AT&T (NYSE:T) delivered a powerhouse performance for 2025, meeting or exceeding all financial targets while reporting its strongest consumer broadband growth in over ten years.
Bolstered by a surge in "converged" customers who bundle fiber and wireless services, the Dallas-based company used its fourth-quarter earnings report to pivot toward a massive new era of shareholder returns.
For the full year 2025, AT&T generated $125.6 billion in revenue and a reported diluted EPS of $3.04.
The company’s fiber division was the star of the show, surpassing 1 million net additions for the year—a milestone that has become a hallmark of its infrastructure-first strategy.
This expansion helped drive adjusted EBITDA to $46.4 billion, providing the cash flow necessary to return more than $12 billion to investors via dividends and buybacks over the past 12 months.
The most significant news for investors, however, was the announcement of a multi-year capital allocation plan.
AT&T intends to return at least $45 billion to shareholders between 2026 and 2028.
This move signals management's confidence that the company’s heavy "investment cycle"—including 5G modernization and fiber build-outs—is now yielding self-sustaining profitable growth.
Looking ahead, AT&T provided a robust three-year outlook that anticipates a steady acceleration in free cash flow.
The company expects "Advanced Connectivity"—its suite of 5G, Fiber, and IoT services—to be the primary engine for top-line growth.
The company also confirmed it has reached its target net-debt-to-adjusted EBITDA ratio of 2.5x, clearing the path for the intensified share repurchase program.
While Business Wireline remains a drag due to legacy copper declines, the explosive growth in Fiber revenue—up 13.6% in the fourth quarter alone—continues to more than offset those headwinds.