10-QPeriod: Q3 FY2025

AT&T INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 31, 2025For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. reported solid revenue growth for the nine months ended September 30, 2025, with total operating revenues reaching $92.18 billion, a 2.4% increase year-over-year. This growth was primarily driven by the Communications segment, which saw a 2.6% increase, largely due to strong performance in Mobility and Consumer Wireline. Profitability showed a significant improvement, with Operating Income soaring to $18.37 billion for the nine months, a substantial 33.9% increase compared to the prior year. This was significantly aided by a large non-cash goodwill impairment in the prior year and cost-reduction efforts. The company also benefited from a substantial gain on the sale of its DIRECTV stake, contributing to a robust net income of $19.23 billion for the period. AT&T's balance sheet remains strong, with cash and cash equivalents increasing significantly to $20.27 billion. The company is actively managing its capital structure, including debt repayments, stock repurchases, and strategic investments in spectrum and fiber infrastructure, positioning itself for future growth in the telecommunications and technology sectors.

Financial Highlights

45 data points
Beta

Revenue

$30.71B

Net Income

$9.31B

30.3% Net Margin

EPS (Diluted)

$1.29

Total Assets

$423.21B

Cash & Equivalents

$20.27B

Free Cash Flow

$10.15B

Financial Statements
Beta
Revenue$30.71B
SG&A Expenses$7.45B
Operating Expenses$24.59B
Operating Income$6.12B
Net Income$9.31B
EPS (Basic)$1.29
EPS (Diluted)$1.29
Shares Outstanding (Basic)7.16B
Shares Outstanding (Diluted)7.17B

Key Highlights

  • 1Total operating revenues increased by 2.4% to $92.18 billion for the nine months ended September 30, 2025.
  • 2Operating income saw a significant increase of 33.9% to $18.37 billion for the nine months, driven by cost efficiencies and a favorable prior-year comparison.
  • 3Net income attributable to AT&T was $18.17 billion for the nine months, boosted by a substantial gain from the sale of DIRECTV.
  • 4The Communications segment continues to be the primary revenue driver, with Mobility showing 4.8% revenue growth and Consumer Wireline growing by 5.0% for the nine months.
  • 5Cash and cash equivalents increased substantially to $20.27 billion as of September 30, 2025.
  • 6The company is making significant capital expenditures, totaling $14.06 billion for the nine months, primarily directed towards network upgrades and fiber expansion.
  • 7AT&T announced significant pending acquisitions of FCC licenses and Lumen's mass markets fiber business, signaling strategic investments for future growth.

Frequently Asked Questions

AT&T reported strong financial performance, with total operating revenues growing to $92.18 billion, a 2.4% increase year-over-year. Operating income significantly increased by 33.9% to $18.37 billion, and net income attributable to AT&T reached $18.17 billion. This was driven by revenue growth in the Communications segment, cost efficiencies, and a substantial gain from the sale of its DIRECTV stake.

The Communications segment remains the core of AT&T's business, with total segment operating revenues increasing by 2.6% to $88.78 billion for the nine months. The Mobility business showed 4.8% revenue growth, and Consumer Wireline grew by 5.0%. While Business Wireline experienced a revenue decline, the overall segment performance was positive, with operating income increasing by 1.2% to $21.15 billion.

AT&T's liquidity position strengthened considerably, with cash and cash equivalents at $20.27 billion as of September 30, 2025, a significant increase from the prior year. Cash provided by operating activities was robust at $28.96 billion for the nine months, supporting capital expenditures, dividend payments, stock repurchases, and debt repayments. The company maintains availability under its credit facilities and commercial paper program for short-term liquidity needs.

AT&T is making substantial investments in its future growth. Capital expenditures for the nine months totaled $14.06 billion, primarily focused on network upgrades, fiber expansion, and 5G network development. Furthermore, the company has announced significant pending acquisitions, including FCC licenses in the 600 MHz and 3.45 GHz bands and Lumen's mass markets fiber business, which are expected to enhance its competitive position and expand its service offerings.