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Jon Keegan

AT&T up on solid earnings

AT&T stock was up about 4% in premarket trading, after delivering solid Q1 2025 earnings right in line with analysts’ expectations.

Revenue for the quarter was $30.6 billion, up 2% year on year. Adjusted earnings per share were $0.51, matching analyst expectations.

Net income was $4.7 billion, a 25% year-on-year gain.

The company saw 324,000 postpaid phone net additions (new monthly subscriptions, minus lost customers) for the quarter. Mobility service revenue was $16.7 billion, up 4.1% year on year.

Consumer fiber broadband revenues were up 19% year on year to $2.1 billion. The company added 261,000 new fiber subscribers.

AT&T plans on a share buyback in Q2 “in the 2.5x range,” according to the earnings release.

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ServiceNow slips despite beating Q4 earnings expectations

Cloud software giant ServiceNow delivered better-than-expected Q4 sales and earnings after the close of trading on Wednesday, though the shares slipped in after-hours trading.  

The company reported:

  • Revenue of $3.57 billion, higher than the $3.53 billion analyst consensus estimate published by FactSet.

  • Adjusted earnings of $0.92 per share vs. the $0.88 analysts expected.

  • Subscription revenue of $3.47 billion vs. the $3.42 billion predicted.

  • Raised guidance for Q1 subscription revenues of between $3.65 billion and 3.655 billion, compared to the $3.58 billion FactSet consensus estimate.

  • Non-GAAP gross margins of 80.5%, a little light compared to the 81.1% FactSet consensus estimate. 

Despite the better-than-expected results, the stock was down after-hours. ServiceNow also announced an expanded AI partnership with Anthropic, in which it will enmesh Anthropic’s Claude models more deeply into its products, alongside its financial results.

Such efforts to more closely associate itself with the AI boom have fizzled so far. ServiceNow shares have plunged 45% over the last year. And investors clearly remain skeptical after the Q4 numbers.

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Southwest climbs on stronger-than-expected 2026 earnings guidance

Southwest Airlines posted its fourth-quarter and full-year earnings after the bell on Wednesday. Its shares climbed more than 4% in after-hours trading.

The airline, one of the big four US carriers, guided for revenue per seat mile to climb “at least 9.5%” in the first quarter, and costs per seat mile to rise 3.5%. It forecast a 1% to 2% boost in capacity for Q1.

For the full year ahead, Southwest said it expects adjusted earnings of $4 per share, ahead of Wall Street estimates of $3.22.

The carrier, which flew its last open-seating flight on Tuesday, posted Q4 adjusted earnings of $0.58 per share, slightly above the $0.57 per share expected by Wall Street analysts polled by FactSet. Southwest’s passenger revenue rose 7.6% to $6.79 billion in the fourth quarter, beating estimates of $6.77 billion.

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