AT&T reported robust second-quarter 2025 results, surpassing quarterly profit estimates and adding more wireless subscribers than expected. Consolidated total operating revenues increased by 3.5% year-over-year to $30.85 billion, with adjusted EBITDA also growing 3.5%. Free cash flow reached $4.4 billion for the quarter, demonstrating strong financial performance.
The company raised its full-year 2025 free cash flow guidance to the "low to mid-$16 billion range," an improvement from its prior "$16 billion plus" guidance. For 2026 and 2027, AT&T anticipates approximately $1 billion of upside to its annual free cash flow guidance. These positive revisions are partly driven by significant cash tax savings of $6.5 billion to $8 billion through 2027 from the "One Big Beautiful Bill Act."
A portion of these tax savings will be reinvested to accelerate fiber deployment to a run rate of 4 million new locations annually by late 2026. Mobility service revenue grew 3.5% with 401,000 postpaid phone net adds. Consumer Wireline revenue increased 5.8%, driven by 18.9% growth in fiber revenue, adding 243,000 fiber customers and 203,000 AT&T Internet Air net adds. Consumer Wireline EBITDA surged 17.8%.
AT&T also announced plans to buy back $4 billion of stock by year-end 2025 under its $10 billion authorization, reinforcing its commitment to shareholder returns. The company reaffirmed its full-year consolidated financial guidance for 2025, highlighting consistent execution of its converged connectivity strategy.
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