AT&T Inc. (T)

Business

From the FY2025 Form 10-K (accession 0000732717-26-000120), with the 2026 changes to the business noted where they alter the picture.

AT&T sells connectivity. Its revenue comes from nationwide wireless voice and data service in the United States, fiber and fixed-wireless internet to homes and businesses, ethernet, IP voice and managed services to business customers, and, until a sale agreed in October 2026 closes, wireless service in Mexico. Customers are U.S. consumers, businesses in the U.S. and globally, and Mexican wireless subscribers. The revenue is overwhelmingly recurring: subscribers pay monthly for wireless plans and home or business internet, a smaller share comes from selling the handsets and equipment those services run on, and a shrinking remainder comes from legacy copper-based voice and data services the company is retiring. Services are sold under the AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber and AT&T Internet Air brands. AT&T Inc. is a Delaware holding company headquartered in Dallas; the operations sit in its subsidiaries and affiliates.

By class of service in 2025, wireless service was 54% of consolidated operating revenues (53% in 2024, 52% in 2023), equipment 18%, fiber and advanced connectivity 13% (12% and 11%), and legacy and other transitional services 8% (10% and 13%). Mexican wireless service and equipment added 2% and 1%. No customer accounted for 10% or more of consolidated revenues in any of the three years. Those mix figures are the clearest single measure of the shift management is engineering: from copper to fiber and 5G.

Segments as presented in the FY2025 annual report, Communications and Latin America. The Communications segment supplied about 97% of 2025 segment operating revenues and substantially all segment operating income, through three business units:

• Mobility, nationwide U.S. wireless service and equipment. At December 31, 2025 AT&T served 120 million Mobility subscribers: 91 million postpaid (74 million phone), 18 million prepaid and 11 million through resellers. Through FirstNet it also runs a nationwide broadband network dedicated to public safety.
• Business Wireline, ethernet-based fiber, fixed wireless, IP voice and managed professional services to multinational, small and mid-sized, government and wholesale customers, alongside declining legacy copper voice and data, VPN and wholesale services.
• Consumer Wireline, residential broadband, principally multi-gig fiber plus AT&T Internet Air (AIA) fixed wireless delivered over the 5G network, and legacy telephony.

The Latin America segment provides postpaid and prepaid wireless service in Mexico under the AT&T and Unefon brands, to about 24.7 million subscribers at year-end 2025; it contributed about 3% of segment revenues and less than 1% of segment operating income. Effective with first-quarter 2026 reporting the company replaced this structure with three segments, Advanced Connectivity, Legacy and Latin America, described under the current quarter below. On October 13, 2026 AT&T agreed to sell the Mexico business, which is the entire Latin America segment (see Subsequent events).

Network and strategy. The strategy is convergence on one owned network, with fiber as the foundation under both the wired and the wireless business and a spectrum portfolio built through FCC auctions and purchases. At year-end 2025 the network covered over 441 million people in North America with 4G LTE and over 322 million with 5G; in the U.S., more than 337 million with LTE and more than 322 million with 5G; and over 104 million people in Mexico with LTE. AT&T had 16.0 million broadband connections at December 31, 2025 (15.3 million a year earlier), including 10.4 million consumer fiber customers (1.1 million added in 2025) and 1.5 million AIA connections (875,000 added). For 2026 the annual report set out three priorities: accelerating fiber, organically and through the Lumen Mass Markets fiber acquisition; deploying low- and mid-band spectrum, including the spectrum bought from EchoStar; and decommissioning high-cost legacy technology.

Copper decommissioning is the other half of the plan. AT&T is exiting legacy copper operations across the large majority of its wireline footprint, moving customers to fiber and wireless and working with regulators to retire the copper plant. At December 31, 2025 it still had 2.1 million customer-location switched access lines (2.7 million a year earlier) and 2.8 million legacy consumer internet connections (4.1 million).

Competition. In wireless AT&T competes with two national carriers, numerous regional providers and resellers, certain cable companies, and providers offering voice and messaging as applications over data networks. In Mexico it is one of three facilities-based providers, with América Móvil holding the most significant market share. In broadband it competes with large cable companies and wireless broadband providers. In legacy voice and data it faces secular decline against cheaper, less-regulated technologies.

Research, licensing and people. Research and development expense was $843 in 2025, $955 in 2024 and $954 in 2023. Wireless licenses run for fixed terms, typically 10 to 15 years, and must be renewed. AT&T employed approximately 133,030 people at December 31, 2025. About 43% were represented by the CWA, IBEW or other unions, and the main contracts expiring in 2026 covered about 9,000 employees across 36 states and DC (February), about 4,300 across five states (April) and about 1,800 under two wireline contracts (April). About 477,000 retirees and dependents were eligible for retiree benefits.

AT&T was formed as SBC Communications, one of the regional holding companies spun off from AT&T Corp. on January 1, 1984. It rebuilt much of the old footprint through Pacific Telesis (1997), Ameritech (1999), AT&T Corp. itself (2005, when it took the AT&T name) and BellSouth (2006, which brought full ownership of AT&T Mobility). Later deals added Leap Wireless (2014) and Mexican wireless properties and DIRECTV (2015). It separated the video business into a joint venture with TPG in July 2021 and sold its remaining DIRECTV interest to TPG in July 2025, leaving the pure connectivity business described above.

Risk factors

Condensed from Item 1A of the FY2025 Form 10-K (accession 0000732717-26-000120). The third-quarter 2026 Form 10-Q reports no material developments to these risk factors for that quarter.

