10-QPeriod: Q2 FY2025

AT&T INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 24, 2025For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. reported a solid increase in operating revenues for the quarter and six months ending June 30, 2025, driven by growth in its Communications segment, particularly the Mobility and Consumer Wireline units. This top-line expansion was complemented by a significant improvement in operating income, showcasing effective cost management and operational efficiencies, especially within the Corporate and Other segment which saw a notable reduction in losses. The company also demonstrated strong cash flow generation from operations, which was primarily used to fund capital expenditures, return capital to shareholders through dividends and share repurchases, and repay debt. Key strategic initiatives appear to be progressing, with continued investment in fiber networks and 5G. The sale of AT&T's interest in DIRECTV was completed shortly after the quarter's end, which is expected to provide a substantial cash inflow and further refine the company's strategic focus. While the Business Wireline segment faced revenue challenges due to declining legacy services, the overall financial performance indicates a company on a path of operational improvement and strategic execution.

Financial Highlights

45 data points
Beta

Revenue

$30.85B

Net Income

$4.50B

14.6% Net Margin

EPS (Diluted)

$0.62

Total Assets

$405.49B

Cash & Equivalents

$10.50B

Free Cash Flow

$9.76B

Financial Statements
Beta
Revenue$30.85B
SG&A Expenses$6.95B
Operating Expenses$24.35B
Operating Income$6.50B
Net Income$4.50B
EPS (Basic)$0.62
EPS (Diluted)$0.62
Shares Outstanding (Basic)7.21B
Shares Outstanding (Diluted)7.22B

Key Highlights

  • 1Total operating revenues increased by 3.5% to $30.8 billion for the second quarter of 2025, and by 2.8% to $61.5 billion for the six months ended June 30, 2025.
  • 2Operating income saw a substantial increase of 12.9% to $6.5 billion in the second quarter and 5.6% to $12.3 billion for the six months ended June 30, 2025.
  • 3The Communications segment remains the core driver of revenue, with Mobility revenues up 6.7% in the quarter and Consumer Wireline revenues up 5.8%, while Business Wireline revenues declined.
  • 4Net Income Attributable to AT&T common stock surged by 25.9% in the second quarter to $4.5 billion and by 27.6% to $8.9 billion for the six months.
  • 5Cash provided by operating activities significantly increased to $18.8 billion for the first six months of 2025, up from $16.6 billion in the prior year period.
  • 6The company completed the sale of its interest in DIRECTV on July 2, 2025, which is expected to result in a significant gain and provide substantial cash proceeds.
  • 7AT&T continued its strategic capital investments, with capital expenditures totaling $9.2 billion for the first six months of 2025, primarily focused on network upgrades and fiber expansion.

Frequently Asked Questions

AT&T reported strong financial results. For the second quarter of 2025, total operating revenues increased by 3.5% to $30.8 billion, and operating income rose by 12.9% to $6.5 billion. For the first six months of 2025, operating revenues grew by 2.8% to $61.5 billion, and operating income increased by 5.6% to $12.3 billion. Net income attributable to common stock showed a significant increase of 25.9% in the quarter and 27.6% year-to-date.

The Communications segment was the primary driver of growth, with Mobility revenues increasing by 6.7% in the second quarter and Consumer Wireline revenues up by 5.8%. However, Business Wireline revenues experienced a decline of 9.3% due to lower demand for legacy services. The Latin America segment saw a revenue decrease of 4.4% due to unfavorable foreign exchange impacts. Corporate and Other reported reduced losses, contributing positively to the consolidated operating income.

AT&T generated robust cash flow from operations, reaching $18.8 billion for the first six months of 2025, a notable increase from the prior year. This strong cash generation was used to fund capital expenditures of $9.2 billion for network investments, pay dividends, repurchase shares, and repay debt. The company also received substantial cash from the sale of its interest in DIRECTV, which closed shortly after the quarter's end.

AT&T continues to prioritize strategic investments in its network, particularly in fiber expansion and 5G technology, as evidenced by its capital expenditures. The company is also focusing on operational efficiencies and business transformation initiatives to drive cost reductions and improve margins. The sale of DIRECTV and other strategic transactions are aimed at refining the company's portfolio and focusing on core growth areas.