AT&T (NYSE: T) grows Q2 revenue and profit, plans ~$10B 2026 share repurchases
Rhea-AI Filing Summary
AT&T Inc. reported second‑quarter 2026 operating revenues of $31.6 billion, up 2.3% year over year. Diluted EPS from continuing operations was $0.66 versus $0.62, while adjusted EPS rose to $0.65 from $0.54 and adjusted EBITDA increased to $12.3 billion.
Free cash flow was $4.7 billion versus $4.4 billion, as cash from operations reached $10.8 billion and capital investment was $6.1 billion. Advanced Connectivity service revenue grew 5.1% to $23.5 billion, with operating income up 20.3% to $7.3 billion, supported by 646,000 internet net adds (367,000 fiber, 279,000 fixed wireless) and 432,000 postpaid phone net adds.
Legacy segment revenue declined 25.9% to $1.6 billion as copper-based services wind down, while Latin America revenue grew 16.1% but operating income slipped to $38 million. Management reiterated 2026‑2028 guidance, including 2026 adjusted EPS of $2.25–$2.35, free cash flow of at least $18 billion rising to $21 billion+ by 2028, annual capital investment of $23–$24 billion, and plans to maintain a $1.11 annual dividend and return $45 billion+ via dividends and share repurchases, with about $10 billion of buybacks targeted for 2026.
Positive
- Adjusted EPS rose 20.4% year over year to $0.65 in Q2 2026, with adjusted EBITDA increasing to $12.3 billion, reflecting higher profitability from continuing operations.
- Advanced Connectivity growth was strong, with service revenue up 5.1% to $23.5 billion and advanced home internet revenue up 27.3%, supported by 646,000 internet and 432,000 postpaid phone net adds.
- The company generated Q2 free cash flow of $4.7 billion and reaffirmed 2026–2028 guidance, including free cash flow of $18–21+ billion per year and plans to return $45 billion+ to shareholders.
Negative
- Legacy segment revenues declined 25.9% year over year in Q2 2026 to $1.63 billion, with operating income down 45.5%, as copper-based services are decommissioned.
- Latin America operating income fell to $38 million from $46 million despite 16.1% revenue growth, and total Mexico wireless subscribers decreased 1.7%, driven by prepaid net losses.
- Net debt remained high at $126.4 billion with a net debt-to-adjusted EBITDA ratio of 2.68x, slightly above the prior-year 2.64x despite deleveraging objectives.
Filing Explained
AT&T’s fiber-asset subsidiary is held for sale, but the proposed controlling-interest transaction is not reported closed; the ownership change remains prospective.
As a Form 8-K used to report specified material events, this
The filing includes the acquired customer relationships in continuing operations, but classifies the fiber network assets and Forged Fiber 37 Services, LLC as held for sale and discontinued operations; the disclosure therefore separates the operating customer relationships from the asset subsidiary’s proposed ownership transaction.
A material watch item is the closing status of the planned equity-partner transaction; separately, AT&T says gaining approvals could delay decommissioning its copper-based network beyond
8-K Event Classification
3 items: 0.01, 2.02, 9.01
3 items
Item 0.01
Item 0.01
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total operating revenues: $31.558 billion
Adjusted EPS: $0.65
Adjusted EBITDA: $12.338 billion
+5 more
8 metrics
Total operating revenues
$31.558 billion
Second quarter 2026, up 2.3% year over year
Adjusted EPS
$0.65
Q2 2026 adjusted diluted EPS from continuing operations, up from $0.54
Adjusted EBITDA
$12.338 billion
Q2 2026 adjusted EBITDA, versus $11.731 billion in Q2 2025
Free cash flow
$4.670 billion
Q2 2026 free cash flow, compared with $4.394 billion a year earlier
Advanced home internet revenue
$2.926 billion
Q2 2026 advanced home internet revenue, up 27.3% year over year
Legacy segment revenues
$1.632 billion
Q2 2026 Legacy segment operating revenues, down 25.9% year over year
Net debt
$126.384 billion
Net debt at June 30, 2026, with net debt-to-adjusted EBITDA of 2.68x
Postpaid phone net adds
432,000
Second quarter 2026 postpaid phone net additions
Key Terms
Advanced Connectivity, free cash flow, EBITDA, Net debt-to-adjusted EBITDA ratio, +1 more
5 terms
Advanced Connectivity financial
"Advanced Connectivity segment revenues grew 4.1% year over year, driven by service revenue growth"
free cash flow financial
"Free cash flow* was $4.7 billion, versus $4.4 billion in the year-ago quarter"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
EBITDA financial
"Adjusted EBITDA* was $12.3 billion, up 5.2% year over year"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
Net debt-to-adjusted EBITDA ratio financial
"Net debt-to-adjusted EBITDA ratio* will return to a level consistent with its target"
Net debt-to-adjusted EBITDA ratio compares a company's net debt (total borrowings minus cash) to its core annual earnings before interest, taxes, depreciation and amortization after removing one-time or unusual items. It tells investors how many years of those normalized operating earnings would be needed to pay off the company's net debt, like comparing remaining mortgage debt to a household’s steady take-home pay to judge financial strain and default risk.
vendor financing financial
"Capital investment includes capital expenditures and cash paid for vendor financing"
Vendor financing is when a seller loans money or lets a buyer pay over time so the buyer can purchase the seller’s goods or services, like a store offering you a payment plan instead of requiring full cash up front. For investors, it matters because it can boost sales and help win customers but also shifts credit risk to the seller and can affect reported revenue, cash flow and the quality of the company’s assets on the balance sheet.
Earnings Snapshot
Total operating revenues: $31.558 billion · Guidance included
second quarter 2026
Total operating revenues
$31.558 billion
2.3% year-over-year increase
Diluted EPS from continuing operations
$0.66
up from $0.62 in Q2 2025
Adjusted EPS
$0.65
up from $0.54 in Q2 2025 (20.4% growth)
Adjusted EBITDA
$12.338 billion
up from $11.731 billion in Q2 2025
Free cash flow
$4.670 billion
up from $4.394 billion in Q2 2025
Advanced Connectivity service revenue
$23.478 billion
5.1% year-over-year increase
Postpaid phone net adds
432,000
up from 401,000 in Q2 2025
Guidance
For 2026–2028, AT&T targets low-single-digit annual service revenue growth, adjusted EBITDA growth improving from 3–4% in 2026 to 5% or better in 2028, 2026 adjusted EPS of $2.25–$2.35, capital investment of $23–$24 billion annually, free cash flow of at least $18 billion in 2026, $19 billion+ in 2027 and $21 billion+ in 2028, and plans to return more than $45 billion to shareholders via a $1.11 annual dividend and approximately $24 billion of share repurchases, including about $10 billion in 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were AT&T (T) revenue and EPS for the second quarter of 2026?
AT&T reported Q2 2026 operating revenues of $31.558 billion, up 2.3% year over year. Diluted EPS from continuing operations was $0.66, and adjusted EPS was $0.65, compared with $0.62 and $0.54, respectively, in Q2 2025.
How did AT&T (T) free cash flow perform in Q2 2026?
Free cash flow in Q2 2026 was $4.670 billion, up from $4.394 billion a year earlier. This reflected $10.801 billion of cash from operating activities, less capital expenditures of $5.700 billion and $0.431 billion of vendor financing payments.
How fast are AT&T (T) Advanced Connectivity and fiber businesses growing?
Advanced Connectivity service revenue reached $23.478 billion, up 5.1% year over year. Advanced home internet revenue grew 27.3% to $2.926 billion, with 646,000 internet net adds, including 367,000 fiber and 279,000 fixed wireless, and fiber now passes 38.6 million locations.
What guidance did AT&T (T) provide for 2026–2028?
AT&T targets 2026 adjusted EPS of $2.25–$2.35, free cash flow of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028, annual capital investment of $23–$24 billion, and plans to return $45 billion+ to shareholders during 2026–2028.
How is AT&T (T) managing its legacy copper network and segment?
Legacy segment revenue fell 25.9% in Q2 2026 to $1.632 billion, with EBITDA down 45.5%. The company aims to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029, subject to approvals.
What is AT&T (T)’s current debt and leverage position?
Net debt at June 30, 2026 was $126.4 billion, based on total debt of $144.0 billion and cash of $17.6 billion. The net debt-to-adjusted EBITDA ratio was 2.68x, with a goal to move back toward about 2.5x over roughly three years.
How many customer additions did AT&T (T) report in Q2 2026?
AT&T added over 1 million Advanced Connectivity customers, including 646,000 consumer and business internet net adds and 432,000 postpaid phone net adds. Fixed wireless internet contributed 279,000 net adds, and total Advanced Connectivity operating income rose 20.3% to $7.345 billion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________________________
FORM 8-K
______________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) July 22, 2026
______________________________________________________
(Exact Name of Registrant as Specified in Charter)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Securities Registered Pursuant to Section 12(b) of the Act
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 Results of Operations and Financial Condition.
