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 help prevent customers from switching to rivals.
About 43 per cent 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.
- The company now expects annual adjusted profit per share of about $2.40, compared with its prior forecast of $2.25 to $2.35
- 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
- Revenue for the quarter rose 5.3 per cent from a year earlier to $32.3 billion, beating analysts' estimates of $31.69 billion, according to data compiled by LSEG
- Sales were driven by growth in wireless service and equipment sales, alongside stronger postpaid revenue from Latin America
- Adjusted profit per share for the quarter came in at 65 cents, above estimates of 60 cents
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Get our pick of top stories and thought-provoking articles in your inbox
Stay updated with notifications for breaking news and our best stories
Join our channel for the top reads for the day on your preferred chat app
