[10-Q] AT&T INC. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
AT&T Inc. reported third‑quarter 2025 results. Revenue was $30.709 billion, up slightly from $30.213 billion a year ago. Operating income rose to $6.119 billion from $2.116 billion, reflecting lower expenses versus last year’s elevated charges. Net income attributable to common stock was $9.278 billion, or $1.29 per diluted share, compared with a loss of $0.03 per share in Q3 2024.
Service revenue was $25.336 billion and equipment revenue $5.373 billion. Segment results showed strong Mobility operating income of $7.125 billion, while Business Wireline posted a $354 million operating loss and Consumer Wireline earned $325 million. Other income (expense) — net was $6.254 billion, contributing to the earnings swing.
Year‑to‑date, cash from operations reached $28.964 billion, with capital expenditures of $14.061 billion. Cash and cash equivalents were $20.272 billion at September 30, 2025. AT&T repurchased approximately 87 million shares for $2.444 billion under its $10 billion buyback. Long‑term debt stood at $128.090 billion. Recent tax legislation increased current tax assets and is expected to materially reduce cash taxes paid.
AT&T Inc. ha riportato i risultati del terzo trimestre 2025. Le entrate sono state di $30.709 miliardi, in leggero aumento rispetto ai $30.213 miliardi dello stesso periodo dell'anno precedente. L'utile operativo è salito a $6.119 miliardi, da $2.116 miliardi, riflettendo costi inferiori rispetto alle spese elevate dell’anno scorso. L’utile netto attribuibile agli azionisti comuni è stato di $9.278 miliardi, oppure $1,29 per azione diluita, rispetto a una perdita di $0,03 per azione nel Q3 2024.
I ricavi dai servizi sono stati di $25.336 miliardi e quelli da apparecchiature di $5.373 miliardi. I risultati per segmenti hanno mostrato un forte utile operativo Mobility pari a $7.125 miliardi, mentre Business Wireline ha registrato una perdita operativa di $354 milioni e Consumer Wireline ha guadagnato $325 milioni. Other income (expense) — net è stato di $6.254 miliardi, contribuendo all’oscillazione degli utili.
Da inizio anno, il flusso di cassa operativo ha raggiunto $28.964 miliardi, con investimenti in conto capitale di $14.061 miliardi. Le disponibilità liquide ammontavano a $20.272 miliardi al 30 settembre 2025. AT&T ha riacquistato circa 87 milioni di azioni per $2.444 miliardi nell’ambito del programma di riacquisto da $10 miliardi. Il debito a lungo termine era di $128.090 miliardi. La recente legislazione fiscale ha aumentato le attività fiscali correnti e si prevede che riduca in modo significativo le imposte pagate in contanti.
AT&T Inc. informó resultados del tercer trimestre de 2025.Los ingresos fueron de $30.709 mil millones, ligeramente superiores a los $30.213 mil millones del año anterior. El ingreso operativo subió a $6.119 mil millones desde $2.116 mil millones, reflejando costos inferiores frente a los cargos elevados del año pasado. El ingreso neto atribuible a acciones comunes fue de $9.278 mil millones, o $1.29 por acción diluida, en comparación con una pérdida de $0.03 por acción en el 3T de 2024.
Los ingresos por servicios fueron de $25.336 mil millones y los de equipo $5.373 mil millones. Los resultados por segmento mostraron un sólido ingreso operativo de Mobility de $7.125 mil millones, mientras Business Wireline registró una pérdida operativa de $354 millones y Consumer Wireline obtuvo $325 millones. Other income (expense) — net fue de $6.254 mil millones, contribuyendo al giro de las ganancias.
Año hasta la fecha, el flujo de caja de operaciones alcanzó $28.964 mil millones, con gastos de capital de $14.061 mil millones. Las disponibilidades en efectivo fueron de $20.272 mil millones al 30 de septiembre de 2025. AT&T recompró aproximadamente 87 millones de acciones por $2.444 mil millones dentro de su programa de recompra de $10 miles de millones. La deuda a largo plazo fue de $128.090 mil millones. La legislación fiscal reciente aumentó los activos fiscales corrientes y se espera que reduzca de manera significativa los impuestos pagados en efectivo.
AT&T Inc.은 2025년 3분기 실적을 발표했습니다. 매출은 30.7090십억 달러로 전년 동기 30.2130십억 달러 대비 소폭 증가했습니다. 영업 이익은 6.1190십억 달러로 2.1160십억 달러에서 올랐으며, 작년의 과다한 비용 대비 낮아진 비용으로 인한 결과입니다. 주주지분에 귀속되는 순이익은 9.2780십억 달러로, 희석 주당순이익은 1.29달러였으며, 2024년 3분기에는 주당 손실 0.03달러였습니다.
서비스 매출은 25.3360십억 달러, 장비 매출은 5.3730십억 달러였습니다. 세그먼트별 실적은 Mobility의 영업이익이 7.1250십억 달러로 강했고, Business Wireline은 3.54천만 달러의 영업손실을 기록했으며 Consumer Wireline은 3.25천만 달러를 벌었습니다. 기타 수입(지출) — 순은 6.2540십억 달러로 수익 변동에 기여했습니다.
연도 누적 기준으로 영업활동 현금흐름은 28.9640십억 달러였고, 자본적 지출은 14.0610십억 달러였습니다. 2025년 9월 30일 기준 현금 및 현금성 자산은 20.2720십억 달러였습니다. AT&T는 약 8700만 주를 24.44억 달러에 재매입했고, 100억 달러 규모의 자사주 매입 plan 아래 이뤄졌습니다. 장기부채는 128.0900십억 달러였습니다. 최근 세제법 개정으로 현재의 세무자산이 증가했고 현금으로 납부하는 세금을 상당히 줄일 것으로 예상됩니다.
AT&T Inc. a publié les résultats du troisième trimestre 2025. Le chiffre d’affaires s’est élevé à 30,709 milliards de dollars, en légère hausse par rapport à 30,213 milliards l’an dernier. Le résultat opérationnel est passé à 6,119 milliards de dollars contre 2,116 milliards, reflétant une diminution des dépenses par rapport aux charges élevées de l’année précédente. Le résultat net attribuable aux actions ordinaires s’est élevé à 9,278 milliards de dollars, soit 1,29 dollar par action diluée, comparé à une perte de 0,03 dollar par action au T3 2024.
Les recettes de services ont été de 25,336 milliards et les recettes d’équipement de 5,373 milliards. Les résultats par segment ont montré un excellent résultat opérationnel Mobility de 7,125 milliards, tandis que Business Wireline affichait une perte opérationnelle de 354 millions et que Consumer Wireline gagnait 325 millions. Other income (expense) — net s’est élevé à 6,254 milliards, contribuant à la variation des résultats.
Depuis le début de l’année, le flux de trésorerie opérationnel a atteint 28,964 milliards, avec des dépenses d’investissement de 14,061 milliards. Les liquidités et équivalents étaient de 20,272 milliards au 30 septembre 2025. AT&T a racheté environ 87 millions d’actions pour 2,444 milliards dans le cadre du programme de rachat de 10 milliards.
La dette à long terme s’élevait à 128,090 milliards. La récente législation fiscale a augmenté les actifs fiscaux courants et devrait réduire sensiblement les impôts payés en espèces.
AT&T Inc. berichtete die Ergebnisse des dritten Quartals 2025. Der Umsatz betrug 30,709 milliarden US-Dollar und liegt damit leicht über dem Wert von 30,213 milliarden US-Dollar im Vorjahr. Das operative Ergebnis stieg auf 6,119 milliarden US-Dollar von 2,116 milliarden US-Dollar, was auf geringere Aufwendungen im Vergleich zu den im Vorjahr hohen Belastungen zurückzuführen ist. Der Nettogewinn, der den Stammaktionären zuzurechnen ist, betrug 9,278 milliarden US-Dollar, bzw. 1,29 USD je verwässerter Aktie, verglichen mit einem Verlust von 0,03 USD je Aktie im Q3 2024.
Die Umsätze aus Dienstleistungen lagen bei 25,336 milliarden US-Dollar und die Umsätze aus Geräten bei 5,373 milliarden US-Dollar. Die Segmentergebnisse zeigten ein starkes Mobility-Operatives von 7,125 milliarden US-Dollar, während Business Wireline einen operativen Verlust von 354 Millionen verzeichnete und Consumer Wireline 325 Millionen erwirtschaftete. Other income (expense) — net betrug 6,254 milliarden US-Dollar und trug zur Gewinnschwankung bei.
Jahr bis dato erreichte der operative Cashflow 28,964 milliarden US-Dollar, mit Investitionen in Sachanlagen von 14,061 milliarden US-Dollar. Die liquiden Mittel beliefen sich am 30. September 2025 auf 20,272 milliarden US-Dollar. AT&T hat ungefähr 87 Millionen Aktien für 2,444 milliarden US-Dollar im Rahmen desonomProgramms zum Rückkauf erworben. Die langfristigen Schulden lagen bei 128,090 milliarden US-Dollar. Die jüngste Steuergesetzgebung hat die aktuellen Steueransprüche erhöht und dürfte die in bar zu zahlenden Steuern erheblich reduzieren.
أعلنت شركة AT&T إنك عن نتائج الربع الثالث من عام 2025. بلغت الإيرادات 30.709 مليار دولار، وهي أعلى بقليل من 30.213 مليار دولار في العام السابق. ارتفع الدخل التشغيلي إلى 6.119 مليار دولار من 2.116 مليار دولار، مع انعكاس ذلك بانخفاض المصروفات مقارنةً بالتكاليف المرتفعة في العام السابق. صافي الدخل العائد للمساهمين العاديين كان 9.278 مليار دولار، أو 1.29 دولار للسهم المخفف، مقارنة بخسارة قدرها 0.03 دولار للسهم في الربع الثالث من 2024.
بلغت إيرادات الخدمات 25.336 مليار دولار والإيرادات من الأجهزة 5.373 مليار دولار. أظهرت نتائج القطاعات ربحًا تشغيليًا قويًا في Mobility قدره 7.125 مليار دولار، في حين سجل Business Wireline خسارة تشغيلية قدرها 354 مليون دولار وحققت Consumer Wireline ربحًا قدره 325 مليون دولار. كانت Other income (expense) — net 6.254 مليار دولار، مساهمًا في تقلب الأرباح.
حتى تاريخه، وصل التدفق النقدي من العمليات إلى 28.964 مليار دولار، مع استثمارات رأسمالية قدرها 14.061 مليار دولار. كانت النقدية وما يعادلها 20.272 مليار دولار في 30 سبتمبر 2025. أشرت AT&T إلى إعادة شراء نحو 87 مليون سهم بقيمة 2.444 مليار دولار ضمن برنامح إعادة شراء قدره 10 مليار دولار. بلغ الدين طويل الأجل 128.090 مليار دولار. زادت تشريعات الضرائب الأخيرة من الأصول الضريبية الحالية ويتوقع أن تقلل بشكل كبير من الضرائب النقدية المدفوعة.
Positive
- None.
Negative
- None.
Insights
Solid earnings swing driven by higher operating income and other income.
AT&T delivered Q3 revenue of
“Other income (expense) — net” of
Tax legislation increased current tax assets and is expected to reduce cash taxes. Actual performance going forward will depend on segment trends (notably Business Wireline pressures) and the sustainability of other income contributions disclosed here.
AT&T Inc. ha riportato i risultati del terzo trimestre 2025. Le entrate sono state di $30.709 miliardi, in leggero aumento rispetto ai $30.213 miliardi dello stesso periodo dell'anno precedente. L'utile operativo è salito a $6.119 miliardi, da $2.116 miliardi, riflettendo costi inferiori rispetto alle spese elevate dell’anno scorso. L’utile netto attribuibile agli azionisti comuni è stato di $9.278 miliardi, oppure $1,29 per azione diluita, rispetto a una perdita di $0,03 per azione nel Q3 2024.
I ricavi dai servizi sono stati di $25.336 miliardi e quelli da apparecchiature di $5.373 miliardi. I risultati per segmenti hanno mostrato un forte utile operativo Mobility pari a $7.125 miliardi, mentre Business Wireline ha registrato una perdita operativa di $354 milioni e Consumer Wireline ha guadagnato $325 milioni. Other income (expense) — net è stato di $6.254 miliardi, contribuendo all’oscillazione degli utili.
Da inizio anno, il flusso di cassa operativo ha raggiunto $28.964 miliardi, con investimenti in conto capitale di $14.061 miliardi. Le disponibilità liquide ammontavano a $20.272 miliardi al 30 settembre 2025. AT&T ha riacquistato circa 87 milioni di azioni per $2.444 miliardi nell’ambito del programma di riacquisto da $10 miliardi. Il debito a lungo termine era di $128.090 miliardi. La recente legislazione fiscale ha aumentato le attività fiscali correnti e si prevede che riduca in modo significativo le imposte pagate in contanti.
AT&T Inc. informó resultados del tercer trimestre de 2025.Los ingresos fueron de $30.709 mil millones, ligeramente superiores a los $30.213 mil millones del año anterior. El ingreso operativo subió a $6.119 mil millones desde $2.116 mil millones, reflejando costos inferiores frente a los cargos elevados del año pasado. El ingreso neto atribuible a acciones comunes fue de $9.278 mil millones, o $1.29 por acción diluida, en comparación con una pérdida de $0.03 por acción en el 3T de 2024.
Los ingresos por servicios fueron de $25.336 mil millones y los de equipo $5.373 mil millones. Los resultados por segmento mostraron un sólido ingreso operativo de Mobility de $7.125 mil millones, mientras Business Wireline registró una pérdida operativa de $354 millones y Consumer Wireline obtuvo $325 millones. Other income (expense) — net fue de $6.254 mil millones, contribuyendo al giro de las ganancias.
Año hasta la fecha, el flujo de caja de operaciones alcanzó $28.964 mil millones, con gastos de capital de $14.061 mil millones. Las disponibilidades en efectivo fueron de $20.272 mil millones al 30 de septiembre de 2025. AT&T recompró aproximadamente 87 millones de acciones por $2.444 mil millones dentro de su programa de recompra de $10 miles de millones. La deuda a largo plazo fue de $128.090 mil millones. La legislación fiscal reciente aumentó los activos fiscales corrientes y se espera que reduzca de manera significativa los impuestos pagados en efectivo.
