Updated Version 1 - Boosted by strong demand for bundled packages, AT&T raises annual profit forecast
Details have been added in paragraph 4 and stock price movement added in paragraph 12.
Reuters, October 21 - AT&T (T.N) raised its annual adjusted profit forecast on Wednesday after both its quarterly revenue and earnings exceeded market expectations, as its bet on bundled service packages is expected to drive growth and prevent customers from defecting to competitors.
About 43% of households subscribing to AT&T internet services also chose its wireless plans, which has helped the company build stronger customer relationships and lower churn rates amid intensifying competition in the U.S. telecom market.
AT&T added a net 379,000 postpaid wireless subscribers in the third quarter, compared to the FactSet estimate of 379,300
The company also reported a $2.6 billion non-cash impairment charge related to its planned $2 billion sale of its Mexico wireless business (link)
The company now expects annual adjusted earnings per share of about $2.40, up from its previous forecast of $2.25 to $2.35
U.S. carriers are shifting focus from network coverage and smartphone promotions to bundled services and customer loyalty programs in order to attract and retain users
AT&T has been aggressively expanding its fiber network and last month signed a multi-year agreement worth over $3 billion with Corning (link) to procure fiber and cable
In addition, the company acquired Lumen’s fiber business for $5.75 billion in May 2025 (link) to expand its broadband coverage and meet the growing demand for high-speed network connections
This helped AT&T achieve a record number of net broadband additions, with 442,000 new fiber internet users and 327,000 new fixed wireless users in the third quarter
According to data compiled by the London Stock Exchange Group (LSEG), quarterly revenue rose 5.3% year-on-year to $32.3 billion, surpassing analysts’ expectations of $31.69 billion
Adjusted earnings per share for the quarter came in at $0.65, above the $0.60 expectation
In volatile pre-market trading, the company’s share price dropped 3.8%
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