AT&T (T) stock took a beating on Wednesday following the release of the wireless communication company’s Q2 2025 earnings report. That report started with adjusted earnings per share of 54 cents, compared to Wall Street’s estimate of 53 cents. The company’s adjusted EPS was also up 5.9% year-over-year from 51 cents.
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Revenue reported by AT&T was $30.8 billion, which was better than analysts’ estimate of $30.48 billion. It also rose 3.4% year-over-year from the $29.8 billion reported in Q2 2024. The company attributed this to high-quality 5G and fiber subscribers and growing services revenue.
AT&T stock was down 3.39% in pre-market trading on Wednesday, despite its Q2 EPS and revenue beating Wall Street’s estimates. Even so, the stock remained up 24.47% year-to-date and 43.11% over the past 12 months.
AT&T Guidance
AT&T also updated its 2025 outlook in its latest earnings report. The company expects adjusted EPS to range from $1.97 to $2.07. With a midpoint of $2.02 per share, AT&T is likely to miss Wall Street’s 2025 adjusted EPS estimate of $2.07.
Other guidance for 2025 includes service revenue growth in the low-single-digit range, adjusted EBITDA growth of 3% or better, capital investment in the $22 to $22.5 billion range, free cash flow in the low-to-mid $16 billion range, and $4 billion in share repurchases.
Is AT&T Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AT&T is Strong Buy, based on 12 Buy and two Hold ratings over the past 12 months. With that comes an average T stock price target of $30.71, representing a potential 12% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
