Live Coverage: Will AT&T (NYSE: T) Stock Beat Q2 Earnings Projections?

AT&T issued updated full-year and long-term guidance that underscores management’s intent to reinvest aggressively into its fiber footprint—yet key questions remain around earnings power and margin resilience.

Specifically with 2025 EPS still flat to slightly down, cash flow revised slightly lower, and wireline EBITDA still under pressure, investors are hitting the sell button early today.

For FY 2025, AT&T now expects:

• Revenue growth in the low-single-digit range, consistent with its earlier target and broadly in line with Street estimates of ~$124.28B.

• Adjusted EPS of $1.97 to $2.07, narrowing in on the Street high-end but still implying minimal YoY progress amid EPS pressures in H1.

• Free cash flow forecast revised to low-to-mid $16 billion range, a modest reduction from the prior $17B+ guide. While still healthy, this could stoke investor concern given dividend coverage constraints.

• Capital investment is expected to total $22–$22.5B, reflecting the company’s intent to balance expansion with disciplined spend.

• Mobility service revenue growth of 3% or better, and consumer fiber broadband revenue growth in the mid-to-high teens—pointing to pockets of strength in an otherwise margin-constrained environment.

Looking further out, AT&T is betting big on scale to drive operating leverage. Thanks in part to $6.5–$8B in expected tax savings under the One Big Beautiful Bill Act, the company now plans to:

• Accelerate fiber buildout to 4 million locations/year by 2026, with a long-term goal of reaching 60+ million locations via organic deployment, Lumen asset integration, and joint ventures.

• Boost capital investment to $23–$24B annually in 2026 and 2027, reflecting reinvestment of tax windfalls.

• Target Adjusted EPS acceleration to double-digit growth by 2027, though exact drivers remain to be detailed.

The milestones achieved this quarter – from passing more than 30 million customer locations with fiber and eclipsing 1 million total AT&T Internet Air customers, to our agreement to acquire substantially all of Lumen’s Mass Markets fiber business – strengthen the industry’s best and leading connectivity portfolio
-CEO John Stankey

His bullish tone reflects AT&T’s confidence in leveraging the nation’s largest wireless and fiber networks to stay ahead in a highly competitive marketplace. Investors will be watching how these expansions translate into next quarter’s earnings.

AT&T posted modest revenue growth of 3.4% to $30.8 B and a 3.3% rise in operating income, while net income surged 36.2% to $4.9 B and cash balances ballooned 239.4% to $10.5 B year-over-year; however, free cash flow slipped 7.0% to $4.4 B.

AT&T just released Q2 2025 earnings, reporting an adjusted EPS of $0.54 vs. $0.53 expected, beating consensus.

Revenues climbed 3.5% to $30.8 billion on surging 5G and fiber subscriber growth, beating $30.46 billion in revenue estimates. However the stock is down 3.36% in pre-market trading.

AT&T has underperformed peers on both earnings and post-report stock moves. FCF and capital efficiency remain the key swing factors.