# AT&T Inc. (NYSE: T) — Narrative Sources: Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (accession 0000732717-26-000120, filed February 9, 2026); Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (accession 0000732717-26-000297, filed July 22, 2026); and Current Reports on Form 8-K filed July 22, July 28, August 4 and August 17, 2026. Dollar amounts are in millions unless stated otherwise, consistent with the company's own presentation. --- ## Business *From the FY2025 Form 10-K (accession 0000732717-26-000120).* AT&T sells connectivity. It describes itself as a leading global provider of telecommunications and technology services, and what that means in practice is nationwide wireless voice and data service in the United States, fiber and fixed-wireless broadband to homes and businesses, ethernet, IP voice and managed services to business customers, and wireless service in Mexico. The customers are consumers located in the United States, businesses globally, and consumer and business subscribers of the Mexican wireless network. The revenue is overwhelmingly recurring: subscribers pay monthly for wireless plans and for home and business internet, with a smaller slice coming from selling them the handsets and equipment those services run on, and a shrinking remainder from the legacy copper-based voice and data services AT&T is actively retiring. Services reach the market under the AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber and AT&T Internet Air brand names. AT&T Inc. itself is a holding company incorporated in Delaware in 1983 with principal executive offices in Dallas, Texas; the operating businesses sit in its subsidiaries and affiliates. That shape is the residue of two decades of dealmaking. The company was formed as SBC Communications, one of the regional holding companies created to hold AT&T Corp.'s local telephone companies and spun off on January 1, 1984 under the anti-trust consent decree. It then reassembled much of the old footprint: Pacific Telesis (1997), Ameritech (1999), AT&T Corp. itself (2005, at which point it took the AT&T name), BellSouth (2006, which brought full ownership of AT&T Mobility), Leap Wireless (2014), and Mexican wireless properties and DIRECTV (2015). The video business was then separated back out into a TPG joint venture in July 2021, and AT&T sold its remaining DIRECTV interest to TPG in July 2025, leaving the connectivity business described above. **Reportable segments as presented in the FY2025 annual report — Communications and Latin America.** The Communications segment supplied roughly 97% of 2025 segment operating revenues and substantially all segment operating income, and was organized into three business units: - **Mobility** — nationwide U.S. wireless voice and data. At December 31, 2025 AT&T served 120 million Mobility subscribers: 91 million postpaid (74 million phone), 18 million prepaid and 11 million reseller. - **Business Wireline** — ethernet-based fiber, fixed wireless, IP voice and managed professional services to business customers, alongside declining legacy copper voice/data, VPN and wholesale. - **Consumer Wireline** — residential broadband, principally fiber (multi-gig) plus AT&T Internet Air ("AIA") fixed wireless delivered over the 5G network, and legacy telephony. The **Latin America** segment provides wireless service in Mexico and contributed about 3% of 2025 segment operating revenues and less than 1% of segment operating income. Corporate & Other holds administrative support costs and results from businesses no longer integral to operations. By class of service in 2025, wireless service was 54% of consolidated operating revenues (up from 53% and 52% in 2024 and 2023), equipment 18%, fiber and advanced connectivity 13% (up from 12% and 11%), and legacy and other transitional 8% (down from 10% and 13%) — the clearest single picture of the mix shift management is engineering. Mexico wireless service and equipment added 2% and 1%. No customer accounted for 10% or more of consolidated revenues in 2025, 2024 or 2023. **Network and areas of focus.