Q1 2025 reveals diverging strategies among US carriers

T-Mobile US leads in growth, AT&T balances fiber and wireless and Verizon leans on loyalty perks in Q1 2025

If you’re looking for a quick read on the U.S. carrier landscape in Q1 2025, it probably goes like this: T-Mobile US came out on top with the strongest subscriber growth and financials; AT&T followed with a solid, balanced quarter, though with fewer subscriber gains than T-Mobile; and Verizon, while stable by several financial metrics, reported churn and subscriber losses that weakened its position relative to its rivals. But let’s dig into the results more closely.

T-Mobile US

T-Mobile US delivered another impressive quarter, continuing its momentum as the industry’s growth leader. The company reported total revenue of $20.89 billion, up 6.6% year-over-year. Net income rose 24% to $2.95 billion, and diluted earnings per share increased 29% to $2.58.

Subscriber growth remained a bright spot in Q1 2025. T-Mobile added 495,000 postpaid phone customers, slightly under Wall Street expectations but still more than its competition. The company also reported 1.3 million total postpaid net additions and 405,000 high-speed internet net adds. Adjusted EBITDA reached $8.26 billion, up 8% year-over-year, while adjusted free cash flow hit a record $4.4 billion, underscoring strong capital efficiency.

The company raised its full-year 2025 adjusted EBITDA forecast to a range of $33.2 billion to $33.7 billion and maintained its aggressive guidance on postpaid net additions, reflecting confidence in its strategic execution.

AT&T

AT&T turned in a stable, well-rounded performance in Q1 2025, with signs of continued progress in both wireless and broadband. Total revenue rose 2% from the year prior to $30.63 billion, while net income jumped 25% to $4.69 billion.

On the wireless front, AT&T added 324,000 postpaid phone lines, a respectable number though trailing T-Mobile. More notably, the company continued to expand its fiber footprint, adding 261,000 AT&T Fiber net subscribers. Adjusted EBITDA was reported at $11.5 billion, while free cash flow hit $3.1 billion — exceeding internal targets.

The company’s convergence strategy continues to gain traction, with over 40% of fiber subscribers now bundling wireless services. AT&T also announced plans to resume share repurchases in the second quarter, signaling financial confidence and a focus on shareholder returns.

Verizon

Verizon’s Q1 2025 results were more mixed. The company posted $33.5 billion in total revenue, a 1.5% year-over-year increase. It beat earnings expectations with adjusted EPS of $1.19 and reported wireless service revenue growth of 2.7%. However, it also saw continued erosion in its postpaid phone base, reporting a net loss of 289,000 postpaid phone subscribers, marking its fifth consecutive quarter of losses in that segment.

The decline was partially attributed to reduced government wireless spending, but it also reflects broader customer retention challenges. On the upside, Verizon added 339,000 broadband subscribers, with growing momentum in both Fios and fixed wireless access.

To counter subscriber churn, Verizon is leaning into loyalty programs like its 3-Year Price Lock and Free Phone Guarantee. The company reaffirmed its full-year wireless service revenue growth target of 2% to 2.8%, though subscriber trends remain an area of concern.

Strategic differentiation is accelerating

T-Mobile continues to invest in next-gen network capabilities, including the rollout of 5G Advanced and a planned launch of T-Satellite, a satellite-to-cell service powered by SpaceX’s Starlink. The company raised its full-year adjusted EBITDA guidance to between $33.2 billion and $33.7 billion, signaling ongoing confidence.

AT&T, meanwhile, is focusing on convergence. More than 40% of its AT&T Fiber customers now subscribe to its wireless service as well. The operator also plans to resume share buybacks in Q2 — an indicator of financial strength and shareholder confidence.

Verizon is focused on reinforcing customer loyalty with offerings like its 3-Year Price Lock and Free Phone Guarantee. Despite subscriber losses, the company reaffirmed its full-year wireless revenue growth guidance of 2% to 2.8%.

Conclusion

Ultimately, T-Mobile delivered the strongest Q1 2025 performance, leading the industry in subscriber growth, profitability and innovation. AT&T followed with balanced results and solid momentum across its core businesses. Verizon, while financially stable, continued to lose ground in key subscriber metrics, underscoring the competitive pressure it faces.