AT&T Revenue Beats Estimates, Buoyed by Broadband Strength

AT&T Inc. reported fourth-quarter profit and revenue that beat analysts’ estimates, buoyed by customers who subscribed to more than one connectivity service.

The third-largest US wireless provider showed quarterly revenue rose 3.7% to $33.5 billion, beating analysts’ projections of $32.8 billion. Adjusted earnings increased to 52 cents a share, beating estimates of 46 cents.

As the Big Three mobile carriers compete for customers in a saturated market, AT&T has increased its focus to becoming a one-stop shop for all of people’s connectivity needs, particularly high-speed internet. Over the last year, AT&T said the number of home internet customers who also subscribe to mobile phone services has climbed to 42%. Chief Executive Officer John Stankey said the company plans to drive that to 50% and beyond.

“This is further evidence that where we have fiber, we win with fiber and 5G,” Stankey told investors on a call. “The impact of this success on our wireless business is material.”

In total, AT&T added more than half a million fixed and mobile internet subscribers in the quarter, what the company described as the best broadband growth in a decade. That includes 283,000 new fiber customers and 221,000 for its wireless internet product called Internet Air, which uses the carrier’s 5G mobile network. During the full year, AT&T more than doubled its Internet Air customer base, Stankey said.

“This strong growth is a result of over five years of executing a sustainable, investment-led business model that centers on providing customers with all of their advanced connectivity needs,” Stankey said.

AT&T, Verizon Communications Inc. and T-Mobile US Inc. are locked in a high-stakes promotional battle that investors have cautioned will weigh on results. AT&T has been offering a spate of perks and discounts to woo new customers and keep existing ones, including giving away the latest iPhone 17 Pro with a device trade-in.

Dallas-based AT&T on Wednesday reported 421,000 new wireless subscribers in the fourth quarter, missing Wall Street projections of 440,000, a sign that it’s feeling the squeeze from its rivals.

Despite AT&T’s overall positive financial results, Citigroup Global Markets analyst Michael Rollins said he still expects “the market to remain sensitive to performance risks from an elevated competitive landscape.”

Stankey said the company expects slowing growth in average revenue per customer, which he called “a feature, not a bug” as people find value from bundled products.

AT&T shares rose 4% to $23.98 as trading got underway in New York on Wednesday. Shares of all three carriers have declined this year. AT&T is down 3.6% so far in 2026, compared with a 8.1% loss for T-Mobile and a 2.4% drop for Verizon.

AT&T also extended its long-term forecast through 2028, saying it expects to return $45 billion to shareholders through dividends and share repurchases.

AT&T is the first of the major telecom providers to report financial results. Verizon reports Jan. 30, and T-Mobile follows on Feb. 11. Verizon and T-Mobile both replaced their CEOs last year, and Verizon recently struggled with a major service outage that stretched across the country for a full day.Bloomberg's John Butler joins Bloomberg Intelligence to discuss.

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