AT&T Raises Annual Free Cash Flow Target and Surpasses Subscriber Additions Estimates


Summary: AT&T raises its annual free cash flow forecast and exceeds expectations for quarterly subscriber additions, thanks to promotions and phone upgrades.

Wireless carrier AT&T has raised its annual free cash flow forecast to $16.5 billion, up from its previous estimate of $16 billion or higher. The company’s third-quarter subscriber additions of 468,000 beat estimates, driven by promotions and phone upgrades. AT&T has been offering competitive deals, including a significant discount on the iPhone 15 series, and has benefited from customers opting for higher-priced plans. Additionally, the company has increased its full-year adjusted core earnings growth expectations to more than 4%. AT&T has also focused on expense reductions to support its high dividend and service its net debt of $128.7 billion.

Tags: AT&T, free cash flow, subscriber additions, promotions, phone upgrades