AT&T shares rose before the opening bell on Wednesday after the telecom group delivered a cleaner-than-expected second-quarter update on the customer growth metric investors watch most closely.
The company reported 432,000 postpaid phone net additions for the quarter. Analysts tracked by FactSet had expected 338,500, meaning AT&T cleared that bar by 93,500 customers.
Postpaid phone additions track customers who pay for wireless service after each billing cycle. For a telecom operator, they are a key test of whether promotions, network spending and service bundles are turning into stickier monthly revenue.
The company also beat expectations on free cash flow and profit. That combination matters to investors because subscriber growth is more valuable when it arrives with enough cash to support network investment, debt reduction and dividends.
AT&T’s update also showed further progress in selling customers both internet and mobile service. Markets are watching whether that strategy can keep customers inside the company’s ecosystem without forcing it into heavier discounts to protect market share.
For consumers, the push into bundled service can affect monthly bills and switching decisions. For investors, Wednesday’s premarket move showed that the market was rewarding AT&T for turning that strategy into stronger-than-expected customer growth and cash performance.
The stock was higher in premarket trading after the results were released Wednesday morning.
