AT&T's Q2 Results Highlight Strong Operational Performance
AT&T Inc. (NYSE:T) delivered better-than-expected second-quarter results, with adjusted earnings per share of $0.65 surpassing forecasts due to strong subscriber growth and improved operating leverage in its fiber and 5G networks. The company generated free cash flow of $4.7 billion during the quarter—up from last year—and exceeded internal guidance ranges, countering concerns about declining cash flows from infrastructure investments. AT&T added more than 1 million advanced connectivity subscribers overall, including a significant increase in postpaid phone users that outpaced analyst expectations. Adjusted EBITDA rose by 5.2% to $12.3 billion with an improved margin of 39.1%. Despite these strong fundamentals, the stock trades at a discount relative to peers and its historical valuation metrics. The company's current forward EV/EBITDA ratio is below both Verizon and T-Mobile as well as AT&T’s own five-year average, suggesting potential for re-rating. Management has also increased share repurchase authorization to $10 billion, signaling confidence in the balance sheet.
Tickers: $T
Topics: 5G free_cash_flow subscriber_growth telecom