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AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
UnauditedFirst QuarterPercent
20262025Change
Operating Revenues
Service$25,478 $25,138 1.4 %
Equipment6,028 5,488 9.8 %
Total Operating Revenues31,506 30,626 2.9 %
Operating Expenses
Cost of revenues
Equipment6,305 5,694 10.7 %
Other cost of revenues (exclusive of depreciation
   and amortization shown separately below)
6,261 6,339 (1.2)%
Selling, general and administrative7,316 7,145 2.4 %
Asset impairments and abandonments and restructuring— 504 — %
Depreciation and amortization4,966 5,190 (4.3)%
Total Operating Expenses24,848 24,872 (0.1)%
Operating Income6,658 5,754 15.7 %
Interest Expense1,813 1,658 9.3 %
Equity in Net Income (Loss) of Affiliates(41)1,440 — %
Other Income (Expense) — Net594 455 30.5 %
Income from Continuing Operations Before Income Taxes5,398 5,991 (9.9)%
Income tax expense on continuing operations1,179 1,299 (9.2)%
Income From Continuing Operations4,219 4,692 (10.1)%
Loss from discontinued operations, net of tax(38)— — %
Net Income4,181 4,692 (10.9)%
Net Income Attributable to Noncontrolling Interest(352)(341)(3.2)%
Net Income Attributable to AT&T$3,829 $4,351 (12.0)%
Preferred Stock Dividends and Redemption Gain(36)44 — %
Net Income Attributable to Common Stock$3,793 $4,395 (13.7)%
Basic Earnings Per Share Attributable to
Common Stock
Income from continuing operations$0.54 $0.61 (11.5)%
Loss from discontinued operations$— $— — %
$0.54 $0.61 (11.5)%
Weighted Average Common Shares
Outstanding (000,000)
7,017 7,213 (2.7)%
Diluted Earnings Per Share Attributable to
Common Stock
Income from continuing operations$0.54 $0.61 (11.5)%
Loss from discontinued operations$— $— — %
$0.54 $0.61 (11.5)%
Weighted Average Common Shares
Outstanding with Dilution (000,000)
7,027 7,223 (2.7)%
1

AT&T Inc.  
Financial Data  
Consolidated Balance Sheets
Dollars in millions
Mar. 31,Dec. 31,
20262025
Assets(Unaudited)
Current Assets
Cash and cash equivalents$11,964 $18,234 
Accounts receivable – net of related allowances for credit loss of $363 and $4298,335 8,843 
Inventories2,451 2,420 
Prepaid and other current assets23,532 19,235 
Total current assets46,282 48,732 
Property, Plant and Equipment – Net133,124 131,559 
Goodwill – Net63,838 63,425 
Licenses – Net129,144 128,148 
Other Intangible Assets – Net6,135 5,254 
Investments in and Advances to Equity Affiliates1,108 1,106 
Operating Lease Right-Of-Use Assets22,756 22,642 
Other Assets18,801 19,332 
Total Assets$421,188 $420,198 
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year$6,818 $9,011 
Accounts payable and accrued liabilities37,304 38,514 
Advanced billings and customer deposits4,330 4,266 
Dividends payable1,969 1,989 
Total current liabilities50,421 53,780 
Long-Term Debt131,589 127,089 
Deferred Credits and Other Noncurrent Liabilities
Noncurrent deferred tax liabilities59,113 58,312 
Postemployment benefit obligation8,427 8,478 
Operating lease liabilities18,907 18,943 
Other noncurrent liabilities25,109 25,104 
Total deferred credits and other noncurrent liabilities111,556 110,837 
Redeemable Noncontrolling Interest2,003 2,001 
Stockholders’ Equity
Preferred stock— — 
Common stock7,621 7,621 
Additional paid-in capital106,084 106,533 
Retained earnings17,620 15,768 
Treasury stock(20,273)(18,529)
Accumulated other comprehensive income (loss)(1,392)(860)
Noncontrolling interest15,959 15,958 
Total stockholders’ equity125,619 126,491 
Total Liabilities and Stockholders’ Equity$421,188 $420,198 
2