AT&T Inc.은 2025년 3분기 실적을 발표했습니다. 매출은 30.7090십억 달러로 전년 동기 30.2130십억 달러 대비 소폭 증가했습니다. 영업 이익은 6.1190십억 달러로 2.1160십억 달러에서 올랐으며, 작년의 과다한 비용 대비 낮아진 비용으로 인한 결과입니다. 주주지분에 귀속되는 순이익은 9.2780십억 달러로, 희석 주당순이익은 1.29달러였으며, 2024년 3분기에는 주당 손실 0.03달러였습니다.
서비스 매출은 25.3360십억 달러, 장비 매출은 5.3730십억 달러였습니다. 세그먼트별 실적은 Mobility의 영업이익이 7.1250십억 달러로 강했고, Business Wireline은 3.54천만 달러의 영업손실을 기록했으며 Consumer Wireline은 3.25천만 달러를 벌었습니다. 기타 수입(지출) — 순은 6.2540십억 달러로 수익 변동에 기여했습니다.
연도 누적 기준으로 영업활동 현금흐름은 28.9640십억 달러였고, 자본적 지출은 14.0610십억 달러였습니다. 2025년 9월 30일 기준 현금 및 현금성 자산은 20.2720십억 달러였습니다. AT&T는 약 8700만 주를 24.44억 달러에 재매입했고, 100억 달러 규모의 자사주 매입 plan 아래 이뤄졌습니다. 장기부채는 128.0900십억 달러였습니다. 최근 세제법 개정으로 현재의 세무자산이 증가했고 현금으로 납부하는 세금을 상당히 줄일 것으로 예상됩니다.
AT&T Inc. a publié les résultats du troisième trimestre 2025. Le chiffre d’affaires s’est élevé à 30,709 milliards de dollars, en légère hausse par rapport à 30,213 milliards l’an dernier. Le résultat opérationnel est passé à 6,119 milliards de dollars contre 2,116 milliards, reflétant une diminution des dépenses par rapport aux charges élevées de l’année précédente. Le résultat net attribuable aux actions ordinaires s’est élevé à 9,278 milliards de dollars, soit 1,29 dollar par action diluée, comparé à une perte de 0,03 dollar par action au T3 2024.
Les recettes de services ont été de 25,336 milliards et les recettes d’équipement de 5,373 milliards. Les résultats par segment ont montré un excellent résultat opérationnel Mobility de 7,125 milliards, tandis que Business Wireline affichait une perte opérationnelle de 354 millions et que Consumer Wireline gagnait 325 millions. Other income (expense) — net s’est élevé à 6,254 milliards, contribuant à la variation des résultats.
Depuis le début de l’année, le flux de trésorerie opérationnel a atteint 28,964 milliards, avec des dépenses d’investissement de 14,061 milliards. Les liquidités et équivalents étaient de 20,272 milliards au 30 septembre 2025. AT&T a racheté environ 87 millions d’actions pour 2,444 milliards dans le cadre du programme de rachat de 10 milliards.
La dette à long terme s’élevait à 128,090 milliards. La récente législation fiscale a augmenté les actifs fiscaux courants et devrait réduire sensiblement les impôts payés en espèces.
AT&T Inc. berichtete die Ergebnisse des dritten Quartals 2025. Der Umsatz betrug 30,709 milliarden US-Dollar und liegt damit leicht über dem Wert von 30,213 milliarden US-Dollar im Vorjahr. Das operative Ergebnis stieg auf 6,119 milliarden US-Dollar von 2,116 milliarden US-Dollar, was auf geringere Aufwendungen im Vergleich zu den im Vorjahr hohen Belastungen zurückzuführen ist. Der Nettogewinn, der den Stammaktionären zuzurechnen ist, betrug 9,278 milliarden US-Dollar, bzw. 1,29 USD je verwässerter Aktie, verglichen mit einem Verlust von 0,03 USD je Aktie im Q3 2024.
Die Umsätze aus Dienstleistungen lagen bei 25,336 milliarden US-Dollar und die Umsätze aus Geräten bei 5,373 milliarden US-Dollar. Die Segmentergebnisse zeigten ein starkes Mobility-Operatives von 7,125 milliarden US-Dollar, während Business Wireline einen operativen Verlust von 354 Millionen verzeichnete und Consumer Wireline 325 Millionen erwirtschaftete. Other income (expense) — net betrug 6,254 milliarden US-Dollar und trug zur Gewinnschwankung bei.
Jahr bis dato erreichte der operative Cashflow 28,964 milliarden US-Dollar, mit Investitionen in Sachanlagen von 14,061 milliarden US-Dollar. Die liquiden Mittel beliefen sich am 30. September 2025 auf 20,272 milliarden US-Dollar. AT&T hat ungefähr 87 Millionen Aktien für 2,444 milliarden US-Dollar im Rahmen desonomProgramms zum Rückkauf erworben. Die langfristigen Schulden lagen bei 128,090 milliarden US-Dollar. Die jüngste Steuergesetzgebung hat die aktuellen Steueransprüche erhöht und dürfte die in bar zu zahlenden Steuern erheblich reduzieren.
أعلنت شركة AT&T إنك عن نتائج الربع الثالث من عام 2025. بلغت الإيرادات 30.709 مليار دولار، وهي أعلى بقليل من 30.213 مليار دولار في العام السابق. ارتفع الدخل التشغيلي إلى 6.119 مليار دولار من 2.116 مليار دولار، مع انعكاس ذلك بانخفاض المصروفات مقارنةً بالتكاليف المرتفعة في العام السابق. صافي الدخل العائد للمساهمين العاديين كان 9.278 مليار دولار، أو 1.29 دولار للسهم المخفف، مقارنة بخسارة قدرها 0.03 دولار للسهم في الربع الثالث من 2024.
بلغت إيرادات الخدمات 25.336 مليار دولار والإيرادات من الأجهزة 5.373 مليار دولار. أظهرت نتائج القطاعات ربحًا تشغيليًا قويًا في Mobility قدره 7.125 مليار دولار، في حين سجل Business Wireline خسارة تشغيلية قدرها 354 مليون دولار وحققت Consumer Wireline ربحًا قدره 325 مليون دولار. كانت Other income (expense) — net 6.254 مليار دولار، مساهمًا في تقلب الأرباح.
حتى تاريخه، وصل التدفق النقدي من العمليات إلى 28.964 مليار دولار، مع استثمارات رأسمالية قدرها 14.061 مليار دولار. كانت النقدية وما يعادلها 20.272 مليار دولار في 30 سبتمبر 2025. أشرت AT&T إلى إعادة شراء نحو 87 مليون سهم بقيمة 2.444 مليار دولار ضمن برنامح إعادة شراء قدره 10 مليار دولار. بلغ الدين طويل الأجل 128.090 مليار دولار. زادت تشريعات الضرائب الأخيرة من الأصول الضريبية الحالية ويتوقع أن تقلل بشكل كبير من الضرائب النقدية المدفوعة.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) | ||||||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended September 30, 2025
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period from to
Commission File Number 001-08610
Incorporated under the laws of the State of Delaware
I.R.S. Employer Identification Number 43-1301883
Telephone Number: (210 ) 821-4105
Securities registered pursuant to Section 12(b) of the Act:
| Name of each exchange | ||||||||
| Title of each class | Trading Symbol(s) | on which registered | ||||||
| NYSE Texas | ||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A | ||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C | ||||||||
| Name of each exchange | ||||||||
| Title of each class | Trading Symbol(s) | on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
At October 21, 2025, there were 7,089,449,495 common shares outstanding.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
| AT&T INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
| Dollars in millions except per share amounts | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||
| Service | $ | $ | $ | $ | |||||||||||||||||||
| Equipment | |||||||||||||||||||||||
| Total operating revenues | |||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||
| Equipment | |||||||||||||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
Asset impairments and abandonments and restructuring | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Equity in net income (loss) of affiliates | ( | ||||||||||||||||||||||
Other income (expense) — net | |||||||||||||||||||||||
| Total other income (expense) | ( | ( | |||||||||||||||||||||
| Income Before Income Taxes | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | ( | ( | ( | ( | |||||||||||||||||||
| Net Income (Loss) Attributable to AT&T | $ | $ | ( | $ | $ | ||||||||||||||||||
Preferred Stock Dividends and Redemption Gain | ( | ( | ( | ( | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stock | $ | $ | ( | $ | $ | ||||||||||||||||||
Basic Earnings (Loss) Per Share Attributable to Common Stock | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted Earnings (Loss) Per Share Attributable to Common Stock | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted Average Number of Common Shares Outstanding — Basic (in millions) | |||||||||||||||||||||||
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions) | |||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
3
| AT&T INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Foreign currency: | |||||||||||||||||||||||
Translation adjustment, net of taxes of $ $( | ( | ( | |||||||||||||||||||||
Reclassification adjustment included in net income, net of taxes of $ | |||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||
Net unrealized gains (losses), net of taxes of $ and $ | |||||||||||||||||||||||
Reclassification adjustment included in net income, net of taxes of $ | |||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||
Net unrealized gains (losses), net of taxes of $( $( | ( | ( | ( | ( | |||||||||||||||||||
Reclassification adjustment included in net income, net of taxes of $ | |||||||||||||||||||||||
| Defined benefit postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service credit included in net income, net of taxes of $( | ( | ( | ( | ( | |||||||||||||||||||
Reclassification adjustment realized in net income, net of taxes of $( | |||||||||||||||||||||||
| Other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income (loss) | ( | ||||||||||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interest | ( | ( | ( | ( | |||||||||||||||||||
Total Comprehensive Income (Loss) Attributable to AT&T | $ | $ | ( | $ | $ | ||||||||||||||||||
See Notes to Consolidated Financial Statements.
4
| AT&T INC. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| Dollars in millions except per share amounts | |||||||||||
| September 30, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Assets | (Unaudited) | ||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable – net of related allowances for credit loss of $ | |||||||||||
| Inventories | |||||||||||
| Prepaid and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment | |||||||||||
| Less: accumulated depreciation and amortization | ( | ( | |||||||||
| Property, Plant and Equipment – Net | |||||||||||
| Goodwill – Net | |||||||||||
| Licenses – Net | |||||||||||
| Other Intangible Assets – Net | |||||||||||
| Investments in and Advances to Equity Affiliates | |||||||||||
| Operating Lease Right-Of-Use Assets | |||||||||||
| Other Assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Debt maturing within one year | $ | $ | |||||||||
| Accounts payable and accrued liabilities | |||||||||||
| Advanced billings and customer deposits | |||||||||||
| Dividends payable | |||||||||||
| Total current liabilities | |||||||||||
| Long-Term Debt | |||||||||||
| Deferred Credits and Other Noncurrent Liabilities | |||||||||||
| Noncurrent deferred tax liabilities | |||||||||||
| Postemployment benefit obligation | |||||||||||
| Operating lease liabilities | |||||||||||
| Other noncurrent liabilities | |||||||||||
| Total deferred credits and other noncurrent liabilities | |||||||||||
| Redeemable Noncontrolling Interest | |||||||||||
| Stockholders’ Equity | |||||||||||
Preferred stock ($ | |||||||||||
Series A ( | |||||||||||
Series B ( at December 31, 2024) | |||||||||||
Series C ( | |||||||||||
Common stock ($ December 31, 2024: issued | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
Treasury stock ( | ( | ( | |||||||||
| Accumulated other comprehensive income (loss) | ( | ||||||||||
| Noncontrolling interest | |||||||||||
| Total stockholders’ equity | |||||||||||
| Total Liabilities and Stockholders’ Equity | $ | $ | |||||||||
See Notes to Consolidated Financial Statements.
5
| AT&T INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| Dollars in millions | |||||||||||
| (Unaudited) | |||||||||||
| Nine months ended | |||||||||||
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating Activities | |||||||||||
| Net Income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Provision for uncollectible accounts | |||||||||||
| Asset impairments and abandonments and restructuring | |||||||||||
Pension and postretirement benefit expense (credit) | ( | ( | |||||||||
Net (gain) loss on investments | ( | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||
Receivables | ( | ||||||||||
Equipment installment receivables and related sales | ( | ||||||||||
Contract asset and cost deferral | ( | ||||||||||
Inventories, prepaid and other current assets | ( | ( | |||||||||
Accounts payable and other accrued liabilities | ( | ( | |||||||||
Changes in income taxes | |||||||||||
| Postretirement claims and contributions | ( | ( | |||||||||
| Other - net | |||||||||||
| Total adjustments | |||||||||||
| Net Cash Provided by Operating Activities | |||||||||||
| Investing Activities | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Acquisitions, net of cash acquired | ( | ( | |||||||||
| Dispositions | |||||||||||
| Distributions from DIRECTV in excess of cumulative equity in earnings | |||||||||||
(Purchases), sales and settlements of securities - net | |||||||||||
| Other - net | ( | ( | |||||||||
| Net Cash Used in Investing Activities | ( | ( | |||||||||
| Financing Activities | |||||||||||
| Issuance of other short-term borrowings | |||||||||||
| Repayment of other short-term borrowings | ( | ||||||||||
| Issuance of long-term debt | |||||||||||
| Repayment of long-term debt | ( | ( | |||||||||
| Payment of vendor financing | ( | ( | |||||||||
Redemption of preferred stock | ( | ||||||||||
| Purchase of treasury stock | ( | ( | |||||||||
| Issuance of treasury stock | |||||||||||
| Issuance of preferred interests in subsidiary | |||||||||||
| Dividends paid | ( | ( | |||||||||
| Other - net | ( | ( | |||||||||
Net Cash Provided by (Used in) Financing Activities | ( | ||||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | $ | $ | ( | ||||||||
| Cash and cash equivalents and restricted cash beginning of year | |||||||||||
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | $ | |||||||||
| See Notes to Consolidated Financial Statements. | |||||||||||
6
| AT&T INC. | |||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||
| Dollars and shares in millions except per share amounts | |||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Preferred Stock - Series A | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock - Series B | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock - Series C | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-In Capital | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Issuance of treasury stock | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Share-based payments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Redemption or reclassification of interest held by noncontrolling owners | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Retained Earnings (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to AT&T | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock redemption gain | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
7
| AT&T INC. | |||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - continued | |||||||||||||||||||||||||||||||||||||||||||||||
| Dollars and shares in millions except per share amounts | |||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | ( | $ | ( | ( | $ | ( | ( | $ | ( | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Repurchase and acquisition of common stock | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Reissuance of treasury stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | ( | $ | ( | ( | $ | ( | ( | $ | ( | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) attributable to AT&T | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance and acquisition by noncontrolling owners | |||||||||||||||||||||||||||||||||||||||||||||||
Redemption of noncontrolling interest | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Distributions | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Total Stockholders’ Equity at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Total Stockholders’ Equity at end of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
1Excludes redeemable noncontrolling interest | |||||||||||||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
8
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Dollars in millions except per share amounts
NOTE 1. PREPARATION OF INTERIM FINANCIAL STATEMENTS
Basis of Presentation Throughout this document, AT&T Inc. is referred to as “we,” “AT&T” or the “Company.” The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this document in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024. The results for the interim periods are not necessarily indicative of those for the full year. These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items.