** The strategy is convergence on a single owned network: 5G wireless plus fiber, with fiber as the shared foundation for both. In North America the network covered over 441 million people with 4G LTE and over 322 million with 5G at year-end 2025; in the U.S., more than 337 million people with LTE and more than 322 million with 5G, plus LTE coverage of over 104 million people in Mexico. At December 31, 2025 AT&T had 16.0 million broadband connections (15.3 million a year earlier), including 10.4 million fiber consumer wireline broadband customers (up 1.1 million during the year) and 1.5 million AIA connections (up 875,000); that count is all-in, and at that date still included copper-based connections. **Copper decommissioning** is the other half of the plan: AT&T is actively exiting legacy copper operations across the large majority of its wireline footprint, migrating customers to fiber and wireless and working with regulators to retire the copper plant. At December 31, 2025 it still had 2.1 million switched access lines (2.7 million a year earlier) and 2.8 million legacy consumer internet connections (4.1 million a year earlier). **Competition.** Wireless competitors include two national carriers, numerous regional providers and resellers, cable companies, and application-layer providers riding data networks; in Mexico AT&T is one of three facilities-based providers, with América Móvil holding the most significant share. In broadband AT&T competes with large cable companies and wireless broadband providers; in legacy voice and data it faces structural decline against lower-cost, less-regulated technologies. **Research, licensing and people.** Research and development expense was $843 in 2025, $955 in 2024 and $954 in 2023. Wireless licenses are issued for fixed 10-to-15-year terms and must be renewed. AT&T employed approximately 133,030 people at December 31, 2025, roughly 43% represented by the CWA, IBEW or other unions, with three main contract groups expiring in 2026 — about 9,000 employees across 36 states and DC in February, about 4,300 across five states in April, and two wireline contracts covering about 1,800 employees in April. Approximately 477,000 retirees and dependents were eligible for retiree benefits. --- ## Risk factors *Condensed from Item 1A of the FY2025 Form 10-K (accession 0000732717-26-000120).* **Benefit plan and capital markets exposure.** AT&T recognizes pension and postretirement actuarial gains and losses immediately in the income statement rather than amortizing them, so adverse market conditions, lower asset returns, or higher medical and prescription drug trends flow straight into reported results. Significant adverse changes in capital markets could deteriorate the funded status of the defined benefit plans. **Inflation and supply chain.** Device, network-component, labor and distribution costs have risen, and inputs are exposed to tariffs, currency moves, energy costs and supplier capacity. The filing specifically flags that spending by hyperscalers and others to support AI is beginning to pressure supply chains for semiconductors and other network components. Price increases to offset this may reduce volumes or raise churn. **Access to capital and leverage.** AT&T has incurred debt to fund acquisitions and spectrum and has experienced credit rating downgrades from historical levels. Further downgrades would raise borrowing costs and could increase collateral it must post to derivative counterparties. Adverse credit markets could restrict access or impose restrictive covenants. **Capital intensity and spectrum access.** Convergence and data growth require continuous heavy investment; 5G and fiber deployment may slip on cost or schedule because of inflation, supplier delays, software issues, component costs, permitting or labor. Failure to acquire needed spectrum, or failure of converged offerings to gain acceptance, would pressure customer retention and margins. **Competition and impairment risk.** Market saturation is expected to moderate industry customer growth, intensifying competition — including from strategic alliances in converged connectivity — and pressuring price and margin. A sustained decline in a reporting unit's revenues and earnings has in the past required, and could again require, a goodwill impairment charge. **Regulation and litigation.** Wired subsidiaries face significant federal and state regulation many competitors do not; IP-based and wireless services sit between conflicting FCC, state and local authority. New privacy laws could restrict data collection and targeted advertising. Separately, AT&T is subject to litigation and government inquiries stemming from 2023 Wall Street Journal reporting alleging that lead-clad telecommunications cables are a public health hazard or pose environmental risks, and may face further litigation, investigations or new regulation on that subject. **Cyberattacks.