AT&T Delivers Strong Third-Quarter 2026 Results with Its Best Consolidated
AT&T Delivers Strong Third-Quarter 2026 Results with Its Best Consolidated Service Revenue Growth in More Than Four Years
AT&T added more than 1 million Advanced Connectivity customers for a second consecutive quarter, driven by net adds across fiber, fixed wireless, and postpaid phone
AT&T updates outlook to reflect higher 2026 adjusted EPS* and lower long-term capital investment while remaining on track to reach more than 60 million locations with fiber by end of 2030 DALLAS, October 21, 2026 — AT&T Inc. (NYSE: T) reported third-quarter results, extending the momentum of its investment-led strategy as it delivers advanced connectivity to more consumers and businesses. The Company achieved a record quarter for Advanced Connectivity internet net adds and grew its base of high- value converged relationships by approximately 350,000. The results demonstrate the value of AT&T’s differentiated fiber and 5G portfolio as it continues to accelerate growth in consolidated service revenue and improve operating efficiency, driving durable long-term profitability.
"We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless," said
"Our asset base positions us well for the AI era, with a leading position in fiber – the best technology available. We’re building the nation’s strongest network, backed by America’s Best Guarantee , to deliver faster, more reliable and more accessible connectivity."
from continuing operations was $0.13 , which includes a non-cash impairment charge associated with the Company's held-for-sale Mexico wireless business as well as employee separation charges, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment;
from continuing operations was $10.5 billion , versus $10.2 billion in the year- ago quarter
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
• Second consecutive quarter with over 1 million Advanced Connectivity customer additions , driven by accelerated internet net adds and solid postpaid phone net adds
• Advanced Connectivity service revenue of $23.9 billion , up 6.1% year over year
• Advanced Connectivity operating income of $7.6 billion , up 18.9% year over year with
• 42.8% of households with AT&T's advanced home internet services also chose AT&T wireless
• 769,000 total consumer and business Advanced Connectivity internet net adds , a record quarter, including 442,000 fiber and 327,000 fixed wireless
total consumer and business locations with fiber; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million locations by the end of 2030 3
• Returned approximately $4.8 billion to shareholders, including $2.8 billion in common share repurchases
AT&T is increasing its outlook for 2026 adjusted EPS* and lowering its long-term outlook for capital investment. AT&T maintains its long-term outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt- to-adjusted EBITDA ratio* will return to a level consistent with its target in the 2.5x range during 2029.
AT&T's long-term outlook is presented on a continuing operations basis and, for 2027-2028, excludes AT&T Mexico, which it has agreed to sell to Grupo Televisa and Fintech Holdings.
growth in the mid-single-digit range annually, including expected growth of 5%+ in 2026
growth in the upper portion of the 3% to 4% range in 2026, improving to 5% or better in 2028
growth in the mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026
expected to turn negative after 2027, until AT&T has substantially eliminated direct costs associated with operating its copper-based network 5
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
in the $23 billion to $24 billion range in 2026 and in the $22 billion to $23 billion range annually in 2027 and 2028
, including plans to maintain its current annualized common stock dividend of $1.11 per share and $24 billion+ of share repurchases, including approximately $10 billion during 2026
Note: AT&T’s third-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, October 21, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.
for the third quarter totaled $32.3 billion, versus $30.7 billion in the year- ago quarter, up 5.3%. This was largely due to growth in Advanced Connectivity wireless service and equipment revenues, and fiber revenues, which include the impact of the Company’s first-quarter acquisition of Lumen’s mass markets fiber business. Operating revenues in Latin America were also higher due to favorable foreign exchange impacts and growth in postpaid revenues. Offsetting the increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network.
were $28.2 billion, versus $24.6 billion in the year-ago quarter. Operating expenses increased primarily due to a non-cash impairment charge associated with the Company’s held-for-sale Mexico wireless business of $2.6 billion, employee separation charges, increased wireless equipment costs, as well as higher advertising and higher bad debt expenses driven by subscriber growth. The increase was also due to incremental customer costs related to the acquired mass markets fiber business. These increases were partially offset by cost reductions from transformation initiatives and apportioned legal settlements in the prior- year period. Depreciation expense was also lower year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives.
was $4.1 billion, versus $6.1 billion in the year-ago quarter. Adjusted operating income* was $7.6 billion, versus $6.6 billion in the year-ago quarter.
