AT&T Inc. (T) Stock: Shares Dip As Q4 Earnings Decline And $10B Buyback Announced

TLDR

• AT&T reported lower Q4 earnings despite revenue growth
• The company announced a new $10 billion share repurchase plan
• Full-year profits jumped sharply due to asset sales and equity gains
• Mobility and fiber subscriber growth remained strong
• Shares dipped modestly as investors weighed margins and cash flow

AT&T Inc. ($T) shares closed at $23.00, down 1.92%, following the release of its fourth-quarter 2025 earnings report and the announcement of a new $10 billion share buyback program.

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While quarterly profits declined year over year, the telecom giant posted higher revenues, improved operating margins, and solid subscriber growth across its core businesses.

Fourth-Quarter Earnings Show Mixed Picture

AT&T reported fourth-quarter net income attributable to common stock of $3.8 billion, or $0.53 per diluted share, down from $4.0 billion, or $0.56 per share, in the same period last year. Adjusted earnings per share came in at $0.52, exceeding the prior-year adjusted figure of $0.43.

Operating revenues rose 3.6% year over year to $33.5 billion, supported by higher Mobility service revenues and continued growth in fiber broadband. Operating income increased to $5.8 billion from $5.3 billion, lifting the quarterly operating margin to 17.3%.

Operating expenses climbed to $27.7 billion, reflecting increased sales volumes in Mobility and higher restructuring charges. Cash from operating activities totaled $11.3 billion, while free cash flow improved slightly to $4.2 billion.

Full-Year Results Boosted By Asset Gains

For full-year 2025, AT&T delivered a sharp improvement in profitability. Net income attributable to common stock rose to $21.9 billion from $10.7 billion in 2024. Diluted earnings per share climbed to $3.04, compared with $1.49 a year earlier.

The increase was driven in part by gains from the sale of DIRECTV and equity income related to DIRECTV. Full-year revenues reached $125.6 billion, up 2.7% year over year, while operating income increased to $24.2 billion. Operating margins expanded to 19.2% for the year.

Full-year operating expenses declined to $101.5 billion, helped by the absence of a $4.4 billion noncash goodwill impairment recorded in 2024. Free cash flow rose to $16.6 billion, supporting capital returns and balance sheet flexibility.

Mobility And Fiber Drive Subscriber Growth

AT&T’s Mobility segment remained a key growth engine. The company added a net 1.2 million wireless subscribers in the fourth quarter, bringing total subscribers to 120.1 million. Postpaid subscriber net adds reached 641,000, with reseller adds of 699,000 offsetting losses in prepaid customers.

Mobility service revenues grew 2.4% year over year to $17.0 billion in the quarter. Postpaid phone churn stayed low at 0.98%, reflecting stable customer retention.

Consumer Wireline performance also stood out. Broadband connections rose to 14.7 million, driven by 210,000 broadband net adds and 283,000 fiber net adds in the quarter. Consumer Wireline fiber revenues climbed 13.6% to $2.2 billion.

Buyback Signals Confidence

AT&T’s board approved a new authorization to repurchase up to $10 billion of common stock, reinforcing management’s confidence in cash flow generation. During 2025, the company already repurchased $4.3 billion in shares under a previous authorization.

The buyback comes as AT&T continues investing heavily in network upgrades. Capital investment totaled $22.0 billion for the year, including mid-band spectrum deployment that has boosted 5G download speeds by up to 80% across nearly 23,000 U.S. cell sites.

Industry Context And Market Reaction

The earnings release landed amid notable developments across the telecom sector. Verizon is addressing a widespread service outage, while peers like TELUS are adjusting dividend policies and insider ownership levels.

AT&T  edged lower after the report as investors balanced improved long-term earnings power against near-term margin pressures and capital intensity. With steady subscriber growth, rising free cash flow, and a sizable buyback underway, market attention is likely to stay focused on execution and shareholder returns in the quarters ahead.

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