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• Total Revenue Growth: Up 2% year-over-year.

• Service Revenue Growth: Increased by 1.2%.

• Adjusted EBITDA Growth: Up 4.4% year-over-year.

• Adjusted EPS: $0.51, $0.03 higher than the prior year excluding DIRECTV.

• Free Cash Flow: $3.1 billion, up more than $350 million on a comparable basis.

• Capital Investment: $4.5 billion in the first quarter.

• Mobility Revenue Growth: Up 4.7% year-over-year.

• Mobility Service Revenue Growth: Increased by 4.1%.

• Postpaid Phone Net Adds: 324,000 in the first quarter.

• Postpaid Phone Churn: 0.83%, up 11 basis points from the previous year.

• Mobility EBITDA Growth: Increased by 3.5% year-over-year.

• Consumer Wireline Revenue Growth: Up 5.1% year-over-year.

• Fiber Revenue Growth: Increased by 19%.

• Fiber Net Adds: 261,000 in the first quarter.

• Business Wireline Revenue Decline: Down approximately 9% year-over-year.

• Net Debt Reduction: Reduced by about $1 billion in the first quarter.

• Net Debt to Adjusted EBITDA Ratio: 2.63 times at the end of the quarter.

• Warning! GuruFocus has detected 8 Warning Signs with T.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AT&T Inc (NYSE:T) reported growth in consolidated service revenue and adjusted EBITDA, driven by strong postpaid phone and fiber net additions.

• The company achieved growth in adjusted EPS and free cash flow, excluding DIRECTV, consistent with their March outlook.

• AT&T Inc (NYSE:T) is on track to surpass its target of passing over 30 million total locations with its fiber network by mid-year 2025.

• The company plans to commence share repurchases during the second quarter, indicating confidence in its financial guidance.

• AT&T Inc (NYSE:T) continues to see strong performance in its Mobility and Consumer Wireline businesses, offsetting pressures in Business Wireline.

Negative Points

• The macro environment presents diminished visibility, with potential impacts from announced tariffs on smartphones and network equipment.

• Postpaid phone churn increased due to normalization of customers reaching the end of their equipment promotional financing periods.

• Business Wireline revenues declined approximately 9% year-over-year, primarily due to pressures on legacy services.

• The company faces a competitive wireless market, with shifts in offers and promotions impacting churn.

• There is a potential for increased costs due to tariffs, which could affect consumer and business demand.

Q & A Highlights

Q: How might AT&T and the industry react if tariffs increase the cost of phones? Also, what are the expense reduction opportunities in a slower growth environment? A: John Stankey, CEO, explained that if tariffs increase handset costs, AT&T would likely pass these costs to customers, as has been done with previous cost increases. The company will continue to find creative ways to support customers. Regarding expense reduction, AT&T is focused on improving efficiency across the business, including call centers and digital channels, and is confident in its ability to manage costs effectively.