** As a critical infrastructure provider, AT&T considers itself a particularly attractive target, including for nation-state and other well-funded actors, with heightened risk around geopolitical events. Attacks have occurred and will continue, and are increasing in frequency, scope and potential harm; AI and machine learning used by attackers may worsen both. The filing cites the July 2024 Item 1.05 disclosure of a cybersecurity incident involving copying of mobile customer call data. To date no cyberattack has had a material adverse effect on operations or results, but insurance may not cover future losses. **Labor.** About 43% of the workforce was unionized at December 31, 2025; renegotiations could bring higher costs or work stoppages. **Execution on transformation, acquisitions and dispositions.** The cost-transformation, legacy-rationalization and fiber-expansion program may not deliver expected benefits on schedule. AT&T is also expanding its use of AI in network design and operations, software development, sales, marketing, customer support and G&A; generative models may produce incorrect output, release confidential information, reflect training-data bias or infringe intellectual property, and AI regulation remains uncertain. **Other named risks** include international exposure (particularly Mexico) and FCPA compliance; extreme weather and climate effects on network infrastructure; natural disasters, terrorism and equipment or network failures; reliance on single-source suppliers; higher costs to provide service against competitors operating newer, non-unionized, lower-cost networks with fewer retirees; intellectual property adequacy and infringement claims; reputational damage and employment-related litigation; public health crises; and changes in tax law, judicial interpretation or the outcome of ongoing tax examinations. --- ## Management's discussion — fiscal year 2025 *From Item 7 of the FY2025 Form 10-K (accession 0000732717-26-000120).* **Consolidated.** Operating revenues rose in 2025 on higher Mobility and Consumer Wireline revenues, partially offset by Business Wireline declines; Mexico revenues also rose despite unfavorable foreign exchange. Operations and support expenses increased with higher Mobility sales volumes (equipment, advertising, selling and bad debt) plus approximately $440 of apportioned legal settlements and higher network costs, partly offset by transformation savings and lower content licensing fees. Asset impairments, abandonments and restructuring fell, because 2024 carried a $4,422 goodwill impairment on the Business Wireline reporting unit and restructuring charges including termination fees tied to the Open RAN network modernization program; 2025 charges were primarily restructuring severance. Depreciation and amortization rose on fiber and network capital spending. Operating margin was **19.2% in 2025 versus 15.6% in 2024 and 19.2% in 2023**. Interest expense rose, chiefly on lower capitalized interest tied to spectrum, partly offset by lower average commercial paper. Equity in net income of affiliates fell with the DIRECTV sale. Other income (expense) — net rose, mainly on a gain of approximately **$5,600** on the DIRECTV disposal, plus a gain on a prior disposition and offset by noncash impairments on a held-for-sale business and the SKY Mexico equity investment, and by lower pension and postretirement credits. The effective tax rate was **13.4% in 2025, 26.6% in 2024 and 21.3% in 2023**, reflecting non-recognition of tax on the DIRECTV gain in 2025 and the non-deductible goodwill impairment in 2024. **Segment and business-unit margins (2025 / 2024 / 2023).** Communications segment operating income margin 23.1% / 23.0% / 23.6%, EBITDA margin 39.6% / 39.5% / 38.3%. Mobility operating income margin 30.4% / 30.9% / 30.8%, EBITDA margin 42.0% / 42.8% / 40.9%. Business Wireline operating income margin **(4.7)% / (0.5)% / 6.2%**, EBITDA margin 29.1% / 29.1% / 31.9%. Consumer Wireline operating income margin 10.9% / 6.4% / 4.9%, EBITDA margin 37.0% / 33.4% / 31.3%. Mexico operating income margin 3.3% / 0.9% / (3.6)%, EBITDA margin 18.6% / 16.5% / 14.8%. Postpaid ARPU rose in 2025 on pricing actions largely offset by promotional activity, growth in converged relationships, and success in underpenetrated segments with lower ARPU but attractive lifetime value (management cites the 55-plus "value customers"). Postpaid and postpaid phone churn were higher in 2025, partly because more of the base reached the end of device financing periods — a dynamic that normalized in the second half. **Liquidity.