• Benefit plans and capital markets. AT&T recognizes pension and postretirement actuarial gains and losses in the income statement in the year they arise. Lower asset returns, falling discount rates and rising medical and prescription-drug costs therefore flow straight into reported results, and a significant market downturn could weaken the plans' funded status.
• Inflation, tariffs and supply chain. The costs of devices, network components, labor and distribution have risen, and these inputs are exposed to tariffs, currency moves, energy costs and supplier capacity. The filing notes that AI-related spending by hyperscalers is beginning to strain supply of semiconductors and other network components. Raising prices to offset this could cut volumes or raise churn. Some key inputs come from single-source suppliers, so a disruption could be costly and slow to fix.
• Leverage and access to capital. AT&T has borrowed to fund acquisitions and spectrum and has had credit rating downgrades from historical levels. Further downgrades would raise borrowing costs and could increase the collateral it must post to derivative counterparties. Its capital allocation plan centers on managing debt, and failing to execute it would hurt funding costs and market access.
• Capital intensity and spectrum. Data growth and convergence require continuous heavy investment. 5G and fiber deployment can slip on cost or schedule because of inflation, supplier delays, software problems, permitting or labor. Failing to obtain needed spectrum, or converged offerings that fail to gain acceptance, would hurt customer retention and margins.
• Competition and impairment. Wireless market saturation is expected to slow industry customer growth and intensify competition, including from alliances in converged connectivity, which pressures pricing and margins. A sustained decline in a reporting unit's revenue and earnings has forced a goodwill impairment before and could do so again.
• Regulation, litigation and reputation. AT&T's wired subsidiaries face federal and state regulation that many competitors do not, and IP-based services sit between potentially conflicting FCC, state and local authority. New privacy rules could limit data collection and targeted advertising. AT&T faces litigation and government inquiries stemming from 2023 Wall Street Journal reporting that alleged lead-clad telecommunications cables are a health or environmental hazard, and may face more litigation, investigations or new regulation on the subject. More broadly, it is a defendant in employment, personal-injury and other suits tied to alleged misconduct by employees, contractors and third parties.
• Cyberattacks. As critical infrastructure, AT&T considers itself an attractive target, including for nation-state actors, with risk rising around geopolitical events and with attackers' use of AI. The filing cites the July 2024 Item 1.05 disclosure of a cybersecurity incident involving copying of mobile customer call data. To date no attack has had a material adverse effect, but insurance may not cover future losses.
• Cost structure versus competitors. Rivals offering comparable legacy services often run newer, non-unionized, lower-cost networks with fewer retirees. Moving customers off copper requires state and federal approvals, and denials or onerous conditions would leave AT&T with cost and competitive disadvantages. About 43% of the workforce is unionized, so contract renegotiations can bring higher costs or work stoppages.
• Execution on transformation, acquisitions and dispositions. The cost-transformation and legacy-rationalization program, along with acquisitions, dispositions and joint ventures (particularly those aimed at expanding fiber serviceable locations), may not deliver the expected benefits. AT&T is expanding its use of AI in network design, software development, sales, marketing, customer support and G&A. Generative models can produce wrong output, leak confidential information, reflect bias or infringe intellectual property, and the rules governing AI are still unsettled.
• Other exposures. International operations, chiefly Mexico, bring political, currency and FCPA compliance risk. Extreme weather, climate effects, natural disasters, terrorism and equipment failures can damage infrastructure and disrupt service. Public health crises have hurt results before. Tax rates and liabilities can change with new legislation, new interpretations or the outcome of ongoing examinations.

Management's discussion, fiscal year 2025

From Item 7 of the FY2025 Form 10-K (accession 0000732717-26-000120). These results are on the former Communications / Latin America segment basis.

Consolidated. Operating revenues were $125,648, up 2.7% from $122,336, on service revenue of $101,158 (+1.0%) and equipment revenue of $24,490 (+10.3%). The gain came from higher Mobility and Consumer Wireline revenues, partly offset by Business Wireline declines. Mexico revenues also rose despite unfavorable exchange rates in the first half. Operations and support expenses rose 2.7% to $79,762. The drivers were higher Mobility sales volumes (equipment, advertising, selling and bad debt), about $440 of apportioned legal settlements, higher network costs and a new advertising campaign, partly offset by transformation savings and lower content licensing fees. Asset impairment, abandonment and restructuring charges fell to $838 from $5,075. The 2024 figure carried a $4,422 goodwill impairment on the Business Wireline reporting unit plus Open RAN-related termination fees; 2025 charges were mainly restructuring severance. Operating income rose 26.8% to $24,162, for an operating margin of 19.2%, against 15.6% in 2024 and 19.2% in 2023.

Below the operating line, other income (expense), net rose to $7,754 from $2,419, mainly on a gain of about $5,600 on the July 2025 sale of the DIRECTV interest. Interest expense edged up to $6,804 on lower capitalized interest. The effective tax rate fell to 13.4% from 26.6% (21.3% in 2023), because no tax was recognized on the DIRECTV gain and because 2024 had carried the non-deductible goodwill impairment. Net income attributable to common stock was $21,889, versus $10,746 in 2024 and $14,192 in 2023.

Business units (2025 versus 2024).

• Mobility: revenues $89,482 (+5.0%), with service up 3.1% to $67,384 and equipment up 11.1% to $22,098; operating income $27,196 (+3.4%); operating margin 30.4% and EBITDA margin 42.0% (30.9% and 42.8% in 2024). Postpaid phone net adds were 1,551,000 (1,653,000 in 2024). Postpaid phone churn rose to 0.90% from 0.76% as more customers reached the end of device financing periods, an effect that normalized in the second half. Postpaid ARPU rose on pricing actions largely offset by promotions and by growth in lower-ARPU segments with attractive lifetime value, such as customers aged 55-plus.
• Business Wireline: revenues $17,231 (-8.4%). Legacy and other transitional services fell 17.4% to $9,170, while fiber and advanced connectivity rose 5.2% to $7,333. The unit posted an operating loss of $(816), versus $(88) in 2024; operating margin was (4.7)% and EBITDA margin 29.1%.
• Consumer Wireline: revenues $14,183 (+4.5%), with broadband up 8.7% to $12,187 on fiber revenue growth of 17.0%. Operating income rose 78.0% to $1,547; operating margin was 10.9% (6.4% in 2024) and EBITDA margin 37.0% (33.4%). Fiber broadband connections reached 10,406,000 after 1,075,000 net adds.
• Latin America (Mexico): revenues $4,379 (+3.5%), operating income $145 versus $40, EBITDA margin 18.6% (16.5%), and 24,680,000 subscribers (+4.7%).

