AT&T's master plan for when wireless growth hits a wall is working
Not long ago, AT&T came out on top in national tests, earning the most awards for its performance. The carrier stood out in key areas like reliability, speed, and data performance. And it looks like those efforts are paying off.
Looking ahead, AT&T expects its first-quarter adjusted profit to match what analysts predicted, thanks to solid demand for its budget-friendly premium plans that bundle 5G mobile service with high-speed fiber internet.
With the US wireless market reaching a point where there aren't as many new customers to grab, AT&T has been pushing fiber internet hard to fuel growth and bring in more revenue.
Looking at the numbers, AT&T is forecasting at least 48 cents per share in adjusted earnings (not counting DirecTV), slightly under the 49 cents analysts were expecting. Speaking of DirecTV, AT&T decided last year to cut ties completely, selling off its entire 70% stake to private equity firm TPG. The deal, set to wrap up by mid-2025, is expected to bring in around $1.4 billion to $1.5 billion in cash payments.
Even with these major changes, AT&T isn't backing down from its yearly profit expectations, keeping its target between $1.97 and $2.07 per share.
So, overall, AT&T is shifting gears, putting more emphasis on fiber and 5G to keep growing as the wireless market slows down. And actually, this move isn't just about AT&T – it reflects a bigger trend across the industry, where high-speed internet is becoming the main focus.
If you are already with AT&T or thinking about joining, these changes could lead to better connectivity and more convenient options down the line. The company is staying confident in its profit outlook and seeing steady demand for its bundled plans, which suggests it'll keep investing in expanding and improving its network.
With the US wireless market reaching a point where there aren't as many new customers to grab, AT&T has been pushing fiber internet hard to fuel growth and bring in more revenue.
Looking at the numbers, AT&T is forecasting at least 48 cents per share in adjusted earnings (not counting DirecTV), slightly under the 49 cents analysts were expecting. Speaking of DirecTV, AT&T decided last year to cut ties completely, selling off its entire 70% stake to private equity firm TPG. The deal, set to wrap up by mid-2025, is expected to bring in around $1.4 billion to $1.5 billion in cash payments.
AT&T's multi-year strategic growth plan will substantially advance its progress on becoming the best connectivity provider in America… While building the network of the future, AT&T is increasing its opportunity to serve customers how they want to be served, by one provider in a converged manner.
– AT&T, March 2025
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