AT&T's stirring up the pot with a third-quarter blowout that even the cleverest of market watchers had to tip their hats to. Barely anyone had five years ago pegged the sleepy telecom to launch past some of the juggernauts in service revenue growth. But here we are, folks—the company clocking a solid $32.3 billion in revenue, trundling in at a thick 5.3% from the previous year. For AT&T, this isn’t just another win; it's a full-blown scalp-hunting tale of a rejuvenated network player.
Firing on All Cylinders in Connectivity
Pull out your calculators! They’ve managed to entice one million new advanced connectivity customers for the second quarter running—an unflinching reminder that their fiber and wireless postpaid services are catching on like wildfire. Remarkably, the fiber arm of their operation isn’t showing any signs of giving up its stronghold soon, with a near 770,000 internet net adds this quarter alone.
Revenue and Earnings Climb
If you're wondering about the big bucks stuff, get this—Advanced Connectivity service revenue took a skyward jump, settling at a hearty $23.9 billion, up 6.1% year-over-year. Keeping the momentum, diluted EPS may have stumbled to $0.13 on paper, but dig a little deeper, and you find that adjusted EPS came in at $0.65, improved from $0.54 last year. Why the disparity? Well, their Mexican venture’s shedding costs weigh in there, not to mention separation charges—that’s your justification on the books, plain and simple.
Fiber Expansion & Outlook
The ones and zeros about the network side say they’ve reached over 39 million spots with fiber—penciling in a grand ambition to tick 40 million by end of 2026. That's no paltry ambition. In the long-term dance, they’re eyeing 60 million come 2030. To keep the iron hot, there’s a strategy involving focused capital deployment in a lower range than they planned earlier, backing that fiber growth while fattening shareholder pockets with repurchases and dividends.
"Our asset base positions us well for the AI era," said John Stankey, the head honcho steering this juggernaut. Now, that’s fighting talk.
Advanced Connectivity: The Cadillac of Service
When it comes to what’s making the dough—service revenue is king here, sprawling across a 7.2% rise. This isn't magic, folks. It’s the bread and butter of offering faster, reliable connectivity matched by price actions and subscriber base expansion.
Moving the Needle with Network Edge
Looking deeper into the networks, wireless, business fiber, and even the often shunned fixed wireless, they all had their turn in the revenue limelight. The strategy’s clear—retention, expansion, and a sprinkle of pricing savvy.
Ticking Off Debt and Looking Ahead
Finally, despite sitting on debt by the buckload, like a crafty sailor, they’re not floundering; quite the opposite, in fact. They’ve got a plan, a plan involving a net debt-to-adjusted EBITDA target that’s flirting with a 2.5x ratio by 2029.
- Capital investment slides slightly lower to the $23-$24 billion range next year.
- With cash returns to shareholders set above $45 billion for 2026-2028, there’s a cushion for everyone.
So, if you're stacked with $T, just know you're riding a bus that isn’t planning to brake soon. For now, let’s watch, amidst all this connectivity clutter, if they can pull off this well-oiled machine trick next quarter.
