AT&T raised its annual adjusted profit forecast on Wednesday after beating quarterly revenue and profit estimates, betting on its service bundles to drive growth and keep customers from switching to rivals.
About 43 per cent of households signing up for AT&T’s internet services also opt for its wireless plans, helping the company build stickier customer relationships and reduce disconnects as competition intensifies in the U.S. telecom market.
- AT&T added 379,000 net monthly bill-paying wireless subscribers during the third quarter, compared with 379,300 additions estimated by FactSet
- The company also reported a US$2.6 billion non-cash impairment charge related to the planned sale of its Mexico wireless business for US$2 billion
- It now expects annual adjusted profit per share of about US$2.40, compared with its prior forecast of US$2.25 to US$2.35
- US carriers are looking beyond network coverage and smartphone promotions to bundled services and customer loyalty programs to attract and retain subscribers
- AT&T has been doubling down on fiber expansion, striking a multi-year deal worth more than US$3 billion with Corning last month for fiber and cable supplies
- It also acquired Lumen’s fiber business in May 2025 for US$5.75 billion to expand its broadband footprint and meet rising demand for high-speed connectivity
- This has helped AT&T secure record broadband additions, with 442,000 new fiber internet users and 327,000 new fixed wireless subscribers added in the third quarter
- Revenue for the quarter rose 5.3 per cent from a year earlier to US$32.3 billion, beating analysts’ estimates of US$31.69 billion, according to data compiled by LSEG
- Adjusted profit per share for the quarter came in at 65 cents, above estimates of 60 cents
- Shares of the company fell 3.8 per cent in volatile premarket trading
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Reporting by Harshita Mary Varghese in Bengaluru; Editing by Jonathan Ananda and Vijay Kishore
