AT&T Shares Have Sunk Despite a Subscriber Surge. Time to Buy the Dip?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Geoffrey Seiler, The Motley FoolSun, Jul 27, 2025, 8:30 PM 6 min readAT&T continues to see strong subscriber additions.However, investors were disappointed that the company did not raise guidance.10 stocks we like better than AT&T ›AT&T (NYSE: T) has quietly been a great-performing stock over the past couple of years, but it has pulled back after the company failed to raise its guidance when it reported its second quarter results. Investors were expecting a hike after rival Verizon Communications did so a couple of days earlier.Let's look at AT&T's results to see if the pullback is a buying opportunity.When it comes to wireless subscriber growth, AT&T has taken advantage of a Verizon price hike earlier this year to gain customers. In the second quarter, it added 479,000 retail postpaid subscribers, including 401,000 retail postpaid phone additions. It did lose 34,000 prepaid subscribers, but that is generally viewed as a less important segment than subscribers who get a monthly bill. Overall mobility-segment revenue increased 6.7% to $21.8 billion. Mobility service revenue rose 3.5% to $16.9 billion, while equipment sales surged 18.8% to $5 billion. Postpaid phone average revenue per subscriber (ARPU) edged up 1.1% to $57.04.Turning to broadband, AT&T added 243,000 fiber subscribers and 203,000 internet air subscribers. The company lost 93,000 non-fiber subscribers as they continued to switch to faster options. Broadband ARPU climbed by 7.5% to $71.16, while fiber ARPU rose by 6.2% to $73.26. Total consumer broadband revenue was up 5.8% to $3.5 billion.Fiber will be a big focus for the company, with it looking to ramp up its investment to a pace of 4 million new locations per year. It just surpassed 30 million fiber locations and is looking to double that number by 2030, including through assets it has agreed to acquire, its Gigapower joint venture with BlackRock, and agreements it has with other commercial open-access providers. The investment in fiber will be helped by new tax provisions in the "One Big, Beautiful Bill" that allow some assets to immediately be fully depreciated in the year they go into use. Image source: Getty ImagesOn the downside, AT&T's business wireline segment saw a 9.3% decrease in revenue to $4.3 billion. The segment flipped from an operating profit of $102 million in the second quarter of last year to a loss of $201 million this year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the segment fell 11.3% to $1.3 billion.Total revenue rose by 3.5% to $30.8 billion, while adjusted earnings per share (EPS) jumped by 5.8% to $0.54. The results surpassed Wall Street expectations for adjusted EPS of $0.52 on revenue of $30.8 billion. 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