AT&T’s first quarter delivered steady growth, with positive market reaction driven by strength in mobility and consumer wireline businesses. Management credited robust postpaid phone and fiber subscriber gains as key contributors, noting that targeted investments in customer acquisition and network expansion paid off. CEO John Stankey pointed to the company’s “differentiated position as the largest converged provider across 5G and fiber” as a main driver of high-value customer relationships, particularly within its expanding fiber footprint. CFO Pascal Desroches highlighted cost control efforts and noted that adjusted margins were impacted by increased advertising and guarantee program launch costs.

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 Q1 Earnings Call

• Peter Supino (Wolfe Research) inquired about how AT&T might respond to higher device costs from tariffs and cost reduction opportunities outside consumer wireline. CEO John Stankey explained that increased costs would likely be managed by passing some to customers and through creative plan adjustments, while ongoing efficiency efforts span call centers, IT, and digital channels.

• Benjamin Swinburne (Morgan Stanley) asked about the potential acquisition of Lumen’s fiber assets and the operational impact of new FCC orders. Stankey declined to comment on M&A rumors but reiterated openness to accretive deals, and described the FCC’s actions as providing “tailwinds” for legacy network retirements, shifting the focus to operational execution.

• John Hodulik (UBS) sought clarity on the impact of elevated device upgrades on wireless margins and the sustainability of improved business wireline EBITDA trends. CFO Pascal Desroches indicated that Q2 upgrades would likely remain high due to tariff concerns, and that some recent wireline cost benefits were nonrecurring, so normalization is expected.

• Michael Rollins (Citi) explored the acceleration in fixed wireless net adds and future ARPU improvement potential. Stankey attributed fixed wireless growth to network modernization and effective targeting, while ARPU gains are expected to continue through value-based pricing of fiber and wireless services.

• Sebastiano Petti (JPMorgan) questioned management’s confidence in achieving the high end of mobility EBITDA guidance and the durability of fiber investment plans if macro conditions change. Desroches pointed to accelerated cost actions and plan adjustments, while Stankey emphasized the long-term strategic value of fiber and commitment to investment.

Catalysts in Upcoming Quarters

As we look ahead, the StockStory team will be monitoring (1) the pace of fiber network buildout and its contribution to subscriber growth, (2) management’s ability to offset device cost headwinds from new tariffs through pricing or operational changes, and (3) execution on cost reduction targets, especially in business wireline and network modernization. The initiation and progress of the share repurchase program will also serve as a key marker for capital allocation discipline.

AT&T currently trades at $27.69, up from $26.96 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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