The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. All significant intercompany transactions are eliminated in consolidation. Investments in entities that we do not control but have significant influence are accounted for under the equity method.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain prior period amounts have been conformed to the current period’s presentation providing further disaggregation of activities within Cash from Operations in our consolidated statements of cash flows and additional revenue categories for our Business Wireline and Consumer Wireline business units (see Note 5).
Stock Repurchase Program In December 2024, the Board of Directors authorized the repurchase of up to $10,000 of AT&T common stock. We began buying back stock under this program in the second quarter of 2025. For the nine months ended September 30, 2025, we had repurchased approximately 87 million shares totaling $2,444 under this authorization, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022.
To implement repurchase authorizations, we use open market repurchase programs, relying on Rule 10b5-1 of the Securities Exchange Act of 1934 where feasible.
Tax Legislation On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. As a result of the legislation, we reduced our taxable income position and, at September 30, 2025, “Prepaid and other current assets” on our consolidated balance sheet included $3,467 of current tax assets, compared to $2,236 at December 31, 2024. The legislation did not materially impact our income tax expense, but we expect it will result in a material decrease to cash taxes paid relative to our expectations.
New Accounting Standards
Internal-Use Software In September 2025, the Financial Accounting Standards Board issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). ASU 2025-06 removes references to prescriptive and sequential software development stages and requires software cost capitalization when management has authorized and committed to funding, and it is probable that the project will be completed, and the software used for its intended function. ASU 2025-06 will be effective for annual reporting periods beginning after December 15, 2027. We are evaluating the impacts of our adoption of ASU 2025-06 and currently do not expect that it will have a material impact on our financial statements.
9
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
NOTE 2. EARNINGS PER SHARE
A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Numerators | |||||||||||||||||||||||
| Numerator for basic earnings per share: | |||||||||||||||||||||||
| Net Income (Loss) Attributable to Common Stock | $ | $ | ( | $ | $ | ||||||||||||||||||
| Dilutive impact of share-based payment | |||||||||||||||||||||||
| Numerator for diluted earnings per share | $ | $ | ( | $ | $ | ||||||||||||||||||
| Denominators (000,000) | |||||||||||||||||||||||
| Denominator for basic earnings per share: | |||||||||||||||||||||||
| Weighted average number of common shares outstanding | |||||||||||||||||||||||
| Dilutive impact of share-based payment (in shares) | |||||||||||||||||||||||
| Denominator for diluted earnings per share | |||||||||||||||||||||||
NOTE 3. OTHER COMPREHENSIVE INCOME
Changes in the balances of each component included in accumulated other comprehensive income (OCI) are presented below. All amounts are net of tax.
| Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Securities | Net Unrealized Gains (Losses) on Derivative Instruments | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from accumulated OCI | 1 | 1 | 2 | ( | 3 | ( | |||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
| Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Securities | Net Unrealized Gains (Losses) on Derivative Instruments | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from accumulated OCI | 1 | 1 | 2 | ( | 3 | ( | |||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||
| Balance as of September 30, 2024 | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||
1(Gains) losses are included in “Other income (expense) - net” in the consolidated statements of income. | |||||||||||||||||||||||||||||
2(Gains) losses are primarily included in “Interest expense” in the consolidated statements of income (see Note 7). | |||||||||||||||||||||||||||||
3The amortization of prior service credit associated with postretirement benefits are included in “Other income (expense) - net” in the consolidated statements of income (see Note 6). | |||||||||||||||||||||||||||||
10
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
NOTE 4. SEGMENT INFORMATION
Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We have two reportable segments: Communications and Latin America.
Our chief operating decision maker (CODM) is our Chairman of the Board, Chief Executive Officer and President. Our CODM uses operating income to evaluate performance and allocate resources, including capital allocations, when managing the business. Our CODM manages operations through the review of actual and forecasted “Operations and Support Expenses” information at a segment and business unit level, with Communications and Latin America segments primarily evaluated on a direct cost basis and comprised of equipment, compensation, network and technology, sales, advertising and other costs.
Additionally, business unit expenses within the Communications segment include direct and shared costs. Direct costs are incurred in support of products and services offered by the business units, such as equipment costs (predominantly wireless devices), network access, rents, leases, sales support, customer provisioning and commission expenses. Shared costs amongst the business units generally include information technology, network engineering and construction costs, advertising and other general and administrative expenses.
The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, fixed wireless services, IP Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers.
•Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and our fixed wireless access product (AT&T Internet Air or “AIA”) that provides internet services delivered over our 5G wireless network, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.
The Latin America segment provides wireless services and equipment in Mexico.
Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.
Corporate includes:
•DTV-related retained costs, which are costs previously allocated to the Video business that were retained, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements. With the sale of our remaining interest in DIRECTV, we will no longer report these costs in 2026.
•Parent administration support, which includes costs borne by AT&T where the business units do not influence decision making.
•Securitization fees associated with our sales of receivables (see Note 8).
•Value portfolio, which are businesses no longer integral to our operations or which we no longer actively market.
Other items consist of:
•Certain significant items, which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated.
“Interest expense,” “Other income (expense) – net” and “Equity in net income (loss) of affiliates” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.
11
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
| For the three months ended September 30, 2025 | |||||||||||||||||||||||||||||
| Revenues | Operations and Support Expenses | Depreciation and Amortization | Operating Income (Loss) | ||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||
| Mobility | $ | $ | $ | $ | |||||||||||||||||||||||||
| Business Wireline | ( | ||||||||||||||||||||||||||||
| Consumer Wireline | |||||||||||||||||||||||||||||
| Total Communications | |||||||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||||||
| Segment Total | |||||||||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||
| DTV-related retained costs | ( | ||||||||||||||||||||||||||||
| Parent administration support | ( | ||||||||||||||||||||||||||||
Securitization fees | ( | ||||||||||||||||||||||||||||
| Value portfolio | |||||||||||||||||||||||||||||
| Total Corporate | ( | ||||||||||||||||||||||||||||
| Certain significant items | ( | ||||||||||||||||||||||||||||
| Total Corporate and Other | ( | ||||||||||||||||||||||||||||
| AT&T Inc. | $ | $ | $ | $ | |||||||||||||||||||||||||
| For the three months ended September 30, 2024 | |||||||||||||||||||||||||||||
| Revenues | Operations and Support Expenses | Depreciation and Amortization | Operating Income (Loss) | ||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||
| Mobility | $ | $ | $ | $ | |||||||||||||||||||||||||
| Business Wireline | ( | ||||||||||||||||||||||||||||
| Consumer Wireline | |||||||||||||||||||||||||||||
| Total Communications | |||||||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||||||
| Segment Total | |||||||||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||
| DTV-related retained costs | ( | ||||||||||||||||||||||||||||
| Parent administration support | ( | ||||||||||||||||||||||||||||
Securitization fees | ( | ||||||||||||||||||||||||||||
| Value portfolio | |||||||||||||||||||||||||||||
| Total Corporate | ( | ||||||||||||||||||||||||||||
| Certain significant items | ( | ||||||||||||||||||||||||||||
| Total Corporate and Other | ( | ||||||||||||||||||||||||||||
| AT&T Inc. | $ | $ | $ | $ | |||||||||||||||||||||||||
12
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
| For the nine months ended September 30, 2025 | |||||||||||||||||||||||||||||
| Revenues | Operations and Support Expenses | Depreciation and Amortization | Operating Income (Loss) | ||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||
| Mobility | $ | $ | $ | $ | |||||||||||||||||||||||||
| Business Wireline | ( | ||||||||||||||||||||||||||||
| Consumer Wireline | |||||||||||||||||||||||||||||
| Total Communications | |||||||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||||||
| Segment Total | |||||||||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||
| DTV-related retained costs | ( | ||||||||||||||||||||||||||||
| Parent administration support | ( | ||||||||||||||||||||||||||||
| Securitization fees | ( | ||||||||||||||||||||||||||||
| Value portfolio | |||||||||||||||||||||||||||||
| Total Corporate | ( | ||||||||||||||||||||||||||||
| Certain significant items | ( | ||||||||||||||||||||||||||||
| Total Corporate and Other | ( | ||||||||||||||||||||||||||||
| AT&T Inc. | $ | $ | $ | $ | |||||||||||||||||||||||||
| For the nine months ended September 30, 2024 | |||||||||||||||||||||||||||||
| Revenues | Operations and Support Expenses | Depreciation and Amortization | Operating Income (Loss) | ||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||
| Mobility | $ | $ | $ | $ | |||||||||||||||||||||||||
| Business Wireline | |||||||||||||||||||||||||||||
| Consumer Wireline | |||||||||||||||||||||||||||||
| Total Communications | |||||||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||||||
| Segment Total | |||||||||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||
| DTV-related retained costs | ( | ||||||||||||||||||||||||||||
| Parent administration support | ( | ||||||||||||||||||||||||||||
| Securitization fees | ( | ||||||||||||||||||||||||||||
| Value portfolio | |||||||||||||||||||||||||||||
| Total Corporate | ( | ||||||||||||||||||||||||||||
| Certain significant items | ( | ||||||||||||||||||||||||||||
| Total Corporate and Other | ( | ||||||||||||||||||||||||||||
| AT&T Inc. | $ | $ | $ | $ | |||||||||||||||||||||||||
13
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
The following table is a reconciliation of Segment Operating Income to “Income Before Income Taxes” reported in our consolidated statements of income:
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Communications | $ | $ | $ | $ | |||||||||||||||||||
| Latin America | |||||||||||||||||||||||
| Segment Operating Income | |||||||||||||||||||||||
| Reconciling Items: | |||||||||||||||||||||||
| Corporate | ( | ( | ( | ( | |||||||||||||||||||
Transaction, legal and other costs | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of intangibles acquired | ( | ( | ( | ( | |||||||||||||||||||
| Asset impairments and abandonments and restructuring | ( | ( | ( | ||||||||||||||||||||
| Benefit-related gains (losses) | |||||||||||||||||||||||
| AT&T Operating Income | |||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
Equity in net income (loss) of affiliates | ( | ||||||||||||||||||||||
Other income (expense) — net | |||||||||||||||||||||||
| Income Before Income Taxes | $ | $ | $ | $ | |||||||||||||||||||
The following tables present assets, investments in equity affiliates and capital expenditures by segment:
| September 30, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Assets | Investments in Equity Method Investees | Assets | Investments in Equity Method Investees | |||||||||||||||||||||||
Communications | $ | $ | $ | $ | ||||||||||||||||||||||
| Latin America | ||||||||||||||||||||||||||
Corporate and eliminations | ( | ( | ||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||
Capital Expenditures | 2025 | 2024 | ||||||||||||
| Communications | $ | $ | ||||||||||||
| Latin America | ||||||||||||||
Corporate and eliminations | ||||||||||||||
| Total | $ | $ | ||||||||||||
14
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
NOTE 5. REVENUE RECOGNITION
Revenue Categories
The following tables set forth reported revenue by category and by business unit:
| For the three months ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||||||||||||||
| Mobility | Business Wireline | Consumer Wireline | Latin America | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||
| Wireless | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Fiber and advanced connectivity1 | |||||||||||||||||||||||||||||||||||||||||
| Non-fiber consumer broadband | |||||||||||||||||||||||||||||||||||||||||
| Legacy and other transitional | |||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||
| Total Service | |||||||||||||||||||||||||||||||||||||||||
| Equipment | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
1Advanced connectivity services reported in Business Wireline. | |||||||||||||||||||||||||||||||||||||||||
| For the three months ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||||||||||||||
| Mobility | Business Wireline | Consumer Wireline | Latin America | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||
| Wireless | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Fiber and advanced connectivity1 | |||||||||||||||||||||||||||||||||||||||||
| Non-fiber consumer broadband | |||||||||||||||||||||||||||||||||||||||||
| Legacy and other transitional | |||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||
| Total Service | |||||||||||||||||||||||||||||||||||||||||
| Equipment | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
1Advanced connectivity services reported in Business Wireline. | |||||||||||||||||||||||||||||||||||||||||
| For the nine months ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||||||||||||||
| Mobility | Business Wireline | Consumer Wireline | Latin America | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||
| Wireless | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Fiber and advanced connectivity1 | |||||||||||||||||||||||||||||||||||||||||
| Non-fiber consumer broadband | |||||||||||||||||||||||||||||||||||||||||
| Legacy and other transitional | |||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||
| Total Service | |||||||||||||||||||||||||||||||||||||||||
| Equipment | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
1Advanced connectivity services reported in Business Wireline. | |||||||||||||||||||||||||||||||||||||||||
15
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
| For the nine months ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Communications | |||||||||||||||||||||||||||||||||||||||||
| Mobility | Business Wireline | Consumer Wireline | Latin America | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||
| Wireless | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Fiber and advanced connectivity1 | |||||||||||||||||||||||||||||||||||||||||
| Non-fiber consumer broadband | |||||||||||||||||||||||||||||||||||||||||
| Legacy and other transitional | |||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||
| Total Service | |||||||||||||||||||||||||||||||||||||||||
| Equipment | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
1Advanced connectivity services reported in Business Wireline. | |||||||||||||||||||||||||||||||||||||||||
Deferred Customer Contract Acquisition and Fulfillment Costs
Costs to acquire and fulfill customer contracts, including commissions on service activations for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years five years
The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets:
| September 30, | December 31, | ||||||||||
| Consolidated Balance Sheets | 2025 | 2024 | |||||||||
| Deferred Acquisition Costs | |||||||||||
| Prepaid and other current assets | $ | $ | |||||||||
| Other Assets | |||||||||||
| Total deferred customer contract acquisition costs | $ | $ | |||||||||
| Deferred Fulfillment Costs | |||||||||||
| Prepaid and other current assets | $ | $ | |||||||||
| Other Assets | |||||||||||
| Total deferred customer contract fulfillment costs | $ | $ | |||||||||
The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in “Selling, general and administrative” and “Other cost of revenues,” respectively, for the nine months ended:
| September 30, | September 30, | ||||||||||
| Consolidated Statements of Income | 2025 | 2024 | |||||||||
| Deferred acquisition cost amortization | $ | $ | |||||||||
| Deferred fulfillment cost amortization | |||||||||||
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of our right to bill and receive consideration. The contract asset will decrease as services are provided and billed. For example, when installment sales include promotional discounts (e.g., trade-in device credits) the difference between revenue recognized and consideration received is recorded as a contract asset to be amortized over the contract term.
