AT&T’s Subscriber Growth Stomps Verizon in the First Quarter

Telecommunications giant AT&T added 324,000 wireless phone subscribers in the first quarter. Using an aggressive marketing strategy, including irresistible device trade-in offers, the cell service provider crushed previous estimates of 258,300.

Revenue in AT&T’s first quarter hit $30.6 billion, a 2% uptick. The telecom made $4.4 billion in profit versus just $3.4 billion in the same period last year.

“Our business fundamentals remain strong, and we are uniquely positioned to win in this dynamic and competitive market,” said AT&T CEO John Stankey, referring to the company’s 2025 outlook in the press release.

AT&T’s growth in Q1 2025 was likely fueled by a growing demand for its bundled high-speed fiber services and 5G mobile packages. Also, the previous release of new iPhones opened the door to attractive promotions that encouraged wireless subscribers to upgrade.

Of course, the threat of tariffs has elevated AT&T’s upgrade business as well. Fearing higher prices are coming, consumers are rushing to buy new devices now instead of waiting.  

Verizon’s Loss Is AT&T’s Gain

AT&T’s major rival, Verizon, also released financials earlier this week. In contrast to AT&T’s subscriber growth, the telecommunications behemoth lost wireless customers.

With Verizon suffering from unexpected price hikes, analysts predicted the company would lose around 166,400 wireless users. However, Verizon was actually down by 289,000 subscribers in the last quarter.

Some of the subscriber loss could be attributed to cuts in the U.S. government, which included employee reductions and cancellation of various public-private contracts. During a call with investors, Verizon CEO Hans Vestberg noted that user numbers fell because of “pressure from federal government accounts,” per Business Insider. While he did not elaborate, the “impact of the new government and their efficiency work” did not help the company’s bottom line.

Despite the disappointing results, Verizon leadership remains confident in the future. The company touted its ability to meet the goals of its customers while emphasizing the difference it makes in their lives.

“With our high-quality customer base, network superiority, and position of financial strength, we have the momentum and flexibility to continue innovating to meet customer needs and invest for growth,” said Vestberg.