Revenue for the second quarter stood at $31.6 billion, up 2.3% from the same quarter last year. Income from continuing operations rose 3.6% year-on-year to $5 billion. Adjusted EBITDA increased 5.2% to $12.3 billion.
Free cash flow stood at $4.7 billion, compared with $4.4 billion a year earlier. Cash from operating activities from continuing operations rose to $10.8 billion from $9.8 billion.
The company’s capital expenditure related to continuing operations was $5.7 billion, while capital investment stood at $6.1 billion.
AT&T Chairman and CEO John Stankey said the company’s growth during the quarter showed the strength of its connectivity strategy. “The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity,” Stankey said.
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US stocks today: S&P 500, Nasdaq open lower as caution builds ahead of Big Tech earningsHe also said AT&T is increasing the pace of its planned share repurchases this year to about $10 billion, citing confidence in the company’s market position. Investors have been watching whether AT&T can grow while also returning more cash to shareholders after years of heavy network spending and balance-sheet repair.
AT&T returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through common share repurchases under its 2024 authorization. The company said it still plans to return more than $45 billion to shareholders during 2026-2028 through dividends and buybacks.
The operating numbers were also strong. AT&T added more than 1 million advanced connectivity customers during the quarter. Advanced connectivity service revenue rose 5.1% year-on-year to $23.5 billion.
The company added 646,000 consumer and business advanced connectivity internet customers, including 367,000 fiber net additions and 279,000 fixed wireless net additions. It also added 432,000 postpaid phone subscribers, while postpaid phone churn stood at 0.86%.
AT&T said 42.5% of households using its advanced home internet services also chose AT&T wireless, showing progress in bundling fiber and wireless services.
The company also added more than 1 million consumer and business locations reached with fiber, taking the total to 38.6 million. It remains on track to reach more than 40 million fiber locations by the end of 2026 and more than 60 million by the end of 2030.
AT&T’s results come at a time when investors are closely tracking telecom companies’ ability to convert fiber and wireless spending into subscriber growth and cash generation. The second-quarter numbers showed that AT&T is gaining customers in both areas while improving profitability.
The company maintained its outlook for higher adjusted EBITDA, adjusted EPS and free cash flow through 2028. It also said it expects its net debt-to-adjusted EBITDA ratio to return to its target level in the 2.5 times range within about three years after the closing of its EchoStar transaction.
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