Our contract assets primarily relate to our wireless businesses. Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a
16
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
specified service period result in additional contract assets recognized. These contract assets will amortize over the service contract period, resulting in lower future service revenue.
When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Reductions in the contract liability will be recorded as we satisfy the performance obligations.
The following table presents contract assets and liabilities on our consolidated balance sheets:
| September 30, | December 31, | ||||||||||
| Consolidated Balance Sheets | 2025 | 2024 | |||||||||
| Contract asset | $ | $ | |||||||||
Current portion in “Prepaid and other current assets” | |||||||||||
| Contract liability | |||||||||||
Current portion in “Advanced billings and customer deposits” | |||||||||||
Our beginning of period contract liability recorded as customer contract revenue during 2025 was $3,581 .
Remaining Performance Obligations
Remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. In determining the transaction price allocated, we do not include non-recurring charges and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year, which are primarily prepaid wireless and residential internet agreements.
Remaining performance obligations associated with business contracts reflect recurring charges billed, adjusted to reflect estimates for sales incentives and revenue adjustments. Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevant promotional activities, calculating the remaining performance obligation using the average service component for the portfolio and the average device price. As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $42,017 , of which we expect to recognize approximately 65 % by the end of 2026, with the balance recognized thereafter.
NOTE 6. PENSION AND POSTRETIREMENT BENEFITS
Many of our employees are covered by one of our noncontributory pension plans. We also provide certain medical, dental, life insurance and death benefits to certain retired employees under various plans and accrue actuarially determined postretirement benefit costs. Our objective in funding these plans, in combination with the standards of the Employee Retirement Income Security Act of 1974, as amended (ERISA), is to accumulate assets sufficient to provide benefits described in the plans to employees upon their retirement. We do not have significant funding requirements in 2025. We intend to voluntarily contribute approximately $1,500 to our pension plan by the end of 2026, with more than half of that in 2025, including $400 contributed during the third quarter of 2025.
17
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
The following table details qualified pension and postretirement benefit costs included in the accompanying consolidated statements of income. The service cost component of net periodic pension (credit) cost is recorded in operating expenses in the consolidated statements of income while the remaining components are recorded in “Other income (expense) – net.”
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Pension cost: | |||||||||||||||||||||||
| Service cost – benefits earned during the period | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost on projected benefit obligation | |||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of prior service credit | ( | ( | ( | ( | |||||||||||||||||||
| Net pension (credit) cost | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Postretirement cost: | |||||||||||||||||||||||
| Service cost – benefits earned during the period | $ | $ | $ | $ | |||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | |||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of prior service credit | ( | ( | ( | ( | |||||||||||||||||||
| Net postretirement (credit) cost | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Combined net pension and postretirement (credit) cost | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
We also provide senior- and middle-management employees with nonqualified, unfunded supplemental retirement and savings plans. Net supplemental pension benefits costs not included in the table above were $16 and $17 in the third quarter and $48 and $50 for the first nine months of 2025 and 2024, respectively.
NOTE 7. FAIR VALUE MEASUREMENTS AND DISCLOSURE
The Fair Value Measurement and Disclosure framework in ASC 820, “Fair Value Measurement,” provides a three-tiered fair value hierarchy based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs.
The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.
The valuation methodologies described above may produce a fair value calculation that may not be indicative of future net realizable value or reflective of future fair values. We believe our valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2024.
18
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
Long-Term Debt and Other Financial Instruments
The carrying amounts and estimated fair values of our long-term debt, including current maturities, and other financial instruments are summarized as follows:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
| Amount | Value | Amount | Value | ||||||||||||||||||||
Notes and debentures1 | $ | $ | $ | $ | |||||||||||||||||||
Investment securities2 | |||||||||||||||||||||||
1Includes credit agreement borrowings. | |||||||||||||||||||||||
2Excludes investments accounted for under the equity method. | |||||||||||||||||||||||
The carrying amount of debt with an original maturity of less than one year approximates fair value. The fair value measurements used for notes and debentures are considered Level 2 and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets.
Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of September 30, 2025 and December 31, 2024. Derivatives designated as hedging instruments are reflected as “Prepaid and other current assets,” “Other Assets,” “Accounts payable and accrued liabilities,” and “Other noncurrent liabilities” on our consolidated balance sheets.
| September 30, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Equity Securities | |||||||||||||||||||||||
| Domestic equities | $ | $ | $ | $ | |||||||||||||||||||
| International equities | |||||||||||||||||||||||
| Fixed income equities | |||||||||||||||||||||||
| Available-for-Sale Debt Securities | |||||||||||||||||||||||
| Asset Derivatives | |||||||||||||||||||||||
| Cross-currency swaps | |||||||||||||||||||||||
| Liability Derivatives | |||||||||||||||||||||||
| Cross-currency swaps | ( | ( | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Equity Securities | |||||||||||||||||||||||
| Domestic equities | $ | $ | $ | $ | |||||||||||||||||||
| International equities | |||||||||||||||||||||||
| Fixed income equities | |||||||||||||||||||||||
| Available-for-Sale Debt Securities | |||||||||||||||||||||||
| Asset Derivatives | |||||||||||||||||||||||
| Cross-currency swaps | |||||||||||||||||||||||
| Liability Derivatives | |||||||||||||||||||||||
| Cross-currency swaps | ( | ( | |||||||||||||||||||||
Investment Securities
Our investment securities include both equity and debt securities that are measured at fair value, as well as equity securities without readily determinable fair values. A substantial portion of the fair values of our investment securities is estimated based on quoted market prices. Investments in equity securities not traded on a national securities exchange are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities.
19
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
Investments in debt securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.
The components comprising total gains and losses in the period on equity securities are as follows:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Total gains (losses) recognized on equity securities | $ | $ | $ | $ | |||||||||||||||||||
| Gains (losses) recognized on equity securities sold | ( | ||||||||||||||||||||||
| Unrealized gains (losses) recognized on equity securities held at end of period | $ | $ | $ | $ | |||||||||||||||||||
At September 30, 2025, available-for-sale debt securities totaling $661 have maturities as follows - less than one year: $80 ; one to three years: $120 ; three to five years: $90 ; five or more years: $371 .
Our cash equivalents (money market securities) and short-term investments (certificate and time deposits) are recorded at amortized cost, and the respective carrying amounts approximate fair values. Short-term investments are recorded in “Prepaid and other current assets” and our investment securities are recorded in “Other Assets” on the consolidated balance sheets.
Derivative Financial Instruments
We enter into derivative transactions to manage certain market risks, primarily interest rate risk and foreign currency exchange risk. This includes the use of interest rate swaps, interest rate locks, foreign exchange forward contracts and combined interest rate foreign exchange contracts (cross-currency swaps). We do not use derivatives for trading or speculative purposes. We record derivatives on our consolidated balance sheets at fair value that is derived from observable market data, including yield curves and foreign exchange rates (all of our derivatives are Level 2). Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the item being hedged.
Fair Value Hedging Periodically, we enter into and designate fixed-to-floating interest rate swaps as fair value hedges. The purpose of these swaps is to manage interest rate risk by managing our mix of fixed-rate and floating-rate debt. These swaps involve the receipt of fixed-rate amounts for floating interest rate payments over the life of the swaps without exchange of the underlying principal amount.
We also designate most of our cross-currency swaps and foreign exchange contracts as fair value hedges. The purpose of these contracts is to hedge foreign currency risk associated with changes in spot rates on foreign denominated debt. For cross-currency hedges, we have elected to exclude the change in fair value of the swap related to both time value and cross-currency basis spread from the assessment of hedge effectiveness. For foreign exchange contracts, we have elected to exclude the change in fair value of forward points from the assessment of hedge effectiveness.
Unrealized and realized gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the earnings impact of excluded components. In instances where we have elected to exclude components from the assessment of hedge effectiveness related to fair value hedges, unrealized gains or losses on such excluded components are recorded as a component of accumulated OCI and recognized into earnings over the life of the hedging instrument. Unrealized gains on derivatives designated as fair value hedges are recorded at fair value as assets, and unrealized losses are recorded at fair market value as liabilities. Except for excluded components, changes in the fair value of derivative instruments designated as fair value hedges are offset against the change in fair value of the hedged assets or liabilities through earnings. In the nine months ended September 30, 2025 and 2024, no ineffectiveness was measured on fair value hedges.
Cash Flow Hedging We designate some of our cross-currency swaps as cash flow hedges to hedge our exposure to variability in expected future cash flows that are attributable to foreign currency risk and interest rate risk generated from our foreign-denominated debt. These agreements include initial and final exchanges of principal from fixed foreign denominated amounts to fixed U.S. dollar denominated amounts, to be exchanged at a specified rate that is usually determined by the market spot rate upon issuance. They also include an interest rate swap of a fixed or floating foreign denominated interest rate to a fixed U.S. dollar denominated interest rate.
20
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
Unrealized gains on derivatives designated as cash flow hedges are recorded at fair value as assets and unrealized losses are recorded at fair value as liabilities. For derivative instruments designated as cash flow hedges, changes in fair value are reported as a component of accumulated OCI and are reclassified into the consolidated statements of income in the same period the hedged transaction affects earnings.
Periodically, we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt. We designate our interest rate locks as cash flow hedges. Gains and losses when we settle our interest rate locks are amortized into income over the life of the related debt. Over the next 12 months, we expect to reclassify $59 from accumulated OCI to “Interest expense” due to the amortization of net losses on historical interest rate locks.
Collateral and Credit-Risk Contingency We have entered into agreements with our derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. At September 30, 2025, we had posted collateral of $375 (a deposit asset) and held collateral of $405 (a receipt liability). Under the agreements, if AT&T’s credit rating had been downgraded two ratings levels by Fitch Ratings, one level by S&P and one level by Moody’s before the final collateral exchange in September, we would have been required to post additional collateral of $54 . If AT&T’s credit rating had been downgraded three ratings levels by Fitch Ratings, two levels by S&P and two levels by Moody’s, we would have been required to post additional collateral of $1,756 . At December 31, 2024, we had posted collateral of $188 (a deposit asset) and held collateral of $0 (a receipt liability). We do not offset the fair value of collateral, whether the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) exists, against the fair value of the derivative instruments.
Following are the notional amounts of our outstanding derivative positions:
| September 30, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Cross-currency swaps | $ | $ | |||||||||
| Total | $ | $ | |||||||||
Following are the related hedged items affecting our financial position and performance:
| Effect of Derivatives on the Consolidated Statements of Income | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| Fair Value Hedging Relationships | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Interest rate swaps (“Interest expense”): | |||||||||||||||||||||||
| Gain (loss) on interest rate swaps | $ | $ | $ | ( | $ | ||||||||||||||||||
| Gain (loss) on long-term debt | ( | ||||||||||||||||||||||
| Cross-currency swaps: | |||||||||||||||||||||||
| Gain (loss) on cross-currency swaps | ( | ||||||||||||||||||||||
| Gain (loss) on long-term debt | ( | ( | ( | ||||||||||||||||||||
| Gain (loss) recognized in accumulated OCI | ( | ( | ( | ( | |||||||||||||||||||
In addition, the net swap settlements that accrued and settled in the periods above were offset against “Interest expense.”
21
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
The following table presents information for our cash flow hedging relationships:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| Cash Flow Hedging Relationships | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Cross-currency swaps: | |||||||||||||||||||||||
| Gain (loss) recognized in accumulated OCI | $ | $ | ( | $ | $ | ||||||||||||||||||
| Interest rate locks: | |||||||||||||||||||||||
Interest income (expense) reclassified from accumulated OCI into income | ( | ( | ( | ( | |||||||||||||||||||
NOTE 8. SALES OF RECEIVABLES
We have agreements with various third-party financial institutions pertaining to the sales of certain types of our accounts receivable. The most significant of these programs are discussed in detail below and generally consist of (1) receivables arising from equipment installment plans, which are sold for cash and beneficial interests, such as deferred purchase price, when applicable, and (2) revolving trade receivables, which are sold for cash. Under the terms of our agreements for these programs, we continue to service the transferred receivables on behalf of the financial institutions.
The following table sets forth a summary of cash proceeds received, net of remittances paid, from sales of receivables:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Net cash received (paid) from equipment installment receivables program1 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Net cash received (paid) from revolving receivables program | ( | ||||||||||||||||||||||
Total net cash impact to cash flows from operating activities2 | $ | ( | $ | $ | $ | ||||||||||||||||||
1Cash from initial sales of $ | |||||||||||||||||||||||
2Net of facility fees. | |||||||||||||||||||||||
The sales of receivables did not have a material impact on our consolidated statements of income or to “Total Assets” reported on our consolidated balance sheets. We reflect cash receipts on sold receivables as cash flows from operations in our consolidated statements of cash flows. In the event cash is received on the beneficial interests, those receipts are classified as cash flows from investing activities, when applicable.
22
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
Our equipment installment and revolving receivables programs are discussed in detail below. The following table sets forth a summary of the receivables and accounts being serviced:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Equipment | Equipment | ||||||||||||||||||||||
| Installment | Revolving | Installment | Revolving | ||||||||||||||||||||
| Gross receivables: | $ | $ | $ | $ | |||||||||||||||||||
| Balance sheet classification | |||||||||||||||||||||||
Accounts receivable | |||||||||||||||||||||||
Notes receivable | |||||||||||||||||||||||
Trade receivables | |||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||
Noncurrent notes and trade receivables | |||||||||||||||||||||||
Outstanding portfolio of receivables derecognized from our consolidated balance sheets | $ | $ | $ | $ | |||||||||||||||||||
Cash proceeds received, net of remittances1 | |||||||||||||||||||||||
1Represents amounts to which financial institutions remain entitled, excluding the beneficial interests. | |||||||||||||||||||||||
Equipment Installment Receivables Program
We offer our customers the option to purchase certain wireless devices in installments over a specified period of time and, in many cases, once certain conditions are met, they may be eligible to trade in the original equipment for a new device and have the remaining unpaid balance paid or settled.
