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Jon Keegan

AT&T beats on revenue, adds more wireless and fiber customers, will see big savings from tax bill

AT&T posted solid second-quarter earnings, beating estimates, and plans to use $6.5 billion to $8 billion in tax savings from President Trump’s tax bill to build out its fiber business. However, the stock is slumping in premarket trading, as the company’s full-year profit guidance failed to impress.

The company posted $30.8 billion in revenue, up 3.5% year on year, beating estimates of $30.4 billion on higher wireless and consumer sales. Adjusted earnings per share came in at $0.54, beating FactSet analysts’ expectations of $0.53.

Net income for Q2 was $4.9 billion, up from $3.9 billion from the same period in the year prior.

The company saw 401,000 postpaid phone net additions (new monthly subscriptions, minus lost customers) for the quarter.

Mobility service revenue was $16.9 billion, up 3.5% year on year, while consumer fiber broadband revenues were up 18.9% from Q2 2024 to $2.1 billion. The company added 243,000 new fiber subscribers.

AT&T Chairman and CEO John Stankey said in the earnings release:

“We are winning in a highly competitive marketplace, with the nation’s largest wireless and fiber networks.”

Guidance for the full year calls for adjusted earnings per share of between $1.97 and $2.07, and capital expenditures between $22 billion and $25 billion. That profit estimate may be the fly in the ointment here: even the high end of that range is below the consensus estimate of $2.09, per analysts polled by Bloomberg.

The company also said it’s expecting “low double-digit” declines in business wireless EBITDA.

The company said it expects to see $6.5 billion to $8 billion of cash tax savings between 2025 and 2027, thanks to Trump’s tax bill that was just signed into law. Of those savings, $3.5 billion will go into accelerating its fiber internet network, and the company expects to reach 60 million fiber customers when including the Lumen Technologies customers it agreed to acquire.

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Luke Kawa

Texas Instruments soars as Q1 guidance exceeds estimates and CEO touts “a lot of room to go” on industrial recovery

Texas Instruments soared in after-hours trading as better than expected Q1 guidance outweighed a mediocre set of Q4 results.

The chipmaker sees current quarter sales ranging between $4.32 billion to $4.62 billion, the midpoint of which is slightly north of the consensus estimate for $4.42 billion. The outlook for earnings per share of $1.22 to $1.48 also compares favorably to Wall Street’s call for $1.26.

For Q4, sales of $4.42 billion were a tad below the consensus call for $4.43 billion, while earnings per share of $1.27 came in three cents light of the Street’s view. However, earnings per share included a six-cent hit that was not incorporated into the company’s guidance, Texas Instruments said.

Managing expectations had not been Texas Instruments’ strong suit as of late: the stock sank after the firm reported Q3 results since Q4 guidance was weak. And during the conference call that followed Q2 earnings, three separate analysts remarked that CEO Haviv Ilan’s “tone” wasn’t too upbeat despite better than expected financials and decent guidance.

This time, the outlook and commentary is all sunshine and rainbows.

“The first quarter guidance is significantly stronger than seasonal,” remarked Deutsche Bank analyst Ross Seymore. “And if my math is right, it seems like it's the first time you've guided up sequentially since right after the financial crisis 15 years ago, roughly.”

Ilan credited this to a persistent recovery in industrial demand, which accounts for about one third of the company’s sales.

“Remember that on the industrial market, we still have a lot of room to go when you think about the previous peaks,” he said. “So, if you will, the compare, it's still easy for industrial to continue to recover.”

And then, of course, there’s AI. Data center revenues are a small but briskly growing part of TI’s business, accounting for 9% of sales for the full year while surging roughly 70% year-on-year in Q4.

Seagate STX Earnings

Seagate beats expectations on sales and EPS

The guidance was strong, too.

Matt Phillips9h
Tasha Matsumoto
9h
S&P 500 climbs to new all-time high ahead of Big Tech earnings

Meta, Microsoft, and Tesla will report after the bell tomorrow.

BKN-BULLS-JAZZ-JORDAN DUNK
markets
Matt Phillips

Satellite stocks surge on “sovereign space” plans

Planet Labs is on pace to notch its second 10% gain of the month early Tuesday afternoon, adding to its astronomical run of more than 500% over the last 12 months.

Wedbush Securities tech analyst Dan Ives hiked his price target for the stock to $30 from $28 after hosting a series of meetings with the company and investors in California. Ives wrote:

“[Planet Labs] is seeing massive success through its improved GTM selling motion as the company is providing mission-critical use cases for a wide array of government applications with defense & intelligence, with more international agencies seeing the value in PL’s satellite fleet for situational and maritime domain awareness in real-time as the company is benefitting from increasing defense budgets and the urgent need for international countries to reduce its reliance on the US.”

That commentary is consistent with recent news reports that the German military is planning to build what the Financial Times calls the “the equivalent of Elon Musk’s internet service for the German armed forces.”

A separate report in The Wall Street Journal on Monday said, “Spending on space-related projects is expected to rise in many countries, giving companies new opportunities to sell their wares and services.”

Behind this push, in part, is the fact that the roughly 80-year-old NATO alliance is is under unprecedented strain due to, among other things, US President Donald Trump’s fixation on somehow acquiring the Danish territory of Greenland.

Other space plays seem to be benefiting from similar dynamics, with Rocket Lab and AST SpaceMobile both up solidly on the day.

Governments’ New Must-Have: Their Own Satellites

Governments’ New Must-Have: Their Own Satellites

“[Planet Labs] is seeing massive success through its improved GTM selling motion as the company is providing mission-critical use cases for a wide array of government applications with defense & intelligence, with more international agencies seeing the value in PL’s satellite fleet for situational and maritime domain awareness in real-time as the company is benefitting from increasing defense budgets and the urgent need for international countries to reduce its reliance on the US.”

That commentary is consistent with recent news reports that the German military is planning to build what the Financial Times calls the “the equivalent of Elon Musk’s internet service for the German armed forces.”

A separate report in The Wall Street Journal on Monday said, “Spending on space-related projects is expected to rise in many countries, giving companies new opportunities to sell their wares and services.”

Behind this push, in part, is the fact that the roughly 80-year-old NATO alliance is is under unprecedented strain due to, among other things, US President Donald Trump’s fixation on somehow acquiring the Danish territory of Greenland.

Other space plays seem to be benefiting from similar dynamics, with Rocket Lab and AST SpaceMobile both up solidly on the day.

markets
Matt Phillips

Corning-Meta deal reignites optical connections trade

Corning’s $6 billion deal with Meta to provide fiber-optic cable connections for its AI data centers is reigniting an AI-related trade that’s been stalled out over the last month.

Fellow opto-electrical makers of plugs, cables, and various doodads needed to connect data center servers — such as Amphenol, Coherent, and Lumentum — are also soaring Tuesday.

Such stocks ripped in the second half of 2025 before the rally sputtered out in the first half of December. But the amount of money Meta plans to shower on Corning has clearly cheered up competitors — and investors — in the space today.

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Corning soars after striking deal to sell up to $6 billion in optical infrastructure to Meta

Corning soars after striking deal to sell up to $6 billion in optical infrastructure to Meta

Such stocks ripped in the second half of 2025 before the rally sputtered out in the first half of December. But the amount of money Meta plans to shower on Corning has clearly cheered up competitors — and investors — in the space today.

Read more

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