Q3 Telecom Wars: How AT&T, TMUS and VZ Stack Up After the Results
The United States' Big Three telecom stocks delivered sharply different third-quarter results, highlighting the growing divide between premium growth names and value-oriented incumbents. Subscriber trends, revenue performance, and strategic direction all played a role in shaping market reaction. For investors, the latest numbers offer a clear view of which players may be best positioned heading into 2026.
AT&T Shares Fall on Revenue Miss, In-Line Earnings
In Q3, AT&T's (NYSE: T) revenue grew by 1.7%, coming in slightly lower than expected. AT&T’s adjusted earnings per share of 54 cents were right in line with expectations. Importantly, the company added 405,000 net postpaid mobile phone subscribers. This marked the highest net adds that the company has seen in 2025. The company’s broadband business also performed well. Its fiber revenues grew by nearly 17%. It added 288,000 net fiber customers, which was also a record for 2025.
Continuing to impress was the firm’s converged customer percentage. This measures the percentage of fiber customers who are also phone customers. The figure ticked up to 41.5%, a significant increase over 39.7% in Q3 2024. Notably, the company said it expects its full-year adjusted EPS to be at the high end of its $1.97 to $2.07 range. Shares dropped 2% on the day of the Oct. 23 release.
Some analysts lowered, while others raised their AT&T price targets after the results. Overall, the MarketBeat consensus price target of $30.67 implies around 24% upside in shares. Among analysts who issued updates after the firm's release, the average target comes in at $30.33, still implying significant upside potential of 23%.
T-Mobile Continues Its Stellar Growth, But Markets Wanted More
T-Mobile US (NASDAQ: TMUS) delivered beats on both the top and bottom lines. Revenue grew by 8.9% to nearly $22 billion, coming in almost $350 million higher than anticipated. It also beat on adjusted EPS by 1 cent, posting a figure of $2.41. The company continued its dominance when it comes to postpaid net mobile phone subscribers, adding 1 million customers. This was the company’s highest Q3 net additions in more than a decade.
TMUS also added 506,000 net customers to its 5G broadband business, growing by 22% from Q3 2024. Ultimately, the company raised guidance for its total net postpaid additions, which include phone and broadband. It now expects to add 7.2 million to 7.4 million customers, a midpoint increase of over 1 million versus past estimates.
Still, shares closed down by 3.3% on the day of the Oct. 23 release. Additionally, nearly every analyst who issued an updated price target lowered their forecasts. The MarketBeat consensus price target for T-Mobile sits at nearly $267, while the average price target among analysts who issued updates is around $260. These figures imply 27% and 23% upside, respectively.
Verizon Keeps Losing Customers, New CEO Eyes Convergence to Right the Ship
Lastly, the earnings of Verizon Communications (NYSE: VZ) were a mixed bag. Its 1.5% revenue growth was slightly below estimates, but its $1.21 adjusted EPS allowed for a 2-cent beat. The firm continued bleeding phone subscribers, losing 7,000 net retail customers. Overall, broadband adds improved versus Q2 to 306,000, but were still down around 21% compared to Q3 2024. The company did not alter its full-year guidance.
Verizon’s new Chief Executive Officer, Dan Schulman, noted the company has been “clearly falling short of our potential." He added that the company’s over-reliance on price hikes to drive growth is unsustainable. Looking ahead, the firm’s pending acquisition of Frontier Communications Parent (NASDAQ: FYBR) is a way that Verizon will look to turn its fortunes. It would give Verizon access to 29 million fiber passings, representing potential customers who could connect to its fiber network. It could then use this to cross-sell wireless services, similar to AT&T's approach.
Shares gained around 2.3% on the day of the Oct. 29 release. Still, analysts primarily lowered their price targets after the results. The MarketBeat consensus price target on Verizon of $47.41 implies around 22% upside in shares. The average price target among analysts issuing updates comes in at $48.25, suggesting 23% upside potential.
AT&T and VZ: High-Yield Telecom Plays With Lower Expectations
The fact that T-Mobile sold off after such strong results demonstrates the extremely high bar it is being measured against. Indeed, its nearly 20x forward price-to-earnings (P/E) ratio is exorbitantly higher than that of AT&T and Verizon. They trade at forward P/E ratios of around 11x and 8x, respectively. For this reason, AT&T and Verizon look like the more attractive plays among the big three telecom stocks. Their respective 4.5% and 7.1% dividend yields are also compelling.
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