Cash flow and capital structure. Cash from operating activities was $40,284 (versus $38,771), after about $1,150 of voluntary pension contributions and about $900 of advance payments to Frontier Communications, a Verizon subsidiary. Capital expenditures were $20,842; with $1,181 of vendor-financing payments, capital investment was $22,023. Investing also included $620 for an equity-method stake in DriveNets for wireline network transformation. Cash was deliberately elevated at $18,234 at year-end ahead of pending transactions. Total notes and debentures were $134,718, with a weighted average rate of about 4.2% and $9,011 due within a year; the debt ratio was 51.4%. AT&T repurchased about 159 million shares for $4,269 and paid $8,180 of common and preferred dividends (common declared $1.11 per share). It issued $2,250 of preferred interests in Telco LLC to redeem all Series B preferred stock for $2,075.

Transactions described in the annual report. UScellular spectrum licenses (agreed November 2024 for about $1,000) closed January 13, 2026 for $1,018 in cash. The Lumen Mass Markets fiber acquisition, agreed May 21, 2025 for $5,750 in cash, covering about one million fiber customers and network assets reaching more than four million fiber locations, closed February 2, 2026. The August 25, 2025 agreement to buy 600 MHz and 3.45 GHz licenses from EchoStar for about $23,000 was still pending. The Board authorized a further $10,000 buyback on January 27, 2026, and AT&T issued $6,500 of global notes due 2031–2056 at a 5.2% weighted average coupon on February 5, 2026.

2026 expectations in the annual report. Management expected revenue growth in wireless and broadband, with more of it from converged customers. It expected expense trends consistent with 2025, with fiber and 5G spending pressing on costs while transformation and AI-driven efficiencies offset them. It guided to capital investment of $23,000 to $24,000, voluntary pension contributions of about $350, and continued pricing pressure, especially in wireless.

Accounting judgments. At December 31, 2025 the pension and postretirement discount rates were 5.50% and 5.30%, and expected long-term returns were 7.75% on pension assets and 4.00% on postretirement assets. At the October 1, 2025 annual test, every reporting unit with remaining goodwill exceeded book value by more than 10%.

Current quarter, third quarter and first nine months of 2026

From the Form 10-Q for the quarter ended September 30, 2026 (accession 0000732717-26-000372) and the earnings release and exhibits furnished October 21, 2026 (accession 0000732717-26-000370). Quarterly cash-flow figures come from the earnings exhibits; the 10-Q presents cash flow for the nine months only.

The quarter in one paragraph. The operating business accelerated while reported earnings collapsed, because the quarter absorbed a deal-driven charge. Advanced Connectivity service revenue grew 6.1% and its operating income 18.9%. AT&T closed the roughly $23 billion EchoStar spectrum purchase, funding it largely with new debt. It also classified the Mexico business as held for sale, which brought a noncash impairment of about $2,560 and a 51.6% effective tax rate. Diluted EPS from continuing operations fell to $0.13 from $1.29, though the year-ago quarter itself carried the DIRECTV sale gain.

Segment structure in 2026. Since first-quarter 2026 reporting there have been three reportable segments:

• Advanced Connectivity, domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumers and businesses.
• Legacy, domestic copper-based voice and data, reported with direct operating costs only.
• Latin America, Mexican wireless.

Operating costs and depreciation of the shared network, including copper assets awaiting decommissioning, sit in Advanced Connectivity, which is why Legacy carries no depreciation. The realignment required goodwill reassignment and impairment testing as of January 1, 2026, and no impairment was recorded. Goodwill from the former Consumer Wireline and Mobility reporting units went entirely to Advanced Connectivity, and none was assigned to Legacy, because management expects its service revenue to keep declining as copper is decommissioned.

Consolidated results. Third-quarter operating revenues were $32,322, up 5.3% from $30,709: service revenue rose 3.8% to $26,301 and equipment 12.1% to $6,021. The increase came from Advanced Connectivity wireless service, fiber (including the acquired Lumen customers) and equipment, and from Mexico, on postpaid revenue growth and favorable foreign exchange. Legacy revenue fell. Operating expenses rose 14.8% to $28,227. The asset impairments, abandonments and restructuring line was $3,372 (nil a year earlier), of which about $2,560 was the Mexico impairment. Expenses also rose on employee separation charges, higher equipment and bad-debt costs from wireless sales, and incremental customer costs from the acquired fiber business, while transformation savings and the absence of the prior year's apportioned legal settlements partly offset them. Depreciation and amortization fell 6.4% to $4,978 as legacy assets became fully depreciated. Operating income was $4,095, down 33.1%, cutting the operating margin to 12.7% from 19.9%.

Interest expense rose 16.4% to $1,979 on higher debt balances and rates. Management expects it to stay elevated after the EchoStar financing, partly offset by interest capitalized on spectrum not yet in service. Other income (expense), net fell to $590 from $6,254, which had included the DIRECTV gain. The effective tax rate was 51.6% versus 9.2%, reflecting tax expense from the Mexico held-for-sale accounting against a prior-year quarter whose DIRECTV gain was untaxed. Income from continuing operations was $1,306, versus $9,677. After a $(37) loss from discontinued operations (Forged Fiber, below), $(378) of net income attributable to noncontrolling interest and $(36) of preferred stock dividends, net income attributable to common stock was $855, versus $9,278. Diluted EPS was $0.13 from continuing operations and $0.12 in total, versus $1.29, on 6,844 million diluted shares (7,169 million a year earlier). The company's adjusted diluted EPS was $0.65 versus $0.54. Its reconciliation removes $0.41 for the Mexico impairment, $0.09 for employee separation and $0.02 for other items. Adjusted EBITDA was $12,505, up 5.4% from $11,861.

For the nine months, revenues were $95,386 (+3.5%) and operating income $17,791 (-3.2%), for an operating margin of 18.7% versus 19.9%. The nine-month operating line also includes a second-quarter asset abandonment charge tied to a reprioritization of spectrum strategy. Income from continuing operations was $10,563 versus $19,230, and diluted EPS from continuing operations was $1.34 versus $2.51; the effective tax rate was 24.1% versus 15.4%.

