The effects of epidermal growth factor (EGF) on the metabolism of phosphatidylinositol were examined using A431 cells labeled with either 32PO3(4)- or myo-[3H] inositol. EGF was found to increase the incorporation of phosphate into phosphatidic acid, phosphatidylinositol 4-monophosphate, and phosphatidylinositol 4,5-diphosphate as early as 15 s after addition of hormone. These changes were found to be due to two effects of EGF on the phosphatidylinositol cycle. First, EGF stimulated the breakdown of phosphatidylinositol 4,5-diphosphate to diacylglycerol and an inositol triphosphate. In addition, EGF induced a rise in the levels of phosphatidylinositol 4-monophosphate. The EGF-dependent increases in both inositol triphosphate production and phosphatidylinositol 4-monophosphate levels were inhibited by pretreatment of the cells with 12-O-tetradecanoylphorbol-13-acetate. Treatment of the cells with pertussis toxin did not inhibit either of these responses. However, treatment of the cells with cholera toxin selectively abolished the ability of EGF to stimulate the rise in phosphatidylinositol monophosphate levels but did not alter the ability of the hormone to induce the breakdown of phosphatidylinositol diphosphate. The effects of cholera toxin were not mimicked by forskolin, cAMP analogs, or isobutyl-methylxanthine. These data demonstrate that EGF stimulates the production of inositol triphosphate. In addition, the findings are consistent with the hypothesis that EGF independently stimulates a phosphatidylinositol kinase. Based on the effects of cholera toxin and the inability of cyclic nucleotides to mimic this response, the effect of EGF on the phosphatidylinositol kinase may be mediated via a guanine nucleotide-binding protein that is not involved in cAMP production.