new tax provisions of the «One Big Beautiful Bill Act», AT&T expects to realize between $6.5 billion and $8 billion in tax savings between 2025 and 2027, of which it plans to invest $3.5 billion in accelerating its fiber deployment (up to 4 million new locations per year), $1.5 billion in its pension plan (reaching 95% funding), and allocate the rest to strategic investments, capital returns and debt reduction. With this rhythmthe company estimates to reach around 50 million locations connected with its own fiber network by 2030, and more than 60 million if the assets of Lumen, its joint venture Gigapower and other commercial agreements are included.
FORECASTS FOR AT&T
The company has updated its financial guidance for the period 2025-2027taking into account the indicated tax savings and its operational performance to date. For all of 2025, the company expects consolidated service revenue growth in the low single-digit range, mobile service revenue growing 3% or more, and consumer fiber revenue growing in the mid-to-high double-digit range. Adjusted EBITDA is expected to grow at least 3%, with similar growth in the mobile segment, while the cable business segment’s EBITDA would decline in the low double-digit range, and the residential segment would grow in the low-to-mid double-digit range.
Regarding capital investments, the company estimates between 22,000 and 22,500 million dollarsfree cash flow between 16,000 and 16,500 million (including more than half of the financing of its pension plan until 2026), an adjusted earnings per share between 1.97 and 2.07 dollars, and share buybacks for 4,000 million, of which 1,300 million have already been executed.
In the long term, it reaffirms its forecasts for 2026-2027with annual service revenue growth in the low single digit range, adjusted EBITDA growth of at least 3% annually, and adjusted earnings per share growth accelerating to double-digit rates in 2027. Thanks to the tax savings generated by the law One Big Beautiful Bill ActAT&T increases its annual capital investment estimate to between 23,000 and 24,000 million in 2026 and 2027, and projects a free cash flow of more than 18,000 million in 2026 and more than 19,000 million in 2027.
Our forecasts for AT&T
FUNDAMENTAL VALUATION FOR AT&T
According to our estimates for the end of 2025, with a projected EPS of $2.09/share, the market values AT&T with a P/E of 13.28x, a lower multiple than the 14x average of its main competitors. However, when adjusting the P/E based on expected EPS growth, AT&T stock appears to be trading at a high level. Furthermore, when comparing its adjusted book value and EV/EBITDA multiples with those of its competitors, the company does not present itself as a particularly cheap option.
Under a fundamental valuation approach, AT&T appears to be an attractive long-term investment option, as long as more favorable entry points are sought. The company presents a solid balance sheet, stable growth in its income statement and consistent dividend yield, which reinforces its profile as a value alternative over time.
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