** Cash and equivalents were **$18,234** at December 31, 2025, up $14,936 during the year and deliberately elevated ahead of announced transactions; approximately $1,330 was held outside the U.S. Cash from operating activities was **$40,284** in 2025 versus $38,771 in 2024, after roughly $1,150 of voluntary pension contributions and about $900 of advanced cash payments to Frontier Communications, a Verizon subsidiary. Investing activities used $18,777, including $20,842 of capital expenditures, $620 for an equity-method investment in DriveNets for wireline network transformation, and $148 of net FirstNet sustainability receipts. Vendor financing payments were $1,181 (versus $1,792 in 2024), making capital investment $22,023 — $32 below the prior year. AT&T placed $1,594 of productive assets in service under vendor financing in 2025 versus $700 in 2024. **Capital structure.** Financing activities used $6,386. Total notes and debentures outstanding were **$134,718** at December 31, 2025, with a weighted average rate of approximately 4.2% (unchanged from 2024) and roughly $35,307 denominated in euro, sterling, Canadian dollar, Australian dollar and Swiss franc. $9,011 of long-term debt matured within one year and there was no commercial paper outstanding. The debt ratio was 51.4% at year-end 2025 versus 50.7% in 2024 and 53.5% in 2023. AT&T repurchased approximately 159 million shares for $4,269 under the $10,000 authorization approved in December 2024, leaving about $5,731; on January 27, 2026 the Board authorized an additional $10,000. Dividends on common and preferred were $8,180 in 2025 versus $8,208 in 2024, with common dividends declared of $1.11 per share in both years. AT&T issued $2,250 of nonconvertible cumulative preferred interests in Telco LLC and used the proceeds to redeem all outstanding Series B preferred stock for $2,075, and received approximately $850 upfront from a structured real-estate sale-leaseback. **Announced transactions as described in the annual report.** The UScellular spectrum purchase agreed in November 2024 for approximately $1,000 closed January 13, 2026 for a cash payment of $1,018. The agreement of May 21, 2025 to acquire substantially all of Lumen's Mass Markets fiber business for $5,750 cash — approximately one million fiber customers and network assets reaching more than four million fiber locations at signing — closed February 2, 2026. The August 25, 2025 agreement to purchase 600 MHz and 3.45 GHz FCC licenses from EchoStar for approximately $23,000 was pending at the annual report date; AT&T had signed a short-term spectrum manager lease on the 3.45 GHz spectrum, already deployed in cell sites covering nearly two-thirds of the U.S. population. On February 5, 2026 AT&T issued $6,500 of global notes due 2031 to 2056 at a weighted average coupon of 5.2%. **2026 outlook given in the annual report.** Revenue growth in wireless and broadband, with an increasing share from converged customers; expense trends consistent with the prior year, with fiber and 5G spending pressuring costs and transformation and AI-driven efficiencies offsetting; capital investment of **$23,000 to $24,000**; voluntary pension contributions of approximately $350 with only minimal ERISA requirements; ongoing pricing pressure, especially in wireless. Purchase obligations were approximately $8,545 in 2026, $10,698 across 2027-2028, $2,505 across 2029-2030 and $2,890 thereafter. **Accounting judgments.** Pension and postretirement discount rates at December 31, 2025 were 5.50% and 5.30%; the 0.20% pension and 0.30% postretirement reductions during the year increased those obligations by $680 and $167 respectively. Expected long-term return assumptions are 7.75% on pension assets and 4.00% on postretirement assets; a 0.50% decrease would raise 2026 combined cost by $139. At the October 1, 2025 goodwill test, all reporting units with remaining goodwill exceeded book value by more than 10%, and would still do so under a 0.5% adverse move in long-term growth, EBITDA margin or WACC. U.S. wireless licenses were tested qualitatively in 2025 and passed; the most recent quantitative test, in 2024, used an 8.75% discount rate and showed fair value more than 10% above book. The independent auditor is Ernst & Young LLP (Dallas). --- ## Current quarter — second quarter and first half of 2026 *From the Form 10-Q for the quarter ended June 30, 2026 (accession 0000732717-26-000297) and the earnings release furnished July 22, 2026 (accession 0000732717-26-000294).* **A new segment structure.** Effective with first-quarter 2026 reporting AT&T realigned internal management and reporting around converged advanced connectivity, replacing Communications/Latin America with **three reportable segments: Advanced Connectivity, Legacy and Latin America.