AT&T Inc. (T) shares plunged 5.36% in pre-market trading on Wednesday, despite the telecommunications giant reporting better-than-expected second-quarter results and significant subscriber growth. The sharp decline comes as investors digest the company's latest earnings report and future outlook.

AT&T posted adjusted earnings per share of $0.54, surpassing analyst estimates of $0.51. Revenue for the quarter came in at $30.8 billion, beating expectations of $30.5 billion. The company also reported impressive subscriber growth, adding 401,000 postpaid phone net additions, significantly outperforming analyst projections of 295,700.

Despite these positive results, investors seemed to focus on longer-term concerns. AT&T announced plans to invest $3.5 billion from tax savings to accelerate its fiber network expansion, aiming to reach over 60 million fiber locations by 2030. While this investment signals confidence in future growth, it may have raised questions about the competitive landscape and potential market saturation in the telecom industry.

The stock's decline may also reflect profit-taking following AT&T's strong performance year-to-date, with shares up more than 20% before this earnings release. Additionally, although the company reiterated its full-year 2025 financial outlook, some investors may have hoped for more aggressive guidance given the strong quarterly performance.