The registrant announced on July 22, 2026, its results of operations for the second quarter of 2026. The text of the press release and accompanying financial information are attached as exhibits and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) | Exhibits | |||||||
99.1 | Press release dated July 22, 2026 reporting financial results for the second quarter ended June 30, 2026. | |||||||
99.2 | AT&T Inc. selected financial statements and operating data. | |||||||
99.3 | Discussion and reconciliation of non-GAAP measures. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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 hereunto duly authorized.
| AT&T INC. | ||||||||
Date: July 22, 2026 | By: | /s/ Sabrina Sanders | ||||||
Sabrina Sanders Senior Vice President - Chief Accounting Officer and Controller | ||||||||
AT&T Delivers Strong Second-Quarter Results as Investment-Led Strategy Gains Momentum
AT&T adds more than 1 million Advanced Connectivity customers, driven by year-over-year increases in net adds across fiber, fixed wireless, and postpaid phone subscribers
The Company reiterates all consolidated full-year 2026 and multi-year financial guidance and multi-year capital return plans, with accelerated pace of share repurchases in 2026
DALLAS, July 22, 2026 — AT&T Inc. (NYSE: T) reported strong second-quarter results, driven by consistent execution of the Company’s investment-led strategy, demonstrating improved growth in consolidated service revenue and profitability. The Company continues to grow its base of high-value converged customers as it delivered a record quarter for combined fiber and fixed wireless net adds and its strongest consumer postpaid wireless account growth in more than three years.
"The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity," said John Stankey, AT&T Chairman and CEO. "We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position. With an industry-leading position in fiber – the best connectivity technology available – we believe our network performance and operating scale can't be matched."
Second-Quarter Consolidated Results1
•Revenues totaled $31.6 billion, up 2.3% from the year-ago quarter
•Diluted EPS from continuing operations was $0.66, versus $0.62 in the year-ago quarter; adjusted EPS* was $0.65, versus $0.54 in the year-ago quarter
•Operating income was $7.0 billion; adjusted operating income* was $7.5 billion
•Income from continuing operations was $5.0 billion, up 3.6% year over year; adjusted EBITDA* was $12.3 billion, up 5.2% year over year
•Cash from operating activities from continuing operations was $10.8 billion, versus $9.8 billion in the year-ago quarter
•Capital expenditures related to continuing operations were $5.7 billion; capital investment* was $6.1 billion
•Free cash flow* was $4.7 billion, versus $4.4 billion in the year-ago quarter
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
Second-Quarter Highlights
•Added over 1 million Advanced Connectivity customers, driven by year-over-year increases in net adds across fiber, fixed wireless, and postpaid phone subscribers
•Advanced Connectivity service revenue of $23.5 billion, up 5.1% year over year
•Advanced Connectivity operating income of $7.3 billion, up 20.3% year over year with EBITDA* of $12.0 billion, up 8.0%
•42.5% of households with AT&T's advanced home internet services also chose AT&T wireless2
•646,000 total consumer and business Advanced Connectivity internet net adds, including 367,000 fiber and 279,000 fixed wireless
•432,000 postpaid phone net adds with postpaid phone churn of 0.86%
•Added more than 1 million total consumer and business locations reached with fiber for a total of 38.6 million; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 20303
•Returned $4.1 billion to shareholders, including approximately $2.2 billion in common share repurchases under the 2024 authorization
Outlook and Capital Allocation Plan
AT&T maintains its outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio* will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of its transaction with EchoStar.
The Company’s long-term outlook for 2026-2028 includes4:
•Service revenue growth in the low-single-digit range annually
◦Advanced Connectivity service revenue growth in the mid-single-digit range annually, including expected growth of 5%+ in 2026
◦Legacy service revenue decline of 20%+ in 2026 and be immaterial by the end of 2029
•Adjusted EBITDA* growth in the 3% to 4% range in 2026, improving to 5% or better in 2028
◦Advanced Connectivity EBITDA* growth in the mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026
◦Legacy EBITDA* expected to turn negative after 2027, until AT&T has substantially eliminated direct costs associated with operating its copper-based network5
•Adjusted EPS* of $2.25 to $2.35 in 2026 with a double-digit 3-year CAGR through 2028
•Capital investment* in the $23 billion to $24 billion range annually during 2026-2028
•Free cash flow* of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028
•Strong capital returns, including plans to maintain its current annualized common stock dividend of $1.11 per share and approximately $24 billion of share repurchases, including approximately $10 billion during 2026
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
Note: AT&T’s second-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, July 22, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.
Consolidated Financial Results
•Revenues for the second quarter totaled $31.6 billion, versus $30.8 billion in the year-ago quarter, up 2.3%. This was largely due to growth in Advanced Connectivity fiber and wireless revenues, with fiber revenues including the impact of our first-quarter acquisition of Lumen’s mass markets fiber business. Revenues in Mexico were also higher due to favorable foreign exchange impacts. Offsetting these increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network.
•Operating expenses were $24.5 billion, versus $24.3 billion in the year-ago quarter. Operating expenses increased due to an asset abandonment charge associated with the reprioritization of the Company’s spectrum strategy, higher advertising expense, incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth. These increases were largely offset by lower depreciation expense from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. Also offsetting the increase were cost reductions from transformation initiatives, lower content licensing fees, and gains on tower transactions.
•Operating income was $7.0 billion, versus $6.5 billion in the year-ago quarter. When adjusting for certain items, adjusted operating income* was $7.5 billion, versus $6.5 billion in the year-ago quarter.
•Income from continuing operations was $5.0 billion, versus $4.9 billion in the year-ago quarter, which included equity in net income of DIRECTV.
•Income from continuing operations attributable to common stock was $4.6 billion, versus $4.5 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.66, versus $0.62 in the year-ago quarter. Adjusting for $(0.01), which includes a benefit from tax items that were primarily offset by an asset abandonment charge, and transaction, legal, and other items, adjusted earnings per diluted common share* was $0.65, versus $0.54 in the year-ago quarter.
•Adjusted EBITDA* was $12.3 billion, versus $11.7 billion in the year-ago quarter.
•Cash from operating activities from continuing operations was $10.8 billion, versus $9.8 billion in the year-ago quarter, which benefitted from $0.3 billion of cash received from DIRECTV, net of related tax payments. The increase reflects lower cash tax payments and timing of working capital payments, which were partially offset by a voluntary pension plan contribution of $100 million.
•Capital expenditures related to continuing operations were $5.7 billion, compared to $4.9 billion in the year-ago quarter. Capital investment* totaled $6.1 billion, versus $5.1 billion in the year-ago
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
quarter. Cash payments for vendor financing totaled $0.4 billion, versus $0.2 billion in the year-ago quarter.
•Free cash flow* was $4.7 billion, versus $4.4 billion in the year-ago quarter.
•Total debt was $144.0 billion at the end of the second quarter, and net debt* was $126.4 billion.
Segment Results6
Advanced Connectivity service revenues grew 5.1% year over year, driving growth in operating income of 20.3% and EBITDA* of 8.0%. Internet net adds were 646,000 — comprised of 367,000 fiber and 279,000 fixed wireless — and postpaid phone net adds were 432,000.
Advanced Connectivity | |||||||||||
Dollars in millions | Second Quarter | Percent | |||||||||
Unaudited | 2026 | 2025 | Change | ||||||||
Operating Revenues | $ | 28,615 | $ | 27,497 | 4.1 | % | |||||
Service | 23,478 | 22,334 | 5.1 | % | |||||||
Wireless Service | 17,413 | 16,853 | 3.3 | % | |||||||
Advanced Home Internet | 2,926 | 2,299 | 27.3 | % | |||||||
Business Fiber and Advanced Connectivity | 1,946 | 1,769 | 10.0 | % | |||||||
Business Transitional and Other | 1,042 | 1,249 | (16.6) | % | |||||||
Other Service | 151 | 164 | (7.9) | % | |||||||
Equipment | 5,137 | 5,163 | (0.5) | % | |||||||
Operating Expenses | 21,270 | 21,391 | (0.6) | % | |||||||
Operating Income | 7,345 | 6,106 | 20.3 | % | |||||||
Operating Income Margin | 25.7 | % | 22.2 | % | 350 BP | ||||||
EBITDA* | $ | 12,032 | $ | 11,141 | 8.0 | % | |||||
EBITDA Margin* | 42.0 | % | 40.5 | % | 150 | BP | |||||
Advanced Connectivity segment revenues grew 4.1% year over year, driven by service revenue growth of 5.1%. Wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts on wireless subscriber additions. Advanced home internet revenue growth, which included an impact from the acquired mass markets fiber business that closed in the first quarter, reflects increases in fiber and AT&T Internet Air revenues. Business fiber and advanced connectivity revenues increased largely due to higher fiber and fixed wireless revenues. Business transitional and other revenues decreased partly due to lower demand for virtual private network and wholesale services.