Advanced Connectivity. Segment revenues were $29,481 (+7.2%), with service revenue of $23,902 (+6.1%). The service lines were:

• wireless service $17,764 (+5.0%), on growth in underpenetrated categories and converged accounts plus pricing actions, partly offset by promotional discounts;
• advanced home internet $2,975 (+23.4%), with fiber revenue up 18.7% including the acquired Lumen customers;
• business fiber and advanced connectivity $1,992 (+8.7%);
• business transitional and other $1,023 (-14.6%), on lower VPN and wholesale demand, which management expects to continue;
• other service $148.

Equipment rose 12.2% to $5,579 on higher device prices. Operating income rose 18.9% to $7,628, lifting the operating margin to 25.9% from 23.3%. EBITDA was $12,330 (+7.3%), with the EBITDA margin flat at 41.8%.

Within the segment, Consumer revenues were $23,048 (+8.3%) and operating income $7,340 (+10.7%). Business revenues were $6,433 (+3.3%), and operating income swung to $288 from a $(215) loss, helped by a 13.9% drop in depreciation.

Operating metrics.

• Wireless, at September 30, 2026: retail wireless subscribers were 110.2 million (+1.3%), including 75.3 million postpaid phone (+2.0%) and 16.5 million prepaid phone (-3.0%).
• Wireless, in the quarter: retail net adds were 537,000 versus 161,000, including 379,000 postpaid phone net adds (405,000 a year earlier). Phone churn improved to 1.19% from 1.24%, postpaid phone churn held at 0.92%, and prepaid phone churn fell to 2.41% from 2.63%.
• Internet: Advanced Connectivity internet connections, which count only fiber and fixed wireless, reached 16.2 million (+29.3%). That comprised 13.3 million fiber (AT&T Fiber 12.56 million; AT&T Business Fiber 750,000) and 2.9 million fixed wireless (AIA 2.23 million, up 74.8%; business fixed wireless 707,000). Internet net adds were a record 769,000 (442,000 fiber, 327,000 fixed wireless), versus 613,000.
• Convergence and fiber reach: 42.8% of households with AT&T advanced home internet also took AT&T wireless, and fiber reached more than 39 million consumer and business locations.

Legacy. Revenues fell 24.5% to $1,519, and direct operating costs fell 23.5% to $1,021 as personnel and other costs came out with decommissioning, partly offset by vendor settlements. Operating income, which equals EBITDA for this segment, fell 26.7% to $498, a 32.8% margin versus 33.7% (33.2% versus 40.4% for the nine months). Management's goal is to decommission the large majority of the copper network by the end of 2029, while noting that required approvals could push that later.

Latin America. Revenues rose 13.2% to $1,240 on favorable exchange and postpaid growth, and operating income was $45 versus $22. Subscribers fell 3.4% to 23.3 million: postpaid grew 23.6% to 7.9 million while prepaid fell 12.5% to 15.3 million, for net losses of 102,000 in the quarter. With held-for-sale classification at September 30, 2026, all depreciation and amortization on the Mexico business stops from the fourth quarter. At quarter-end the held-for-sale disposal group comprised about $600 of cash and restricted cash and $6,400 of assets, mainly spectrum and PP&E, against about $5,900 of liabilities, mainly vendor financing and finance leases. About $800 of cumulative translation adjustment sat in accumulated other comprehensive income.

Acquisitions and new ventures in the period.

• EchoStar spectrum, closed July 28, 2026. AT&T bought 600 MHz and 3.45 GHz FCC licenses from EchoStar Corporation, recorded at $22,650 in the 10-Q (described as "approximately $23 billion" in the closing 8-K, accession 0001193125-26-321053). The deal adds about 30 MHz of nationwide 3.45 GHz and about 20 MHz of nationwide 600 MHz spectrum. Interest is capitalized until the spectrum is ready for use.
• Satellite joint venture, signed September 14, 2026. AT&T agreed with a subsidiary of Verizon Communications and with T-Mobile USA to form a joint venture that pools certain spectrum so satellite providers can serve U.S. dead zones through a single platform. AT&T will license intellectual property to it and commit spectrum access, and accounts for its stake under the equity method.
• Lumen fiber business and Forged Fiber. The February 2, 2026 Lumen acquisition cost $5,756 including purchase price adjustments. Preliminary values were about $900 of customer relationships, $3,400 of PP&E and $800 of goodwill. AT&T kept the customer relationships in Advanced Connectivity and placed the network assets in Forged Fiber 37 Services, LLC, which is reported as discontinued operations held for sale. Discontinued operations recorded revenues of $147 in the quarter and $400 for nine months and a loss of $(37) and $(103). At September 30, 2026 they held $4,781 of assets (including $4,031 of PP&E, of which $509 was capital added after the acquisition) and $723 of liabilities.

Liquidity and financing. Cash from continuing operations was $10,519 in the quarter (versus $10,152) and $28,915 for nine months (versus $28,964, when the prior year included $1,675 of DIRECTV cash net of tax). Third-quarter capital expenditures were $5,061; adding $505 of vendor-financing payments gave capital investment of $5,566. The company's free cash flow measure was $4,953 versus $4,865. Nine-month investing used $41,520: $15,638 of capital expenditures, $22,650 for the EchoStar licenses, $1,018 for the UScellular licenses and $1,656 of the Lumen price (the other $4,100 sat in discontinued operations).

To fund EchoStar, AT&T drew on July 28 $11,500 under the two-year facility and $3,000 under the 364-day facility of its $17,500 delayed-draw term loan with Bank of America, N.A. as agent. It repaid and terminated the 364-day facility in August and repaid $2,500 of the two-year facility, leaving $9,000 outstanding. It also drew $1,500 under two bilateral term loans (due 2031 and 2033) and $1,000 under a third (due July 28, 2029), all at SOFR plus a margin. In the bond market it issued:

• €4,100 million of fixed-rate notes in four tranches due 2030–2045 (3.600% to 5.050%) and £550 million of 7.050% notes due 2052, closed August 3 (accession 0001193125-26-332110);
• €1,200 million and $1,100 million of floating-rate notes due 2028, closed August 17 (accession 0001193125-26-354091).

