AT&T Misses Fiber Target Despite Strong Q2 Results

AT&T exceeded Wall Street expectations in the second quarter of 2025, reporting revenue of $30.8 billion and adjusted earnings per share of $0.54. The company added 401,000 net postpaid wireless phone subscribers, outperforming rival Verizon, but fell short on fiber internet customer additions, with 243,000 new customers versus higher forecasts. AT&T announced plans to invest $3.5 billion—drawn from $6.5 to $8 billion in tax savings from recent reforms—toward expanding its fiber network to over 60 million locations by 2030. Despite strong results and reaffirmed earnings guidance, AT&T shares dropped 3-4% as investors reacted to the fiber subscriber shortfall and maintained high expectations following Verizon's report. AT&T also raised its free cash flow outlook for upcoming years, reflecting confidence in its bundled service strategy. The company did not mention the previously referenced acquisition of Lumen's mass markets fiber business.