Dallas-based AT&T Inc. added more mobile phone and home internet subscribers this summer than analysts expected, amid a heavy promotional push to keep competitive pressure on its two main rivals.
The smallest of the Big Three U.S. wireless providers, AT&T won 405,000 new mobile phone customers in the third quarter, according to a statement Wednesday, up slightly from a year earlier and topping analysts’ average projection for 338,500. The company also added 288,000 fiber internet customers, exceeding expectations of 273,747.
AT&T has gained ground with a new “customer guarantee” introduced in January, promising better network reliability and customer service and pledging to offer the best smartphone deals at a time when consumers are particularly attuned to inflation.
As competition for new mobile phone users remains stiff with Verizon Communications Inc. and T-Mobile US Inc., AT&T has been building up its home internet service, offering fiber and fixed-wireless options. The fixed-wireless offering, known as Internet Air, uses AT&T’s 5G mobile network to provide internet across 47 states. The service picked up 270,000 new customers in the quarter, beating Wall Street expectations.
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“We continue to add highly profitable customers that are choosing AT&T for all their connectivity needs,” Chief Executive Officer John Stankey said in the statement.
The carrier reported revenue of $30.7 billion, falling just short of Wall Street’s projected $30.86 billion. Adjusted earnings per share were 54 cents, in line with estimates. The company said full-year earnings per share are likely to land in the upper range of its previous guidance of $1.97 to $2.07. Analysts were looking for $2.06 on average.
AT&T made a hefty investment in its network during the quarter, agreeing to buy key airwave licenses from EchoStar Corp. for $23 billion, which will allow it to add more capacity for fixed-wireless customers. It’s also in the process of acquiring Lumen Technologies Inc.’s consumer fiber unit, which is expected to add 5 million locations to the network when the transaction closes in early 2026.
AT&T is the first of the major telecom providers to report financial results. T-Mobile reports Oct. 23, and Verizon follows the week after. Verizon and T-Mobile both replaced their CEOs in the last month and the quarterly analyst calls will offer both of the new CEOs their first public platforms to articulate strategy. Verizon’s Hans Vestberg was succeeded by former PayPal CEO Dan Schulman after a particularly brutal period of mobile subscriber losses, and at T-Mobile, Chief Operating Officer Srini Gopalan took the reins from Mike Sievert.
– Kelcee Griffis for Bloomberg
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