Total debt rose to $159,627 from $136,100 at year-end, with notes and debentures of $159,464 at a weighted average rate of about 4.5% (4.2% at year-end) and $9,483 due within a year. The debt ratio rose to 56.1% from 51.4%. The company put net debt at $149.8 billion. Cash and equivalents fell to $10,767. AT&T remained within its 3.75-to-1 net debt-to-EBITDA covenant, and the $12,000 revolver was undrawn.

Shareholder returns. AT&T bought back about 117.6 million shares in the quarter at an average of $23.84. That exhausted the December 2024 $10,000 authorization and started the January 2026 one, which had $8,496 left at September 30. Over nine months it repurchased about 232 million shares for $5,731 under the 2024 authorization and about 59 million for $1,504 under the 2026 authorization. Dividends paid were $5,923 for nine months, with $0.8325 per common share declared, unchanged from 2025. Common shares outstanding were 6,736,473,433 at October 15, 2026.

Updated outlook (October 21, 2026). AT&T raised its 2026 adjusted EPS guidance and lowered its long-term capital investment plan. The 2027–2028 outlook now excludes Mexico and, like all the guidance, is on a continuing-operations basis. The current targets are:

• 2026 adjusted EPS: in the $2.40 range, raised from $2.25–$2.35 in July, with a double-digit three-year CAGR through 2028.
• 2026 adjusted EBITDA growth: in the upper portion of the 3%–4% range (previously 3%–4%), improving to 5% or better in 2028.
• Service revenue: low-single-digit annual growth. Advanced Connectivity service revenue is to grow mid-single digits, with 5%+ in 2026, and Advanced Connectivity EBITDA 6%+ in 2026. Legacy service revenue is to fall 20%+ in 2026 and be immaterial by the end of 2029, and Legacy EBITDA is expected to turn negative after 2027.
• Capital investment: $23 billion to $24 billion in 2026, then $22 billion to $23 billion annually in 2027 and 2028, down from $23 billion to $24 billion annually.
• Free cash flow: $18 billion+ in 2026, $19 billion+ in 2027 and $21 billion+ in 2028.
• Shareholder returns: $45 billion+ during 2026–2028, keeping the $1.11 annualized dividend and buying back $24 billion+ of stock, about $10 billion of it in 2026.
• Leverage: net debt to adjusted EBITDA back in the 2.5x range during 2029.
• Fiber reach: more than 40 million fiber locations by end-2026 and more than 60 million by end-2030.

Subsequent events

Events after the September 30, 2026 quarter end, from Note 8 of the third-quarter Form 10-Q (accession 0000732717-26-000372) and the October 21, 2026 earnings release (accession 0000732717-26-000370).

• Sale of 50% of the fiber holding company, agreed October 6, 2026. AT&T agreed to sell a 50% interest in Composite Fiber 37, LLC, the parent of Forged Fiber, to affiliates of Global Infrastructure Partners (part of BlackRock) and Canada Pension Plan Investment Board. The deal creates a joint venture that will own both Forged Fiber, the acquired Lumen network, and Gigapower, LLC. AT&T and GIP will contribute their current Gigapower interests, and the investor group will buy equity, leaving AT&T and the investor group with 50% each. The board will be jointly governed, but the investor group has tie-breaking authority over appointing and removing the CEO and/or CFO. AT&T therefore expects to account for its stake under the equity method rather than consolidate it. Closing is expected in the first half of 2027. The 10-Q does not disclose a price.
• Sale of AT&T Mexico, agreed October 13, 2026. AT&T agreed to sell its Mexico wireless business, which is the whole Latin America segment, to Grupo Televisa and Fintech Holdings (buyers as named in the earnings release). AT&T expects about $2,000 in cash at closing, subject to adjustments, plus additional contractual and contingent benefits. Closing is expected in the first quarter of 2027, subject to customary conditions and regulatory approvals. The business was written down by about $2,560 pre-tax in the third quarter when classified as held for sale.

No other post-quarter acquisitions, divestitures or financings were disclosed in these filings.

Filings that contain financial statements

AT&T furnishes its quarterly results as an Exhibit 99.2 ("selected financial statements and operating data") to each earnings Form 8-K. Each holds a consolidated statement of income, balance sheet, cash flow statement and supplementary data, unaudited, in millions of dollars. Exhibit 99.3 of each carries the non-GAAP reconciliations.

• Form 8-K dated October 21, 2026, accession 0000732717-26-000370: third quarter and nine months ended September 30, 2026 (income statement, balance sheet at September 30, 2026 against December 31, 2025, nine-month cash flows). The Form 10-Q for the same period is accession 0000732717-26-000372.
• Form 8-K dated July 22, 2026, accession 0000732717-26-000294: second quarter and six months ended June 30, 2026.
• Form 8-K dated April 22, 2026, accession 0000732717-26-000203: first quarter ended March 31, 2026, with all three statements.
• Form 8-K dated April 22, 2026, accession 0000732717-26-000201: first quarter ended March 31, 2026 financial statements and discussion, filed the same day and presenting the Lumen fiber network subsidiary as discontinued operations.
• Form 8-K dated January 28, 2026, accession 0000732717-26-000047: fourth quarter and full year 2025, with all three statements. Exhibit 99.4 recasts 2023 to 2025 quarterly and annual results to the new segment structure.
• Form 8-K dated January 28, 2026, accession 0000732717-26-000046 (Items 8.01 and 9.01): filed the same day as 0000732717-26-000047 as its Item 8.01 companion. Its Exhibit 99.1 (selected financial statements and operating data) holds the consolidated statements of income (fourth quarter and year ended December 31, 2025 against 2024), balance sheets (December 31, 2025 and 2024) and statements of cash flows (year ended December 31, 2025 and 2024), unaudited, in millions of dollars, plus supplementary and segment data. The 8-K body also carries a discussion of the fourth quarter and full-year 2025 results and notes the January 27, 2026 Board authorization to repurchase an additional $10,000 million of common stock.

