The telecom sector recorded a robust performance over the past year, highlighted by more than 40% gains of the S&P Telecom Select Industry Index, which outperformed the broader S&P 500 (up 22%).
The sector’s outlook remains positive, driven by optimistic AI forecasts. Hopes of interest rate cuts, thanks to President Trump’s push for lower rates, also create an upbeat outlook for the sector. Both AT&T and Verizon Communications Inc. reported relatively healthy second-quarter 2025 results.
Below, we highlight the second-quarter results of these companies.
Verizon Communications
Late last month, Verizon Communications VZ recorded strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. Excluding non-recurring items, quarterly adjusted earnings were $1.22 per share compared with $1.15 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
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Quarterly total operating revenues improved 5.2% to $34.5 billion with growth in service revenues and higher wireless equipment revenues driven by targeted pricing actions, customer growth, sales of perks and add-on services and growth in fixed wireless access. The top line beat the consensus estimate of $33.58 billion.
For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. However, adjusted EBITDA is expected to grow 2.5%-3.5%, up from the prior expectation of 2%-3.5%. The company expects adjusted earnings to grow in the 1-3% range with cash flow of $37-$39 billion. Capital expenditure is estimated in the range of $17.5-$18.5 billion.
AT&T
AT&T T reported strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. The company witnessed solid wireless traction and customer additions, which were partially offset by lower demand for legacy voice and data services.
AT&T recorded strong subscriber growth backed by a resilient business model and robust cash flow position, driven by a diligent execution of operational plans. AT&T expects to continue investing in key areas of 5G and fiber and adjust its business according to the evolving market scenario to fuel long-term growth.
Excluding non-recurring items, adjusted earnings improved to 54 cents per share from 51 cents a year ago. Adjusted earnings for the second quarter surpassed the Zacks Consensus Estimate by 3 cents.
Quarterly GAAP operating revenues increased 3.5% year over year to $30.85 billion, largely due to higher Mobility service and equipment sales and Consumer Wireline revenues, partially offset by lower Business Wireline and Mexico revenues. The top line beat the consensus mark of $30.53 billion.