AT&T Reports Strong First-Quarter 2026 Financial Results
Rhea-AI Summary
AT&T (NYSE:T) reported first-quarter 2026 results with consolidated revenues of $31.5 billion and diluted EPS from continuing operations of $0.54 (adjusted EPS $0.57). Adjusted EBITDA was $11.8 billion and Advanced Connectivity service revenue totaled $22.9 billion.
Advanced Connectivity net adds were 584,000 (292,000 fiber; 292,000 fixed wireless), postpaid phone net adds were 294,000, and AT&T repurchased about $2.3 billion of stock. The company reiterated 2026 guidance including adjusted EPS of $2.25–$2.35, capital investment of $23–$24 billion, and free cash flow of $18 billion+.
Positive
- Revenues of $31.5 billion in Q1 2026
- Advanced Connectivity service revenue up 3.6% YoY to $22.9 billion
- Advanced Connectivity operating income up 14.8% YoY
- Internet net adds of 584,000 (292,000 fiber; 292,000 fixed wireless)
- Repurchased approximately $2.3 billion in common shares
Negative
- Legacy revenues down 25.3% YoY
- Free cash flow fell to $2.5 billion from $3.1 billion (approx. 19% decline)
- Diluted EPS from continuing operations declined to $0.54 from $0.61 year ago
- Net debt of $126.4 billion at quarter end
News Market Reaction – T
On the day this news was published, T declined 0.50%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
T fell 1.15% with key peers also lower: TMUS -1.28%, VZ -0.54%, CMCSA -2.39%, AMX -2.13%, CHTR -1.65%, pointing to a broader telecom/cable pullback rather than a T-specific move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 23 | Q3 2024 earnings | Positive | +4.6% | Revenue and EPS growth with strong 5G and fiber subscriber additions. |
| Jul 24 | Q2 2024 earnings | Positive | +5.2% | Solid revenue, adjusted EPS and broadband gains with reiterated guidance. |
Recent earnings releases with 5G and fiber growth have coincided with positive next-day price reactions.
Over recent earnings cycles, AT&T highlighted steady 5G and fiber momentum. In Q2 2024, revenues were $29.8B with adjusted EPS of $0.57 and strong postpaid phone and fiber net adds, and the stock rose the next day. In Q3 2024, revenues reached $30.2B with adjusted EPS of $0.60, again supported by subscriber growth and a positive price reaction. Today’s Q1 2026 release continues this theme with growth in Advanced Connectivity and reiterated multi‑year guidance.
Historical Comparison
In the past two earnings releases, AT&T shares moved about 4.91% on average, with positive reactions to reports featuring 5G and fiber growth alongside reiterated guidance.
Across Q2 and Q3 2024, AT&T emphasized consistent 5G and fiber expansion with maintained guidance. The current Q1 2026 results extend that pattern into a converged Advanced Connectivity framework with continued revenue and EPS growth targets.
Market Pulse Summary
This announcement underscores AT&T’s shift toward converged Advanced Connectivity, with Q1 2026 revenues of $31.5B, adjusted EPS of $0.57, and Advanced Connectivity service revenue of $22.9B. The company reiterated its 2026 outlook, including adjusted EPS of $2.25–$2.35 and free cash flow of $18B+. Investors may focus on balancing growth in fiber and wireless with lower free cash flow of $2.5B this quarter and managing total debt of $138.4B.
Key Terms
ebitda financial
free cash flow financial
postpaid phone churn financial
operating income margin financial
net debt-to-adjusted ebitda ratio financial
non-gaap measures financial
AI-generated analysis. Not financial advice.
Results reflect consistent execution of the Company's investment-led customer-centric strategy
The Company reiterates all full-year 2026 and multi-year financial guidance and capital return plans
"We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built," said John Stankey, AT&T Chairman and CEO. "We're uniquely positioned to deliver more of what customers want — fiber and 5G all from one provider on the nation's largest advanced converged network, backed by the AT&T Guarantee. The actions we've taken this quarter are evidence of how we are improving the customer value proposition, scaling faster, and accelerating growth."