• Income from continuing operations attributable to common stock was $0.9 billion, versus $9.3 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.13, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment. Adjusting for $0.52, which includes a non-cash impairment charge associated with the held-for-sale Mexico wireless business, employee separation charges, and other items, adjusted earnings per diluted common share* was $0.65, versus $0.54 in the year-ago quarter.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
from continuing operations was $10.5 billion, versus $10.2 billion in the year- ago quarter, which included voluntary pension plan contributions. The increase also reflects timing of working capital payments.
related to continuing operations were $5.1 billion, versus $4.9 billion in the year-ago quarter.
* totaled $5.6 billion, versus $5.3 billion in the year-ago quarter. Cash payments for vendor financing totaled $0.5 billion, versus $0.4 billion in the year-ago quarter.
was $149.8 billion, both reflecting a sequential increase related to the closing of the EchoStar spectrum transaction.
Advanced Connectivity service revenues grew 6.1% year over year, driving growth in operating income of 18.9% and EBITDA* of 7.3%. Internet net adds were 769,000 — comprised of 442,000 fiber and 327,000 fixed wireless —
growth of 6.1% and higher equipment revenue. Wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts on wireless subscriber additions. Advanced home internet revenue growth, which included an impact from the acquired mass markets fiber business that closed in the first quarter, reflects increases in fiber and AT&T Internet Air revenues. Business fiber and advanced connectivity revenues increased largely due to higher fiber and fixed wireless revenues. Business
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
transitional and other revenues decreased due to lower demand for virtual private network and wholesale services.
were up 3.6% year over year, due to increased wireless equipment costs, higher advertising expense, incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth. These increases were partially offset by cost reductions from transformation initiatives. Additionally, depreciation expense decreased year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives.
Legacy revenues continued to decline year over year in line with AT&T's goal to decommission the large majority of its copper-based network by the end of 2029.
were down 24.5% year over year, primarily due to lower demand for services as the Company continues to decommission its copper-based network.
, which represent direct operating costs, were $1.0 billion, down 23.5% year over year. Expense declines were primarily driven by lower personnel and other costs resulting from the decommissioning of the copper-based network, and lower fulfillment cost amortization, partially offset by favorable vendor settlements in the prior-year period.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
On October 13, 2026, AT&T entered into an agreement to sell its Mexico wireless business, which is the entirety of the Latin America segment. AT&T applied held- for-sale accounting in continuing operations as of September 30, 2026, and recorded a non-cash impairment charge of $2.6 billion at Corporate and Other that did not impact third-quarter segment results. AT&T will continue to present results within the Latin America segment.
were up 13.2% year over year, primarily driven by favorable foreign exchange rates and postpaid wireless subscriber growth.
were up 11.4% year over year due to unfavorable foreign exchange rates, higher bad debt expenses, and higher equipment costs.
1 With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's quarterly results. The recently acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, Forged Fiber 37, which is classified as held-for-sale and reflected as discontinued operations. Upon acquisition, AT&T initially sought an equity partner to co-invest in Forged Fiber 37 and has since agreed to sell a controlling interest in the business.
2 Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. This 3Q26 convergence metric is presented based on available information and is subject to revision.
3 Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which represent locations served from the recently acquired mass markets fiber business, Gigapower, and other commercial open access providers.
4 The Company's long-term outlook for 2026-2028 is presented on a continuing operations basis and excludes discontinued operations related to Forged Fiber 37. AT&T's long-term outlook for 2027-2028 excludes the held-for-sale Mexico wireless business.
5 The strategy to remove legacy fixed costs across a geography is tied to the decommissioning of infrastructure after all customers have been upgraded to newer services. Gaining approvals could delay this decommissioning beyond 2029.
6 Effective with the Company’s first-quarter 2026 reporting, AT&T revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. ( NYSE:T ), please visit us at about.att.com. Investors can learn more at investors.att.com.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated October 21, 2026. Adjusted EPS, adjusted operating income, EBITDA, EBITDA margin, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T’s continuing operations and does not include discussion of balances or activity related to discontinued operations.
is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Non-operational items arising from asset acquisitions and dispositions include the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate; in these cases, we use the actual tax expense or combined marginal rate of approximately 25%.
, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.13 adjusted for $0.41 impairment charge associated with the held-for-sale Mexico wireless business, $0.09 employee separation charges, and $0.02 for benefit- related, transaction, legal and other items. For
, adjusted EPS of $0.54 is diluted EPS of $1.29 minus $0.79 gain on the sale of the DIRECTV investment, plus $0.04 benefit-related, transaction, legal and other items. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods, novel theories of liability, and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries.