Operating expenses were down 0.6% year over year, due to lower depreciation expense from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. Also contributing to the decline were cost reductions from transformation initiatives, lower content licensing fees, and tower transaction gains. These decreases were partially offset by higher advertising expense,
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth.
Operating income was $7.3 billion, up 20.3% year over year. EBITDA* was $12.0 billion, up $891 million year over year.
Legacy revenues continued to decline year over year in line with AT&T's goal to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029.
Legacy | |||||||||||
Dollars in millions | Second Quarter | Percent | |||||||||
Unaudited | 2026 | 2025 | Change | ||||||||
Operating Revenues | $ | 1,632 | $ | 2,202 | (25.9) | % | |||||
Operating Expenses | 1,109 | 1,243 | (10.8) | % | |||||||
Operating Income | 523 | 959 | (45.5) | % | |||||||
Operating Income Margin | 32.0 | % | 43.6 | % | (1,160) | BP | |||||
EBITDA* | $ | 523 | $ | 959 | (45.5) | % | |||||
EBITDA Margin* | 32.0 | % | 43.6 | % | (1,160) | BP | |||||
Legacy segment revenues were down 25.9% year over year, primarily due to lower demand for services as the Company continues to decommission its copper-based network. Operating expenses, which represent direct operating costs, were $1.1 billion, down 10.8% year over year. Expense declines were primarily driven by lower personnel and other costs resulting from the decommissioning of the copper-based network, and lower fulfillment cost amortization, partially offset by vendor settlements. Operating income and EBITDA* were $523 million, down $436 million year over year.
Latin America | |||||||||||
Dollars in millions | Second Quarter | Percent | |||||||||
Unaudited | 2026 | 2025 | Change | ||||||||
Operating Revenues | $ | 1,224 | $ | 1,054 | 16.1 | % | |||||
Service | 780 | 662 | 17.8 | % | |||||||
Equipment | 444 | 392 | 13.3 | % | |||||||
Operating Expenses | 1,186 | 1,008 | 17.7 | % | |||||||
Operating Income | 38 | 46 | (17.4) | % | |||||||
EBITDA* | 227 | 201 | 12.9 | % | |||||||
Latin America segment revenues were up 16.1% year over year, primarily driven by favorable foreign exchange rates and postpaid wireless subscriber growth. Operating expenses were up 17.7% year over year due to unfavorable foreign exchange rates, higher bad debt expense, and higher depreciation expense. Operating income was $38 million, down $8 million year over year. EBITDA* was $227 million, up $26 million year over year.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
1 With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's year-to-date results, unless otherwise indicated. The recently acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, of which AT&T plans to sell a controlling interest to an equity partner that will co-invest in the ongoing business. As such, the subsidiary is classified as held-for-sale and reflected as discontinued operations.
2 Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. This 2Q26 convergence metric is presented based on available information and is subject to revision.
3 Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which represent locations served from the recently acquired mass markets fiber business, Gigapower, and other commercial open access providers.
4 The Company's long-term outlook for 2026-2028 is presented on a continuing operations basis and excludes discontinued operations.
5 The strategy to remove legacy fixed costs across a geography is tied to the decommissioning of infrastructure after all customers have been upgraded to newer services. Gaining approvals could delay this decommissioning beyond 2029.
6 Effective with the Company’s first-quarter 2026 reporting, AT&T revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.
About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated July 22, 2026. Adjusted diluted EPS, adjusted operating income, EBITDA, EBITDA margin, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T’s continuing operations and does not include discussion of balances or activity related to discontinued operations.
Adjusted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Non-operational items arising from asset acquisitions and dispositions include the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate; in these cases, we use the actual tax expense or combined marginal rate of approximately 25%.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
For 2Q26, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.66 adjusted to remove $0.05 benefit from tax items and adjusted for a $0.03 asset abandonment charge, and $0.01 for benefit-related, transaction, legal and other items. For 2Q25, adjusted EPS of $0.54 is diluted EPS of $0.62 minus $0.05 equity in net income of DIRECTV and minus $0.03 benefit-related, transaction, legal and other items. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods, novel theories of liability, and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries.
The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion (based on preliminary information), a non-cash mark-to-market benefit plan gain/loss and other items. The Company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. AT&T’s projected adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, the Company cannot provide a reconciliation between this projected non-GAAP metric and the most comparable GAAP metric without unreasonable effort.
Adjusted operating income is operating income adjusted for revenues and costs the Company considers non-operational in nature, including items arising from asset acquisitions or dispositions. For 2Q26, adjusted operating income of $7.5 billion is calculated as operating income of $7.0 billion, plus adjustments of $418 million. For 2Q25, adjusted operating income of $6.5 billion is calculated as operating income of $6.5 billion minus adjustments of $12 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated July 22, 2026, and include transaction, legal, and other costs as discussed above.
EBITDA is income from continuing operations plus income tax, interest, and depreciation and amortization expenses minus equity in net income (loss) of affiliates and other income (expense) – net. Adjusted EBITDA is calculated by excluding from EBITDA certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation, and other material gains and losses. Adjustments include transaction, legal, and other costs as discussed above.
For 2Q26, adjusted EBITDA of $12.3 billion is calculated as income from continuing operations of $5.0 billion, plus income tax expense of $0.8 billion, plus interest expense of $1.9 billion, plus equity in net income (loss) of affiliates of $(29) million, minus other income (expense) – net of $0.7 billion, plus depreciation and amortization of $5.0 billion, plus adjustments of $334 million. For 2Q25, adjusted EBITDA of $11.7 billion is calculated as income from continuing operations of $4.9 billion, plus income tax expense of $1.2 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $0.5 billion, minus other income (expense) – net of $0.8 billion, plus depreciation and amortization of $5.3 billion, minus adjustments of $21 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated July 22, 2026.
At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 2Q26, Advanced Connectivity EBITDA of $12.0 billion is operating income of $7.3 billion plus depreciation and amortization of $4.7 billion. For 2Q25, Advanced Connectivity EBITDA of $11.1 billion is operating income of $6.1 billion plus depreciation and amortization of $5.0 billion.
Adjusted EBITDA, Advanced Connectivity EBITDA, and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.
Free cash flow for 2Q26 of $4.7 billion is cash from operating activities from continuing operations of $10.8 billion, minus capital expenditures of $5.7 billion and cash paid for vendor financing of $0.4 billion. For 2Q25, free cash flow of $4.4 billion is cash from operating activities of $9.8 billion, less cash distributions from DIRECTV classified as operating activities of $0.5 billion, less cash taxes paid on DIRECTV of $0.3 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.2 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.
Capital investment provides a comprehensive view of cash used to invest in our networks, product developments, and support systems. In connection with capital improvements, we have favorable payment terms of 120 days or more with certain vendors, referred to as vendor financing, which are excluded from capital expenditures and reported as financing activities. Capital investment includes capital expenditures and cash paid for vendor financing ($0.4 billion in 2Q26, $0.2 billion in 2Q25). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
payments, the Company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metric without unreasonable effort.
Net debt of $126.4 billion at June 30, 2026, is calculated as total debt of $144.0 billion less cash and cash equivalents of $17.6 billion and time deposits (i.e., deposits at financial institutions that are greater than 90 days) of $0. Net debt-to-adjusted EBITDA is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.
For more information, contact:
Brennan Edwards
AT&T Inc.
