AT&T reported QQ2 2025 revenue of $30.847 billion, up 3.5% year over year and 0.7% quarter over quarter, driven by ongoing wireless and fixed-line activity and steady ARPU in core services. Gross profit reached $13.446 billion with a gross margin of 43.59%, while operating income was $6.55 billion (operating margin 21.23%). Net income of $4.50 billion produced EPS of $0.62, up 25.1% year over year and 3.4% quarter over quarter, reflecting disciplined cost management alongside continued revenue generation. Free cash flow stood at $6.87 billion, supported by $9.76 billion in operating cash flow and $4.90 billion in capital expenditures, yielding a free cash flow per share of $0.675. Despite solid cash generation, AT&T carries a substantial leverage burden, with total debt of $150.1 billion and net debt of $139.6 billion, contributing to a debt-to-capitalization of 0.588 and debt-to-equity of 1.426. The dividend payout ratio is 45.4%, implying a balanced approach to capital return given leverage dynamics. The current ratio (0.81) and quick ratio (0.76) reflect a liquidity profile that remains cash-generative but with modest near-term liquidity buffers.
Key Performance Indicators
Revenue
Increasing
30.85B
QoQ: 0.72% | YoY: 3.52%
Gross Profit
Increasing
13.45B
43.59% margin
QoQ: 0.32% | YoY: 1.23%
Operating Income
Increasing
6.55B
QoQ: 3.43% | YoY: 4.07%
Net Income
Increasing
4.50B
QoQ: 3.42% | YoY: 25.10%
EPS
Increasing
0.62
QoQ: 1.64% | YoY: 26.53%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $30.847B; YoY +3.52%, QoQ +0.72%.
Gross Profit: $13.446B; Gross Margin 43.59%; YoY +1.23%, QoQ +0.32%.
Operating Income: $6.55B; margin 21.23%; YoY +4.07%, QoQ +3.43%.
Net Income: $4.50B; Net Margin 14.59%; YoY +25.10%, QoQ +3.42%.
EPS: $0.62; YoY +26.53%, QoQ +1.64%.
Operating Cash Flow: $9.76B; Capex: $4.90B; Free Cash Flow: $6.87B; FCF/Share: $0.675.
Current assets: $39.31B; Total assets: $405.49B; Total liabilities: $282.11B; Stockholders’ equity: $105.27B.
Total debt: $150.07B; Net debt: $139.57B; Cash & cash equivalents: $10.50B; Cash at period end: $10.58B.
Payout Ratio: 45.4%; Operating Cash Flow to Sales: 31.6%; Free Cash Flow to Operating Cash Flow: 49.8%; Dividend Yield: 0.98%; P/E: 11.59; P/BV: 1.98; P/S: 6.76; EV/EBITDA: 26.75.
Liquidity: Current Ratio 0.81; Quick Ratio 0.76; Cash Ratio 0.22.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
30.85B
3.52%
0.72%
Gross Profit
13.45B
1.23%
0.32%
Operating Income
6.55B
4.07%
3.43%
Net Income
4.50B
25.10%
3.42%
EPS
0.62
26.53%
1.64%
Key Financial Ratios
Gross Profit Margin
Good
43.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
21.20%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
14.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.11%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.27%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.81
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.43
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
11.59x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.98x
Price-to-book ratio reasonable for profitable companies
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