Note: With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's first-quarter results, unless otherwise indicated. The acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, of which AT&T plans to sell a controlling interest to an equity partner that will co-invest in the ongoing business. As such, the subsidiary is classified as held-for-sale and reflected as discontinued operations.
First-Quarter Consolidated Results
- Revenues totaled
$31.5 billion 2.9% from the year-ago quarter - Diluted EPS from continuing operations was
$0.54 $0.61 $0.57 $0.51 - Operating income was
$6.7 billion $6.9 billion - Income from continuing operations was
$4.2 billion $11.8 billion - Cash from operating activities from continuing operations was
$7.6 billion $9.0 billion $1.4 billion - Capital expenditures related to continuing operations were
$4.9 billion $5.1 billion - Free cash flow* was
$2.5 billion $3.1 billion
First-Quarter Highlights
- Advanced Connectivity service revenue of
$22.9 billion 3.6% year over year - Advanced Connectivity operating income of
$6.9 billion 14.8% year over year with EBITDA* of$11.6 billion 5.6% 42% of households with AT&T's advanced home internet services also chose AT&T wireless; this approaches45% when excluding the impact of fiber customers acquired during the quarter, up over 3 percentage points year over year, representing the fastest-ever reported organic growth in the advanced home internet convergence rate- 584,000 total consumer and business Advanced Connectivity internet net adds, including 292,000 fiber and 292,000 fixed wireless
- 512,000 consumer advanced home internet net adds, including 273,000 AT&T Fiber2 and 239,000 AT&T Internet Air
- 294,000 postpaid phone net adds with postpaid phone churn of
0.89% - Over 37 million total consumer and business locations reached with fiber3, including more than 4 million acquired from Lumen during the first quarter; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030
- Repurchased approximately
$2.3 billion
Outlook and Capital Allocation Plan
AT&T maintains the long-term outlook and capital allocation plans provided with its fourth-quarter 2025 results. This includes the Company's outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return
For 2026, AT&T continues to expect4:
- Service revenue growth in the low-single-digit range, including Advanced Connectivity service revenue growth of
5% + and a decline in Legacy service revenue of20% + - Adjusted EBITDA* growth in the
3% to4% range, including Advanced Connectivity EBITDA* growth of6% + - Adjusted EPS* of
$2.25 $2.35 - Capital investment* in the
$23 billion $24 billion - Free cash flow* of
$18 $1.0 billion $1.5 billion $350 million - Consistent capital returns, including plans to maintain its current annualized common stock dividend of
$1.11 $8 billion
Note: AT&T's first-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, April 22, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.
Consolidated Financial Results
- Revenues for the first quarter totaled
$31.5 billion $30.6 billion 2.9% . This was largely due to growth in Advanced Connectivity wireless and fiber revenues, including two months of impact from the customers acquired from the Lumen transaction. Operating revenues inMexico were also higher due to favorable foreign exchange impacts during the first quarter of 2026. Offsetting these increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network. - Operating expenses were
$24.8 billion $24.9 billion - Operating income was
$6.7 billion $5.8 billion $6.9 billion $6.4 billion - Income from continuing operations was
$4.2 billion $4.7 billion - Income from continuing operations attributable to common stock was
$3.8 billion $4.4 billion $0.54 $0.61 $0.03 $0.57 $0.51 - Adjusted EBITDA* was
$11.8 billion $11.5 billion - Cash from operating activities from continuing operations was
$7.6 billion $9.0 billion $1.4 billion - Capital expenditures related to continuing operations were
$4.9 billion $4.3 billion $5.1 billion $4.5 billion $0.2 billion - Free cash flow* was
$2.5 billion $3.1 billion - Total debt was
$138.4 billion $126.4 billion
Segment Results
Effective with the Company's first-quarter 2026 reporting, AT&T has revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.
