AT&T CEO John Stankey Talks Earnings

Summary

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.

Transcript

[Indiana University Narrator]

Indiana University is shaping the future of healthcare. Advancing discoveries that become treatments for Alzheimer's, obesity, cancer and rare diseases. And training the providers trusted to deliver them from the lab to the clinic. IU powers medical breakthroughs and the talent behind them. See how IU solves What's next iu Edu Impact.

[Bloomberg Audio Studios Announcer]

Bloomberg Audio Studios Podcasts Radio news.

[Ed (Bloomberg Host)]

Welcome to our Bloomberg TV and radio audiences worldwide. We bring in @&T CEO John Stankey. The company reporting results this morning that showed higher than expected subscriber growth, though some analysts noting customer churn and average revenue per year per user showing signs of strain. John, it's great to have you back with us, you know, with your story.

[John Stankey (AT&T CEO)]

Thanks for having me on.

[Ed (Bloomberg Host)]

You're welcome. It's like a simple story, you know, the data from the quarter is very clear. There was an element of promotion and marketing and deals that drove it. But how would you summarize it?

[John Stankey (AT&T CEO)]

Look, we had really strong growth, as you indicated, and we're really comfortable with our growth. As I think you're probably aware, we've been focusing on customers that want to buy both wireless and broadband from us. And when we can do that, 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 and they'll address that very issue that you alluded to, which is the increasing churn in the industry. And we kind of anticipate as we acquire these customers, we're going to see a little bit of ARPU pressure, partly because we obviously give them a better price for their loyalty and over time we move them up on the continuum of services we sell. So, excuse me. By and large, we feel really good about it.

[Ed (Bloomberg Host)]

John, I don't know if you have some water there with you. Let me give you a second, just to take a quick drink if you need it. Of course, in the quarter, and we've discussed this with a number of the carriers, it was iPhone 17. You know, I was there at Cupertino Apple park on the day of its release. Can you give us a real time sense, even if it's from the promotion perspective, of how big a factor the iPhone 17 was for you?

[John Stankey (AT&T CEO)]

Well, I think it's. It's not a huge factor, but clearly there was a little bit of suppressed activity after the last iPhone cycle a year ago. Maybe some folks anticipated it was going to be a little bit larger. Customers were seeing if it was really frame breaking and change and concluded possibly that it wasn't and delayed waiting for the next cycle. And I think, you know, you can only suppress that activity for so long and now the new device comes out, people see what it is. So there has been an increase over last year and maybe some other previous years. It's not a record breaking cycle but it's strong and we're seeing that as a result. But I don't think it's anything dramatically out of pattern given the suppression we've seen in the market and we were very effective at working through it. 400,000. Over 400,000 postpaid phone net ads shows we can compete in that space and do well with it.

[Ed (Bloomberg Host)]

If you're joining us on Bloomberg Television and Radio, we're speaking to AT&T CEO John Stankey final on the iPhone 17. Will it be more of a factor in the three month period that ends in December, the holidays?

[John Stankey (AT&T CEO)]

Well, the holiday season moving through the fourth quarter is always a peak season for everybody in the industry. I expect that's going to continue to be the case this year. I don't see anything what we've had over the first couple of weeks of the introduction to suggest we're going to see a step function change from current rate and pace. So all of our forward guidance that we've given expects that it's going to be competitive, that we're going to compete and continue to earn our fair share of service revenues on those converged customers.

[Ed (Bloomberg Host)]

Right.

[John Stankey (AT&T CEO)]

I talked about and I expect that it'll be as rambunctious in the industry as it has been and we'll do just fine.

[Ed (Bloomberg Host)]

John, if I turn on my television and watch a show that has ads or I scroll on any given social media timeline, I keep seeing AT and T it talking about itself as a home Internet provider. I know that's been a priority. Have you any evidence that that push has been a success and that you have positioned AT&T in that domain?

[John Stankey (AT&T CEO)]

Well, I'm glad you're seeing those means. We must be getting our right market and targets out there and I think this quarter was an excellent example of it. We had our best broadband gain on our strategic products and services, fixed wireless and fiber than we've had in eight years. And so over 550,000 ads on those strategic products and a net gain of over 230,000 of broadband total. It's the best we've done in eight years. I think that's a good strong indication that it's working. Especially when you consider the industry has been rife with examples of our competitors adjusting their offers, trying to do different things to stem the momentum we've had. So I feel really good about where we're going on that front. And to the effect we can add that with wireless subscribers, which we're showing that we can do over 50% of the time when somebody buys our fixed wireless product and we're over 41% penetrated on our fiber base. That's a winning combination economically. And what kind of differentiates us from everybody else in the industry?

[Ed (Bloomberg Host)]

Okay, shares are down a touch more than 1%, which in the grand scheme of today is modest, is a decline. The back and forth you had with the analysts was yes, churn is up and RP are down. But you seem not to be concerned about that. Why? Why is that not the metrics by which we should should look to progress?

[John Stankey (AT&T CEO)]

It's part of it, I think, Ed, as well as we've got a little bit of churn going on in the industry from CEO change outs and there's a little uncertainty around what the competitive posture is going to be. And then you look at the data points you just referenced and we're the first to report and people are asking, you know, what's going to happen when we hear from everybody else. And my answer to your question is we're going to talk about the fact that we're focused on putting customers together with wireless and broadband. And part of that dynamic is go penetrate segments that we've not been successful at penetrating or as successful. So when we go to value segments that were maybe a little under shared in, you're going to naturally have a little bit less ARPU or average revenue per user when you pick that customer up. And when you combine wireless and broadband together, you may be giving initially a little bit better deal to do that, but that's designed into the plan. We want to grow in aggregate service revenues, which we've demonstrated that we can do that. We indicated we're going to see some strengthening of that as we move through the year from where we were this quarter. And I'm okay with a little bit lower ARPU if we actually execute on this consolidated customer strategy and are more successful at penetrating some of these segments that we haven't been as active in.

[Ed (Bloomberg Host)]

John Stankey AT&T CEO it's great to have you back here on Bloomberg Tech. Thank you very much.

[Bloomberg Audio Studios Announcer]

Hiscock Small business insurance knows there is no business like your business. Across America, over 600,000 small businesses, from accountants and architects to photographers and yoga instructors, look to Hiscox Insurance for protection. Find flexible coverage that adapts to the needs of your small business with a fast, easy online [e-mail] that's hiscox.com there's no business like small business. Hiscox Small Business Insurance.