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AT&T's Discount Bundles Fuel Subscriber Gains, Tax Savings To Supercharge Fiber Expansion

AT&T Inc. (NYSE:T) announced strong financial results for its fiscal second quarter of 2025 on Wednesday, surpassing analyst expectations for both revenue and earnings.

The telecom giant reported operating revenues of $30.80 billion, marking a 3.5% increase compared to the same period last year and exceeding the consensus estimate of $30.45 billion. Adjusted earnings per share (EPS) stood at $0.54, also beating the analyst forecast of $0.52.

Key Performance Indicators

The positive results were largely driven by significant growth in wireless phone subscribers, which AT&T attracted through various perks and incentives to draw customers away from competitors.

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The company reported 401,000 postpaid phone net additions, a slight decrease from 419,000 in the prior year but still a robust performance. This contrasts sharply with rival Verizon Communications (NYSE:VZ), which saw a net loss of 9,000 postpaid phone connections in its latest quarter, falling short of analyst predictions for a gain of 13,000.

AT&T’s postpaid phone churn, a measure of customer attrition, increased slightly to 0.87% from 0.70% a year ago, while prepaid churn was 2.64%, up from 2.57%. Despite this, the postpaid phone-only Average Revenue Per User (ARPU) grew by 1.1% year-over-year to $57.04.

In its Consumer Wireline segment, AT&T continued to expand its fiber optic footprint, adding 243,000 AT&T Fiber net subscribers and 203,000 AT&T Internet Air net additions.

Financial Highlights

AT&T demonstrated solid improvements ...