Phone: (972) 209-2753
Email: brennan.edwards@att.com
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
| AT&T Inc. | ||||||||||||||||||||
| Financial Data | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| Dollars in millions except per share amounts | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Service | $ | 25,977 | $ | 25,292 | 2.7 | % | $ | 51,455 | $ | 50,430 | 2.0 | % | ||||||||
| Equipment | 5,581 | 5,555 | 0.5 | % | 11,609 | 11,043 | 5.1 | % | ||||||||||||
| Total Operating Revenues | 31,558 | 30,847 | 2.3 | % | 63,064 | 61,473 | 2.6 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||
| Equipment | 5,741 | 5,738 | 0.1 | % | 12,046 | 11,432 | 5.4 | % | ||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,306 | 6,412 | (1.7) | % | 12,567 | 12,751 | (1.4) | % | ||||||||||||
| Selling, general and administrative | 7,221 | 6,945 | 4.0 | % | 14,537 | 14,090 | 3.2 | % | ||||||||||||
| Asset impairments and abandonments and restructuring | 286 | — | — | % | 286 | 504 | (43.3) | % | ||||||||||||
| Depreciation and amortization | 4,966 | 5,251 | (5.4) | % | 9,932 | 10,441 | (4.9) | % | ||||||||||||
| Total Operating Expenses | 24,520 | 24,346 | 0.7 | % | 49,368 | 49,218 | 0.3 | % | ||||||||||||
| Operating Income | 7,038 | 6,501 | 8.3 | % | 13,696 | 12,255 | 11.8 | % | ||||||||||||
| Interest Expense | 1,883 | 1,655 | 13.8 | % | 3,696 | 3,313 | 11.6 | % | ||||||||||||
| Equity in Net Income (Loss) of Affiliates | (29) | 485 | — | % | (70) | 1,925 | — | % | ||||||||||||
| Other Income (Expense) — Net | 696 | 767 | (9.3) | % | 1,290 | 1,222 | 5.6 | % | ||||||||||||
| Income from Continuing Operations Before Income Taxes | 5,822 | 6,098 | (4.5) | % | 11,220 | 12,089 | (7.2) | % | ||||||||||||
| Income tax expense on continuing operations | 784 | 1,237 | (36.6) | % | 1,963 | 2,536 | (22.6) | % | ||||||||||||
| Income From Continuing Operations | 5,038 | 4,861 | 3.6 | % | 9,257 | 9,553 | (3.1) | % | ||||||||||||
| Loss from discontinued operations, net of tax | (28) | — | — | % | (66) | — | — | % | ||||||||||||
| Net Income | 5,010 | 4,861 | 3.1 | % | 9,191 | 9,553 | (3.8) | % | ||||||||||||
| Net Income Attributable to Noncontrolling Interest | (383) | (361) | (6.1) | % | (735) | (702) | (4.7) | % | ||||||||||||
| Net Income Attributable to AT&T | $ | 4,627 | $ | 4,500 | 2.8 | % | $ | 8,456 | $ | 8,851 | (4.5) | % | ||||||||
| Preferred Stock Dividends and Redemption Gain | (36) | (36) | — | % | (72) | 8 | — | % | ||||||||||||
| Net Income Attributable to Common Stock | $ | 4,591 | $ | 4,464 | 2.8 | % | $ | 8,384 | $ | 8,859 | (5.4) | % | ||||||||
Basic Earnings Per Share Attributable to Common Stock | ||||||||||||||||||||
| Income from continuing operations | $ | 0.66 | $ | 0.62 | 6.5 | % | $ | 1.21 | $ | 1.22 | (0.8) | % | ||||||||
| Loss from discontinued operations | — | — | — | % | (0.01) | — | — | % | ||||||||||||
| $ | 0.66 | $ | 0.62 | 6.5 | % | $ | 1.20 | $ | 1.22 | (1.6) | % | |||||||||
Weighted Average Common Shares Outstanding (000,000) | 6,938 | 7,209 | (3.8) | % | 6,977 | 7,211 | (3.2) | % | ||||||||||||
Diluted Earnings Per Share Attributable to Common Stock | ||||||||||||||||||||
| Income from continuing operations | $ | 0.66 | $ | 0.62 | 6.5 | % | $ | 1.21 | $ | 1.22 | (0.8) | % | ||||||||
| Loss from discontinued operations | — | — | — | % | (0.01) | — | — | % | ||||||||||||
| $ | 0.66 | $ | 0.62 | 6.5 | % | $ | 1.20 | $ | 1.22 | (1.6) | % | |||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 6,946 | 7,219 | (3.8) | % | 6,987 | 7,221 | (3.2) | % | ||||||||||||
1
| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| Dollars in millions | |||||||||||
| Jun. 30, | Dec. 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | (Unaudited) | ||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 17,570 | $ | 18,234 | |||||||
| Accounts receivable – net of related allowances for credit loss of $372 and $429 | 8,521 | 8,843 | |||||||||
| Inventories | 2,368 | 2,420 | |||||||||
| Prepaid and other current assets | 23,375 | 19,235 | |||||||||
| Total current assets | 51,834 | 48,732 | |||||||||
| Property, Plant and Equipment – Net | 134,215 | 131,559 | |||||||||
| Goodwill – Net | 63,865 | 63,425 | |||||||||
| Licenses – Net | 129,123 | 128,148 | |||||||||
| Other Intangible Assets – Net | 6,063 | 5,254 | |||||||||
| Investments in and Advances to Equity Affiliates | 1,130 | 1,106 | |||||||||
| Operating Lease Right-Of-Use Assets | 22,781 | 22,642 | |||||||||
| Other Assets | 19,348 | 19,332 | |||||||||
| Total Assets | $ | 428,359 | $ | 420,198 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Debt maturing within one year | $ | 9,323 | $ | 9,011 | |||||||
| Accounts payable and accrued liabilities | 38,049 | 38,514 | |||||||||
| Advanced billings and customer deposits | 4,065 | 4,266 | |||||||||
| Dividends payable | 1,945 | 1,989 | |||||||||
| Total current liabilities | 53,382 | 53,780 | |||||||||
| Long-Term Debt | 134,631 | 127,089 | |||||||||
| Deferred Credits and Other Noncurrent Liabilities | |||||||||||
| Noncurrent deferred tax liabilities | 60,401 | 58,312 | |||||||||
| Postemployment benefit obligation | 8,267 | 8,478 | |||||||||
| Operating lease liabilities | 18,934 | 18,943 | |||||||||
| Other noncurrent liabilities | 24,305 | 25,104 | |||||||||
| Total deferred credits and other noncurrent liabilities | 111,907 | 110,837 | |||||||||
| Redeemable Noncontrolling Interest | 2,005 | 2,001 | |||||||||
| Stockholders’ Equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 7,621 | 7,621 | |||||||||
| Additional paid-in capital | 106,161 | 106,533 | |||||||||
| Retained earnings | 20,293 | 15,768 | |||||||||
| Treasury stock | (22,446) | (18,529) | |||||||||
| Accumulated other comprehensive income (loss) | (1,185) | (860) | |||||||||
| Noncontrolling interest | 15,990 | 15,958 | |||||||||
| Total stockholders’ equity | 126,434 | 126,491 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 428,359 | $ | 420,198 | |||||||
2
| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | Six-Month Period | ||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities | |||||||||||
| Income from continuing operations | $ | 9,257 | $ | 9,553 | |||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
| Depreciation and amortization | 9,932 | 10,441 | |||||||||
| Provision for uncollectible accounts | 1,149 | 1,037 | |||||||||
| Asset impairments and abandonments and restructuring | 286 | 504 | |||||||||
| Pension and postretirement benefit expense (credit) | (791) | (794) | |||||||||
| Net (gain) loss on investments | (170) | (31) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | (418) | (247) | |||||||||
| Equipment installment receivables and related sales | (176) | 1,115 | |||||||||
| Contract asset and cost deferral | (464) | (299) | |||||||||
| Inventories, prepaid and other current assets | 320 | (317) | |||||||||
| Accounts payable and other accrued liabilities | (2,565) | (4,440) | |||||||||
| Changes in income taxes | 1,829 | 1,663 | |||||||||
| Postretirement claims and contributions | (264) | (103) | |||||||||
| Other - net | 471 | 730 | |||||||||
| Total adjustments | 9,139 | 9,259 | |||||||||
| Net Cash Provided by Operating Activities from Continuing Operations | 18,396 | 18,812 | |||||||||
| Investing Activities | |||||||||||
| Capital expenditures | (10,577) | (9,174) | |||||||||
| Acquisitions, net of cash acquired | (2,725) | (48) | |||||||||
| Dispositions | 747 | 40 | |||||||||
| (Purchases), sales and settlements of securities - net | (24) | (1,084) | |||||||||
| Other - net | (654) | (778) | |||||||||
