AT&T (T) managed to understand elevated momentum from customers through the first few months of this yr, regardless of just lately scaling again an important low cost.
In its first-quarter earnings report for 2025, AT&T revealed that it generated a internet earnings of $4.7 billion through the quarter, which is nineteen% larger than what it earned throughout the identical quarter in 2024.
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AT&T additionally added 324,000 new postpaid cellphone clients and 261,000 new Fiber web clients through the first few months of the yr.
Associated: AT&T quietly points stern warning to clients
These outcomes come after AT&T quietly warned clients final month that beginning on April 24, their autopay low cost will lower from $10 to $5 in the event that they pay their month-to-month invoice with a debit card. This transfer pissed off clients, with some even threatening to change cellphone suppliers.
Whereas AT&T is going through elevated income, the cellphone service is sounding the alarm on the potential influence of a rising menace.
On April 2, President Donald Trump raised eyebrows throughout the nation when he introduced a ten% “baseline” tariff on all nations importing items to the U.S., with roughly 60 nations seeing larger tariff charges.
Tariffs are taxes corporations pay to import items from abroad, and the additional price is commonly handed right down to customers via value hikes.
Nevertheless, on April 9, he switched gears and enforced a 90-day pause on reciprocal tariffs on all nations (besides China), dropping them to a common price of 10%. He additionally unexpectedly hiked tariffs on China to 145%.
Associated: Verizon suffers main loss as clients change gears
Throughout an earnings name on April 23, AT&T CEO John Stankey stated that tariffs can have a adverse influence on numerous gadgets the corporate sells.
“The introduced tariffs may doubtlessly improve the price of smartphones and different gadgets, in addition to the price of community and technical gear,” stated Stankey. “The magnitude of any improve will depend upon quite a lot of components, together with how a lot of the tariffs our distributors go on, and the influence that the tariffs have on client and enterprise demand.”
He additionally warned that AT&T might must hike costs for its gadgets because of Trump’s tariffs.
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“So I believe that if in the end prices are handed to us from those who we purchase handsets from, sadly for the shopper, we’re going to must give you some new methods for them to determine the way to digest that improve in pricing,” stated Stankey.
