AT&T reported third-quarter earnings of $3.2 billion, or 54 cents a share, compared with year-earlier profit of $3.2 billion, or 55 cents a share. Analysts expected earnings of 50 cents a share.
Revenue fell 1.6 percent to $30.9 billion, the company said, in line with the average analyst estimates of analysts polled by Thomson Reuters I/B/E/S.
AT&T, which has exclusive U.S. rights to sell the iPhone, added 2 million wireless subscribers in the quarter. Analysts had expected it to add closer to 1.5 million.
Shares were 3.7 percent to $26.82 in premarket trading.
(Reporting by Sinead Carew and Paul Thomasch; Editing by Derek Caney)