| Net Cash Used in Investing Activities from Continuing Operations | (13,233) | (11,044) | |||||||||
| Financing Activities | |||||||||||
| Issuance of long-term debt | 14,037 | 6,429 | |||||||||
| Repayment of long-term debt | (5,398) | (1,620) | |||||||||
| Payment of vendor financing | (643) | (423) | |||||||||
| Redemption of preferred stock | — | (2,075) | |||||||||
| Purchase of treasury stock | (4,669) | (1,179) | |||||||||
| Issuance of treasury stock | 1 | 17 | |||||||||
| Issuance of preferred interests in subsidiary | — | 2,221 | |||||||||
| Dividends paid | (3,973) | (4,135) | |||||||||
| Other - net | (772) | 167 | |||||||||
| Net Cash Used in Financing Activities from Continuing Operations | (1,417) | (598) | |||||||||
| Net increase in cash and cash equivalents and restricted cash from continuing operations | 3,746 | 7,170 | |||||||||
| Cash flows from Discontinued Operations: | |||||||||||
| Cash provided by operating activities | 31 | — | |||||||||
| Cash used in investing activities | (4,363) | — | |||||||||
| Cash used in financing activities | — | — | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | (4,332) | — | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | $ | (586) | $ | 7,170 | |||||||
| Cash and cash equivalents and restricted cash beginning of year | 18,527 | 3,406 | |||||||||
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 17,941 | $ | 10,576 | |||||||
3
| AT&T Inc. | ||||||||||||||||||||
| Consolidated Supplementary Data | ||||||||||||||||||||
| Supplementary Financial Data | ||||||||||||||||||||
| Dollars in millions except per share amounts | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Capital expenditures | ||||||||||||||||||||
| Purchase of property and equipment | $ | 5,651 | $ | 4,857 | 16.3 | % | $ | 10,486 | $ | 9,097 | 15.3 | % | ||||||||
| Interest during construction | 49 | 40 | 22.5 | % | 91 | 77 | 18.2 | % | ||||||||||||
| Total Capital Expenditures | $ | 5,700 | $ | 4,897 | 16.4 | % | $ | 10,577 | $ | 9,174 | 15.3 | % | ||||||||
| Acquisitions, net of cash acquired | ||||||||||||||||||||
| Business acquisitions | $ | 35 | $ | — | — | % | $ | 1,691 | $ | — | — | % | ||||||||
| Spectrum acquisitions | 16 | 13 | 23.1 | % | 1,034 | 14 | — | % | ||||||||||||
| Interest during construction - spectrum | — | 15 | — | % | — | 34 | — | % | ||||||||||||
| Total Acquisitions | $ | 51 | $ | 28 | 82.1 | % | $ | 2,725 | $ | 48 | — | % | ||||||||
| Cash paid for interest | $ | 1,798 | $ | 1,512 | 18.9 | % | $ | 3,734 | $ | 3,316 | 12.6 | % | ||||||||
| Cash paid for income taxes, net of (refunds) | $ | 90 | $ | 869 | (89.6) | % | $ | 91 | $ | 880 | (89.7) | % | ||||||||
| Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | — | % | $ | 0.5550 | $ | 0.5550 | — | % | ||||||||
| End of Period Common Shares Outstanding (000,000) | 6,879 | 7,161 | (3.9) | % | ||||||||||||||||
| Debt Ratio | 52.8 | % | 51.7 | % | 110 | BP | ||||||||||||||
| Total Employees | 130,870 | 137,550 | (4.9) | % | ||||||||||||||||
4
ADVANCED CONNECTIVITY SEGMENT
The segment provides domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers.
| Segment Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 17,413 | $ | 16,853 | 3.3 | % | $ | 34,354 | $ | 33,504 | 2.5 | % | ||||||||
Advanced home internet | 2,926 | 2,299 | 27.3 | % | 5,725 | 4,497 | 27.3 | % | ||||||||||||
Business fiber and advanced connectivity | 1,946 | 1,769 | 10.0 | % | 3,828 | 3,524 | 8.6 | % | ||||||||||||
Business transitional and other | 1,042 | 1,249 | (16.6) | % | 2,125 | 2,543 | (16.4) | % | ||||||||||||
Other service | 151 | 164 | (7.9) | % | 309 | 326 | (5.2) | % | ||||||||||||
Total Service Revenues | 23,478 | 22,334 | 5.1 | % | 46,341 | 44,394 | 4.4 | % | ||||||||||||
| Equipment | 5,137 | 5,163 | (0.5) | % | 10,745 | 10,295 | 4.4 | % | ||||||||||||
| Total Segment Operating Revenues | 28,615 | 27,497 | 4.1 | % | 57,086 | 54,689 | 4.4 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 16,583 | 16,356 | 1.4 | % | 33,496 | 32,603 | 2.7 | % | ||||||||||||
| Depreciation and amortization | 4,687 | 5,035 | (6.9) | % | 9,392 | 10,008 | (6.2) | % | ||||||||||||
| Total Segment Operating Expenses | 21,270 | 21,391 | (0.6) | % | 42,888 | 42,611 | 0.7 | % | ||||||||||||
| Operating Income | $ | 7,345 | $ | 6,106 | 20.3 | % | $ | 14,198 | $ | 12,078 | 17.6 | % | ||||||||
| Operating Income Margin | 25.7 | % | 22.2 | % | 350 BP | 24.9 | % | 22.1 | % | 280 BP | ||||||||||
5
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | June 30, | Percent | ||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||
Retail Wireless Subscribers1 | 109,800 | 108,696 | 1.0 | % | ||||||||||||||||
Phone | 91,439 | 90,501 | 1.0 | % | ||||||||||||||||
Postpaid phone | 74,921 | 73,408 | 2.1 | % | ||||||||||||||||
Prepaid phone | 16,518 | 17,093 | (3.4) | % | ||||||||||||||||
Other | 18,361 | 18,195 | 0.9 | % | ||||||||||||||||
| Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
Retail Wireless Net Adds1, 2 | 549 | 327 | 67.9 | % | 707 | 583 | 21.3 | % | ||||||||||||
| Phone | 436 | 367 | 18.8 | % | 658 | 671 | (1.9) | % | ||||||||||||
| Postpaid phone | 432 | 401 | 7.7 | % | 726 | 725 | 0.1 | % | ||||||||||||
| Prepaid phone | 4 | (34) | — | % | (68) | (54) | (25.9) | % | ||||||||||||
| Other | 113 | (40) | — | % | 49 | (88) | — | % | ||||||||||||
Phone churn3 | 1.12 | % | 1.17 | % | (5) | BP | 1.16 | % | 1.15 | % | 1 | BP | ||||||||
Postpaid phone churn3 | 0.86 | % | 0.87 | % | (1) | BP | 0.87 | % | 0.85 | % | 2 | BP | ||||||||
Prepaid phone churn3 | 2.30 | % | 2.43 | % | (13) | BP | 2.46 | % | 2.49 | % | (3) | BP | ||||||||
1Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. | ||||||||||||||||||||
2Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity. | ||||||||||||||||||||
3Calculated 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. | ||||||||||||||||||||
| June 30, | Percent | |||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||
Internet Connections | 15,479 | 11,952 | 29.5 | % | ||||||||||||||||
Fiber | 12,868 | 10,480 | 22.8 | % | ||||||||||||||||
AT&T Fiber | 12,144 | 9,835 | 23.5 | % | ||||||||||||||||
AT&T Business Fiber1 | 724 | 645 | 12.2 | % | ||||||||||||||||
Fixed Wireless | 2,611 | 1,472 | 77.4 | % | ||||||||||||||||
AT&T Internet Air (AIA) | 1,951 | 1,006 | 93.9 | % | ||||||||||||||||
Business Fixed Wireless2 | 660 | 466 | 41.6 | % | ||||||||||||||||
| Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
Internet Net Adds3 | 646 | 509 | 26.9 | % | 1,230 | 1,025 | 20.0 | % | ||||||||||||
| Fiber | 367 | 269 | 36.4 | % | 659 | 552 | 19.4 | % | ||||||||||||
AT&T Fiber | 344 | 243 | 41.6 | % | 617 | 504 | 22.4 | % | ||||||||||||
AT&T Business Fiber1 | 23 | 26 | (11.5) | % | 42 | 48 | (12.5) | % | ||||||||||||
| Fixed Wireless | 279 | 240 | 16.3 | % | 571 | 473 | 20.7 | % | ||||||||||||
| AT&T Internet Air (AIA) | 215 | 203 | 5.9 | % | 454 | 384 | 18.2 | % | ||||||||||||
Business Fixed Wireless2 | 64 | 37 | 73.0 | % | 117 | 89 | 31.5 | % | ||||||||||||
1Includes fiber broadband internet for businesses and excludes dedicated and ethernet fiber. | ||||||||||||||||||||
2Includes AT&T Internet Air for Business and historical fixed wireless services. Excludes integrated gateway wireless connections used for secondary or back-up connectivity. | ||||||||||||||||||||
3Excludes acquisition-related activity and the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025. | ||||||||||||||||||||
6
LEGACY SEGMENT
The segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network. Legacy segment results include revenues derived from copper-based services and direct operating costs.