Earnings releases and guidance

• January 28, 2026 (0000732717-26-000047; companion Item 8.01 filing 0000732717-26-000046). Fourth quarter 2025 revenues were $33.5 billion and full-year 2025 revenues were $125.6 billion. Full-year diluted EPS was $3.04 and adjusted EPS $2.12; free cash flow was $16.6 billion. AT&T said it met or exceeded all 2025 consolidated guidance. It issued a 2026 to 2028 outlook (improved growth in adjusted EBITDA and adjusted EPS, higher free cash flow) and planned $45 billion or more of shareholder returns over 2026 to 2028. It also announced new reportable segments effective with the first quarter of 2026: Advanced Connectivity, Legacy and Latin America.
• April 22, 2026 (0000732717-26-000203). First quarter revenues were $31.5 billion, up 2.9%. Diluted EPS from continuing operations was $0.54 and adjusted EPS $0.57. Free cash flow was $2.5 billion. AT&T maintained its long-term outlook and 2026 guidance: adjusted EPS of $2.25 to $2.35, capital investment of $23 billion to $24 billion, free cash flow of $18 billion or more, and share repurchases of about $8 billion.
• July 22, 2026 (0000732717-26-000294). Second quarter revenues were $31.6 billion, up 2.3%. Diluted EPS from continuing operations was $0.66 and adjusted EPS $0.65. Free cash flow was $4.7 billion. AT&T reiterated its consolidated full-year 2026 and multi-year guidance and raised its planned 2026 share repurchases to about $10 billion from about $8 billion. Operating expenses included an asset abandonment charge tied to a reprioritization of the spectrum strategy.
• October 21, 2026 (0000732717-26-000370). Third quarter revenues were $32.3 billion, up 5.3%. Operating income was $4.1 billion against $6.1 billion a year earlier, and diluted EPS from continuing operations was $0.13 against $1.29. The decline reflects a $2.6 billion non-cash impairment on the held-for-sale Mexico wireless business and employee separation charges; the year-earlier figure included a gain on the sale of the DIRECTV investment. Adjusted EPS was $0.65 against $0.54, adjusted EBITDA $12.5 billion, and free cash flow $5.0 billion. Total debt was $159.6 billion and net debt $149.8 billion, both up sequentially on the EchoStar spectrum closing. About $4.8 billion was returned to shareholders in the quarter, including $2.8 billion of share repurchases.
  • Guidance changes in this release: adjusted EPS for 2026 is now "in the $2.40 range" (previously $2.25 to $2.35); 2026 adjusted EBITDA growth is now in the upper portion of the 3% to 4% range; capital investment is lowered to $22 billion to $23 billion annually in 2027 and 2028 (previously $23 billion to $24 billion annually for 2026 to 2028), with 2026 unchanged at $23 billion to $24 billion; free cash flow of $18 billion or more in 2026, $19 billion or more in 2027 and $21 billion or more in 2028, and the $1.11 annualized dividend, are unchanged. Share repurchases are described as $24 billion or more over the plan, about $10 billion in 2026. The 2027 to 2028 outlook excludes Mexico.

M&A and portfolio actions

• Lumen Mass Markets fiber business: closed February 2, 2026. The Form 8-K dated April 22, 2026 (0000732717-26-000201) states AT&T "closed our transaction with Lumen" and acquired substantially all of the business. The Form 10-Q (0000732717-26-000372) gives cash consideration of $5,756 million including purchase price adjustments. Customer relationships stay in Advanced Connectivity; the fiber network assets sit in a wholly owned subsidiary, Forged Fiber 37 Services, LLC, classified as held for sale and reported in discontinued operations.
• Forged Fiber 37 joint venture: signed October 6, 2026, not closed. Per the Form 10-Q (0000732717-26-000372), AT&T agreed with affiliates of Global Infrastructure Partners and Canada Pension Plan Investment Board to sell a 50% interest in Composite Fiber 37, LLC, the parent of Forged Fiber. AT&T and GIP would contribute their Gigapower interests, leaving AT&T with 50% of the joint venture. No Item 1.01 Form 8-K reports this agreement; the October 21, 2026 earnings release (0000732717-26-000370, Exhibit 99.1) says only that AT&T has agreed to sell a controlling interest.
• EchoStar spectrum licenses: closed July 28, 2026. The Form 8-K dated July 28, 2026 (0001193125-26-321053, Items 2.03 and 7.01) states that AT&T Mobility II LLC and EchoStar "completed the closing" of the License Purchase Agreement dated August 25, 2025. AT&T acquired 600 MHz and 3.45 GHz licenses for total cash consideration of approximately $23 billion; the Form 10-Q records $22,650 million. To fund part of the price, AT&T drew $11.5 billion on its two-year term loan and $3.0 billion on its 364-day term loan, both under its $17.5 billion Delayed Draw Term Loan Credit Agreement with Bank of America, N.A., as agent. The press release (Exhibit 99.1) reiterates the outlook.
• Mexico wireless business: sale signed October 13, 2026, not closed. The Form 8-K dated October 16, 2026 (0001193125-26-424057) refers to AT&T's October 13, 2026 announcement of an agreement to sell its Mexico wireless business. The October 21 earnings release names Grupo Televisa and Fintech Holdings as the buyers. The Form 10-Q (0000732717-26-000372) says the sale is expected to close in the first quarter of 2027, subject to customary conditions and regulatory approvals, with about $2.0 billion of cash expected at closing, subject to adjustments. AT&T classified the business as held for sale at September 30, 2026 and recorded a non-cash pre-tax impairment of about $2.56 billion. Depreciation and amortization on the business stops from the fourth quarter. There is no Item 1.01 Form 8-K for the agreement in the filings reviewed; the terms appear in the earnings release and the Form 10-Q.