We maintain a program under which we transfer a portion of these receivables through our bankruptcy-remote subsidiary in exchange for cash and beneficial interests. In the event a customer trades in a device prior to the end of the installment contract period, we agree to make a payment to the financial institutions equal to any outstanding remaining installment receivable balance. Accordingly, we record a guarantee obligation for this estimated amount at the time the receivables are transferred.
The following table sets forth a summary of equipment installment receivables sold under this program:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Gross receivables sold1 | $ | $ | $ | $ | |||||||||||||||||||
Net receivables sold2 | |||||||||||||||||||||||
| Cash proceeds received | |||||||||||||||||||||||
| Guarantee obligation recorded | |||||||||||||||||||||||
1Receivables net of promotion credits. | |||||||||||||||||||||||
2Receivables net of allowance and other reserves. | |||||||||||||||||||||||
Beneficial interests, when applicable, and guarantee obligations are initially recorded at estimated fair value and subsequently adjusted for changes in present value of expected cash flows. The estimation of their fair values is based on remaining installment payments expected to be collected and the expected timing and value of device trade-ins. The estimated value of the device trade-ins considers prices offered to us by independent third parties and contemplates changes in value after the launch of a device model. The fair value measurements used for the beneficial interests and the guarantee obligation are considered Level 3 under the Fair Value Measurement and Disclosure framework (see Note 7).
23
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Fair value of repurchased receivables | $ | $ | $ | $ | |||||||||||||||||||
| Carrying value of beneficial interests | |||||||||||||||||||||||
Gain (loss) on repurchases1 | $ | $ | ( | $ | $ | ( | |||||||||||||||||
1These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income. | |||||||||||||||||||||||
At September 30, 2025 and December 31, 2024, our beneficial interests were $1,993 and $3,185 , respectively, of which $1,284 and $1,906 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at September 30, 2025 and December 31, 2024 was $222 and $301 , respectively, of which $114 and $150 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation.
Revolving Receivables Program
During 2025, we expanded our revolving agreement to transfer up to $2,940 of certain receivables through our bankruptcy-remote subsidiaries to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, we transfer additional receivables into the program, resulting in our gross receivables sold exceeding net cash flow impacts (e.g., collect and reinvest). The transferred receivables are fully guaranteed by our bankruptcy-remote subsidiaries, which hold additional receivables in the amount of $28 that are pledged as collateral under this agreement. The transfers are recorded at fair value of the proceeds received and obligations assumed less derecognized receivables. Our maximum exposure to loss related to these receivables transferred is limited to the derecognized amount outstanding.
The following table sets forth a summary of the revolving receivables sold:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Gross receivables sold/cash proceeds received1 | $ | $ | $ | $ | |||||||||||||||||||
Total collections under revolving agreement | |||||||||||||||||||||||
Net cash proceeds received | $ | $ | $ | $ | |||||||||||||||||||
Net receivables sold2 | $ | $ | $ | $ | |||||||||||||||||||
1Includes initial sales of receivables of $ | |||||||||||||||||||||||
2Receivables net of allowance and other reserves. | |||||||||||||||||||||||
NOTE 9. TRANSACTIONS WITH DIRECTV
Prior to its sale, we accounted for our investment in DIRECTV under the equity method and recorded our share of DIRECTV earnings as equity in net income of affiliates, with DIRECTV considered a related party. On July 2, 2025, we sold our interest in DIRECTV to TPG Capital (TPG) and recorded a current note receivable of approximately $3,600 , which we expect to receive the majority of by the end of 2025, and a long-term receivable of $500 . The disposition of DIRECTV also resulted in the release of approximately $2,900 of historical deferred tax liabilities. We recorded a gain on the sale of DIRECTV of approximately $5,500 , which includes the impact of the transfer of deferred tax liabilities, indemnification liabilities and unfavorable contracts, in “Other income (expense) – net” in the consolidated statements of income in the third quarter of 2025.
24
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
At September 30, 2025, the current note receivable balance included in “Prepaid and other current assets” on our consolidated balance sheet was $3,291 , reflecting approximately $320 collected during the third quarter.
Prior to disposition, in the third quarter of 2024 our investment in DIRECTV was reduced to zero on our consolidated balance sheet, as a result of aggregate cash receipts exceeding our initial investment balance plus our cumulative equity in DIRECTV earnings. As we were not committed, implicitly or explicitly, to provide financial or other support to DIRECTV, we recorded cash distributions received in excess of our share of DIRECTV’s earnings in “Equity in net income of affiliates” in the consolidated statements of income and as cash provided by operations in the consolidated statements of cash flows.
The following table sets forth our share of DIRECTV’s earnings included in “Equity in net income of affiliates” and cash distributions received from DIRECTV prior to disposition:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
DIRECTV’s earnings included in Equity in net income of affiliates | $ | $ | $ | $ | |||||||||||||||||||
Distributions classified as operating activities | $ | $ | $ | $ | |||||||||||||||||||
Distributions classified as investing activities | |||||||||||||||||||||||
Cash distributions received from DIRECTV | $ | $ | $ | $ | |||||||||||||||||||
Prior to disposition, we billed DIRECTV approximately $240 under commercial arrangements and transition service agreements, which were recorded as a reduction to the operations and support expenses incurred through June 30, 2025.
NOTE 10. SUPPLIER AND VENDOR FINANCING PROGRAMS
Supplier Financing Program
We actively manage the timing of our supplier payments for operating items to optimize the use of our cash and seek to make payments on 90-day or greater terms, while providing suppliers with access to bank facilities that permit earlier payment at their cost. Our supplier financing program does not result in changes to our normal, contracted payment cycles or cash from operations.
At the supplier’s election, they can receive payment of AT&T obligations prior to the scheduled due dates, at a discounted price from the third-party financial institution. The discounted price paid to participating suppliers is based on a variable rate that is indexed to the overnight borrowing rate. We agree to pay the financial institution the stated amount generally within 90 days of receipt of the invoice. We do not have pledged assets or other guarantees under our supplier financing program.
Suppliers had elected to sell to the third-party financial institutions $4,455 and $2,498 of our outstanding payment obligations as of September 30, 2025 and December 31, 2024, respectively. These amounts are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets. Our supplier financing programs are reported as operating or investing (when capitalizable) activities in our consolidated statements of cash flows when paid.
Direct Supplier Financing
We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (variable rate extension fee). We had $3,992 of direct supplier financing outstanding as of September 30, 2025 and $6,272 as of December 31, 2024, which are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets. Our direct supplier financing is reported as operating activities in our statements of cash flows when paid.
Vendor Financing
We enter into multi-year software licensing arrangements, which, consistent with industry standards, are paid over the license terms of two to five years. Additionally, in connection with capital improvements and the acquisition of other productive assets, we negotiate favorable payment terms of 120 days or more. We refer to these arrangements as vendor financing, with the balances and activities including equipment and software arrangements. Vendor financing payments are reported as financing
25
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
activities in our statements of cash flows when paid. For the nine months ended September 30, 2025 and 2024, we recorded vendor financing commitments of $1,014 and $581 , respectively. We had $1,674 of vendor financing payables at September 30, 2025, with $908 included in “Accounts payable and accrued liabilities” and $1,448 of vendor financing payables at December 31, 2024, with $749 included in “Accounts payable and accrued liabilities.”
NOTE 11. ADDITIONAL FINANCIAL INFORMATION
Cash and Cash Flows
We typically maintain our restricted cash balances for purchases and sales of certain investment securities and funding of certain deferred compensation benefit payments.
The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets:
| September 30, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2024 | 2023 | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
| Restricted cash in Prepaid and other current assets | |||||||||||||||||||||||
| Restricted cash in Other Assets | |||||||||||||||||||||||
| Cash and Cash Equivalents and Restricted Cash | $ | $ | $ | $ | |||||||||||||||||||
The following table summarizes cash paid during the periods for interest and income taxes:
| Nine months ended | |||||||||||
| September 30, | |||||||||||
| Cash paid (received) during the period for: | 2025 | 2024 | |||||||||
| Interest | $ | $ | |||||||||
| Income taxes, net of refunds | |||||||||||
| The following table summarizes capital expenditures: | |||||||||||
| Nine months ended | |||||||||||
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Purchase of property and equipment | $ | $ | |||||||||
Interest during construction - capital expenditures1 | |||||||||||
| Total Capital Expenditures | $ | $ | |||||||||
| The following table summarizes acquisitions, net of cash acquired: | |||||||||||
| Nine months ended | |||||||||||
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Business acquisitions | $ | $ | |||||||||
| Spectrum acquisitions | |||||||||||
Interest during construction - spectrum1 | |||||||||||
| Total Acquisitions | $ | $ | |||||||||
1Total capitalized interest was $ | |||||||||||
Preferred Equity Transactions
On March 3, 2025, we issued $2,250 of nonconvertible cumulative preferred interests in Telco LLC (Telco Class A-4). The Telco Class A-4 interests pay an initial preferred distribution of 5.94 % annually, subject to declaration, and subject to reset on November 1, 2028, and every four years thereafter. The Telco Class A-4 interests can be called at issue price beginning
26
AT&T INC.
SEPTEMBER 30, 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
November 1, 2028, and are subject to the same redemption and liquidation rights as the Telco Class A-1, A-2 and A-3 interests.
On March 3, 2025, we also redeemed all outstanding Series B cumulative perpetual preferred shares. The shares had a total liquidation preference of €2.0 billion and were redeemed for $2,075 .
Pending Acquisitions
On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45 GHz bands from EchoStar Corporation for approximately $23,000 , subject to certain adjustments. The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other closing conditions. The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services. We signed a short-term spectrum manager lease on the 3.45 GHz spectrum. We expect these licenses will be deployed in cell sites covering nearly two-thirds of the U.S. population by mid-November 2025.
On May 21, 2025, we agreed to acquire substantially all of Lumen’s mass markets fiber business for $5,750 cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations. The transaction is expected to close in early 2026, pending regulatory approval and other customary closing conditions.
27
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Dollars in millions except per share amounts
OVERVIEW
AT&T Inc. is referred to as “we,” “AT&T” or the “Company” throughout this document. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc., and the names of the particular subsidiaries and affiliates providing the services generally have been omitted. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this discussion in conjunction with the consolidated financial statements and accompanying notes (Notes).
We have two reportable segments: Communications and Latin America. Our segment results presented in Note 4 and discussed below follow our internal management reporting. Percentage increases and decreases that are not considered meaningful are denoted with a dash.
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||||||||||||||
| Communications | $ | 29,516 | $ | 29,074 | 1.5 | % | $ | 88,775 | $ | 86,513 | 2.6 | % | ||||||||||||||||||||||||||
Latin America | 1,095 | 1,022 | 7.1 | 3,120 | 3,188 | (2.1) | ||||||||||||||||||||||||||||||||
| Corporate | 98 | 117 | (16.2) | 287 | 337 | (14.8) | ||||||||||||||||||||||||||||||||
| AT&T Operating Revenues | $ | 30,709 | $ | 30,213 | 1.6 | % | $ | 92,182 | $ | 90,038 | 2.4 | % | ||||||||||||||||||||||||||
Operating Income (Loss) | ||||||||||||||||||||||||||||||||||||||
| Communications | $ | 7,096 | $ | 7,156 | (0.8) | % | $ | 21,152 | $ | 20,906 | 1.2 | % | ||||||||||||||||||||||||||
Latin America | 22 | 10 | — | 111 | 19 | — | ||||||||||||||||||||||||||||||||
| Segment Operating Income | 7,118 | 7,166 | (0.7) | 21,263 | 20,925 | 1.6 | ||||||||||||||||||||||||||||||||
| Corporate | (564) | (654) | 13.8 | (1,868) | (2,119) | 11.8 | ||||||||||||||||||||||||||||||||
| Certain significant items | (435) | (4,396) | 90.1 | (1,021) | (5,083) | 79.9 | ||||||||||||||||||||||||||||||||
| AT&T Operating Income | $ | 6,119 | $ | 2,116 | — | % | $ | 18,374 | $ | 13,723 | 33.9 | % | ||||||||||||||||||||||||||
The Communications segment provides services to businesses and consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, fixed wireless services, IP Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers.
•Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and AT&T Internet Air (AIA) services, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.
The Latin America segment provides wireless services and equipment in Mexico.
28
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
RESULTS OF OPERATIONS
Consolidated Results Our financial results are summarized in the discussions that follow. Additional analysis is discussed in our “Segment Results” section.
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||||||||||||||
| Service | $ | 25,336 | $ | 25,134 | 0.8 | % | $ | 75,766 | $ | 74,982 | 1.0 | % | ||||||||||||||||||||||||||
| Equipment | 5,373 | 5,079 | 5.8 | 16,416 | 15,056 | 9.0 | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 30,709 | 30,213 | 1.6 | 92,182 | 90,038 | 2.4 | ||||||||||||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Operations and support | 19,273 | 23,010 | (16.2) | 58,050 | 61,109 | (5.0) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 5,317 | 5,087 | 4.5 | 15,758 | 15,206 | 3.6 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 24,590 | 28,097 | (12.5) | 73,808 | 76,315 | (3.3) | ||||||||||||||||||||||||||||||||
| Operating Income | 6,119 | 2,116 | — | 18,374 | 13,723 | 33.9 | ||||||||||||||||||||||||||||||||
| Interest expense | 1,700 | 1,675 | 1.5 | 5,013 | 5,098 | (1.7) | ||||||||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (20) | 272 | — | 1,905 | 915 | — | ||||||||||||||||||||||||||||||||
Other income (expense) — net | 6,254 | 717 | — | 7,476 | 1,850 | — | ||||||||||||||||||||||||||||||||
| Income Before Income Taxes | 10,653 | 1,430 | — | 22,742 | 11,390 | 99.7 | ||||||||||||||||||||||||||||||||
| Net Income | 9,677 | 145 | — | 19,230 | 7,845 | — | ||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to AT&T | 9,314 | (174) | — | 18,165 | 6,868 | — | ||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Common Stock | $ | 9,278 | $ | (226) | — | % | $ | 18,137 | $ | 6,715 | — | % | ||||||||||||||||||||||||||
Operating revenues increased in the third quarter and for the first nine months of 2025, reflecting higher Mobility and Consumer Wireline revenues, partially offset by declines in Business Wireline. Operating revenues in Mexico were higher in the third quarter but lower for the first nine months, reflecting unfavorable foreign exchange impacts during the first half of 2025.
Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily due to a $4,422 noncash goodwill impairment recorded in 2024. Also contributing to lower operating expenses were expense declines from our continued transformation efforts, lower content licensing fees and lower year-to-date restructuring costs. Partially offsetting these declines were higher Mobility equipment costs resulting from increased wireless equipment sales volumes, higher network-related costs and approximately $440 of apportioned legal settlements during the third quarter of 2025.
Depreciation and amortization expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades, partially offset by lower depreciation impacts from our Open RAN network modernization efforts. We expect fourth-quarter 2025 depreciation expense to be lower than the comparable prior-year quarter, and full-year expense to be consistent with the prior year as certain legacy assets become fully depreciated.
Operating income increased in the third quarter and for the first nine months of 2025. Our operating income margin in the third quarter increased from 7.0% in 2024 to 19.9% in 2025 and for the first nine months increased from 15.2% in 2024 to 19.9% in 2025.
Interest expense increased in the third quarter and decreased for the first nine months of 2025. The increase in the third quarter was primarily due to lower capitalized interest associated with spectrum acquisitions. The decrease for the first nine months was
29
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
primarily due to lower average debt balances, partially offset by lower capitalized interest associated with spectrum acquisitions.
Equity in net income (loss) of affiliates decreased in the third quarter and increased for the first nine months of 2025. The decrease for the quarter is primarily due to the sale of our interest in DIRECTV to TPG Capital on July 2, 2025. The increase for the first nine months is attributable to the cash distributions received by AT&T in excess of the carrying amount of our investment in DIRECTV prior to disposition (see Note 9).
Other income (expense) – net increased in the third quarter and for the first nine months of 2025. The increase in the quarter was primarily due to a gain of approximately $5,500 recognized on the sale of our interest in DIRECTV (see Note 9). For the first nine months, the increase was also driven by a second-quarter 2025 gain on a prior disposition and first-quarter 2024 noncash impairment charges for a held-for-sale business and our SKY Mexico equity investment. Partially offsetting the increases in the quarter and for the first nine months were lower pension and postretirement benefit credits and lower returns on other benefit-related investments.
Income tax expense decreased in the third quarter and for the first nine months of 2025, primarily due to a lower effective tax rate driven by a tax-free gain on sale of DIRECTV in 2025 and a goodwill impairment in 2024, which is not deductible for tax purposes.
Our effective tax rate was 9.2% in the third quarter and 15.4% for the first nine months of 2025, versus 89.9% and 31.1% in the comparable periods in the prior year, reflecting the nonrecognition of income taxes on the DIRECTV gain and larger discrete state tax benefits in 2025, and the goodwill impairment in 2024, which was not deductible for tax purposes.
Segment Results Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We evaluate segment performance based on operating income as well as EBITDA and/or EBITDA margin. See “Discussion and Reconciliation of Non-GAAP Measures” for a reconciliation of EBITDA and EBITDA margin to the most comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP).
| COMMUNICATIONS SEGMENT | Third Quarter | Nine-Month Period | ||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Segment Operating Revenues | ||||||||||||||||||||||||||||||||||||||
| Mobility | $ | 21,713 | $ | 21,052 | 3.1 | % | $ | 65,128 | $ | 62,126 | 4.8 | % | ||||||||||||||||||||||||||
| Business Wireline | 4,248 | 4,606 | (7.8) | 13,029 | 14,274 | (8.7) | ||||||||||||||||||||||||||||||||
| Consumer Wireline | 3,555 | 3,416 | 4.1 | 10,618 | 10,113 | 5.0 | ||||||||||||||||||||||||||||||||
| Total Segment Operating Revenues | $ | 29,516 | $ | 29,074 | 1.5 | % | $ | 88,775 | $ | 86,513 | 2.6 | % | ||||||||||||||||||||||||||
Segment Operating Income (Loss) | ||||||||||||||||||||||||||||||||||||||
| Mobility | $ | 7,125 | $ | 7,003 | 1.7 | % | $ | 20,796 | $ | 20,190 | 3.0 | % | ||||||||||||||||||||||||||
| Business Wireline | (354) | (43) | — | (653) | 123 | — | ||||||||||||||||||||||||||||||||
| Consumer Wireline | 325 | 196 | 65.8 | 1,009 | 593 | 70.2 | ||||||||||||||||||||||||||||||||
| Total Segment Operating Income | $ | 7,096 | $ | 7,156 | (0.8) | % | $ | 21,152 | $ | 20,906 | 1.2 | % | ||||||||||||||||||||||||||
Operating revenues increased in the third quarter and for the first nine months of 2025, primarily driven by increases in our Mobility and Consumer Wireline business units, partially offset by declines in our Business Wireline business unit, which reflects lower demand for legacy services.
Operating income decreased in the third quarter and increased for the first nine months of 2025. Our Communications segment operating income margin in the third quarter decreased from 24.6% in 2024 to 24.0% in 2025 and for the first nine months decreased from 24.2% in 2024 to 23.8% in 2025. Our Communications EBITDA margin in the third quarter remained consistent at 41.2% in 2024 and 2025 and for the first nine months increased from 40.7% in 2024 to 40.8% in 2025.
30
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
| Communications Business Unit Discussion | ||||||||||||||||||||||||||||||||||||||
| Mobility Results | ||||||||||||||||||||||||||||||||||||||
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||||||||||||||
| Service | $ | 16,926 | $ | 16,539 | 2.3 | % | $ | 50,430 | $ | 48,810 | 3.3 | % | ||||||||||||||||||||||||||
| Equipment | 4,787 | 4,513 | 6.1 | 14,698 | 13,316 | 10.4 | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 21,713 | 21,052 | 3.1 | 65,128 | 62,126 | 4.8 | ||||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Operations and support | 12,011 | 11,559 | 3.9 | 36,673 | 34,483 | 6.4 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,577 | 2,490 | 3.5 | 7,659 | 7,453 | 2.8 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 14,588 | 14,049 | 3.8 | 44,332 | 41,936 | 5.7 | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 7,125 | $ | 7,003 | 1.7 | % | $ | 20,796 | $ | 20,190 | 3.0 | % | ||||||||||||||||||||||||||
The following tables highlight other key measures of performance for Mobility:
| Subscribers | ||||||||||||||||||||
| September 30, | Percent | |||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | |||||||||||||||||
| Postpaid | 90,255 | 88,384 | 2.1 | % | ||||||||||||||||
| Postpaid phone | 73,801 | 72,285 | 2.1 | |||||||||||||||||
Prepaid | 18,544 | 19,200 | (3.4) | |||||||||||||||||
| Reseller | 10,183 | 8,482 | 20.1 | |||||||||||||||||
Total Mobility Subscribers1 | 118,982 | 116,066 | 2.5 | % | ||||||||||||||||
1Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. | ||||||||||||||||||||
31
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
| Mobility Net Additions | ||||||||||||||||||||||||||||||||||||||
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Postpaid Phone Net Additions | 405 | 403 | 0.5 | % | 1,130 | 1,171 | (3.5) | % | ||||||||||||||||||||||||||||||
| Total Phone Net Additions | 322 | 358 | (10.1) | 993 | 1,162 | (14.5) | ||||||||||||||||||||||||||||||||
Postpaid1 | 328 | 429 | (23.5) | 1,097 | 1,411 | (22.3) | ||||||||||||||||||||||||||||||||
| Prepaid | (167) | (49) | — | (353) | 34 | — | ||||||||||||||||||||||||||||||||
| Reseller | 587 | 237 | — | 413 | 910 | (54.6) | ||||||||||||||||||||||||||||||||
Mobility Net Subscriber Additions2, 3 | 748 | 617 | 21.2 | % | 1,157 | 2,355 | (50.9) | % | ||||||||||||||||||||||||||||||
Postpaid Churn4 | 1.07 | % | 0.93 | % | 14 | BP | 1.03 | % | 0.89 | % | 14 | BP | ||||||||||||||||||||||||||
Postpaid Phone-Only Churn4 | 0.92 | % | 0.78 | % | 14 | BP | 0.87 | % | 0.73 | % | 14 | BP | ||||||||||||||||||||||||||
1In addition to postpaid phones, includes tablets and wearables and other. Tablet net adds (losses) were (45) and (21) for the quarters ended September 30, 2025 and 2024 and 14 and 31 for the nine months ended September 30, 2025 and 2024. Wearables and other net adds (losses) were (32) and 47 for the quarters ended September 30, 2025 and 2024 and (47) and 209 for the nine months ended September 30, 2025 and 2024. | ||||||||||||||||||||||||||||||||||||||
2Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. | ||||||||||||||||||||||||||||||||||||||
3Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. | ||||||||||||||||||||||||||||||||||||||
4Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period. | ||||||||||||||||||||||||||||||||||||||
Service revenue increased in the third quarter and for the first nine months of 2025, largely due to subscriber gains partially offset by promotional activity. Revenue comparisons in the third quarter were also impacted by approximately $90 of one-time noncash revenues related to administrative fees in 2024.
ARPU
Average revenue per subscriber (ARPU) decreased in the third quarter and increased for the first nine months of 2025. The decrease in the quarter includes the impact of one-time revenues related to administrative fees in 2024, as well as promotional activity and our success in attracting customers in underpenetrated segments with lower ARPUs, but attractive lifetime values, such as age 55-plus in our “value customers.” The increase for the first nine months was pressured by growth in our base of converged customers, who are typically eligible for service discounts.
Churn
The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins. Postpaid churn and postpaid phone-only churn were higher in the third quarter and for the first nine months of 2025, partially driven by an increase in our customer base that reached the end of device financing periods, which normalized as we exited the quarter. The increase in churn in the quarter was primarily driven by increased competition.
Equipment revenue increased in the third quarter and for the first nine months of 2025, primarily driven by higher wireless device sales volumes.
Operations and support expenses increased in the third quarter and for the first nine months of 2025, primarily due to higher equipment costs driven by higher wireless sales volumes. The increase also reflected higher advertising due to the launch of a new campaign in the first quarter, and higher network costs that were partially offset by lower content licensing fees and expense declines from transformation efforts.
32
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for network upgrades and expansion, partially offset by lower depreciation impacts from our network modernization efforts.
Operating income increased in the third quarter and for the first nine months of 2025. Our Mobility operating income margin in the third quarter decreased from 33.3% in 2024 to 32.8% in 2025 and for the first nine months decreased from 32.5% in 2024 to 31.9% in 2025. Our Mobility EBITDA margin in the third quarter decreased from 45.1% in 2024 to 44.7% in 2025 and for the first nine months decreased from 44.5% in 2024 to 43.7% in 2025, driven by the increase in low margin equipment revenues.
| Business Wireline Results | ||||||||||||||||||||||||||||||||||||||
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||||||||||||||
| Legacy and other transitional services | $ | 2,208 | $ | 2,669 | (17.3) | % | $ | 7,032 | $ | 8,505 | (17.3) | % | ||||||||||||||||||||||||||
Fiber and advanced connectivity services | 1,853 | 1,748 | 6.0 | 5,426 | 5,183 | 4.7 | ||||||||||||||||||||||||||||||||
| Equipment | 187 | 189 | (1.1) | 571 | 586 | (2.6) | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 4,248 | 4,606 | (7.8) | 13,029 | 14,274 | (8.7) | ||||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Operations and support | 3,067 | 3,250 | (5.6) | 9,128 | 10,004 | (8.8) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,535 | 1,399 | 9.7 | 4,554 | 4,147 | 9.8 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 4,602 | 4,649 | (1.0) | 13,682 | 14,151 | (3.3) | ||||||||||||||||||||||||||||||||
Operating Income (Loss) | $ | (354) | $ | (43) | — | % | $ | (653) | $ | 123 | — | % | ||||||||||||||||||||||||||
Legacy and other transitional services revenues decreased in the third quarter and for the first nine months of 2025, driven by lower demand for legacy and VPN services, which we expect to continue. These revenue declines were partially offset by targeted pricing actions in the first quarter of 2025.
Fiber and advanced connectivity services revenues increased in the third quarter and for the first nine months of 2025, driven by higher fiber and fixed wireless revenues.
Equipment revenues decreased in the third quarter and for the first nine months of 2025.
Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily driven by lower personnel and customer support costs associated with ongoing transformation initiatives, which were partially offset by favorable vendor settlements in the prior-year third quarter. As part of our transformation activities, we expect operations and support expense improvements through the remainder of 2025 as we further right size our operations in alignment with the strategic direction of the business.
Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital investment for strategic initiatives such as fiber, which we expect to continue through the remainder of 2025.
Operating income decreased in the third quarter and for the first nine months of 2025. Our Business Wireline operating income margin in the third quarter decreased from (0.9)% in 2024 to (8.3)% in 2025 and for the first nine months decreased from 0.9% in 2024 to (5.0)% in 2025. Our Business Wireline EBITDA margin in the third quarter decreased from 29.4% in 2024 to 27.8% in 2025 and for the first nine months remained consistent at 29.9% in 2024 and 2025.
33
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
| Consumer Wireline Results | ||||||||||||||||||||||||||||||||||||||
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||||||||||||||
| Broadband | $ | 3,070 | $ | 2,838 | 8.2 | % | $ | 9,082 | $ | 8,301 | 9.4 | % | ||||||||||||||||||||||||||
| Legacy voice and data services | 243 | 307 | (20.8) | 794 | 972 | (18.3) | ||||||||||||||||||||||||||||||||
| Other service and equipment | 242 | 271 | (10.7) | 742 | 840 | (11.7) | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 3,555 | 3,416 | 4.1 | 10,618 | 10,113 | 5.0 | ||||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
| Operations and support | 2,266 | 2,296 | (1.3) | 6,738 | 6,801 | (0.9) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 964 | 924 | 4.3 | 2,871 | 2,719 | 5.6 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 3,230 | 3,220 | 0.3 | 9,609 | 9,520 | 0.9 | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 325 | $ | 196 | 65.8 | % | $ | 1,009 | $ | 593 | 70.2 | % | ||||||||||||||||||||||||||
The following tables highlight other key measures of performance for Consumer Wireline:
Broadband Connections | ||||||||||||||||||||||||||||||||||||||
| September 30, | Percent | |||||||||||||||||||||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||||
Broadband1 | 14,494 | 13,864 | 4.5 | % | ||||||||||||||||||||||||||||||||||
| Fiber Broadband Connections | 10,123 | 9,024 | 12.2 | % | ||||||||||||||||||||||||||||||||||
1Includes AIA. | ||||||||||||||||||||||||||||||||||||||
| Broadband Net Additions | ||||||||||||||||||||||||||||||||||||||
| Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
Broadband Net Additions1, 2 | 232 | 28 | — | % | 519 | 135 | — | % | ||||||||||||||||||||||||||||||
| Fiber Broadband Net Additions | 288 | 226 | 27.4 | % | 792 | 717 | 10.5 | % | ||||||||||||||||||||||||||||||
1Includes AIA. | ||||||||||||||||||||||||||||||||||||||
2Excludes the impact of subscriber disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025. | ||||||||||||||||||||||||||||||||||||||
Broadband revenues increased in the third quarter and for the first nine months of 2025, driven by increases in fiber revenues of 16.8% and 18.2%. Higher fiber revenues reflect an increase in fiber customers, which we expect to continue as we invest further in building our fiber footprint, and higher ARPU. This increase also includes growth in AIA revenues and was partially offset by declines in copper-based broadband services.
