Amid a tech-sector selloff sparked by the emergence of Chinese startup DeepSeek and its free AI offering, AT&T (NYSE: T) defied the downturn on Monday, climbing 6% after delivering strong fourth-quarter results.
The telecom giant emerged as one of the top gainers in the S&P 500, driven by solid growth in its wireless and broadband businesses.
As of the market close on January 27, AT&T shares were trading at $24.14, reflecting a six-month increase of 24%. The latest rally has pushed the stock’s one-year gain to an impressive 39%.
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Record fiber additions and subscriber growth
AT&T’s fiber network added 307,000 subscribers in Q4 2024, marking its best fourth-quarter performance to date and a substantial increase from 226,000 in the previous quarter.
The telecom giant also added 482,000 postpaid connections, surpassing analysts’ expectations of 424,550. The company attributed this growth to AT&T’s consistent go-to-market strategy, which has helped it achieve 1.7 million postpaid phone net additions and 3.5% service revenue growth in 2024.
The company has now added over 1 million fiber subscribers annually for seven consecutive years. AT&T also reported six straight quarters of positive broadband net additions, driven by its high-speed fiber services and AT&T Internet Air.
AT&T Q4 financial performance and 2025 guidance
AT&T reported adjusted earnings of $0.54 per share for Q4 2024, exceeding Wall Street’s consensus estimate of $0.50.
Revenue rose 0.9% year-over-year to $32.3 billion, slightly ahead of the $32 billion projection. Additionally, the company reduced its net debt by $5.5 billion during the quarter, ending the year with a total debt load of $120 billion.
Despite this, the company continues to offer a dividend yield of 4.6%, making it an attractive option for income-focused investors. Craig Moffett of MoffettNathanson highlighted AT&T’s financial strength, noting its ability to maintain dividend payments while reducing debt.
Looking ahead, AT&T expects consolidated service revenue to grow in the low-single-digit range in 2025, driven by mobility and mid-teens growth in consumer fiber broadband.
The company has projected adjusted earnings per share, excluding the contribution from its 70% stake in DirecTV, to range between $1.97 and $2.07 for FY25.
With its consistent subscriber growth, strong financial performance, and focus on expanding its 5G and fiber networks, AT&T is well-positioned to sustain its growth trajectory.
For income-focused investors, the company’s dividend yield and solid fundamentals further enhance its appeal as a reliable addition to any portfolio.
Featured image via Shutterstock