| Segment Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Segment Operating Revenues | $ | 1,632 | $ | 2,202 | (25.9) | % | $ | 3,400 | $ | 4,570 | (25.6) | % | ||||||||
| Segment Operating Expenses | ||||||||||||||||||||
| Operations and support | 1,109 | 1,243 | (10.8) | % | 2,265 | 2,592 | (12.6) | % | ||||||||||||
| Depreciation and amortization | — | — | — | % | — | — | — | % | ||||||||||||
| Total Operating Expenses | 1,109 | 1,243 | (10.8) | % | 2,265 | 2,592 | (12.6) | % | ||||||||||||
| Operating Income | $ | 523 | $ | 959 | (45.5) | % | $ | 1,135 | $ | 1,978 | (42.6) | % | ||||||||
| Operating Income Margin | 32.0 | % | 43.6 | % | (1,160) | BP | 33.4 | % | 43.3 | % | (990) | BP | ||||||||
7
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
| Segment Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Wireless service | $ | 780 | $ | 662 | 17.8 | % | $ | 1,533 | $ | 1,277 | 20.0 | % | ||||||||
| Wireless equipment | 444 | 392 | 13.3 | % | 864 | 748 | 15.5 | % | ||||||||||||
| Total Segment Operating Revenues | 1,224 | 1,054 | 16.1 | % | 2,397 | 2,025 | 18.4 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 997 | 853 | 16.9 | % | 1,950 | 1,631 | 19.6 | % | ||||||||||||
| Depreciation and amortization | 189 | 155 | 21.9 | % | 389 | 305 | 27.5 | % | ||||||||||||
| Total Segment Operating Expenses | 1,186 | 1,008 | 17.7 | % | 2,339 | 1,936 | 20.8 | % | ||||||||||||
| Operating Income | $ | 38 | $ | 46 | (17.4) | % | $ | 58 | $ | 89 | (34.8) | % | ||||||||
| Operating Income Margin | 3.1 | % | 4.4 | % | (130) | BP | 2.4 | % | 4.4 | % | (200) | BP | ||||||||
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | June 30, | Percent | ||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||
| Mexico Wireless Subscribers | ||||||||||||||||||||
| Postpaid | 7,457 | 6,180 | 20.7 | % | ||||||||||||||||
| Prepaid | 15,829 | 17,440 | (9.2) | % | ||||||||||||||||
| Reseller | 149 | 223 | (33.2) | % | ||||||||||||||||
| Total Mexico Wireless Subscribers | 23,435 | 23,843 | (1.7) | % | ||||||||||||||||
| Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Mexico Wireless Net Additions | ||||||||||||||||||||
| Postpaid | 369 | 183 | — | % | 706 | 343 | — | % | ||||||||||||
| Prepaid | (1,006) | 64 | — | % | (1,901) | (46) | — | % | ||||||||||||
| Reseller | (31) | (12) | — | % | (50) | (30) | (66.7) | % | ||||||||||||
| Total Mexico Wireless Net Additions | (668) | 235 | — | % | (1,245) | 267 | — | % | ||||||||||||
8
SUPPLEMENTAL INFORMATION - ADVANCED CONNECTIVITY
We provide supplemental information on our advanced consumer and business customer relationships in the following tables as the product lifecycles in these customer categories influence the growth trajectories of Advanced Connectivity segment results.
| Consumer Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 14,992 | $ | 14,559 | 3.0 | % | $ | 29,576 | $ | 28,929 | 2.2 | % | ||||||||
Advanced home internet | 2,926 | 2,299 | 27.3 | % | 5,725 | 4,497 | 27.3 | % | ||||||||||||
Other service | 151 | 164 | (7.9) | % | 309 | 326 | (5.2) | % | ||||||||||||
Total Service Revenues | 18,069 | 17,022 | 6.2 | % | 35,610 | 33,752 | 5.5 | % | ||||||||||||
| Equipment | 4,260 | 4,273 | (0.3) | % | 8,871 | 8,519 | 4.1 | % | ||||||||||||
| Total Operating Revenues | 22,329 | 21,295 | 4.9 | % | 44,481 | 42,271 | 5.2 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 12,234 | 11,866 | 3.1 | % | 24,823 | 23,667 | 4.9 | % | ||||||||||||
| Depreciation and amortization | 2,976 | 3,056 | (2.6) | % | 5,998 | 6,067 | (1.1) | % | ||||||||||||
| Total Operating Expenses | 15,210 | 14,922 | 1.9 | % | 30,821 | 29,734 | 3.7 | % | ||||||||||||
| Operating Income | $ | 7,119 | $ | 6,373 | 11.7 | % | $ | 13,660 | $ | 12,537 | 9.0 | % | ||||||||
| Operating Income Margin | 31.9 | % | 29.9 | % | 200 | BP | 30.7 | % | 29.7 | % | 100 | BP | ||||||||
| Business Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 2,421 | $ | 2,294 | 5.5 | % | $ | 4,778 | $ | 4,575 | 4.4 | % | ||||||||
Fiber and advanced connectivity | 1,946 | 1,769 | 10.0 | % | 3,828 | 3,524 | 8.6 | % | ||||||||||||
Transitional and other service | 1,042 | 1,249 | (16.6) | % | 2,125 | 2,543 | (16.4) | % | ||||||||||||
Total Service Revenues | 5,409 | 5,312 | 1.8 | % | 10,731 | 10,642 | 0.8 | % | ||||||||||||
| Equipment | 877 | 890 | (1.5) | % | 1,874 | 1,776 | 5.5 | % | ||||||||||||
| Total Operating Revenues | 6,286 | 6,202 | 1.4 | % | 12,605 | 12,418 | 1.5 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 4,349 | 4,490 | (3.1) | % | 8,673 | 8,936 | (2.9) | % | ||||||||||||
| Depreciation and amortization | 1,711 | 1,979 | (13.5) | % | 3,394 | 3,941 | (13.9) | % | ||||||||||||
| Total Operating Expenses | 6,060 | 6,469 | (6.3) | % | 12,067 | 12,877 | (6.3) | % | ||||||||||||
| Operating Income (Loss) | $ | 226 | $ | (267) | — | % | $ | 538 | $ | (459) | — | % | ||||||||
| Operating Income Margin | 3.6 | % | (4.3) | % | 790 | BP | 4.3 | % | (3.7) | % | 800 | BP | ||||||||
9
SUPPLEMENTAL SEGMENT RECONCILIATION
| Three Months Ended | ||||||||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||||||||
| Advanced Connectivity | Legacy | Latin America | Total Segment | Corporate & Other | AT&T Inc. | |||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||
| Wireless service | $ | 17,413 | $ | — | $ | 780 | $ | 18,193 | $ | — | $ | 18,193 | ||||||||||||||
Consumer | 14,992 | |||||||||||||||||||||||||
Business | 2,421 | |||||||||||||||||||||||||
| Advanced home internet | 2,926 | — | — | 2,926 | — | 2,926 | ||||||||||||||||||||
| Business fiber and advanced connectivity | 1,946 | — | — | 1,946 | — | 1,946 | ||||||||||||||||||||
| Business transitional and other | 1,042 | — | — | 1,042 | — | 1,042 | ||||||||||||||||||||
| Other service | 151 | 1,632 | — | 1,783 | 87 | 1,870 | ||||||||||||||||||||
| Total Service | 23,478 | 1,632 | 780 | 25,890 | 87 | 25,977 | ||||||||||||||||||||
| Equipment | 5,137 | — | 444 | 5,581 | — | 5,581 | ||||||||||||||||||||
| Operating Revenues | 28,615 | 1,632 | 1,224 | 31,471 | 87 | 31,558 | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||
Operations and support expenses | 16,583 | 1,109 | 997 | 18,689 | 430 | 19,119 | ||||||||||||||||||||
| Asset impairments and abandonments and restructuring | — | — | — | — | 286 | 286 | ||||||||||||||||||||
| Transaction, legal and other costs | — | — | — | — | 149 | 149 | ||||||||||||||||||||
| Depreciation and amortization | 4,687 | — | 189 | 4,876 | 90 | 4,966 | ||||||||||||||||||||
| Operating Expenses | 21,270 | 1,109 | 1,186 | 23,565 | 955 | 24,520 | ||||||||||||||||||||
| Operating Income (Loss) | $ | 7,345 | $ | 523 | $ | 38 | $ | 7,906 | $ | (868) | $ | 7,038 | ||||||||||||||
| Total other income (expense) | (1,216) | |||||||||||||||||||||||||
| Income from continuing operations before income tax | $ | 5,822 | ||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||
| Advanced Connectivity | Legacy | Latin America | Total Segment | Corporate & Other | AT&T Inc. | |||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||
| Wireless service | $ | 16,853 | $ | — | $ | 662 | $ | 17,515 | $ | — | $ | 17,515 | ||||||||||||||