Legacy voice and data services revenues decreased in the third quarter and for the first nine months of 2025, reflecting the continued decline in demand for these services in favor of other technologies, such as wireless and fiber services.
Other service and equipment revenues decreased in the third quarter and for the first nine months of 2025, reflecting the continued decline in the number of VoIP customers.
Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily driven by lower customer support costs and content licensing fees, largely offset by higher network-related costs and higher marketing costs.
34
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades and expansion, which we expect to continue through the remainder of 2025.
Operating income increased in the third quarter and for the first nine months of 2025. Our Consumer Wireline operating income margin in the third quarter increased from 5.7% in 2024 to 9.1% in 2025 and for the first nine months increased from 5.9% in 2024 to 9.5% in 2025. Our Consumer Wireline EBITDA margin in the third quarter increased from 32.8% in 2024 to 36.3% in 2025 and for the first nine months increased from 32.7% in 2024 to 36.5% in 2025.
| LATIN AMERICA SEGMENT | Third Quarter | Nine-Month Period | ||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Percent Change | 2025 | 2024 | Percent Change | |||||||||||||||||||||||||||||||||
| Segment Operating Revenues | ||||||||||||||||||||||||||||||||||||||
| Service | $ | 696 | $ | 645 | 7.9 | % | $ | 1,973 | $ | 2,034 | (3.0) | % | ||||||||||||||||||||||||||
| Equipment | 399 | 377 | 5.8 | 1,147 | 1,154 | (0.6) | ||||||||||||||||||||||||||||||||
| Total Segment Operating Revenues | 1,095 | 1,022 | 7.1 | 3,120 | 3,188 | (2.1) | ||||||||||||||||||||||||||||||||
| Segment Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Operations and support | 896 | 854 | 4.9 | 2,527 | 2,662 | (5.1) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 177 | 158 | 12.0 | 482 | 507 | (4.9) | ||||||||||||||||||||||||||||||||
| Total Segment Operating Expenses | 1,073 | 1,012 | 6.0 | 3,009 | 3,169 | (5.0) | ||||||||||||||||||||||||||||||||
Operating Income | $ | 22 | $ | 10 | — | % | $ | 111 | $ | 19 | — | % | ||||||||||||||||||||||||||
The following tables highlight other key measures of performance for Mexico:
| Subscribers | ||||||||||||||||||||||||||||||||||||||
| September 30, | Percent | |||||||||||||||||||||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | |||||||||||||||||||||||||||||||||||
| Postpaid | 6,423 | 5,633 | 14.0 | % | ||||||||||||||||||||||||||||||||||
| Prepaid | 17,508 | 16,996 | 3.0 | |||||||||||||||||||||||||||||||||||
| Reseller | 218 | 282 | (22.7) | |||||||||||||||||||||||||||||||||||
| Total Mexico Wireless Subscribers | 24,149 | 22,911 | 5.4 | % | ||||||||||||||||||||||||||||||||||
| Mexico Wireless Net Additions | ||||||||||||||||||||||||||||||||||||||
Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||
| Percent | Percent | |||||||||||||||||||||||||||||||||||||
| (in 000s) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||||
| Postpaid | 243 | 139 | 74.8 | % | 586 | 397 | 47.6 | % | ||||||||||||||||||||||||||||||
| Prepaid | 68 | 187 | (63.6) | 22 | 333 | (93.4) | ||||||||||||||||||||||||||||||||
| Reseller | (5) | (51) | 90.2 | (35) | (135) | 74.1 | ||||||||||||||||||||||||||||||||
| Total Mexico Wireless Net Additions | 306 | 275 | 11.3 | % | 573 | 595 | (3.7) | % | ||||||||||||||||||||||||||||||
Service revenues increased in the third quarter and decreased for the first nine months of 2025. The increase in the quarter was primarily due to growth in subscribers and favorable foreign exchange impacts. The decrease for the first nine months reflects unfavorable foreign exchange impacts in the first half of 2025, partially offset by growth in subscribers and ARPU.
Equipment revenues increased in the third quarter and decreased for the first nine months of 2025. The increase in the quarter was primarily due to higher equipment sales and favorable foreign exchange impacts. The decrease for the first nine months reflects unfavorable foreign exchange impacts in the first half of 2025, partially offset by higher equipment sales.
35
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
Operations and support expenses increased in the third quarter and decreased for the first nine months of 2025. The increase in the quarter was primarily due to higher equipment costs, bad debt expense from higher sales and unfavorable exchange rates. The decrease for the first nine months was primarily due to favorable foreign exchange impacts, partially offset by increased equipment and selling costs.
Depreciation and amortization expense increased in the third quarter and decreased for the first nine months of 2025. The increase in the quarter was primarily due to accelerated depreciation on certain network assets. The decrease for the first nine months was primarily due to foreign exchange impacts.
Operating income increased in the third quarter and for the first nine months of 2025. Our Mexico operating income margin in the third quarter increased from 1.0% in 2024 to 2.0% in 2025 and for the first nine months increased from 0.6% in 2024 to 3.6% in 2025. Our Mexico EBITDA margin in the third quarter increased from 16.4% in 2024 to 18.2% in 2025 and for the first nine months increased from 16.5% in 2024 to 19.0% in 2025.
COMPETITIVE AND REGULATORY ENVIRONMENT
Overview AT&T subsidiaries operating within the United States are subject to federal and state regulations. AT&T subsidiaries operating outside the United States are subject to the jurisdiction of national and supranational regulations in the markets where service is provided. Complying with these regulations may affect our results of operations and cash flow, and compliance may be very costly.
On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. The legislation did not materially impact our income tax expense, but we expect that it will result in a material decrease to cash taxes paid relative to our expectations.
For further discussion of regulations impacting AT&T and its subsidiaries, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Regulatory Landscape” in our Annual Report on Form 10-K for the year-ended December 31, 2024.
LIQUIDITY AND CAPITAL RESOURCES
For nine months ended September 30, | 2025 | 2024 | |||||||||
Cash provided by operating activities | $ | 28,964 | $ | 26,875 | |||||||
Cash used in investing activities | (14,433) | (12,127) | |||||||||
Cash provided by (used in) financing activities | 2,391 | (18,855) | |||||||||
| September 30, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
Cash and cash equivalents | $ | 20,272 | $ | 3,298 | |||||||
Total debt | 139,468 | 123,532 | |||||||||
We had $20,272 in cash and cash equivalents available at September 30, 2025, increasing $16,974 since December 31, 2024. Cash and cash equivalents included cash of $4,359 and money market funds and other cash equivalents of $15,913. Approximately $1,497 of our cash and cash equivalents were held in accounts outside of the U.S. and may be subject to restrictions on repatriation. Our cash and cash equivalents at September 30, 2025 was elevated in anticipation of the consummation of announced transactions (see Note 11).
For the first nine months of 2025, cash inflows were primarily provided by cash receipts from operations, including cash from our sale and transfer of our receivables to third parties, and distributions from DIRECTV. These inflows exceeded cash used to meet the needs of the business, including, but not limited to, payment of operating expenses, including higher device payments from higher sales volumes. The cash generated from operating activities was primarily used to fund capital improvements, make dividend payments to stockholders, repurchase preferred and common stock, and repay long-term debt. We maintain availability under our credit facilities and our commercial paper program to meet our short-term liquidity requirements.
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AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
Cash Provided by Operating Activities
During the first nine months of 2025, cash provided by operating activities was $28,964, compared to $26,875 for the first nine months of 2024, with increases resulting from higher cash flows related to DIRECTV, including a first-quarter 2025 dividend of $1,138, and operational growth. Partially offsetting this increase and lowering cash from operations during the first nine months of 2025, were advanced cash payments of approximately $1,000 for wholesale access which can be utilized on invoices over future periods.
We actively manage the timing of our supplier payments for operating items to optimize the use of our cash. Among other things, we seek to make payments on 90-day or greater terms, while providing the suppliers with access to bank facilities that permit earlier payments at their cost (referred to as supplier financing program). In addition, for payments to suppliers of handset inventory, as part of our working capital initiatives, we have arrangements that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (referred to as direct supplier financing). The net impact of direct supplier financing, including principal and interest payments, was to decrease cash from operating activities approximately $2,430 and $3,648 for the nine months ended September 30, 2025 and 2024, respectively. All supplier financing payments are due within one year. (See Note 10)
Cash Used in Investing Activities
For the first nine months of 2025, cash used in investing activities totaled $14,433 and consisted primarily of $14,061 (including interest during construction) for capital expenditures. During the first nine months of 2025, investing activities also included $110 of FirstNet sustainability payments net of reinvestment, and $620 for our investment in a new strategic partner related to wireline network transformation accounted for under the equity method of accounting.
On July 2, 2025, we completed the sale of our interest in DIRECTV to TPG and recorded a current note receivable of approximately $3,600, which we expect to receive the majority of by the end of 2025, and a long-term note receivable of $500. As of September 30, 2025, we have collected approximately $320 of the current note receivable.
We enter into multi-year software licensing arrangements, which are typically paid over the license terms of two to five years and referred to as vendor financing. Additionally, for capital improvements, we have negotiated favorable vendor payment terms of 120 days or more with some of our vendors, which are also referred to as vendor financing. Vendor financing is excluded from capital expenditures and reported as financing activities. For the first nine months of 2025, vendor financing payments were $823, compared to $1,571 for the first nine months of 2024. Capital expenditures for the first nine months of 2025 were $14,061, and when including $823 cash paid for vendor financing, capital investment was $14,884 ($107 lower than the prior-year comparable period).
The vast majority of our capital expenditures are spent on our networks, including product development and related support systems. During the first nine months of 2025, we placed $1,014 of productive assets in service under vendor financing arrangements (compared to $581 in the prior-year comparable period). The amount of capital expenditures is influenced by demand for services and products, capacity needs and network enhancements.
In November 2024, we agreed to purchase select spectrum licenses from United States Cellular Corporation (UScellular) for approximately $1,000, subject to closing conditions, including the consummation of UScellular’s sale of its wireless operations and select spectrum assets to T-Mobile US, Inc, which was closed on August 1, 2025.
On May 21, 2025, we agreed to acquire substantially all of Lumen’s mass markets fiber business for $5,750 cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations. The transaction is expected to close in early 2026, pending regulatory approval and other customary closing conditions.
On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45 GHz bands from EchoStar Corporation for approximately $23,000, subject to certain adjustments. The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other closing conditions. The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services. We signed a short-term spectrum manager lease on the 3.45 GHz spectrum. We expect these licenses will be deployed in cell sites covering nearly two-thirds of the U.S. population by mid-November 2025.
37
AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
Cash Provided by or Used in Financing Activities
For the first nine months of 2025, cash provided by financing activities totaled $2,391 and was primarily comprised of issuances of long-term debt and preferred interests, offset by dividend payments, preferred and common stock repurchases, debt repayments and vendor financing payments.
A tabular summary of our debt activities for the nine months ended September 30, 2025 is as follows:
| First Quarter | Second Quarter | Third Quarter | Nine months ended September 30, 2025 | |||||||||||
| Issuance of Notes and Debentures: | ||||||||||||||
| EUR notes | $ | 2,956 | $ | — | $ | 2,639 | $ | 5,595 | ||||||
USD notes | — | 3,473 | 4,959 | 8,432 | ||||||||||
| Debt Issuances | $ | 2,956 | $ | 3,473 | $ | 7,598 | $ | 14,027 | ||||||
| Repayments | ||||||||||||||
| EUR notes | $ | (1,321) | $ | (32) | $ | — | $ | (1,353) | ||||||
| Other | (205) | (62) | (229) | (496) | ||||||||||
| Repayments of long-term debt | $ | (1,526) | $ | (94) | $ | (229) | $ | (1,849) | ||||||
The weighted average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.2% as of September 30, 2025 and as of December 31, 2024. We had $138,090 of total notes and debentures outstanding at September 30, 2025. This also included Euro, British pound sterling, Canadian dollar, Swiss franc and Australian dollar denominated debt that totaled approximately $38,496.
At September 30, 2025, we had $11,378 of long-term debt maturing within one year. We had no outstanding commercial paper or other short-term borrowings on September 30, 2025.
For the first nine months of 2025, we paid $823 of cash under our vendor financing program, compared to $1,571 in the prior-year comparable period. Total vendor financing payables included in our September 30, 2025 consolidated balance sheet were $1,674, with $908 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”).
During the first nine months of 2025, we repurchased approximately 87 million shares totaling $2,444 under our $10,000 common stock repurchase authorization approved by the Board of Directors in December 2024, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022. At September 30, 2025, we had approximately $7,556 remaining under this repurchase authorization.
We paid dividends on common and preferred shares of $6,168 during the first nine months of 2025, compared with $6,171 for the first nine months of 2024.
Dividends on common stock declared by our Board of Directors totaled $0.8325 per share in the first nine months of 2025 and 2024. Our dividend policy considers the expectations and requirements of stockholders, capital funding requirements of AT&T and long-term growth opportunities.
Financing activities in the first nine months of 2025 also included the issuance of $2,250 of nonconvertible cumulative preferred interests in Telco LLC, with the funds used to redeem all outstanding Series B preferred stock for $2,075 (see Note 11). We also received approximately $850 in upfront cash proceeds from a structured sale-leaseback of real estate.
Credit Facilities
The following summary of our various credit and loan agreements does not purport to be complete and is qualified in its entirety by reference to each agreement filed as exhibits to our Annual Report on Form 10-K.
We use credit facilities as a tool in managing our liquidity status. We currently have one $12,000 revolving credit agreement that terminates on November 18, 2029 (Revolving Credit Agreement). No amount was outstanding under the Revolving Credit Agreement as of September 30, 2025.
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AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
We also utilize other external financing sources, which include various credit arrangements supported by government agencies to support network equipment purchases as well as a commercial paper program.
