Bloomberg Talks

Episode Title: AT&T CEO John Stankey Talks Earnings
Date: October 22, 2025
Host: Ed (Bloomberg)
Guest: John Stankey (CEO, AT&T)

Episode Overview

This episode features an in-depth discussion with AT&T CEO John Stankey following the release of the company's latest quarterly earnings. The conversation centers on subscriber growth, shifts in average revenue per user (ARPU), churn rates, and the competitive landscape, with special attention given to broadband and wireless strategies, the impact of the iPhone 17 launch, and AT&T’s vision for converged telecom offerings.

Key Discussion Points & Insights

1. Quarterly Results and Subscriber Growth

• The quarter showed higher-than-expected subscriber growth, a point of pride for Stankey.

• Customer acquisition is increasingly focused on those seeking both wireless and broadband services, which Stankey believes are “good customers” thanks to higher long-term value and lower churn.

  “We've been focusing on customers that want to buy both wireless and broadband from us...they have great lifetime values and over time they'll churn less...” (John Stankey, 01:07)

• Accepts that promotions affect ARPU, but sees this as a necessary part of expanding into new segments and building customer lifetime value.

2. iPhone 17 Launch Impact

• Stankey notes that, while not a “huge factor,” there was notable uptick in demand due to pent-up interest after a “suppressed” previous cycle.

• AT&T posted over 400,000 postpaid phone net adds, showing the company's competitive strength.

  “It's not a record-breaking cycle but it's strong...over 400,000 postpaid phone net adds shows we can compete in that space and do well with it.” (John Stankey, 02:21)

• Expects the holiday season to continue as a peak period, with no dramatic shifts in sales pattern forecast for the end of year.

  “I expect that's going to continue to be the case this year...I don't see anything...to suggest we're going to see a step function change...” (John Stankey, 03:29)

3. Broadband & Home Internet Push

• AT&T has been aggressively marketing itself as a home internet provider, and Stankey cites this quarter as validation of its effectiveness.

• The company achieved its best broadband gain in eight years on strategic products (fixed wireless and fiber), surpassing 550,000 new ads and a net gain of 230,000 broadband subscriptions.

  “We had our best broadband gain...fixed wireless and fiber...than we've had in eight years...over 550,000 ads on those strategic products and a net gain of over 230,000 of broadband total.” (John Stankey, 04:29)

• Over 50% of fixed wireless customers also buy wireless, and the company is now 41% penetrated in its fiber markets—metrics Stankey sees as powerful differentiators.

4. ARPU and Churn Dynamics

• Stankey addresses analyst concerns over higher churn and lower ARPU, noting these are expected as AT&T targets previously underpenetrated customer segments.

• Acknowledges that some of the churn in the industry stems from changing leadership and uncertainty, but emphasizes the company's long-term service revenue growth strategy.

  “When we go to value segments...you're going to naturally have a little bit less ARPU...but that's designed into the plan.” (John Stankey, 05:58)

• Maintains that the focus is on aggregate service revenue growth, not just maximizing ARPU, and expresses confidence in the broader strategy.

Notable Quotes & Memorable Moments

• On Acquiring Converged Customers:

  “Even if it's promotional, that's a good customer to pick up because they have great lifetime values and over time they'll churn less...”
  — John Stankey (01:07)

• On iPhone 17’s Real Impact:

  “You can only suppress that activity for so long and now the new device comes out, people see what it is...”
  — John Stankey (02:21)

• On Record Broadband Growth:

  “It’s the best we’ve done in eight years. I think that’s a good strong indication that it’s working.”
  — John Stankey (04:29)

• On Accepting Short-Term ARPU Pressure for Long-Term Gains:

  “I'm okay with a little bit lower ARPU if we actually execute on this consolidated customer strategy...”
  — John Stankey (06:48)

Timestamps for Important Segments

• 00:32 – Ed welcomes John Stankey and sets the topic
• 01:07 – Stankey outlines the quarterly results, subscriber growth focus
• 02:21 – Discussing the iPhone 17’s effect on business
• 03:29 – Stankey’s holiday quarter outlook for iPhone sales
• 04:29 – Results from broadband/home internet push and strategy details
• 05:58 – Response to analyst concerns about churn and ARPU
• 07:16 – Closing remarks

Tone and Style

Stankey remains articulate, confident, and pragmatic throughout, acknowledging industry challenges while emphasizing a patient, value-driven approach to growth. Ed’s interviewing style is direct and informed, drawing out specifics and gently challenging assumptions to clarify points for the audience.

Summary

This episode provides a candid snapshot of AT&T’s current strategy and market posture. John Stankey is notably transparent about balancing short-term ARPU pressures with long-term service revenue growth, leveraging converged customer offerings in both wireless and broadband. The company is buoyed by strong subscriber growth and record broadband performance, while remaining cautious—but undeterred—amid competitive and technological cycles like the iPhone 17 launch. For listeners seeking insight into how a major telecom navigates today’s evolving market, this conversation is both substantial and revealing.