Big 3 Telecom Wars: 2 Solid Showings, 1 Huge Winner in Q2

Key Points

• Results are in for the Big Three telecom giants in Q2. One name clearly came out on top.
• Despite not putting up outstanding performances, the other two stocks also did relatively well in Q2.
• All three names expect to receive billions in tax benefits due to the One Big Beautiful Bill Act.

AT&T NYSE: T, Verizon Communications NYSE: VZ, and T-Mobile US NASDAQ: TMUS dominate the telecommunications industry in the United States. Together, investors know them as the “Big Three” telecom stocks. They compete fiercely to win wireless cell phone customers. This competition extends to providing internet to homes and businesses, often referred to as broadband.

So, which big name impressed the most in Q2? Let’s break it down.

AT&T: Beats Q2 Estimates With Solid Subscriber and Revenue Gains

AT&T reported Q2 financials on July 23. At a high level, the results were positive. The company beat sales estimates by more than $400 million and surpassed adjusted earnings per share (EPS) forecasts by 1 cent. Shares closed up by a little more than 1%, underscoring the firm’s solid results.

Diving in further, the company added 401,000 net postpaid cell phone subscribers. Despite a 4% drop in additions compared to the same period last year, the figure was significantly better than anticipated.

The company’s broadband business also performed well. AT&T added around 243,000 fiber optic customers and around 203,000 AT&T Internet Air customers, and fiber revenues grew by just under 19%.

The company’s “converged customers” percentage also ticked up to just under 41% compared to just over 40% last quarter. This metric measures the percentage of fiber and cell phone customers. The increasing percentage indicates that the firm is continuing to progress in cross-selling these services, a highly positive sign. 

Overall, it was a very solid report for AT&T. The cherry on top was the fact that the firm expects to see $6.5 billion to $8 billion in cash tax savings through 2027 due to the One Big, Beautiful Bill (OBBB).

Verizon: Shares Spike Nicely, But Postpaid Losses Are a Concern

For Q2, Verizon posted results on July 21, beating expectations on both revenue and adjusted EPS. It also slightly increased its full-year guidance on multiple key metrics, including adjusted EPS growth and free cash flow. The free cash flow boost comes as the company sees tax reforms in the OBBB benefiting the metric by $1.5 billion to $2 billion in 2025.

These solid headline results led to shares closing up 4% on July 21. However, there was a significant negative in the report.

The company’s net postpaid cell phone customers fell by 9,000, while Wall Street expected the figure to rise. This came as the firm added 42,000 business phone customers but lost 51,000 consumer customers. However, the 50,000 net prepaid cell phone additions did soften the blow.

The company’s broadband business held strong, adding 293,000 net customers, although this was down from 391,000 a year ago. Overall, Verizon also had a solid quarter, but its loss of postpaid wireless customers is not a great forward-looking signal.

T-Mobile: Earnings Growth Crushes Estimates, Company Breaks Q2 Records

Last up is T-Mobile, which reported Q2 results on July 23. The company slightly beat estimates on sales growth, but its adjusted EPS beat was particularly impressive. The figure increased by 14% to $2.84. Wall Street only anticipated a rise of 8%. The firm also boosted guidance.

It expects to add around 500,000 more net postpaid customers when combining wireless and broadband, versus previous forecasts. These headline figures led to shares rising more than 6% on July 24.

The company also added 830,000 net postpaid cell phone customers, a record Q2 figure for T-Mobile. It also posted 1.7 million total net postpaid adds, another Q2 record. This figure includes net postpaid cell phone adds, net 5G broadband adds, and net postpaid wireless adds for other devices like tablets and wearables. 5G broadband adds were industry-leading, coming in at 545,000.

 The company also noted that its revenue per account (ARPA) increased by 5%, its highest clip in eight years. The company expects $1.5 billion in OBBB-related cash tax benefits in 2026. For T-Mobile, Q2 2025 was an unmitigated win.

T-Mobile Takes the Telecom Cake in Q2

Overall, all three of the United States' telecom giants performed solidly in Q2, each beating expectations on headline metrics. However, T-Mobile clearly walked away with the best showing.

It massively surpassed adjusted EPS estimates and notched multiple personal bests. After the results came out, analysts at Morgan Stanley NYSE: MS boosted their price target on T-Mobile from $265 to $285. This figure implies 17% upside in shares versus the stock’s July 25 closing price.