AT&T (T) Stock: The Budget-Friendly Carrier Shines in Uncertain Economy

TLDR:

AT&T beat Q1 revenue expectations with $30.6 billion, up 2% year-over-year Added 324,000 postpaid phone subscribers, exceeding analyst forecasts of 303,000 Adjusted earnings matched expectations at $0.51 per share Announced early start to $20 billion share repurchase program this quarter Stock rose approximately 4% in early trading to $28.05

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AT&T reported strong first-quarter results on Wednesday, sending its stock higher as the telecom giant outperformed revenue targets and added more wireless customers than expected.

AT&T Inc. (T)

The company posted adjusted earnings of $0.51 per share, meeting Wall Street expectations. Revenue climbed 2% from last year to $30.6 billion, surpassing analyst projections of $30.4 billion according to FactSet data.

Investors responded positively to the news. AT&T shares jumped 4% to $28.05 in early trading, while S&P 500 futures were up 2.5%.

Customer Growth Outpaces Expectations

AT&T added 324,000 postpaid net phone subscribers during the quarter, beating analyst forecasts of 303,000. This strong performance comes as Americans appear to be seeking more budget-friendly options during uncertain economic times.

The customer growth may suggest AT&T is winning customers from competitors. Verizon reported higher-than-expected subscriber losses on Tuesday, potentially indicating a shift in consumer preferences.

Some analysts believe economic concerns, including potential inflation from President Trump’s tariffs, might be driving customers toward AT&T’s more affordable wireless plans.

The company’s ability to attract new customers comes at a critical time when consumers are carefully watching their spending.

Early Stock Buyback Program

In a move that pleased investors, AT&T announced it would begin its share repurchase program earlier than planned. The company had previously set a target to buy back up to $20 billion in stock starting in the second half of 2025.

Having reached a key debt reduction goal ahead of schedule, management now plans to start the repurchase program this quarter.

This decision signals confidence from leadership in the company’s financial position and future outlook.

The accelerated timeline for stock buybacks provides another reason for the positive market reaction to the earnings report.

Maintaining Full-Year Outlook

AT&T maintained the guidance it issued in March, projecting full-year earnings between $1.97 and $2.07 per share.

The company also confirmed it expects to complete the sale of its 70% stake in satellite television provider DirecTV by mid-2025, in line with previous announcements.

This consistency in outlook helps reassure investors about the stability of AT&T’s business strategy.

AT&T is the second major U.S. wireless carrier to report first-quarter results this week. Verizon released its earnings on Tuesday, beating profit and revenue targets but losing more postpaid phone customers than expected.

T-Mobile is scheduled to announce its quarterly results late Thursday, completing the picture for the big three U.S. wireless carriers.

AT&T’s stock has performed well in 2025, rising 18% year-to-date as of Tuesday’s close. This stands in contrast to the broader market, with the S&P 500 down 10.1% over the same period.

The company’s focus on its core telecommunications business appears to be resonating with both customers and investors during challenging economic conditions.

With its better-than-expected subscriber growth and solid financial performance, AT&T seems well-positioned to maintain momentum through the remainder of the year.

The early start to the share repurchase program further demonstrates management’s confidence in the company’s financial health and future prospects.

For investors seeking stability in a volatile market, AT&T’s latest results provide reasons for optimism about the company’s trajectory.

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