AT&T’s second quarter results met market expectations for both revenue and profitability, reflecting steady execution in its core Mobility and Consumer Wireline businesses. Management attributed the quarter’s performance to continued subscriber growth in postpaid wireless and fiber broadband services, as well as an acceleration in converged offerings—customers taking both fiber and wireless plans. CEO John Stankey highlighted, “Our convergence trend accelerated in the second quarter, driven by growth in new customer relationships that subscribe to both our fiber and 5G services.” Cost efficiencies and network modernization also contributed to improved operating margins.

Is now the time to buy T? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions AT&T’s Q2 Earnings Call

• John Hodulik (UBS) asked about the spike in wireless churn and potential for continued elevated churn in the second half. CFO Pascal Desroches stated the outlook assumes a competitive environment and seasonal patterns, but expects ongoing cost savings from legacy transformation.
• Peter Supino (Wolfe Research) questioned whether increased churn should impact the strategy for price increases and asked about the long-term spectrum acquisition budget. CEO John Stankey responded that pricing is not the main churn driver and that spectrum investments remain strategic, with financial flexibility for future opportunities.
• Benjamin Swinburne (Morgan Stanley) inquired about the returns on incremental fiber builds and the profitability of expanding fiber to less dense areas. Stankey emphasized that all builds meet return thresholds, with converged service adoption improving economics, even as costs rise for later builds.
• Michael Rollins (Citi) sought clarification on Mobility EBITDA growth guidance and open access fiber expansion. Desroches said guidance is cautious due to market uncertainty, while Stankey noted opportunities for selective footprint additions but stressed focus on executing current plans.
• Bryan Kraft (Deutsche Bank) asked about the impact of industry-wide churn on future Mobility margins and macroeconomic risks. Desroches expects margins to remain solid excluding growth spending, and Stankey cited supportive telecom policy as a macro tailwind, with only minor public sector softness observed.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of fiber deployment and subscriber growth in both fiber and Internet Air, (2) the impact of rising converged customer adoption on churn and margins, and (3) continued execution on cost-saving initiatives, particularly legacy copper retirement. We will also track how management balances capital investments with shareholder returns as tax savings materialize.

AT&T currently trades at $27.38, in line with $27.41 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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