Advanced Connectivity service revenues grew
Advanced Connectivity | ||||||
Dollars in millions | First Quarter | Percent | ||||
Unaudited | 2026 | 2025 | Change | |||
Operating Revenues | $ 28,471 | $ 27,192 | 4.7 | % | ||
Service | 22,863 | 22,060 | 3.6 | % | ||
Wireless Service | 16,941 | 16,651 | 1.7 | % | ||
Advanced Home Internet | 2,799 | 2,198 | 27.3 | % | ||
Business Fiber and Advanced Connectivity | 1,882 | 1,755 | 7.2 | % | ||
Business Transitional and Other | 1,083 | 1,294 | (16.3) | % | ||
Other Service | 158 | 162 | (2.5) | % | ||
Equipment | 5,608 | 5,132 | 9.3 | % | ||
Operating Expenses | 21,618 | 21,220 | 1.9 | % | ||
Operating Income | 6,853 | 5,972 | 14.8 | % | ||
Operating Income Margin | 24.1 | % | 22.0 | % | 210 | BP |
EBITDA* | $ 11,558 | $ 10,945 | 5.6 | % | ||
EBITDA Margin* | 40.6 | % | 40.3 | % | 30 | BP |
Advanced Connectivity segment revenues grew
Operating expenses were up
Operating income was
Legacy revenues continued to decline year over year in line with AT&T's goal to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029.
Legacy | ||||||
Dollars in millions | First Quarter | Percent | ||||
Unaudited | 2026 | 2025 | Change | |||
Operating Revenues | $ 1,768 | $ 2,368 | (25.3) | % | ||
Operating Expenses | 1,156 | 1,349 | (14.3) | % | ||
Operating Income | 612 | 1,019 | (39.9) | % | ||
Operating Income Margin | 34.6 | % | 43.0 | % | (840) | BP |
EBITDA* | $ 612 | $ 1,019 | (39.9) | % | ||
EBITDA Margin* | 34.6 | % | 43.0 | % | (840) | BP |
Legacy segment revenues were down
Dollars in millions | First Quarter | Percent | |
Unaudited | 2026 | 2025 | Change |
Operating Revenues | $ 1,173 | $ 971 | 20.8 % |
Service | 753 | 615 | 22.4 % |
Equipment | 420 | 356 | 18.0 % |
Operating Expenses | 1,153 | 928 | 24.2 % |
Operating Income | 20 | 43 | (53.5) % |
EBITDA* | 220 | 193 | 14.0 % |
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com. |
1Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. 1Q26 convergence metrics are presented based on available information and are subject to revision. Organic convergence rate excludes customers from the recently acquired Mass Markets fiber business. |
2Includes net adds from the recently acquired Mass Markets fiber business after the close of the acquisition. |
3Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) Fiber Ventures locations, which represent locations served from the acquired Mass Markets fiber business, Gigapower, and other commercial open access providers. |
4The Company's 2026 outlook is presented on a continuing operations basis and excludes discontinued operations. |
About AT&T
We help more than 100 million
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated April 22, 2026. Adjusted diluted EPS, adjusted operating income, EBITDA, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T's continuing operations and does not include discussion of balances or activity related to discontinued operations.
Adjusted diluted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Non-operational items arising from asset acquisitions and dispositions include the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate; in these cases, we use the actual tax expense or combined marginal rate of approximately
For 1Q26, adjusted EPS of
The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately
Adjusted operating income is operating income adjusted for revenues and costs the Company considers non-operational in nature, including items arising from asset acquisitions or dispositions. For 1Q26, adjusted operating income of
EBITDA is income from continuing operations plus income tax, interest, and depreciation and amortization expenses minus equity in net income (loss) of affiliates and other income (expense) – net. Adjusted EBITDA is calculated by excluding from EBITDA certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation, and other material gains and losses. Adjustments include transaction, legal, and other costs as discussed above.
