AT&T Promotions Deliver a Surge in Mobile Phone Customers

AT&T Inc. posted stronger-than-expected second-quarter results, with gains in key areas such as wireless subscribers and home internet services, giving the company momentum as it competes with its larger telecom rivals. The Dallas-based carrier exceeded Wall Street expectations on both earnings and subscriber growth, aided by customer incentives and expanded service offerings.

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During the quarter, AT&T added 401,000 postpaid mobile phone subscribers, surpassing analyst forecasts of around 301,000 additions. This performance stands in sharp contrast to Verizon Communications Inc., which earlier in the week reported a decline in subscribers. The subscriber gains demonstrate AT&T’s success in luring customers away from competitors through aggressive promotions and service enhancements.

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AT&T, currently the smallest of the three major U.S. wireless carriers, has been focused on growth through a “customer guarantee” program launched in January. This initiative promises better network reliability, top-tier customer service, and competitive smartphone deals—key selling points as inflation continues to shape consumer choices.

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Beyond wireless, the company is expanding in home internet, an area it sees as critical for future growth. Its “Internet Air” fixed-wireless service, which uses AT&T’s 5G network to deliver home internet, attracted 203,000 new customers, outpacing market expectations of 169,000. Additionally, the company added 243,000 new fiber-optic customers, further expanding its broadband presence.

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Despite the positive earnings report, AT&T shares dipped slightly in pre-market trading, down less than 1% after closing at $27.42 on Tuesday. Even so, the stock has climbed about 20% year-to-date, outperforming the broader S&P 500 Index and other telecom peers.

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One major driver behind AT&T’s expansion strategy is the opportunity created by recent federal tax legislation, passed during Donald Trump’s presidency. AT&T expects to benefit from $6.5 billion to $8 billion in cash tax savings through 2027. The company has committed to reinvesting $3.5 billion of that into accelerating the buildout of its fiber network, with a goal of reaching 4 million new locations annually by the end of 2026.

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To strengthen its fiber footprint, AT&T is in the process of acquiring the consumer fiber division of Lumen Technologies Inc. The acquisition would help the telecom giant significantly extend its reach in the wired broadband market.

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Previously, AT&T set a long-term goal of connecting 60 million U.S. households with fiber by 2030, but management now believes that number could rise to 70 million given the increased investment.

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Financially, AT&T’s quarterly performance showed solid growth. Earnings per share came in at 54 cents, excluding certain items, which beat analysts’ average estimate of 52 cents. Revenue rose 3.4% to $30.8 billion, also surpassing the $30.4 billion expected by Wall Street. Free cash flow for the quarter reached $4.4 billion, an important metric for investors keeping an eye on the company’s ability to fund dividends, repurchases, and network upgrades.

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Looking ahead, AT&T has revised its full-year guidance, signaling increased confidence in its wireless and capital investment performance. The company raised its outlook for mobile-service revenue growth, as well as profit and capital expenditures. However, it also slightly narrowed the forecast for fiber revenue, reflecting more precise expectations around the business’s growth rate.

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AT&T maintained its projection for adjusted full-year earnings to range between $1.97 and $2.07 per share. On the shareholder return front, the company has committed to $4 billion in stock buybacks for the year, of which $1.3 billion has already been completed.

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This latest report makes AT&T the second major U.S. telecom to release second-quarter results, with T-Mobile US Inc. scheduled to report later on Wednesday. The three-way competition among AT&T, Verizon, and T-Mobile continues to intensify, especially as each company leans into 5G infrastructure, bundled service offerings, and broadband expansion to drive growth.

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Overall, AT&T’s second-quarter performance suggests that its investments in customer experience, network upgrades, and diversified offerings are paying off. By doubling down on its fiber ambitions and leveraging emerging technologies like fixed wireless, the company is positioning itself to compete aggressively in both the wireless and home internet arenas. With favorable financials and supportive market conditions, AT&T appears poised for continued momentum in the second half of the year.

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