AT&T Inc.  
Financial Data  
Consolidated Statements of Cash Flows
Dollars in millions
UnauditedFirst Quarter
20262025
Operating Activities
Income from continuing operations$4,219 $4,692 
Adjustments to reconcile income from continuing operations to net cash provided by
        operating activities from continuing operations:
Depreciation and amortization4,966 5,190 
Provision for uncollectible accounts560 516 
Asset impairments and abandonments and restructuring— 504 
Pension and postretirement benefit expense (credit)(396)(397)
Net (gain) loss on investments28 81 
Changes in operating assets and liabilities:
Receivables(119)15 
Equipment installment receivables and related sales255 1,212 
Contract asset and cost deferral(327)(147)
Inventories, prepaid and other current assets(173)(661)
Accounts payable and other accrued liabilities(2,770)(3,297)
Changes in income taxes1,147 1,285 
Postretirement claims and contributions(72)(68)
Other - net277 124 
Total adjustments3,376 4,357 
Net Cash Provided by Operating Activities from Continuing Operations7,595 9,049 
Investing Activities
Capital expenditures(4,877)(4,277)
Acquisitions, net of cash acquired(2,674)(20)
Dispositions628 11 
(Purchases), sales and settlements of securities - net(14)45 
Other - net(547)(717)
Net Cash Used in Investing Activities from Continuing Operations(7,484)(4,958)
Financing Activities
Issuance of long-term debt8,098 2,956 
Repayment of long-term debt(5,247)(1,526)
Payment of vendor financing(212)(203)
Redemption of preferred stock— (2,075)
Purchase of treasury stock(2,475)(218)
Issuance of treasury stock1 17 
Issuance of preferred interests in subsidiary— 2,221 
Dividends paid(1,997)(2,091)
Other - net(265)366 
Net Cash Used in Financing Activities from Continuing Operations(2,097)(553)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations(1,986)3,538 
Cash flows from Discontinued Operations:
Cash used in operating activities(38)— 
Cash used in investing activities(4,171)— 
Cash used in financing activities— — 
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued
   operations		(4,209)— 
Net increase (decrease) in cash and cash equivalents and restricted cash$(6,195)$3,538 
Cash and cash equivalents and restricted cash beginning of year18,527 3,406 
Cash and Cash Equivalents and Restricted Cash End of Period$12,332 $6,944 
3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
UnauditedFirst QuarterPercent
20262025Change
Capital expenditures
Purchase of property and equipment$4,835$4,24014.0 %
Interest during construction423713.5 %
Total Capital Expenditures$4,877$4,27714.0 %
Acquisitions, net of cash acquired
Business acquisitions$1,656$—— %
Spectrum acquisitions1,0181— %
Interest during construction - spectrum—19— %
Total Acquisitions$2,674$20— %
Cash paid for interest$1,936$1,8047.3 %
Cash paid for income taxes, net of (refunds)$1$11(90.9)%
Dividends Declared per Common Share$0.2775$0.2775— %
End of Period Common Shares Outstanding (000,000)6,965 7,196 (3.2)%
Debt Ratio52.0 %50.9 %110  BP
Total Employees132,590 139,970 (5.3)%
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
UnauditedFirst QuarterPercent
20262025Change
Operating Revenues
Wireless service
$16,941 $16,651 1.7 %
Advanced home internet
2,799 2,198 27.3 %
Business fiber and advanced connectivity
1,882 1,755 7.2 %
Business transitional and other
1,083 1,294 (16.3)%
Other service
158 162 (2.5)%
Total Service Revenues
22,863 22,060 3.6 %
Equipment5,608 5,132 9.3 %
Total Segment Operating Revenues28,471 27,192 4.7 %
Operating Expenses
Operations and support16,913 16,247 4.1 %
Depreciation and amortization4,705 4,973 (5.4)%
Total Segment Operating Expenses21,618 21,220 1.9 %
Operating Income$6,853 $5,972 14.8 %
Operating Income Margin24.1 %22.0 %210 BP
5

Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
20262025Change
Retail Wireless Subscribers1
109,292108,4180.8 %
Phone
91,05790,1931.0 %
Postpaid phone
74,50373,0312.0 %
Prepaid phone
16,55417,162(3.5)%
Other
18,23518,2250.1 %
Retail Wireless Net Adds1, 2
158256(38.3)%
Phone222304(27.0)%
Postpaid phone294324(9.3)%
Prepaid phone(72)(20)— %
Other(64)(48)(33.3)%
Phone churn3
1.20  %1.16  %4  BP
Postpaid phone churn3
0.89  %0.83  %6  BP
Prepaid phone churn3
2.62  %2.55  %7  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.
First QuarterPercent
20262025Change
Internet Connections
14,83311,44329.6  %
Fiber
12,50110,21122.4 %
AT&T Fiber
11,8009,59223.0 %
AT&T Business Fiber1
70161913.2 %
Fixed Wireless
2,3321,23289.3 %
AT&T Internet Air (AIA)
1,736803— %
Business Fixed Wireless2
59642938.9 %
Internet Net Adds3
58451613.2 %
Fiber2922833.2 %
AT&T Fiber
2732614.6 %
AT&T Business Fiber1
1922(13.6)%
Fixed Wireless29223325.3 %
AT&T Internet Air (AIA)23918132.0 %
Business Fixed Wireless2
53521.9  %
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
UnauditedFirst QuarterPercent
20262025Change
Segment Operating Revenues$1,768 $2,368 (25.3)%
Segment Operating Expenses
Operations and support1,156 1,349 (14.3)%
Depreciation and amortization— — — %
Total Operating Expenses1,156 1,349 (14.3)%
Operating Income$612 $1,019 (39.9)%
Operating Income Margin34.6 %43.0 %(840) BP
 