For 1Q26, adjusted EBITDA of
At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 1Q26, Advanced Connectivity EBITDA of
Adjusted EBITDA, Advanced Connectivity EBITDA and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.
Free cash flow for 1Q26 of
Capital investment provides a comprehensive view of cash used to invest in our networks, product developments, and support systems. In connection with capital improvements, we have favorable payment terms of 120 days or more with certain vendors, referred to as vendor financing, which are excluded from capital expenditures and reported as financing activities. Capital investment includes capital expenditures and cash paid for vendor financing (
Net debt of
Discussion and Reconciliation of Non-GAAP Measures
We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with
On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.
Free Cash Flow
Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
Free Cash Flow and Free Cash Flow Dividend Payout Ratio | ||
Dollars in millions | ||
First Quarter | ||
2026 | 2025 | |
Net Cash Provided by Operating Activities from Continuing Operations | $ 7,595 | $ 9,049 |
Less: Distributions from DIRECTV classified as operating activities | — | (1,423) |
Less: Capital expenditures | (4,877) | (4,277) |
Less: Payment of vendor financing | (212) | (203) |
Free Cash Flow | 2,506 | 3,146 |
Less: Dividends paid | (1,997) | (2,091) |
Free Cash Flow after Dividends | $ 509 | $ 1,055 |
Free Cash Flow Dividend Payout Ratio | 79.7 % | 66.5 % |
Cash Paid for Capital Investment
In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems.
Cash Paid for Capital Investment | ||
Dollars in millions | ||
First Quarter | ||
2026 | 2025 | |
Capital expenditures | $ (4,877) | $ (4,277) |
Payment of vendor financing | (212) | (203) |
Cash paid for Capital Investment | $ (5,089) | $ (4,480) |
EBITDA
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.
These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.
There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.
EBITDA and Adjusted EBITDA | ||
Dollars in millions | ||
First Quarter | ||
2026 | 2025 | |
Income from Continuing Operations | $ 4,219 | $ 4,692 |
Additions: | ||
Income Tax Expense | 1,179 | 1,299 |
Interest Expense | 1,813 | 1,658 |
Equity in Net (Income) Loss of Affiliates | 41 | (1,440) |
Other (Income) Expense - Net | (594) | (455) |
Depreciation and amortization | 4,966 | 5,190 |
EBITDA | 11,624 | 10,944 |
Transaction, legal and other costs | 146 | 79 |
Benefit-related (gain) loss | 25 | 6 |
Asset impairments and abandonments and restructuring | — | 504 |
Adjusted EBITDA1 | $ 11,795 | $ 11,533 |
1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. | ||
Segment EBITDA and EBITDA Margin | ||||
Dollars in millions | ||||
First Quarter | ||||
2026 | 2025 | |||
Advanced Connectivity Segment | ||||
Operating Income | $ 6,853 | $ 5,972 | ||
Add: Depreciation and amortization | 4,705 | 4,973 | ||
EBITDA | $ 10,945 | |||
Total Operating Revenues | $ 27,192 | |||
Operating Income Margin | 24.1 | % | 22.0 | % |
EBITDA Margin | 40.6 | % | 40.3 | % |
Legacy Segment | ||||
Operating Income | $ 612 | $ 1,019 | ||
Add: Depreciation and amortization | — | — | ||
EBITDA | $ 612 | $ 1,019 | ||
Total Operating Revenues | $ 1,768 | $ 2,368 | ||
Operating Income Margin | 34.6 | % | 43.0 | % |
EBITDA Margin | 34.6 | % | 43.0 | % |
Latin America Segment | ||||
Operating Income | $ 20 | $ 43 | ||
Add: Depreciation and amortization | 200 | 150 | ||
EBITDA | $ 220 | $ 193 | ||
Total Operating Revenues | $ 1,173 | $ 971 | ||
Operating Income Margin | 1.7 | % | 4.4 | % |
EBITDA Margin | 18.8 | % | 19.9 | % |
Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and that those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.