Capital actions

• Debt issuance (Form 8-K, Item 8.01). Each closing is reported on a separate 8-K and gives the principal amounts below.
  • February 5, 2026 (0001193125-26-039407): $6.5 billion of USD global notes in five tranches, due 2031 to 2056 (4.400% due 2031, 4.750% due 2033, 5.125% due 2036, 5.850% due 2046, 6.000% due 2056).
  • March 12, 2026 (0001193125-26-104098): CAD 1.25 billion of 4.500% notes due 2036 and CAD 1.0 billion of 5.250% notes due 2056.
  • April 30, 2026 (0001193125-26-197776): $6.0 billion of USD global notes in five tranches, due 2033 to 2066 (4.750% due 2033, 5.250% due 2036, 5.850% due 2046, 6.200% due 2056, 6.300% due 2066).
  • August 3, 2026 (0001193125-26-332110): EUR 4.1 billion in four tranches (3.600% due 2030, 4.150% due 2034, 4.550% due 2038, 5.050% due 2045) and GBP 550 million of 7.050% notes due 2052. The Form 8-K gives amounts in euros and sterling and does not convert them.
  • August 17, 2026 (0001193125-26-354091): floating-rate notes due 2028 of EUR 1.2 billion and $1.1 billion. The underwriting agreements state that the proceeds will repay part of the $17.5 billion term loan.
• Term loan repayment. Per the Form 10-Q (0000732717-26-000372), the 364-day term loan was repaid in full and terminated in August 2026 and $2.5 billion of the two-year facility was repaid; $9.0 billion of the two-year facility was outstanding at September 30, 2026. The Form 10-Q also reports $1.5 billion drawn in July 2026 on two bilateral term loans maturing in 2031 and 2033, and a further $1.0 billion drawn in July 2026 on a bilateral term loan due July 28, 2029. AT&T was in compliance with its covenants, including the maximum net debt-to-EBITDA ratio of 3.75 to 1.
• Share repurchases. Per the Form 10-Q (0000732717-26-000372) and the January 28, 2026 Form 8-K (0000732717-26-000046), the Board approved an additional $10 billion repurchase authorization on January 27, 2026. For the nine months ended September 30, 2026, AT&T repurchased about 232 million shares for $5,731 million under the December 2024 authorization, which was exhausted in the third quarter, and 59 million shares for $1,504 million under the January 2026 authorization.

Governance and management

• May 14 and 15, 2026 (0001193125-26-232817). At the 2026 annual meeting, stockholders approved the 2026 Incentive Plan, an amended Stock Purchase and Deferral Plan, and an amendment to the Restated Certificate of Incorporation to exculpate certain officers. On May 15, AT&T filed a Certificate of Elimination for its Series B fixed rate reset perpetual preferred securities and a Restated Certificate of Incorporation.
• June 11 and 15, 2026 (0001193125-26-272580). Pascal Desroches announced his retirement as Senior Executive Vice President and Chief Financial Officer, effective December 31, 2026. On June 15, AT&T appointed Jennifer Biry as Deputy Chief Financial Officer effective July 6, 2026; she will become Senior Executive Vice President and Chief Financial Officer on January 1, 2027.
• September 7, 2026 (0001193125-26-386534). The Board expanded from 10 to 11 members and elected Fazal F. Merchant a director effective September 8, 2026, to the Audit and the Corporate Development and Finance committees.
• October 14, 2026 (0001193125-26-424057). Lori M. Lee, Global Marketing Officer and Senior Executive Vice President - International, announced her retirement effective December 31, 2026. The filing states her role will be eliminated in connection with the Mexico divestiture and other reorganizational efforts.

Not reflected in the Form 8-Ks

No Item 1.01 Form 8-K reports either the Mexico sale agreement (October 13, 2026) or the Forged Fiber 37 joint venture agreement. The Mexico agreement is described in the earnings release furnished with the October 21, 2026 Form 8-K (0000732717-26-000370, Exhibit 99.1) and mentioned in passing in the Item 5.02 Form 8-K 0001193125-26-424057 (date of report October 14, 2026, filed October 16, 2026). For Forged Fiber 37, the same earnings release says only that AT&T has agreed to sell a controlling interest. The October 6, 2026 date, the counterparties (affiliates of Global Infrastructure Partners and CPP Investments) and the 50% joint venture terms appear only in the Form 10-Q (0000732717-26-000372). The Lumen closing is covered by the April 22, 2026 Form 8-K filed with the recast financial statements, not by a standalone closing 8-K.

