AT&T stock slumps on annual profit forecast
The telecom company said it expects adjusted earnings of $1.97 to $2.07 a share, lower from the Street's forecast of $2.09 on average.
AT&T stock fell 3.7% in pre-market trading on Wednesday after closing at $27.42 on Tuesday.
The stock is up 20% so far this year through Tuesday's close.
AT&T said its earnings for the second quarter ended June 30, 2025 rose to 54 cents a share.
Its revenue surged 3.4% to $30.8 billion. It reported free cash flow of $4.4 billion.
The company added fewer fiber customers than expected in the second quarter, stoking concerns about intense competition and eclipsing a surge in wireless subscribers fueled by its discounted bundles.
Texas-based AT&T added 243,000 fiber customers in the June quarter, as compared to 261,000 customers during the January-March period.
Its bundled plans helped the company add 401,000 net monthly bill-paying wireless phone subscribers in the second quarter.
The company said it is spending heavily to advance its fiber optic network across the United States and will use cash savings from President Donald Trump's tax and spending bill to accelerate those plans.
AT&T further said it expects to realize $6.5 billion to $8 billion of cash tax savings through 2027 as a result of the bill.
It plans to invest $3.5 billion of these savings into building out its fiber internet network to a pace of 4 million locations per year by the end of 2026.
To expand its wired footprint, the telco is in the process of acquiring Lumen Technologies Inc.'s consumer fiber unit.
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