The Telecom industry has shown impressive growth over the past year, with the S&P Telecom Select Industry Index reporting gains of over 40%, which is quite a leap compared to the S&P 500’s rise of 22%. This success can probably be linked to positive forecasts around AI and the potential for interest rate cuts, something President Trump has been advocating for, creating a more hopeful outlook for telecom companies. Both AT&T and Verizon Communications Inc. posted relatively strong results for the second quarter of 2025.
Here’s a look at the latest quarterly results for these companies.
Verizon Communications
Last month, Verizon Communications (VZ) reported its second-quarter results, showing solid adjusted revenue that surpassed Zacks consensus estimates. Excluding one-time items, the adjusted revenue came in at $1.22 per share, up from $1.15 in the same quarter last year, thereby exceeding estimates by 4 cents.
Total operating revenues rose by 5.2%, from $34.5 billion, aided by higher wireless equipment revenues due to increased service revenue, customer growth, and sales of add-on services. The top line exceeded the consensus estimate of $335.8 billion.
Looking ahead, Verizon anticipates a growth in wireless service revenue of about 2% to 2.8% for 2025. Additionally, adjusted EBITDA is forecasted to grow by 2.5% to 3.5%. They project adjusted revenue growth of 1% to 3% and cash flow between $3.7 billion and $39 billion. Capital expenditures are expected to be in the range of $17.5 billion to $18.5 billion.
AT&T
AT&T (T) also reported solid results for the second quarter of 2025, with adjusted revenue exceeding Zacks consensus estimates. The company has experienced notable growth in wireless customers, although this has been somewhat countered by a decline in demand for traditional voice and data services.
AT&T’s subscriber growth reflects its robust business model and strong cash flow, which stem from effective execution of operational strategies. The company is looking to invest continually in critical areas like 5G while adapting its business model for long-term growth as market conditions change.
With adjusted revenues rising from 51 cents a year ago to 54 cents per share, it exceeded Zacks estimates by 3 cents. Quarterly GAAP operating revenue increased by 3.5% year-on-year to $30.85 billion, mainly due to higher revenues from mobility services and equipment sales, surpassing the $30.53 billion consensus target.