The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion (based on preliminary information), a non-cash mark-to-market benefit plan gain/loss and other items. The Company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. AT&T’s projected adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, the Company cannot provide a reconciliation between this projected non-GAAP metric and the most comparable GAAP metric without unreasonable effort.
is operating income adjusted for revenues and costs the Company considers non- operational in nature, including items arising from asset acquisitions or dispositions. For
, adjusted operating income of $7.6 billion is calculated as operating income of $4.1 billion, plus adjustments of $3.5 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For
, adjusted operating income of $6.6 billion is calculated as operating income of $6.1 billion, plus $435 million of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026, and include transaction, legal, and other costs as discussed above.
is income from continuing operations plus income tax, interest, and depreciation and amortization expenses minus equity in net income (loss) of affiliates and other income (expense) – net.
is calculated by excluding from EBITDA certain significant items that are non- operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation, and other material gains and losses. Adjustments include transaction, legal, and other costs as discussed above.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
, adjusted EBITDA of $12.5 billion is calculated as income from continuing operations of $1.3 billion, plus income tax expense of $1.4 billion, plus interest expense of $2.0 billion, plus equity in net income (loss) of affiliates of $(10) million, minus other income (expense) – net of $0.6 billion, plus depreciation and amortization of $5.0 billion, plus adjustments of $3.4 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For
, adjusted EBITDA of $11.9 billion is calculated as income from continuing operations of $9.7 billion, plus income tax expense of $1.0 billion, plus interest expense of $1.7 billion, plus equity in net income (loss) of affiliates of $(20) million, minus other income (expense) – net of $6.3 billion, plus depreciation and amortization of $5.3 billion, plus adjustments of $425 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026.
, Advanced Connectivity EBITDA of $12.3 billion is operating income of $7.6 billion plus depreciation and amortization of $4.7 billion. For
, Advanced Connectivity EBITDA of $11.5 billion is operating income of $6.4 billion plus depreciation and amortization of $5.1 billion.
Adjusted EBITDA, Advanced Connectivity EBITDA, and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.
of $5.0 billion is cash from operating activities from continuing operations of $10.5 billion, minus capital expenditures of $5.1 billion and cash paid for vendor financing of $0.5 billion. For
, free cash flow of $4.9 billion is cash from operating activities of $10.2 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.4 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.
provides a comprehensive view of cash used to invest in our networks, product developments, and support systems. In connection with capital improvements, we have favorable payment terms of 120 days or more with certain vendors, referred to as vendor financing, which are excluded from capital expenditures and reported as financing activities. Capital investment includes capital expenditures and cash paid for vendor financing ($0.5 billion in 3Q26, $0.4 billion in 3Q25). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metric without unreasonable effort.
of $149.8 billion at September 30, 2026, is calculated as total debt (debt maturing within one year and long-term debt) of $159.6 billion, plus debt classified as held-for-sale related to the Mexico wireless business of $1.2 billion, less cash and cash equivalents of $10.8 billion and time deposits (i.e., deposits at financial institutions that are greater than 90 days) of $0.3 billion. Net debt-to-adjusted EBITDA is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP Measures” section of the release and at investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
Full text with the tables
AT&T Delivers Strong Third-Quarter 2026 Results with Its Best Consolidated
Service Revenue Growth in More Than Four Years
AT&T added more than 1 million Advanced Connectivity customers for a second
consecutive quarter, driven by net adds across fiber, fixed wireless, and
postpaid phone
AT&T updates outlook to reflect higher 2026 adjusted EPS* and lower long-term
capital investment while remaining on track to reach more than 60 million
locations with fiber by end of 2030
DALLAS, October 21, 2026 — AT&T Inc. (NYSE: T) reported third-quarter results,
extending the momentum of its investment-led strategy as it delivers advanced
connectivity to more consumers and businesses. The Company achieved a record
quarter for Advanced Connectivity internet net adds and grew its base of high-
value converged relationships by approximately 350,000. The results demonstrate
the value of AT&T’s differentiated fiber and 5G portfolio as it continues to
accelerate growth in consolidated service revenue and improve operating
efficiency, driving durable long-term profitability.
"We are growing valuable customer relationships as more homes and businesses
choose AT&T for all their advanced connectivity needs across both internet and
on-the-go wireless," said
John Stankey, AT&T Chairman and CEO.