About this file

T annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

T quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

T year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

T trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

Adjustments

Notes

• Every figure here comes from two filings: AT&T's Form 10-K for the fiscal year ended December 31, 2025 (accession 0000732717-26-000120, filed February 9, 2026) and its Form 10-Q for the quarter ended September 30, 2026 (accession 0000732717-26-000372, filed October 21, 2026). The three fiscal years and the December 31, 2025 and 2024 balance sheets come from the 10-K; the third quarters of 2026 and 2025, the nine-month views and the September 30, 2026 balance sheet come from the 10-Q, with the segment figures taken from the 10-Q's segment information note. The trailing-twelve-month view and three balance-sheet subtotals are computed from those figures, as explained below.
• AT&T presents its statements in millions of dollars and its share counts in millions. Every amount in this record has been restated into actual dollars and actual shares; per-share amounts are in actual dollars, as printed.
• AT&T's income statement runs from total operating revenues straight into operating expenses and never strikes a gross profit line, so none is reported here. Revenue is split the way the statement splits it, into service and equipment, and the two cost of revenues lines the statement prints (equipment, and other cost of revenues exclusive of the depreciation and amortization shown separately) are carried separately rather than combined into a single cost of revenue.
• FY2023 carries an income statement and a cash flow statement but no balance sheet: the 10-K's statements of income and cash flows present three years, while its balance sheet presents only December 31, 2025 and December 31, 2024. The Q3 2025 entry likewise carries no balance sheet, because the 10-Q's balance sheet presents September 30, 2026 and December 31, 2025 only.
• Three balance-sheet subtotals are not printed as single lines by AT&T and are computed here from the lines that are. Total liabilities is total current liabilities plus long-term debt plus total deferred credits and other noncurrent liabilities. Total debt is debt maturing within one year plus long-term debt. Total equity attributable to AT&T is total stockholders' equity less the noncontrolling interest included in it. AT&T's redeemable noncontrolling interest sits between liabilities and equity on the balance sheet and is reported separately here, so total assets equals total liabilities plus total equity plus the redeemable noncontrolling interest.
• On February 2, 2026 AT&T closed its acquisition of substantially all of Lumen Technologies' Mass Markets fiber business for $5,756 million in cash. The fiber network assets were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC, which met the held-for-sale criteria and is presented as a discontinued operation, so the 2026 columns of the 10-Q separate continuing operations from a loss from discontinued operations of $37 million in the quarter and $103 million in the nine months. On October 6, 2026 AT&T agreed to sell a 50% interest in Composite Fiber 37, LLC, the parent of Forged Fiber, to affiliates of Global Infrastructure Partners and Canada Pension Plan Investment Board; the 10-Q expects the transaction to close in the first half of 2027. The 2025 periods and all three fiscal years contain no discontinued operations, so their income from continuing operations equals net income.
• On October 13, 2026 AT&T agreed to sell its Mexico wireless business, which is the whole of its Latin America segment, with closing expected in the first quarter of 2027. AT&T classified the business as held for sale at September 30, 2026 and measured it at fair value less cost to sell, recording a noncash pre-tax impairment of approximately $2,560 million in the third quarter; that charge sits within the $3,372 million of asset impairments and abandonments and restructuring reported for Q3 2026. Unlike Forged Fiber, the Mexico business remains in continuing operations and in the Latin America segment results.
• The September 30, 2026 balance sheet prints assets held for sale of $11,216 million and liabilities held for sale of $6,636 million as their own captions; neither caption exists at December 31, 2025. They hold the Forged Fiber discontinued operation ($4,781 million of assets and $723 million of liabilities) and the Mexico wireless business (approximately $6,400 million of assets and approximately $5,900 million of liabilities). Cash and cash equivalents of $10,767 million include $297 million of cash and cash equivalents of the held-for-sale Mexico business.
• On July 28, 2026 AT&T completed its acquisition of 600 MHz and 3.45 GHz spectrum licenses from EchoStar Corporation for $22,650 million; they are carried in licenses, which rose to $149,357 million at September 30, 2026 from $128,148 million at December 31, 2025. Acquisitions, net of cash acquired, of $25,677 million in the first nine months of 2026 comprise spectrum acquisitions of $23,876 million, business acquisitions of $1,702 million and $99 million of capitalized interest on spectrum; approximately $4,100 million of further cash paid for the Lumen acquisition is reported in investing activities of discontinued operations.
• The Q3 2025 comparison is distorted by AT&T's sale of its interest in DIRECTV on July 2, 2025: other income (expense) net of $6,254 million in Q3 2025 includes the gain on that sale, which the 10-Q describes as tax-free. The 10-Q reports an effective tax rate of 51.6% for Q3 2026, against 9.2% for Q3 2025, and attributes the difference primarily to the held-for-sale accounting for the Mexico business and to the absence of income tax on the 2025 DIRECTV gain.
• Earnings per share for Q3 2026 are $0.12 basic and diluted on net income attributable to common stock, made up of $0.13 from continuing operations and a $0.01 loss from discontinued operations. For the nine months ended September 30, 2026 the figures are $1.33 in total and $1.34 from continuing operations.
• The 10-Q's cash flow statement presents nine-month columns only, so the two quarterly entries carry no cash flow block; operating cash flow, capital expenditures and free cash flow appear in the nine-month and trailing-twelve-month views instead. The nine-month operating, investing and financing figures are the continuing-operations lines the 10-Q prints. In the first nine months of 2026 discontinued operations additionally provided $197 million of operating cash and used $4,607 million of investing cash.
• Free cash flow is operating cash flow less capital expenditures in every period, using the figures printed on the cash flow statement.
• Effective with its first-quarter 2026 reporting AT&T realigned its segments to Advanced Connectivity, Legacy and Latin America, replacing the Communications and Latin America segments used in the FY2025 10-K. Segment revenues and operating income are therefore reported here only for the two quarters the 10-Q presents on the new basis, where the year-ago quarter has been recast to match; the annual periods carry no segment split. Corporate and Other's operating loss of $4,076 million in Q3 2026 includes the full $3,372 million of asset impairments and abandonments and restructuring, which AT&T reports in Corporate and Other rather than in its segments.
• The trailing twelve months ended September 30, 2026 is derived, not filed: it is fiscal 2025 plus the nine months ended September 30, 2026 less the nine months ended September 30, 2025, line by line. Fiscal 2025 had no discontinued operations, so the trailing-twelve-month income before income taxes and operating, investing and financing cash flows are all on a continuing-operations basis. Weighted-average share counts are weighted the same way, twelve months of fiscal 2025 plus nine months of 2026 less the nine months of 2025 they replace, divided by twelve, and the per-share amounts are struck on the same numerators the earnings-per-share notes use, which for the diluted figure adds back the dilutive effect of share-based compensation.
• Dividends declared per common share are taken from the statements of changes in stockholders' equity: $1.11 in each of fiscal 2025, 2024 and 2023, $0.2775 in each of the third quarters of 2026 and 2025, and $0.8325 in each of the nine-month periods.
• The $28 million shown as preferred stock dividends and redemption gain for the nine months ended September 30, 2025 is net of the $90 million gain on the May 2025 redemption of the Series B preferred shares.
• AT&T strikes its per-share amounts from unrounded amounts, so recomputing earnings per share from the rounded net income and share counts published here can differ from the printed figure by about a cent.
• No currency translation, ADR conversion or split adjustment applies. AT&T reports in U.S. dollars and files as a domestic issuer, and no stock split falls inside any period reported here.

Uncertainties

• No discrete quarterly cash flow statement exists in these filings. Operating cash flow, capital expenditures, free cash flow and dividends paid for the three months ended September 30, 2026 and 2025 cannot be read off the 10-Q, and they are not estimated here.
• The trailing-twelve-month figures are arithmetic on reported periods, not amounts AT&T published. Because the 2026 cash flows are continuing-operations lines, trailing-twelve-month operating cash flow of $40,235 million excludes the $197 million discontinued operations provided, and investing cash flow excludes the $4,607 million they used.
• The Mexico held-for-sale amounts (assets of about $6,400 million, liabilities of about $5,900 million, the impairment of about $2,560 million) are stated by AT&T as approximations, and the Forged Fiber balances are described as preliminary values.

Company details

Fiscal period

Source filings