Shares of AT&T Inc. slumped on Wednesday in pre-market session after the company’s profit forecast for the year 2025 fell short of Wall Street estimates.
The telecom company said it expects adjusted earnings of $1.97 to $2.07 a share, lower from the Street’s forecast of $2.09 on average.
AT&T stock fell 3.7% in pre-market trading on Wednesday after closing at $27.42 on Tuesday.
The stock is up 20% so far this year through Tuesday’s close.
Second Quarter Earnings
AT&T said its earnings for the second quarter ended June 30, 2025 rose to 54 cents a share.
Its revenue surged 3.4% to $30.8 billion. It reported free cash flow of $4.4 billion.
Fiber Optic Network
The company said it is spending heavily to advance its fiber optic network across the United States and will use cash savings from President Donald Trump’s tax and spending bill to accelerate those plans.
AT&T further said it expects to realize $6.5 billion to $8 billion of cash tax savings through 2027 as a result of the bill.
It plans to invest $3.5 billion of these savings into building out its fiber internet network to a pace of 4 million locations per year by the end of 2026.
To expand its wired footprint, the telco is in the process of acquiring Lumen Technologies Inc.’s consumer fiber unit.