7

LATIN AMERICA SEGMENT

The segment provides wireless services and equipment to customers in Mexico.
Segment Results
Dollars in millions
UnauditedFirst QuarterPercent
 20262025Change
Operating Revenues
Wireless service$753 $615 22.4 %
Wireless equipment420 356 18.0 %
Total Segment Operating Revenues1,173 971 20.8 %
Operating Expenses
Operations and support953 778 22.5 %
Depreciation and amortization200 150 33.3 %
Total Segment Operating Expenses1,153 928 24.2 %
Operating Income$20 $43 (53.5)%
Operating Income Margin1.7 %4.4 %(270) BP
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
 20262025Change
Mexico Wireless Subscribers
Postpaid7,088 5,997 18.2 %
Prepaid16,835 17,376 (3.1)%
Reseller180 235 (23.4)%
Total Mexico Wireless Subscribers24,103 23,608 2.1 %
 First QuarterPercent
 20262025Change
Mexico Wireless Net Additions
Postpaid337 160 — %
Prepaid(895)(110)— %
Reseller(19)(18)(5.6)%
Total Mexico Wireless Net Additions(577)32 — %

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
UnauditedFirst QuarterPercent
20262025Change
Operating Revenues
Wireless service
$14,584 $14,370 1.5 %
Advanced home internet
2,799 2,198 27.3 %
Other service
158 162 (2.5)%
Total Service Revenues
17,541 16,730 4.8 %
Equipment4,611 4,246 8.6 %
Total Operating Revenues22,152 20,976 5.6 %
Operating Expenses
Operations and support12,589 11,801 6.7 %
Depreciation and amortization3,022 3,011 0.4 %
Total Operating Expenses15,611 14,812 5.4 %
Operating Income$6,541 $6,164 6.1 %
Operating Income Margin29.5 %29.4 %10  BP

Business Results
Dollars in millions
UnauditedFirst QuarterPercent
20262025Change
Operating Revenues
Wireless service
$2,357 $2,281 3.3 %
Fiber and advanced connectivity
1,882 1,755 7.2 %
Transitional and other service
1,083 1,294 (16.3)%
Total Service Revenues
5,322 5,330 (0.2)%
Equipment997 886 12.5 %
Total Operating Revenues6,319 6,216 1.7 %
Operating Expenses
Operations and support4,324 4,446 (2.7)%
Depreciation and amortization1,683 1,962 (14.2)%
Total Operating Expenses6,007 6,408 (6.3)%
Operating Income (Loss)$312 $(192)— %
Operating Income Margin4.9 %(3.1)%800  BP
9

SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
March 31, 2026
Advanced ConnectivityLegacyLatin AmericaTotal SegmentCorporate & OtherAT&T Inc.
Operating Revenues
Wireless service$16,941 $— $753 $17,694 $— $17,694 
Consumer
14,584 
Business
2,357 
Advanced home internet2,799 — — 2,799 — 2,799 
Business fiber and advanced connectivity1,882 — — 1,882 — 1,882 
Business transitional and other1,083 — — 1,083 — 1,083 
Other service158 1,768 — 1,926 94 2,020 
Total Service22,863 1,768 753 25,384 94 25,478 
Equipment5,608 — 420 6,028 — 6,028 
Operating Revenues28,471 1,768 1,173 31,412 94 31,506 
Operating Expenses
Operations and support expenses
16,913 1,156 953 19,022 714 19,736 
Asset impairment and abandonment and restructuring— — — — — — 
Transaction, legal and other costs— — — — 146 146 
Depreciation and amortization4,705 — 200 4,905 61 4,966 
Operating Expenses21,618 1,156 1,153 23,927 921 24,848 
Operating Income (Loss)$6,853 $612 $20 $7,485 $(827)$6,658 
Total other income (expense)(1,260)
Income from continuing operations before income tax$5,398 
March 31, 2025
Advanced ConnectivityLegacyLatin AmericaTotal SegmentCorporate & OtherAT&T Inc.
Operating Revenues
Wireless service$16,651 $— $615 $17,266 $— $17,266 
Consumer
14,370 
Business
2,281 
Advanced home internet2,198 — — 2,198 — 2,198 
Business fiber and advanced connectivity1,755 — — 1,755 — 1,755 
Business transitional and other1,294 — — 1,294 — 1,294 
Other service162 2,368 — 2,530 95 2,625 
Total Service22,060 2,368 615 25,043 95 25,138 
Equipment5,132 — 356 5,488 — 5,488 
Operating Revenues27,192 2,368 971 30,531 95 30,626 
Operating Expenses
Operations and support expenses
16,247 1,349 778 18,374 725 19,099 
Asset impairment and abandonment and restructuring— — — — 504 504 
Transaction, legal and other costs— — — — 79 79 
Depreciation and amortization4,973 — 150 5,123 67 5,190 
Operating Expenses21,220 1,349 928 23,497 1,375 24,872 
Operating Income (Loss)$5,972 $1,019 $43 $7,034 $(1,280)$5,754 
Total other income (expense)237 
Income from continuing operations before income tax$5,991 
10