AT&T gained 405,000 new postpaid wireless subscribers in the third quarter, topping forecasts as iPhone 17 promotions and discounted bundles boosted demand. Yet, revenue missed estimates at $30.7 billion, as higher marketing costs and weaker device sales weighed on results.
The telecom giant benefited from its strategy of pairing fiber broadband with wireless plans, which has helped reduce customer churn — more than 40% of fiber users now subscribe to both. Its broadband unit added 558,000 new customers, the strongest result in over eight years.
However, analysts cautioned that increased handset upgrades in the coming quarter could pressure margins, as carriers shoulder heavy subsidy costs and risk higher customer turnover.
Adjusted earnings came in at $0.54 per share, in line with forecasts, while equipment revenue rose to $4.79 billion, short of expectations.