Our Revolving Credit Agreement contains covenants that are customary for an issuer with investment grade senior debt credit rating as well as a net debt-to-EBITDA financial ratio covenant requiring AT&T to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75-to-1. As of September 30, 2025, we were in compliance with the covenants for our credit facilities.
Collateral Arrangements
Most of our counterparty collateral arrangements require cash collateral posting by AT&T only when derivative market values exceed certain thresholds. Under these arrangements, which cover the majority of our approximate $39,142 derivative portfolio, counterparties are still required to post collateral. During the first nine months of 2025, we received $218 of cash collateral, on a net basis. Cash postings under these arrangements vary with changes in credit ratings and netting agreements. (See Note 7)
Other
Our total capital consists of debt (long-term debt and debt maturing within one year), redeemable noncontrolling interest and stockholders’ equity. Our capital structure does not include debt issued by our equity method investments. At September 30, 2025, our debt ratio was 52.0%, compared to 52.2% at September 30, 2024 and 50.7% at December 31, 2024. The debt ratio is affected by the same factors that affect total capital, and reflects our recent debt issuances, repayments and reclassifications related to redemption of noncontrolling interests.
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AT&T INC.
SEPTEMBER 30, 2025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued
Dollars in millions except per share amounts
DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES
We also evaluate segment and business unit performance based on EBITDA, which is defined as operating income excluding depreciation and amortization, and/or EBITDA margin, which is defined as EBITDA divided by total revenue. EBITDA is used as part of our management reporting, and we believe EBITDA to be a relevant and useful measurement to our investors as it measures the cash generation potential of our business units. EBITDA does not give effect to depreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. 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.
| Third Quarter | Nine-Month Period | ||||||||||||||||||||||||||||||||||
| Percent | Percent | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||
Communications Segment | |||||||||||||||||||||||||||||||||||
Operating income | $ | 7,096 | $ | 7,156 | (0.8) | % | $ | 21,152 | $ | 20,906 | 1.2 | % | |||||||||||||||||||||||
Add: Depreciation and amortization | 5,076 | 4,813 | 5.5 | 15,084 | 14,319 | 5.3 | |||||||||||||||||||||||||||||
EBITDA | $ | 12,172 | $ | 11,969 | 1.7 | % | $ | 36,236 | $ | 35,225 | 2.9 | % | |||||||||||||||||||||||
Operating income margin | 24.0 | % | 24.6 | % | 23.8 | % | 24.2 | % | |||||||||||||||||||||||||||
EBITDA margin | 41.2 | % | 41.2 | % | 40.8 | % | 40.7 | % | |||||||||||||||||||||||||||
Mobility | |||||||||||||||||||||||||||||||||||
| Operating income | $ | 7,125 | $ | 7,003 | 1.7 | % | $ | 20,796 | $ | 20,190 | 3.0 | % | |||||||||||||||||||||||
Add: Depreciation and amortization | 2,577 | 2,490 | 3.5 | 7,659 | 7,453 | 2.8 | |||||||||||||||||||||||||||||
| EBITDA | $ | 9,702 | $ | 9,493 | 2.2 | % | $ | 28,455 | $ | 27,643 | 2.9 | % | |||||||||||||||||||||||
| Operating income margin | 32.8 | % | 33.3 | % | 31.9 | % | 32.5 | % | |||||||||||||||||||||||||||
| EBITDA margin | 44.7 | % | 45.1 | % | 43.7 | % | 44.5 | % | |||||||||||||||||||||||||||
Business Wireline | |||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | (354) | $ | (43) | — | % | $ | (653) | $ | 123 | — | % | |||||||||||||||||||||||
Add: Depreciation and amortization | 1,535 | 1,399 | 9.7 | 4,554 | 4,147 | 9.8 | |||||||||||||||||||||||||||||
| EBITDA | $ | 1,181 | $ | 1,356 | (12.9) | % | $ | 3,901 | $ | 4,270 | (8.6) | % | |||||||||||||||||||||||
| Operating income margin | (8.3) | % | (0.9) | % | (5.0) | % | 0.9 | % | |||||||||||||||||||||||||||
| EBITDA margin | 27.8 | % | 29.4 | % | 29.9 | % | 29.9 | % | |||||||||||||||||||||||||||
Consumer Wireline | |||||||||||||||||||||||||||||||||||
| Operating income | $ | 325 | $ | 196 | 65.8 | % | $ | 1,009 | $ | 593 | 70.2 | % | |||||||||||||||||||||||
Add: Depreciation and amortization | 964 | 924 | 4.3 | 2,871 | 2,719 | 5.6 | |||||||||||||||||||||||||||||
| EBITDA | $ | 1,289 | $ | 1,120 | 15.1 | % | $ | 3,880 | $ | 3,312 | 17.1 | % | |||||||||||||||||||||||
| Operating income margin | 9.1 | % | 5.7 | % | 9.5 | % | 5.9 | % | |||||||||||||||||||||||||||
| EBITDA margin | 36.3 | % | 32.8 | % | 36.5 | % | 32.7 | % | |||||||||||||||||||||||||||
Latin America Segment | |||||||||||||||||||||||||||||||||||
| Operating income | $ | 22 | $ | 10 | — | % | $ | 111 | $ | 19 | — | % | |||||||||||||||||||||||
Add: Depreciation and amortization | 177 | 158 | 12.0 | 482 | 507 | (4.9) | |||||||||||||||||||||||||||||
| EBITDA | $ | 199 | $ | 168 | 18.5 | % | $ | 593 | $ | 526 | 12.7 | % | |||||||||||||||||||||||
| Operating income margin | 2.0 | % | 1.0 | % | 3.6 | % | 0.6 | % | |||||||||||||||||||||||||||
| EBITDA margin | 18.2 | % | 16.4 | % | 19.0 | % | 16.5 | % | |||||||||||||||||||||||||||
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AT&T INC.
SEPTEMBER 30, 2025
Item 3. Quantitative and Qualitative Disclosures About Market Risk
At September 30, 2025, we had no interest rate swaps.
We have fixed-to-fixed and floating-to-fixed cross-currency swaps on foreign currency-denominated debt instruments with a U.S. dollar notional value of $39,142 to hedge our exposure to changes in foreign currency exchange rates and interest rates. These derivatives have been designated as fair value or cash flow hedges with a net fair value of $(1,472) at September 30, 2025.
Item 4. Controls and Procedures
The registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized, accumulated and communicated to its management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure, and reported within the time periods specified in the SEC’s rules and forms. The Chief Executive Officer and Chief Financial Officer have performed an evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of September 30, 2025. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the registrant’s disclosure controls and procedures were effective as of September 30, 2025.
There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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AT&T INC.
SEPTEMBER 30, 2025
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this report contains forward-looking statements that are subject to risks and uncertainties, and actual results could differ materially. Many of these factors are discussed in more detail in the “Risk Factors” section herein and in our most recent Form 10-K and Form 10-Q. We claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.
The following factors could cause our future results to differ materially from those expressed in the forward-looking statements:
•Adverse economic and political changes, public health emergencies and our ability to access financial markets on favorable terms.
•Increases in our benefit plans’ costs, including due to worse-than-assumed investment returns and discount rates, mortality assumptions, medical cost trends, or healthcare laws or regulations.
•The final outcome of FCC and other federal, state or foreign government agency proceedings (including judicial review of such proceedings) and legislative and regulatory efforts involving issues important to our business, including, without limitation, the results of pending governmental investigations; the transition from legacy technologies to IP-based infrastructure, including the withdrawal of legacy TDM-based services; universal service; broadband deployment; wireless equipment siting regulations; E911 services; rules concerning digital discrimination; competition policy; privacy; net neutrality; copyright protection; availability of new spectrum on fair and reasonable terms; and wireless and satellite license awards and renewals, and our response to such legislative and regulatory efforts.
•Enactment of or changes to state, local, federal and/or foreign tax laws and regulations, and actions by tax agencies and judicial authorities, and the resolution of disputes with any taxing jurisdictions, pertaining to our subsidiaries and foreign investments.
•U.S. and foreign laws and regulations regarding intellectual property rights protection and privacy, personal data protection and user consent, which are rapidly evolving.
•Our ability to compete in an increasingly competitive industry and against competitors that can offer product/service offerings at lower prices due to lower cost structures and regulatory and legislative actions adverse to us, including non-regulation of comparable alternative technologies and/or government-owned or subsidized networks, and our response to such competition and emerging technologies.
•Disruptions in our supply chain that have a material impact on our ability to acquire needed goods and services.
•The development and delivery of attractive and profitable wireless and broadband offerings and devices, including our ability to match speeds offered by competitors; and the availability, cost and/or reliability of technologies required to provide such offerings.
•Our ability to adequately fund additional wireless spectrum and network development, deployment and maintenance; and regulations and conditions relating to spectrum use, licensing, obtaining additional spectrum, technical standards and deployment and usage, including network management rules.
•Our ability to manage growth in wireless data services, including network quality.
•The outcome of pending, threatened or potential litigation and arbitration.
•The impact from major equipment, software or other failures or errors that disrupt our networks or cyber incidents; the effect of security breaches related to the network or customer information; our inability to obtain handsets, equipment/software or have handsets, equipment/software serviced in a timely and cost-effective manner from suppliers; severe weather conditions or other natural disasters including earthquakes and forest fires; public health emergencies; energy shortages; or wars or terrorist attacks.
•The issuance by the FASB or other accounting oversight bodies of new or revised accounting standards.
•The imposition of tariffs and their duration and uncertainty surrounding further tariffs and congressional action regarding spending and taxation, which may result in changes in government spending and affect the ability and willingness of businesses and consumers to spend in general.
•Our ability to realize or sustain the expected benefits of our business transformation initiatives, which are designed to reduce costs, enable legacy rationalization, streamline distribution, remove redundancies and simplify and improve processes and support functions.
•Our ability to successfully complete divestitures, as well as achieve our expectations regarding the financial impact of completed and/or pending transactions.
Readers are cautioned that other factors discussed in this report and in our most recent Form 10-K, although not enumerated here, also could materially affect our future earnings.
42
AT&T INC.
SEPTEMBER 30, 2025
PART II – OTHER INFORMATION
Dollars in millions except per share amounts
Item 1A. Risk Factors
We discuss in our Annual Report on Form 10-K for the year ended December 31, 2024 and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 various risks that may materially affect our business. We use this section to update this discussion to reflect material developments. For the third quarter of 2025, there were no such material developments.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
(c) A summary of our repurchases of common stock during the third quarter of 2025 is as follows:
| (a) | (b) | (c) | (d) | |||||||||||||||||||||||
| Period | Total Number of Shares (or Units) Purchased1,2 | Average Price Paid Per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs1 | Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs | ||||||||||||||||||||||
| July 1, 2025 - July 31, 2025 | 20,812,773 | $ | 27.71 | 20,814,263 | $ | 8,465 | ||||||||||||||||||||
| August 1, 2025 - August 31, 2025 | 16,643,212 | $ | 28.41 | 16,580,000 | $ | 7,994 | ||||||||||||||||||||
| September 1, 2025 - September 30, 2025 | 15,151,294 | $ | 29.02 | 15,115,000 | $ | 7,556 | ||||||||||||||||||||
| Total | 52,607,279 | $ | 28.31 | 52,509,263 | ||||||||||||||||||||||
1In December 2024, our Board of Directors approved, and we announced, an authorization to repurchase up to $10,000 of common stock. The authorization has no expiration date. | ||||||||||||||||||||||||||
2Of the shares repurchased or transferred, 111,046 were acquired through the withholding of taxes on the vesting of restricted stock and performance shares or in respect of the exercise price of options, and 3,027,963 were transferred from the AT&T Master Pension Trust. | ||||||||||||||||||||||||||
Item 5. Other Information
(c) During the quarter ended September 30, 2025, no director or officer (as defined in Rule 16a-1(f)) of the Company adopted or terminated a contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or a non-Rule 10b5-1 trading arrangement.
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AT&T INC.
SEPTEMBER 30, 2025
Item 6. Exhibits
The following exhibits are filed or incorporated by reference as a part of this report:
| Exhibit | ||||||||
| Number | Exhibit Description | |||||||
| 10.1 | License Purchase Agreement, dated August 25, 2025, by and among EchoStar Corporation, the other parties set forth therein, and AT&T Mobility II LLC† | |||||||
| 31 | Rule 13a-14(a)/15d-14(a) Certifications | |||||||
31.1 Certification of Principal Executive Officer | ||||||||
31.2 Certification of Principal Financial Officer | ||||||||
| 32 | Section 1350 Certifications | |||||||
| 101 | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Balance Sheets, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | |||||||
| 104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
† Certain schedules, annexes or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K, but will be furnished supplementally to the SEC upon request. | ||||||||
44
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| AT&T Inc. | |||||
| October 31, 2025 | /s/ Pascal Desroches | ||||
| Pascal Desroches | |||||
| Senior Executive Vice President | |||||
and Chief Financial Officer | |||||
45
FAQ
What were AT&T (T) Q3 2025 revenues and EPS?
AT&T reported revenue of $30.709 billion and diluted EPS of $1.29.
How did AT&T’s operating income change year over year in Q3 2025?
Operating income rose to $6.119 billion from $2.116 billion in Q3 2024.
What drove AT&T’s earnings swing in Q3 2025?
Results reflect higher operating income and $6.254 billion in other income (expense) — net.
How did AT&T’s segments perform in Q3 2025?
Mobility earned $7.125B, Business Wireline lost $354M, and Consumer Wireline earned $325M in operating income.
What was AT&T’s cash from operations year to date in 2025?
Net cash provided by operating activities was $28.964 billion for the first nine months of 2025.
How much stock did AT&T repurchase in 2025 under its authorization?
Approximately 87 million shares for $2.444 billion through September 30, 2025.
What is AT&T’s cash and long-term debt position?
Cash and cash equivalents were $20.272 billion; long‑term debt was $128.090 billion at September 30, 2025.
At&T
NYSE:T
T Rankings
T Latest News
T Latest SEC Filings
Oct 28, 2025
[Form 4] AT&T INC. Insider Trading Activity
Oct 23, 2025
[Form 4] AT&T INC. Insider Trading Activity
Oct 22, 2025
[8-K] AT&T INC. Reports Material Event
Oct 16, 2025
[Form 4] AT&T INC. Insider Trading Activity
T Stock Data
175.45B
7.10B
0.08%
66.68%
1.25%
Telecom Services
Telephone Communications (no Radiotelephone)
United States
DALLAS