** Advanced Connectivity holds domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers; Legacy holds domestic copper-based voice and data, reported with its direct operating costs only; Latin America remains Mexican wireless. Operating costs and depreciation of the shared network, including copper assets prior to decommissioning, are managed within Advanced Connectivity — which is why Legacy carries no depreciation and its operating income equals its EBITDA. The realignment required goodwill reassignment and impairment testing of both the old and new reporting units as of January 1, 2026; no impairment was recorded. All of the goodwill from the former Consumer Wireline and Mobility reporting units went to Advanced Connectivity, and **no goodwill was assigned to Legacy**, because management expects sustained declines in Legacy service revenue as copper decommissioning proceeds. **The Lumen fiber acquisition and discontinued operations.** On February 2, 2026 AT&T closed the Lumen Mass Markets fiber transaction for **$5,756 cash including purchase price adjustments**. Preliminary purchase accounting: approximately $900 of customer relationships (amortized sum-of-the-months over six years, managed in Advanced Connectivity), $3,400 of property, plant and equipment, and $800 of goodwill. The acquired fiber network assets were placed in a wholly owned subsidiary, **Forged Fiber 37 Services, LLC**, and AT&T plans to sell a controlling interest in it to a co-investing equity partner. Forged Fiber therefore met held-for-sale criteria and is reported as **discontinued operations**, while the acquired customer relationships were retained in continuing operations. Of the $5,756 paid, $1,656 ran through continuing-operations investing and $4,100 through discontinued-operations investing. Discontinued operations showed revenues of $154 in the quarter and $253 for the half, with a loss net of tax of $(28) and $(66); held-for-sale assets were $4,474 (including $3,702 of PP&E and $445 of goodwill) against $423 of liabilities at June 30, 2026. Because commercial arrangements continue after the disposal, results are presented gross, with approximately $137 (quarter) and $232 (half) of operating expenses in continuing operations and the matching revenues in discontinued operations. **Consolidated results.** Second-quarter operating revenues were **$31,558** versus $30,847, up 2.3%, on higher Advanced Connectivity fiber and wireless revenue — fiber including the acquired mass markets business — and favorable Mexican foreign exchange, offset by lower Legacy revenue. Operating income was **$7,038** versus $6,501, with operating margin up from 21.1% to **22.3%** in the quarter and from 19.9% to **21.7%** for the half. Quarterly operations and support expenses rose on an asset abandonment charge tied to a reprioritization of spectrum strategy, higher advertising, incremental customer costs from the acquired fiber business and higher bad debt from subscriber growth, offset by transformation savings, lower content licensing fees and gains on tower transactions. Depreciation and amortization fell, on fully depreciated legacy assets, partly offset by fiber and network capital spending. Interest expense rose on higher debt balances and rates. Equity in net income of affiliates fell with the July 2, 2025 DIRECTV sale. The effective tax rate was **13.5%** in the quarter and **17.5%** for the half, versus 20.3% and 21.0% a year earlier, reflecting resolution of certain IRS examinations. Income from continuing operations was $5,038 (versus $4,861) in the quarter and $9,257 (versus $9,553) for the half; income from continuing operations attributable to common stock was $4,619 and $8,450. Diluted EPS from continuing operations was **$0.66** versus $0.62; the company's adjusted EPS measure was $0.65 versus $0.54. Weighted average diluted shares fell to 6,946 million from 7,219 million. **Advanced Connectivity.** Segment revenues were $28,615 versus $27,497 (+4.1%), with service revenue of $23,478 (+5.1%). Within service: wireless service $17,413 (+3.3%), advanced home internet $2,926 (+27.3%), business fiber and advanced connectivity $1,946 (+10.0%), business transitional and other $1,042 (**-16.6%**) and other service $151 (-7.9%). Equipment was $5,137 (-0.5%). Operating expenses fell 0.6% to $21,270 as depreciation dropped 6.9% to $4,687, and operating income rose **20.3% to $7,345**; operating margin went from 22.2% to 25.7% and EBITDA margin from 40.5% to 42.0%. Fiber revenues specifically grew 21.4% in the quarter and 21.3% for the half; AIA revenue growth exceeded 100%. Splitting the segment: **Consumer** revenues were $22,329 (+4.9%) with operating income $7,119 (+11.7%). **Business** revenues were $6,286 (+1.4%) with operating income of **$226 versus a $(267) loss** a year earlier — the business unit turned profitable, on a 13.5% drop in depreciation and a 3.1% decline in operations and support. **Operating metrics at June 30, 2026.