"Our asset base positions us well for the AI era, with a leading position in
fiber – the best technology available. We’re building the nation’s strongest
network, backed by America’s Best Guarantee , to deliver faster, more reliable
and more accessible connectivity."
Third-Quarter 2026 Consolidated Financial Results
1
•
Revenues
totaled $32.3 billion , up 5.3% year over year
•
Diluted EPS
from continuing operations was $0.13 , which includes a non-cash impairment
charge associated with the Company's held-for-sale Mexico wireless business as
well as employee separation charges, versus $1.29 in the year-ago quarter, which
included a gain recognized on the sale of the DIRECTV investment;
adjusted EPS*
was $0.65 , versus $0.54 in the year-ago quarter
•
Operating income
was $4.1 billion ;
adjusted operating income*
was $7.6 billion
•
Income
from continuing operations was $1.3 billion ,
adjusted EBITDA*
was $12.5 billion , up 5.4% year over year
•
Cash from operating activities
from continuing operations was $10.5 billion , versus $10.2 billion in the year-
ago quarter
•
Capital expenditures
related to continuing operations were $5.1 billion ;
capital investment*
was $5.6 billion
•
Free cash flow*
was $5.0 billion, versus $4.9 billion in the year-ago quarter
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
Third-Quarter 2026 Highlights
• Second consecutive quarter with over 1 million Advanced Connectivity customer
additions , driven by accelerated internet net adds and solid postpaid phone net
adds
• Advanced Connectivity service revenue of $23.9 billion , up 6.1% year over
year
• Advanced Connectivity operating income of $7.6 billion , up 18.9% year over
year with
EBITDA*
of $12.3 billion , up 7.3%
• 42.8% of households with AT&T's advanced home internet services also chose
AT&T wireless
2
• 769,000 total consumer and business Advanced Connectivity internet net adds ,
a record quarter, including 442,000 fiber and 327,000 fixed wireless
•
379,000 postpaid phone net adds
with
postpaid phone churn
of 0.92%
•
Reached more than 39 million
total consumer and business locations with fiber; the Company remains on track
to reach over 40 million total fiber locations by the end of 2026 and more than
60 million locations by the end of 2030 3
• Returned approximately $4.8 billion to shareholders, including $2.8 billion in
common share repurchases
Financial Outlook and Capital Allocation Plan
AT&T is increasing its outlook for 2026 adjusted EPS* and lowering its long-term
outlook for capital investment. AT&T maintains its long-term outlook for
improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow*
through 2028, its plans to return $45 billion+ to shareholders during 2026-2028
through dividends and share repurchases, and an expectation that its net debt-
to-adjusted EBITDA ratio* will return to a level consistent with its target in
the 2.5x range during 2029.
AT&T's long-term outlook is presented on a continuing operations basis and, for
2027-2028, excludes AT&T Mexico, which it has agreed to sell to Grupo Televisa
and Fintech Holdings.
The Company’s long-term outlook for 2026-2028 includes 4 :
•
Service revenue
growth in the low-single-digit range annually
◦
Advanced Connectivity service
revenue
growth in the mid-single-digit range annually, including expected growth of 5%+
in 2026
◦
Legacy service revenue
decline of 20%+ in 2026 and be immaterial by the end of 2029
•
Adjusted EBITDA*
growth in the upper portion of the 3% to 4% range in 2026, improving to 5% or
better in 2028
◦
Advanced Connectivity EBITDA*
growth in the mid-to-high-single-digit range annually, including expected growth
of 6%+ in 2026
◦
Legacy EBITDA*
expected to turn negative after 2027, until AT&T has substantially eliminated
direct costs associated with operating its copper-based network 5
•
Adjusted EPS*
in the $2.40 range in 2026 with a double-digit 3-year CAGR through 2028
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
•
Capital investment*
in the $23 billion to $24 billion range in 2026 and in the $22 billion to $23
billion range annually in 2027 and 2028
•
Free cash flow*
of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028
•
Strong capital returns
, including plans to maintain its current annualized common stock dividend of
$1.11 per share and $24 billion+ of share repurchases, including approximately
$10 billion during 2026
Note: AT&T’s third-quarter 2026 earnings conference call will be webcast at 8:30
a.m. ET on Wednesday, October 21, 2026. The webcast and related materials,
including financial highlights, will be available at investors.att.com.
