Overview: AT&T delivered a stable QQ3 2025 performance with solid profitability and cash generation, underpinned by a diversified portfolio across Mobility, Entertainment (WarnerMedia), and Latin America. Revenue of USD 30.71 billion rose 1.64% year over year but declined 0.45% quarter over quarter, while gross margin remained robust at ~44.2% and net margin at ~30.3%. The company remains leverage-conscious, maintaining a debt to capitalization of ~58.9% and an interest coverage of about 3.6x, with free cash flow per share of USD 0.736 and operating cash flow per share of USD 1.419, underpinning a sustainable dividend policy.
Key Performance Indicators
Revenue
Increasing
30.71B
QoQ: -0.45% | YoY: 1.64%
Gross Profit
Increasing
13.57B
44.20% margin
QoQ: 0.94% | YoY: 0.57%
Operating Income
Decreasing
6.12B
QoQ: -6.58% | YoY: -6.96%
Net Income
Increasing
9.31B
QoQ: 106.98% | YoY: 5 452.87%
EPS
Increasing
1.30
QoQ: 109.68% | YoY: 4 240.13%
Revenue Trend
Margin Analysis
Financial Highlights
Financial highlights (USD):
- Revenue: 30.71 billion; YoY +1.64%; QoQ -0.45%
- Gross Profit: 13.573 billion; Gross Margin 44.20%; YoY +0.57%; QoQ +0.94%
- Operating Income: 6.119 billion; Operating Margin 19.93%; YoY -6.96%; QoQ -6.58%
- Net Income: 9.314 billion; Net Margin 30.33%; YoY reported +5,452.87% (likely base effect or one-off items); QoQ +106.98%
- EPS (diluted): 1.29; Basic: 1.30; YoY EPS growth reported at ~4,240.13%; QoQ +109.68%
- EBITDA: 17.667 billion; EBITDA Margin 57.54%
- Free Cash Flow per Share: 0.736; Operating Cash Flow per Share: 1.419; Cash per Share: 2.83
- Dividends: Payout Ratio 21.8%; Dividend Yield 1.01%
- Valuation multiples (approximate): P/E 5.42; P/B 1.83; EV/EBITDA 19.26; P/S 6.58; P/FCF 38.38
- Liquidity and leverage: Current Ratio 1.013; Quick Ratio 0.959; Debt to Capitalization 0.589; Interest Coverage 3.60x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
30.71B
1.64%
-0.45%
Gross Profit
13.57B
0.57%
0.94%
Operating Income
6.12B
-6.96%
-6.58%
Net Income
9.31B
5 452.87%
106.98%
EPS
1.30
4 240.13%
109.68%
Key Financial Ratios
Gross Profit Margin
Good
44.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
19.90%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Excellent
30.30%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
2.20%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
8.41%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.01
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.43
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
5.42x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.83x
Price-to-book ratio reasonable for profitable companies
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