** Retail wireless subscribers 109.8 million (+1.0%), of which 91.4 million phone and **74.9 million postpaid phone (+2.1%)**; prepaid phone 16.5 million (-3.4%). Quarterly retail wireless net adds were 549,000 versus 327,000, including **432,000 postpaid phone net adds** versus 401,000. Phone churn was 1.12% versus 1.17%, and **postpaid phone churn 0.86%** versus 0.87%. Internet connections on the Advanced Connectivity measure — fiber and fixed wireless only, excluding the copper-based legacy internet connections carried in the year-end all-in broadband count — reached **15.479 million, up 29.5%** from 11.952 million a year earlier, comprising 12.868 million fiber (AT&T Fiber 12.144 million, AT&T Business Fiber 724,000) and 2.611 million fixed wireless (AIA 1.951 million, up 93.9%; business fixed wireless 660,000). Quarterly internet net adds were **646,000** versus 509,000 — 367,000 fiber and 279,000 fixed wireless. Management reported that 42.5% of households taking AT&T's advanced home internet also take AT&T wireless, and that total consumer and business locations reached with fiber grew by more than one million in the quarter to **38.6 million**. **Legacy.** Revenues fell **25.9% to $1,632** in the quarter and 25.6% to $3,400 for the half. Direct operating costs fell 10.8% to $1,109 on lower personnel and other costs from decommissioning and lower fulfillment cost amortization, partly offset by vendor settlements. Operating income and EBITDA fell 45.5% to **$523**, with the margin down from 43.6% to 32.0% — the structural squeeze of shrinking revenue against costs that come out more slowly. Management's stated goal is to power down and stop providing service over the large majority of the domestic copper network by the end of 2029, with the caveat that approvals could push decommissioning past that date. **Latin America.** Revenues rose 16.1% to $1,224 on favorable exchange and postpaid growth, but expenses rose 17.7% and operating income fell to **$38 from $46**. Total Mexico wireless subscribers were 23.435 million, down 1.7%: postpaid grew 20.7% to 7.457 million while prepaid fell 9.2% to 15.829 million, producing total net subscriber losses of 668,000 in the quarter and 1.245 million for the half. **Liquidity and capital.** Cash and equivalents were **$17,570** at June 30, 2026, down $664 from year-end and still deliberately elevated ahead of the EchoStar closing; approximately $1,251 sat outside the U.S. First-half cash from continuing operations was **$18,396** versus $18,812, with the prior year helped by $1,675 of DIRECTV cash net of tax; 2026 benefited from lower cash tax payments (income taxes paid, net of refunds, were $91 versus $880) and working-capital timing, against a $100 voluntary pension contribution. Direct supplier financing reduced first-half operating cash flow by approximately $272, versus $2,146 a year earlier. Investing used $13,233, including $10,577 of capital expenditures (capital investment of $11,220 including $643 of vendor financing, $1,623 above the prior-year half), $1,018 for the UScellular spectrum licenses and $1,656 of the Lumen purchase price in continuing operations. Total notes and debentures were **$142,578** at June 30, 2026 with a weighted average rate of approximately 4.4% (4.2% at year-end 2025); $9,323 matures within one year, and there was no commercial paper outstanding. The debt ratio was **52.8%**, versus 51.7% a year earlier and 51.4% at year-end. The company reported total debt of $144.0 billion and net debt of $126.4 billion at quarter end. AT&T repurchased approximately **174 million shares for $4,435** in the first half under the December 2024 authorization, leaving about $1,296 there and the full $10,000 of the January 27, 2026 authorization untouched. Dividends paid on common and preferred were $3,973 versus $4,135, with $0.5550 per common share declared in the first halves of both 2026 and 2025. All of the Series B preferred shares redeemed in May 2025 were retired on May 15, 2026. **Undrawn facilities at June 30, 2026.