Consumer | 14,559 | |||||||||||||||||||||||||
Business | 2,294 | |||||||||||||||||||||||||
| Advanced home internet | 2,299 | — | — | 2,299 | — | 2,299 | ||||||||||||||||||||
| Business fiber and advanced connectivity | 1,769 | — | — | 1,769 | — | 1,769 | ||||||||||||||||||||
| Business transitional and other | 1,249 | — | — | 1,249 | — | 1,249 | ||||||||||||||||||||
| Other service | 164 | 2,202 | — | 2,366 | 94 | 2,460 | ||||||||||||||||||||
| Total Service | 22,334 | 2,202 | 662 | 25,198 | 94 | 25,292 | ||||||||||||||||||||
| Equipment | 5,163 | — | 392 | 5,555 | — | 5,555 | ||||||||||||||||||||
| Operating Revenues | 27,497 | 2,202 | 1,054 | 30,753 | 94 | 30,847 | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||
| Operations and support expenses | 16,356 | 1,243 | 853 | 18,452 | 594 | 19,046 | ||||||||||||||||||||
| Asset impairments and abandonments and restructuring | — | — | — | — | — | — | ||||||||||||||||||||
| Transaction, legal and other costs | — | — | — | — | 49 | 49 | ||||||||||||||||||||
| Depreciation and amortization | 5,035 | — | 155 | 5,190 | 61 | 5,251 | ||||||||||||||||||||
| Operating Expenses | 21,391 | 1,243 | 1,008 | 23,642 | 704 | 24,346 | ||||||||||||||||||||
| Operating Income (Loss) | $ | 6,106 | $ | 959 | $ | 46 | $ | 7,111 | $ | (610) | $ | 6,501 | ||||||||||||||
| Total other income (expense) | (403) | |||||||||||||||||||||||||
| Income from continuing operations before income tax | $ | 6,098 | ||||||||||||||||||||||||
10
SUPPLEMENTAL SEGMENT RECONCILIATION
| Six Months Ended | ||||||||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||||||||
| Advanced Connectivity | Legacy | Latin America | Total Segment | Corporate & Other | AT&T Inc. | |||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||
| Wireless service | $ | 34,354 | $ | — | $ | 1,533 | $ | 35,887 | $ | — | $ | 35,887 | ||||||||||||||
Consumer | 29,576 | |||||||||||||||||||||||||
Business | 4,778 | |||||||||||||||||||||||||
| Advanced home internet | 5,725 | — | — | 5,725 | — | 5,725 | ||||||||||||||||||||
| Business fiber and advanced connectivity | 3,828 | — | — | 3,828 | — | 3,828 | ||||||||||||||||||||
| Business transitional and other | 2,125 | — | — | 2,125 | — | 2,125 | ||||||||||||||||||||
| Other service | 309 | 3,400 | — | 3,709 | 181 | 3,890 | ||||||||||||||||||||
| Total Service | 46,341 | 3,400 | 1,533 | 51,274 | 181 | 51,455 | ||||||||||||||||||||
| Equipment | 10,745 | — | 864 | 11,609 | — | 11,609 | ||||||||||||||||||||
| Operating Revenues | 57,086 | 3,400 | 2,397 | 62,883 | 181 | 63,064 | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||
Operations and support expenses | 33,496 | 2,265 | 1,950 | 37,711 | 1,144 | 38,855 | ||||||||||||||||||||
| Asset impairments and abandonments and restructuring | — | — | — | — | 286 | 286 | ||||||||||||||||||||
| Transaction, legal and other costs | — | — | — | — | 295 | 295 | ||||||||||||||||||||
| Depreciation and amortization | 9,392 | — | 389 | 9,781 | 151 | 9,932 | ||||||||||||||||||||
| Operating Expenses | 42,888 | 2,265 | 2,339 | 47,492 | 1,876 | 49,368 | ||||||||||||||||||||
| Operating Income (Loss) | $ | 14,198 | $ | 1,135 | $ | 58 | $ | 15,391 | $ | (1,695) | $ | 13,696 | ||||||||||||||
| Total other income (expense) | (2,476) | |||||||||||||||||||||||||
| Income from continuing operations before income tax | $ | 11,220 | ||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||
| Advanced Connectivity | Legacy | Latin America | Total Segment | Corporate & Other | AT&T Inc. | |||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||
| Wireless service | $ | 33,504 | $ | — | $ | 1,277 | $ | 34,781 | $ | — | $ | 34,781 | ||||||||||||||
Consumer | 28,929 | |||||||||||||||||||||||||
Business | 4,575 | |||||||||||||||||||||||||
| Advanced home internet | 4,497 | — | — | 4,497 | — | 4,497 | ||||||||||||||||||||
| Business fiber and advanced connectivity | 3,524 | — | — | 3,524 | — | 3,524 | ||||||||||||||||||||
| Business transitional and other | 2,543 | — | — | 2,543 | — | 2,543 | ||||||||||||||||||||
| Other service | 326 | 4,570 | — | 4,896 | 189 | 5,085 | ||||||||||||||||||||
| Total Service | 44,394 | 4,570 | 1,277 | 50,241 | 189 | 50,430 | ||||||||||||||||||||
| Equipment | 10,295 | — | 748 | 11,043 | — | 11,043 | ||||||||||||||||||||
| Operating Revenues | 54,689 | 4,570 | 2,025 | 61,284 | 189 | 61,473 | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||
Operations and support expenses | 32,603 | 2,592 | 1,631 | 36,826 | 1,319 | 38,145 | ||||||||||||||||||||
| Asset impairments and abandonments and restructuring | — | — | — | — | 504 | 504 | ||||||||||||||||||||
| Transaction, legal and other costs | — | — | — | — | 128 | 128 | ||||||||||||||||||||
| Depreciation and amortization | 10,008 | — | 305 | 10,313 | 128 | 10,441 | ||||||||||||||||||||
| Operating Expenses | 42,611 | 2,592 | 1,936 | 47,139 | 2,079 | 49,218 | ||||||||||||||||||||
| Operating Income (Loss) | $ | 12,078 | $ | 1,978 | $ | 89 | $ | 14,145 | $ | (1,890) | $ | 12,255 | ||||||||||||||
| Total other income (expense) | (166) | |||||||||||||||||||||||||
| Income from continuing operations before income tax | $ | 12,089 | ||||||||||||||||||||||||
11
Discussion and Reconciliation of Non-GAAP Measures
We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).
On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen’s Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.
Free Cash Flow
Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
| Free Cash Flow and Free Cash Flow Dividend Payout Ratio | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
Net Cash Provided by Operating Activities from Continuing Operations | $ | 10,801 | $ | 9,763 | $ | 18,396 | $ | 18,812 | |||||||||
| Less: Distributions from DIRECTV classified as operating activities | — | (503) | — | (1,926) | |||||||||||||
| Less: Cash taxes paid on DIRECTV | — | 251 | — | 251 | |||||||||||||
| Less: Capital expenditures | (5,700) | (4,897) | (10,577) | (9,174) | |||||||||||||
| Less: Payment of vendor financing | (431) | (220) | (643) | (423) | |||||||||||||
| Free Cash Flow | 4,670 | 4,394 | 7,176 | 7,540 | |||||||||||||
| Less: Dividends paid | (1,976) | (2,044) | (3,973) | (4,135) | |||||||||||||
| Free Cash Flow after Dividends | $ | 2,694 | $ | 2,350 | $ | 3,203 | $ | 3,405 | |||||||||
| Free Cash Flow Dividend Payout Ratio | 42.3 | % | 46.5 | % | 55.4 | % | 54.8 | % | |||||||||
Cash Paid for Capital Investment
In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems.
| Cash Paid for Capital Investment | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
Capital expenditures | $ | (5,700) | $ | (4,897) | $ | (10,577) | $ | (9,174) | |||||||||
Payment of vendor financing | (431) | (220) | (643) | (423) | |||||||||||||
| Cash paid for Capital Investment | $ | (6,131) | $ | (5,117) | $ | (11,220) | $ | (9,597) | |||||||||
1
EBITDA
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.
These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.
There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.
