AT&T Q3: Strong Adds, EchoStar $23B Deal

AT&T reported Q3 2025 revenue of about $30.7 billion and adjusted EPS of $0.54, while GAAP EPS was boosted by a gain from the sale of its DirecTV stake. The company added roughly 405,000 postpaid wireless subscribers and delivered strong broadband net additions (about 288,000 fiber adds), with more than 41% of fiber customers also taking AT&T mobile plans, reflecting successful bundling. Management reaffirmed its 2025 revenue outlook and reiterated expectations for mid‑to‑high‑teen consumer fiber broadband revenue growth and low‑single‑digit consolidated service revenue growth. Executives warned that rising equipment and subscriber‑acquisition costs, intense competition and promotional activity around the iPhone 17 cycle are pressuring margins and average revenue per user. AT&T said it agreed to buy roughly $23 billion of wireless spectrum licenses from EchoStar to boost capacity and is pursuing related asset integrations, including moves tied to Lumen, to drive higher‑value, lower‑churn customer relationships. The quarter comes amid robust subscriber momentum across U.S. carriers—T‑Mobile added about 1 million postpaid subscribers in Q3—driven by promotions that helped short‑term adds but may create near‑term churn and revenue‑mix headwinds.