Detailed Third-Quarter 2026 Consolidated Financial Results
•
Revenues
for the third quarter totaled $32.3 billion, versus $30.7 billion in the year-
ago quarter, up 5.3%. This was largely due to growth in Advanced Connectivity
wireless service and equipment revenues, and fiber revenues, which include the
impact of the Company’s first-quarter acquisition of Lumen’s mass markets fiber
business. Operating revenues in Latin America were also higher due to favorable
foreign exchange impacts and growth in postpaid revenues. Offsetting the
increases were lower Legacy revenues from lower demand for services as the
Company continues to decommission its copper-based network.
•
Operating expenses
were $28.2 billion, versus $24.6 billion in the year-ago quarter. Operating
expenses increased primarily due to a non-cash impairment charge associated with
the Company’s held-for-sale Mexico wireless business of $2.6 billion, employee
separation charges, increased wireless equipment costs, as well as higher
advertising and higher bad debt expenses driven by subscriber growth. The
increase was also due to incremental customer costs related to the acquired mass
markets fiber business. These increases were partially offset by cost reductions
from transformation initiatives and apportioned legal settlements in the prior-
year period. Depreciation expense was also lower year over year from fully
depreciated legacy assets, partially offset by ongoing capital spending for
strategic initiatives.
•
Operating income
was $4.1 billion, versus $6.1 billion in the year-ago quarter. Adjusted
operating income* was $7.6 billion, versus $6.6 billion in the year-ago quarter.
•
Income
from continuing operations
was $1.3 billion, versus $9.7 billion in the year-ago quarter.
• Income from continuing operations attributable to common stock was $0.9
billion, versus $9.3 billion in the year-ago quarter. Earnings per diluted
common share from continuing operations was $0.13, versus $1.29 in the year-ago
quarter, which included a gain recognized on the sale of the DIRECTV investment.
Adjusting for $0.52, which includes a non-cash impairment charge associated with
the held-for-sale Mexico wireless business, employee separation charges, and
other items, adjusted earnings per diluted common share* was $0.65, versus $0.54
in the year-ago quarter.
•
Adjusted EBITDA
* was $12.5 billion, versus $11.9 billion in the year-ago quarter.
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
•
Cash from operating activities
from continuing operations was $10.5 billion, versus $10.2 billion in the year-
ago quarter, which included voluntary pension plan contributions. The increase
also reflects timing of working capital payments.
•
Capital expenditures
related to continuing operations were $5.1 billion, versus $4.9 billion in the
year-ago quarter.
Capital investment
* totaled $5.6 billion, versus $5.3 billion in the year-ago quarter. Cash
payments for vendor financing totaled $0.5 billion, versus $0.4 billion in the
year-ago quarter.
•
Free cash flow*
was $5.0 billion, versus $4.9 billion in the year-ago quarter.
•
Total debt
was $159.6 billion at the end of the third quarter and
net debt*
was $149.8 billion, both reflecting a sequential increase related to the closing
of the EchoStar spectrum transaction.
AT&T Third-Quarter 2026 Segment Results
6
Advanced Connectivity service revenues grew 6.1% year over year, driving growth
in operating income of 18.9% and EBITDA* of 7.3%. Internet net adds were 769,000
— comprised of 442,000 fiber and 327,000 fixed wireless —
and postpaid phone net adds were 379,000.
Advanc…
Connec…
Dollars
in Third
millio… Unaudi… Quarter 2026 2025 Percent Change
──────────────────────────────────────────────────────────────────────────────
Operat… $ 29,481 $ 27,503 7.2 %
Revenu…
Service 23,902 22,529 6.1 %
Wirele… 17,764 16,926 5.0 %
Service
Advanc…
Home 2,975 2,411 23.4 %
Intern…
Busine…
Fiber
and 1,992 1,832 8.7 %
Advanc…
Connec…
Busine…
Transi… 1,023 1,198 -14.6 %
and
Other
Other 148 162 -8.6 %
Service
Equipm… 5,579 4,974 12.2 %
Operat… 21,853 21,086 3.6 %
Expens…
Operat… 7,628 6,417 18.9 %
Income
Operat…
Income 25.9 % 23.3 % 260 BP
Margin
EBITDA* $ 12,330 $ 11,493 7.3 %
EBITDA 41.8 % 41.8 % — BP
Margin*
Advanced Connectivity segment revenues
grew 7.2% year over year, driven by
service revenue
growth of 6.1% and higher equipment revenue. Wireless service revenue increased
due to growth in retail wireless subscribers in underpenetrated categories and
converged accounts, and pricing actions that were partially offset by
promotional discounts on wireless subscriber additions. Advanced home internet
revenue growth, which included an impact from the acquired mass markets fiber
business that closed in the first quarter, reflects increases in fiber and AT&T
Internet Air revenues. Business fiber and advanced connectivity revenues
increased largely due to higher fiber and fixed wireless revenues. Business
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
transitional and other revenues decreased due to lower demand for virtual
private network and wholesale services.