EBITDA and Adjusted EBITDA | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
Income from Continuing Operations | $ | 5,038 | $ | 4,861 | $ | 9,257 | $ | 9,553 | |||||||||
| Additions: | |||||||||||||||||
| Income Tax Expense | 784 | 1,237 | 1,963 | 2,536 | |||||||||||||
| Interest Expense | 1,883 | 1,655 | 3,696 | 3,313 | |||||||||||||
| Equity in Net (Income) Loss of Affiliates | 29 | (485) | 70 | (1,925) | |||||||||||||
| Other (Income) Expense - Net | (696) | (767) | (1,290) | (1,222) | |||||||||||||
| Depreciation and amortization | 4,966 | 5,251 | 9,932 | 10,441 | |||||||||||||
| EBITDA | 12,004 | 11,752 | 23,628 | 22,696 | |||||||||||||
Transaction, legal and other costs | 149 | 49 | 295 | 128 | |||||||||||||
| Benefit-related (gain) loss | (101) | (70) | (76) | (64) | |||||||||||||
| Asset impairments and abandonments and restructuring | 286 | — | 286 | 504 | |||||||||||||
Adjusted EBITDA1 | $ | 12,338 | $ | 11,731 | $ | 24,133 | $ | 23,264 | |||||||||
1See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. | |||||||||||||||||
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Segment EBITDA and EBITDA Margin | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Advanced Connectivity Segment | |||||||||||||||||
| Operating Income | $ | 7,345 | $ | 6,106 | $ | 14,198 | $ | 12,078 | |||||||||
| Add: Depreciation and amortization | 4,687 | 5,035 | 9,392 | 10,008 | |||||||||||||
| EBITDA | $ | 12,032 | $ | 11,141 | $ | 23,590 | $ | 22,086 | |||||||||
| Total Operating Revenues | $ | 28,615 | $ | 27,497 | $ | 57,086 | $ | 54,689 | |||||||||
| Operating Income Margin | 25.7 | % | 22.2 | % | 24.9 | % | 22.1 | % | |||||||||
| EBITDA Margin | 42.0 | % | 40.5 | % | 41.3 | % | 40.4 | % | |||||||||
| Legacy Segment | |||||||||||||||||
| Operating Income | $ | 523 | $ | 959 | $ | 1,135 | $ | 1,978 | |||||||||
| Add: Depreciation and amortization | — | — | — | — | |||||||||||||
| EBITDA | $ | 523 | $ | 959 | $ | 1,135 | $ | 1,978 | |||||||||
| Total Operating Revenues | $ | 1,632 | $ | 2,202 | $ | 3,400 | $ | 4,570 | |||||||||
| Operating Income Margin | 32.0 | % | 43.6 | % | 33.4 | % | 43.3 | % | |||||||||
| EBITDA Margin | 32.0 | % | 43.6 | % | 33.4 | % | 43.3 | % | |||||||||
| Latin America Segment | |||||||||||||||||
Operating Income | $ | 38 | $ | 46 | $ | 58 | $ | 89 | |||||||||
| Add: Depreciation and amortization | 189 | 155 | 389 | 305 | |||||||||||||
| EBITDA | $ | 227 | $ | 201 | $ | 447 | $ | 394 | |||||||||
| Total Operating Revenues | $ | 1,224 | $ | 1,054 | $ | 2,397 | $ | 2,025 | |||||||||
| Operating Income Margin | 3.1 | % | 4.4 | % | 2.4 | % | 4.4 | % | |||||||||
| EBITDA Margin | 18.5 | % | 19.1 | % | 18.6 | % | 19.5 | % | |||||||||
Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and that those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.
The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.
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| Adjusting Items | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Operating Expenses | |||||||||||||||||
Transaction, legal and other costs1 | $ | 149 | $ | 49 | $ | 295 | $ | 128 | |||||||||
| Benefit-related (gain) loss | (101) | (70) | (76) | (64) | |||||||||||||
Asset impairments and abandonments and restructuring | 286 | — | 286 | 504 | |||||||||||||
| Adjustments to Operations and Support Expenses | 334 | (21) | 505 | 568 | |||||||||||||
| Amortization of intangible assets | 84 | 9 | 141 | 18 | |||||||||||||
| Adjustments to Operating Expenses | 418 | (12) | 646 | 586 | |||||||||||||
| Other | |||||||||||||||||
Equity in net income of DIRECTV | — | (503) | — | (1,926) | |||||||||||||
Benefit-related (gain) loss, impairments of investments and other | (89) | (189) | (61) | (125) | |||||||||||||
Adjustments to Income from Continuing Operations Before Income Taxes | 329 | (704) | 585 | (1,465) | |||||||||||||
| Tax impact of adjustments | 81 | (168) | 140 | (333) | |||||||||||||
| Tax-related items | 365 | — | 365 | — | |||||||||||||
Adjustments to Income From Continuing Operations | $ | (117) | $ | (536) | $ | 80 | $ | (1,132) | |||||||||
Preferred stock redemption gain | — | — | — | (90) | |||||||||||||
Adjustments to Income From Continuing Operations Attributable to Common Stock | $ | (117) | $ | (536) | $ | 80 | $ | (1,222) | |||||||||
1Includes certain legal reserves and settlements that cover extended historical periods, novel theories of liability and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries and are primarily associated with legacy legal matters and cybersecurity events. | |||||||||||||||||
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Operating Income | $ | 7,038 | $ | 6,501 | $ | 13,696 | $ | 12,255 | |||||||||
| Adjustments to Operating Expenses | 418 | (12) | 646 | 586 | |||||||||||||
| Adjusted Operating Income | $ | 7,456 | $ | 6,489 | $ | 14,342 | $ | 12,841 | |||||||||
| EBITDA | $ | 12,004 | $ | 11,752 | $ | 23,628 | $ | 22,696 | |||||||||
| Adjustments to Operations and Support Expenses | 334 | (21) | 505 | 568 | |||||||||||||
| Adjusted EBITDA | $ | 12,338 | $ | 11,731 | $ | 24,133 | $ | 23,264 | |||||||||
| Total Operating Revenues | $ | 31,558 | $ | 30,847 | $ | 63,064 | $ | 61,473 | |||||||||
| Operating Income Margin | 22.3 | % | 21.1 | % | 21.7 | % | 19.9 | % | |||||||||
| Adjusted Operating Income Margin | 23.6 | % | 21.0 | % | 22.7 | % | 20.9 | % | |||||||||
| Adjusted EBITDA Margin | 39.1 | % | 38.0 | % | 38.3 | % | 37.8 | % | |||||||||
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| Adjusted Diluted EPS | |||||||||||||||||
| Second Quarter | Six-Month Period | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
Diluted Earnings Per Share (EPS) From Continuing Operations | $ | 0.66 | $ | 0.62 | $ | 1.21 | $ | 1.22 | |||||||||
| Equity in net income of DIRECTV | — | (0.05) | — | (0.21) | |||||||||||||
| Restructuring and impairments | 0.03 | — | 0.03 | 0.05 | |||||||||||||
Benefit-related, transaction, legal and other items | 0.01 | (0.03) | 0.03 | (0.01) | |||||||||||||
| Tax-related items | (0.05) | — | (0.05) | — | |||||||||||||
| Adjusted EPS | $ | 0.65 | $ | 0.54 | $ | 1.22 | $ | 1.05 | |||||||||
| Year-over-year growth - Adjusted | 20.4 | % | 16.2 | % | |||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 6,946 | 7,219 | 6,987 | 7,221 | |||||||||||||
Net Debt to Adjusted EBITDA
Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.
Net Debt to Adjusted EBITDA - 2026 | |||||||||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sept. 30, | Dec. 31, | March 31, | June 30, | Four Quarters | |||||||||||||||||||||||||
20251 | 20251 | 20261 | 2026 | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 11,861 | $ | 11,236 | $ | 11,795 | $ | 12,338 | $ | 47,230 | |||||||||||||||||||
| End-of-period current debt | 9,323 | ||||||||||||||||||||||||||||
| End-of-period long-term debt | 134,631 | ||||||||||||||||||||||||||||
| Total End-of-Period Debt | 143,954 | ||||||||||||||||||||||||||||
| Less: Cash and Cash Equivalents | 17,570 | ||||||||||||||||||||||||||||
| Net Debt Balance | 126,384 | ||||||||||||||||||||||||||||
| Annualized Net Debt to Adjusted EBITDA Ratio | 2.68 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed April 22, 2026. | |||||||||||||||||||||||||||||
Net Debt to Adjusted EBITDA - 2025 | |||||||||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sept. 30, | Dec. 31, | March 31, | June 30, | Four Quarters | |||||||||||||||||||||||||
20241 | 20241 | 20251 | 20251 | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 11,586 | $ | 10,791 | $ | 11,533 | $ | 11,731 | $ | 45,641 | |||||||||||||||||||
| End-of-period current debt | 9,254 | ||||||||||||||||||||||||||||
| End-of-period long-term debt | 123,057 | ||||||||||||||||||||||||||||
| Total End-of-Period Debt | 132,311 | ||||||||||||||||||||||||||||
| Less: Cash and Cash Equivalents | 10,499 | ||||||||||||||||||||||||||||
| Less: Time Deposits | 1,500 | ||||||||||||||||||||||||||||
| Net Debt Balance | 120,312 | ||||||||||||||||||||||||||||
| Annualized Net Debt to Adjusted EBITDA Ratio | 2.64 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed April 22, 2026. | |||||||||||||||||||||||||||||
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