AT&T (T), the telecom giant, has been quietly gaining all year – up 50% from this time in 2024, and up over 20% year-to-date.

Its 2Q earnings report this week topped estimates on the top and bottom line. AT&T reaffirmed guidance for the full year and expects to buy back $4B in stock before the end of 2025. It also reported free cash flow of $4.4 billion. John T. Stankey, CEO, said, “We are winning in a highly competitive marketplace.”

Postpaid phone net adds (customers on a monthly billing cycle) hit 401K in 2Q, with churn (cancellations) of 0.87%. They also saw 243K net adds for AT&T Fiber and 203K adds for AT&T Internet Air.

“What this quarter represents is another proof point that our strategy of investing in 5G and fiber connectivity continues to allow us to grow our business and in particular to grow high-quality customer relationships,” said Brett Feldman, a spokesperson for the company.

AT&T’s long-term outlook relies on fiber connectivity. It hopes to reach 3 million people this year, with the aim of reaching more than 60 million customer locations by the end of the decade. “That’s twice as many customers” as it has today, Brett says. “We’re nowhere near tapping it out.”

The company is recycling cash tax savings of $6.5-$8.0 billion into its fiber and into its workforce, adding $1.5 billion to its pension fund.

An increasingly important part of its growth is customers looking to bundle services, such as 5G and fiber. A company guarantee about its product deliveries is also helping lure new users, Brett argues.

Also importantly, AT&T is not too worried about tariffs or other disruptions: the services it provides are domestic. The phones it sells are made by third parties: they’re just a distributor. They don’t consider their offerings cyclical or “economically sensitive.” Brett says that demand for telecom is “critical” and “resilient.”

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