AT&T raises annual profit forecast on strong demand for bundled plans

Oct 21 — AT&T raised its annual adjusted profit forecast on Wednesday after beating quarterly ​revenue and profit estimates, betting on its service bundles to drive growth and keep customers from switching to rivals.

About 43% of ‌households signing up for AT&T's internet services also opt for its wireless plans, helping the ⁠company build stickier customer relationships and ​reduce disconnects as competition intensifies ⁠in the US telecom market.

• AT&T added 379,000 net monthly bill-paying ‌wireless subscribers during the ‌third quarter, compared with 379,300 additions estimated by FactSet

• The ⁠company also reported a $2.6 billion non-cash ⁠impairment charge related to the planned sale of its Mexico wireless business for $2 billion

• It now expects annual adjusted profit per share of about $2.40, compared with its prior forecast of $2.25 to $2.35

• US carriers are looking beyond network coverage and smartphone promotions to ‌bundled services and customer loyalty programs to attract ​and retain subscribers

• AT&T has been doubling down on fiber expansion, striking a multi-year deal worth more than $3 billion with Corning last month for fiber and cable supplies

• It also acquired Lumen's fiber business in May 2025 for $5.75 billion to expand its broadband footprint and meet rising demand for high-speed connectivity

• This has helped ​AT&T secure record broadband additions, with 442,000 new fiber internet users and ‌327,000 new fixed wireless ‌subscribers ⁠added in the third quarter

• Revenue for the quarter rose 5.3% from a year earlier to $32.3 billion, beating analysts' estimates of $31.69 billion, according to data compiled by LSEG

• Adjusted profit per share for the quarter came ‌in at 65 cents, above ​estimates of 60 cents

• Shares of ‌the company fell 3.8% ⁠in volatile ​premarket trading

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Jonathan Ananda and ​Vijay Kishore)

Related topics