AT&T Tops Q2 Forecasts on 5G and Fiber Gains, Lifts Free‑Cash‑Flow Outlook

AT&T reported second‑quarter revenue of $30.8 billion, up 3.4 percent year over year, and adjusted earnings of $0.54 a share—both slightly ahead of Wall Street estimates. The upside came largely from mobility, where the carrier booked 401,000 net post‑paid phone additions, and from broadband, where fiber subscribers grew by 243,000, marking an eighth straight quarter of positive net adds. Management said 5G network reach now covers 210 million people, while fiber passes more than 30 million locations.

Robust subscriber momentum helped lift service revenue 4 percent and power operating income to $7.6 billion.  The company raised its full‑year free‑cash‑flow guidance to a range of $16 to $16.5 billion, citing lower capital intensity and ongoing cost cuts.  Capital spending remains focused on accelerating the fiber build—targeting 60 million locations by 2030—and scaling fixed‑wireless access, which added 203,000 AT&T Internet Air customers in the quarter.

Investors cheered the print: AT&T shares opened 2 percent higher before paring gains on broader market weakness.  Analysts at JPMorgan called the numbers “solid and balanced,” though they cautioned that fiber net adds came in just shy of consensus.  CEO John Stankey said the company will keep pushing converged 5G + fiber bundles, banking on cross‑sell synergies and AI‑driven customer‑care automation to unlock a projected $3 billion in efficiency savings by 2027.