The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately
Adjusting Items | |||
Dollars in millions | |||
First Quarter | |||
2026 | 2025 | ||
Operating Expenses | |||
Transaction, legal and other costs1 | $ 146 | $ 79 | |
Benefit-related (gain) loss | 25 | 6 | |
Asset impairments and abandonments and restructuring | — | 504 | |
Adjustments to Operations and Support Expenses | 171 | 589 | |
Amortization of intangible assets | 57 | 9 | |
Adjustments to Operating Expenses | 228 | 598 | |
Other | |||
Equity in net income of DIRECTV | — | (1,423) | |
Benefit-related (gain) loss, impairments of investments and other | 28 | 64 | |
Adjustments to Income from Continuing Operations Before Income Taxes | 256 | (761) | |
Tax impact of adjustments | 59 | (165) | |
Adjustments to Income From Continuing Operations | $ 197 | $ (596) | |
Preferred stock redemption gain | — | (90) | |
Adjustments to Income From Continuing Operations Attributable to Common Stock | $ 197 | $ (686) | |
1 Includes certain legal reserves and settlements that cover extended historical periods, novel theories of liability and/or are unpredictable | |||
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin | |||
Dollars in millions | |||
First Quarter | |||
2026 | 2025 | ||
Operating Income | $ 6,658 | $ 5,754 | |
Adjustments to Operating Expenses | 228 | 598 | |
Adjusted Operating Income | $ 6,886 | $ 6,352 | |
EBITDA | |||
Adjustments to Operations and Support Expenses | 171 | 589 | |
Adjusted EBITDA | |||
Total Operating Revenues | |||
Operating Income Margin | 21.1 % | 18.8 % | |
Adjusted Operating Income Margin | 21.9 % | 20.7 % | |
Adjusted EBITDA Margin | 37.4 % | 37.7 % | |
Adjusted Diluted EPS | |||
First Quarter | |||
2026 | 2025 | ||
Diluted Earnings Per Share (EPS) From Continuing Operations | $ 0.54 | $ 0.61 | |
Equity in net income of DIRECTV | — | (0.15) | |
Restructuring and impairments | — | 0.05 | |
Benefit-related, transaction, legal and other items | 0.03 | — | |
Adjusted EPS | $ 0.57 | $ 0.51 | |
Year-over-year growth - Adjusted | 11.8 % | ||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,027 | 7,223 | |
Net Debt to Adjusted EBITDA
Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.
Net Debt to Adjusted EBITDA - 2026 | |||||||||
Dollars in millions | |||||||||
Three Months Ended | |||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||
20251 | 20251 | 20251 | 2026 | ||||||
Adjusted EBITDA | $ 11,731 | $ 11,861 | $ 11,236 | $ 11,795 | $ 46,623 | ||||
End-of-period current debt | 6,818 | ||||||||
End-of-period long-term debt | 131,589 | ||||||||
Total End-of-Period Debt | 138,407 | ||||||||
Less: Cash and Cash Equivalents | 11,964 | ||||||||
Net Debt Balance | 126,443 | ||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 2.71 | ||||||||
1 As reported in AT&T's Form 8-K filed January 28, 2026.
| |||||||||
Net Debt to Adjusted EBITDA - 2025 | |||||||||
Dollars in millions | |||||||||
Three Months Ended | |||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||
20241 | 20241 | 20241 | 20251 | ||||||
Adjusted EBITDA | $ 11,337 | $ 11,586 | $ 10,791 | $ 11,533 | $ 45,247 | ||||
End-of-period current debt | 8,902 | ||||||||
End-of-period long-term debt | 117,259 | ||||||||
Total End-of-Period Debt | 126,161 | ||||||||
Less: Cash and Cash Equivalents | 6,885 | ||||||||
Less: Time Deposits | 150 | ||||||||
Net Debt Balance | 119,126 | ||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 2.63 | ||||||||
1 As reported in AT&T's Form 8-K filed January 28, 2026. | |||||||||
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