AT&T (NYSE:T) added more wireless subscribers than expected in the third quarter, helping its adjusted core earnings edge past Wall Street forecasts as the company capitalizes on its strategy of bundling discounted 5G mobile and high-speed fiber services.
The telecom giant reported 405,000 net monthly bill-paying wireless phone subscriber additions, up 0.5% year over year and ahead of the 338,547 forecast by Bloomberg consensus. Adjusted earnings before interest, taxes, depreciation and amortization rose 2.6% to $11.9 billion, slightly topping projections of $11.77 billion.
The company reiterated that it remains on track to meet its target of at least 3% core earnings growth for the year, crediting “continued customer demand” for its “wireless and fiber offerings.”
“We have the key building blocks in place to give our customers the best connectivity experience in the industry and we’re winning the race to lead in convergence,” said AT&T CEO John Stankey.
AT&T also added 288,000 fiber customers during the quarter, surpassing expectations of 273,747. The company noted that more than 41% of its fiber households also use its wireless services, underscoring the success of its bundling strategy. Mobility revenue grew 3.1% year over year, supported in part by higher wireless device sales.
Group revenue, however, came in at $30.7 billion, falling short of estimates as weakness in the business wireline division offset gains elsewhere. That unit, which provides fiber, internet, and voice services to enterprises, faced declining returns.
AT&T said its planned acquisition of Lumen’s mass markets fiber business is expected to close in early 2026, pending regulatory approval. The deal aligns with its broader push to expand its fiber network amid a more competitive wireless market and rising interest rates.
Shares rose more than 1% in premarket U.S. trading on Wednesday.