AT&T stock up 9.3% since last earnings report: Will the upward trend continue?

AT&T made significant strides in the last month since its prior earnings report, with shares rising around 9.3%, surpassing the S&P 500. Investors and analysts are curious to know if this upward trend will continue as the company approaches its next earnings release. Examining AT&T’s recent earnings performance can offer insight into the factors influencing its trajectory.

The telecom giant, AT&T, delivered a robust performance in the fourth quarter of 2025. The company exceeded expectations with both its adjusted earnings and revenues. This positive outcome was attributed to strong demand for mobility and broadband services. Despite facing reduced demand for legacy voice and data services, AT&T managed to achieve substantial customer growth. The company’s solid operational strategy and financial position have propelled its subscriber base and cash flow, positioning it for sustained growth.

AT&T’s fourth-quarter net income stood at $3.75 billion, or 53 cents per share, on a GAAP basis. Although the company experienced revenue growth during this period, operational costs impacted the year-over-year decline in GAAP earnings. Adjusted earnings stood at 52 cents per share, falling short of the Zacks Consensus Estimate. For the fiscal year 2025, AT&T reported a net income of $21.89 billion, or $3.04 per share, marking a significant increase from the previous year. Adjusted earnings for 2025 were $2.12 per share, higher than 2024 figures.

Quarterly operating revenues rose by 3.6% year over year to $33.47 billion, a result of increased revenue from Mobility services and Consumer Wireline segments. Despite this revenue surge, Business Wireline revenues saw a decline. The adjusted operating income and EBITDA showed improvement, reflecting better operational efficiency. AT&T registered strong subscriber additions, especially in postpaid wireless services, with postpaid churn at 1.12%. The postpaid phone ARPU decreased slightly due to reduced international roaming.

AT&T’s Communications segment reported total revenues of $32.12 billion, with Mobility and Consumer Wireline contributing to the growth. Mobility revenues increased by 5.3% to $24.35 billion, supported by subscriber gains. The Consumer Wireline business showed growth, primarily driven by an increase in fiber broadband services. Business Wireline revenues declined as customers shifted to IP-based solutions. The company aims to expand its fiber network to reach 50 million customer locations by 2030, fostering further growth opportunities.

AT&T’s strategic focus on 5G and fiber investments underscores its commitment to enhancing network capabilities and meeting evolving market demands. As the company continues to adapt its business model in response to changing market dynamics, investors are optimistic about AT&T’s prospects for sustained growth. The company’s solid performance in key segments and robust financial position position it well for the future.