** A $12,000 revolving credit agreement terminating November 3, 2030; a $17,500 delayed draw term loan entered in November 2025 with Bank of America as agent, split into a $6,000 364-day facility and an $11,500 two-year facility, each available for a single draw before November 3, 2026; two bilateral term loan facilities totaling $1,500 entered in March 2026 (with $500 due 2031 and $1,000 due 2033 when drawn); and a $1,000 bilateral facility entered in May 2026 due 2029. Nothing was outstanding under any of them at quarter end. The credit agreements carry a net debt-to-EBITDA covenant capped at 3.75-to-1, with which AT&T was in compliance. **Regulatory development in the period.** On May 6, 2026 the Eighth Circuit vacated the FCC's digital discrimination rules, holding that the implementing statute did not permit rules imposing disparate-impact liability. The FCC will need to adopt new rules consistent with the statute. **Guidance reiterated with the quarter.** AT&T restated its full-year 2026 and multi-year outlook: service revenue growth in the low single digits annually, with Advanced Connectivity service revenue up mid-single digits annually including 5%+ in 2026, and Legacy service revenue down 20%+ in 2026 and immaterial by the end of 2029; adjusted EBITDA growth of 3% to 4% in 2026 improving to 5% or better in 2028, with Advanced Connectivity EBITDA up mid-to-high single digits (6%+ in 2026) and Legacy EBITDA expected to turn negative after 2027 until direct copper-network costs are substantially eliminated; adjusted EPS of **$2.25 to $2.35 in 2026** with a double-digit three-year CAGR through 2028; capital investment of **$23 billion to $24 billion annually through 2026-2028**; free cash flow of $18 billion+ in 2026, $19 billion+ in 2027 and $21 billion+ in 2028; more than $45 billion returned to shareholders during 2026-2028, holding the annualized common dividend at $1.11 per share and executing approximately $24 billion of repurchases, of which about **$10 billion in 2026** — an accelerated pace relative to the prior plan. Management expects net debt to adjusted EBITDA to return to a level consistent with its 2.5x target within approximately three years of the EchoStar closing. AT&T also reaffirmed its target of more than 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030. --- ## Subsequent events *Events after the June 30, 2026 quarter end, from Current Reports on Form 8-K.* - **EchoStar spectrum acquisition closed July 28, 2026 (accession 0001193125-26-321053).** AT&T Mobility II LLC completed the License Purchase Agreement entered on August 25, 2025 with EchoStar Corporation and certain of its subsidiaries, acquiring licenses in the 600 MHz and 3.45 GHz bands for total cash consideration of **approximately $23 billion**. The purchase adds approximately 50 MHz of spectrum covering virtually every U.S. market — roughly 30 MHz of nationwide 3.45 GHz mid-band and roughly 20 MHz of nationwide 600 MHz low-band. - **Term loan drawn to fund it, July 28, 2026 (accession 0001193125-26-321053).** AT&T drew **$11.5 billion on the two-year facility and $3.0 billion on the 364-day facility** of its $17.5 billion Delayed Draw Term Loan Credit Agreement with Bank of America, N.A. as agent, paying the balance of the purchase price in cash. With the closing, AT&T reiterated the financial outlook and capital allocation plan it gave with second-quarter results. - **Multi-currency note sale closed August 3, 2026 (accession 0001193125-26-332110).** AT&T closed the sale of €1,000,000,000 of 3.600% Global Notes due 2030, €1,250,000,000 of 4.150% Global Notes due 2034, €1,000,000,000 of 4.550% Global Notes due 2038, €850,000,000 of 5.050% Global Notes due 2045 and £550,000,000 of 7.050% Global Notes due 2052, under an underwriting agreement dated July 27, 2026 with Barclays, Citigroup Global Markets, Goldman Sachs and Wells Fargo Securities International as representatives. - **Floating rate notes closed August 17, 2026 (accession 0001193125-26-354091).** AT&T closed the sale of **€1,200,000,000** of Floating Rate Global Notes due 2028 (underwriting agreement dated August 7, 2026, with Deutsche Bank AG, London Branch) and **$1,100,000,000** of Floating Rate Global Notes due 2028 (underwriting agreement dated August 10, 2026, with BNP Paribas Securities Corp.). All of these notes were issued under the indenture dated May 15, 2013 with The Bank of New York Mellon Trust Company, N.A. as trustee. No acquisitions or divestitures beyond the EchoStar spectrum closing were disclosed in the post-quarter reports reviewed, and the planned sale of a controlling interest in Forged Fiber 37 Services, LLC had not been announced as completed.