Operating expenses
were up 3.6% year over year, due to increased wireless equipment costs, higher
advertising expense, incremental customer costs related to the acquired mass
markets fiber business, and higher bad debt expenses driven by subscriber
growth. These increases were partially offset by cost reductions from
transformation initiatives. Additionally, depreciation expense decreased year
over year from fully depreciated legacy assets, partially offset by ongoing
capital spending for strategic initiatives.
Operating income
was $7.6 billion, up 18.9% year over year.
EBITDA*
was $12.3 billion, up $837 million year over year.
Legacy revenues continued to decline year over year in line with AT&T's goal to
decommission the large majority of its copper-based network by the end of 2029.
Legacy
Dollars
in Third
millions Unaudited Quarter 2026 2025 Percent Change
──────────────────────────────────────────────────────────────────────────────
Operating $ 1,519 $ 2,013 -24.5 %
Revenues
Operating 1,021 1,334 -23.5 %
Expenses
Operating 498 679 -26.7 %
Income
Operating
Income 32.8 % 33.7 % -90 BP
Margin
EBITDA* $ 498 $ 679 -26.7 %
EBITDA 32.8 % 33.7 % -90 BP
Margin*
Legacy segment revenues
were down 24.5% year over year, primarily due to lower demand for services as
the Company continues to decommission its copper-based network.
Operating expenses
, which represent direct operating costs, were $1.0 billion, down 23.5% year
over year. Expense declines were primarily driven by lower personnel and other
costs resulting from the decommissioning of the copper-based network, and lower
fulfillment cost amortization, partially offset by favorable vendor settlements
in the prior-year period.
Operating income
and
EBITDA*
were $498 million, down $181 million year over year.
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
On October 13, 2026, AT&T entered into an agreement to sell its Mexico wireless
business, which is the entirety of the Latin America segment. AT&T applied held-
for-sale accounting in continuing operations as of September 30, 2026, and
recorded a non-cash impairment charge of $2.6 billion at Corporate and Other
that did not impact third-quarter segment results. AT&T will continue to present
results within the Latin America segment.
Latin
America
Dollars
in Third
millions Unaudited Quarter 2026 2025 Percent Change
──────────────────────────────────────────────────────────────────────────────
Operating $ 1,240 $ 1,095 13.2 %
Revenues
Service 798 696 14.7 %
Equipment 442 399 10.8 %
Operating 1,195 1,073 11.4 %
Expenses
Operating 45 22 — %
Income
EBITDA* 236 199 18.6 %
Latin America segment revenues
were up 13.2% year over year, primarily driven by favorable foreign exchange
rates and postpaid wireless subscriber growth.
Operating expenses
were up 11.4% year over year due to unfavorable foreign exchange rates, higher
bad debt expenses, and higher equipment costs.
Operating income
was $45 million, up $23 million year over year.
EBITDA
* was $236 million, up $37 million year over year.
1 With the closing of the acquisition of substantially all of Lumen's Mass
Markets fiber business on February 2, 2026, the fiber customer relationships
were retained by AT&T and are included in the Company's quarterly results. The
recently acquired fiber network assets, including certain fiber network build
capabilities, were placed in a wholly owned subsidiary, Forged Fiber 37, which
is classified as held-for-sale and reflected as discontinued operations. Upon
acquisition, AT&T initially sought an equity partner to co-invest in Forged
Fiber 37 and has since agreed to sell a controlling interest in the business.
2 Advanced home internet connections with AT&T wireless is defined as AT&T Fiber
and AT&T Internet Air connections that are also primary wireless account holders
that subscribe to consumer postpaid phone service. AT&T refers to these
customers as converged customers. Convergence rate represents the ratio of
converged customers to advanced home internet connections. This 3Q26 convergence
metric is presented based on available information and is subject to revision.
3 Total consumer and business locations reached with fiber represents the sum
of: (1) AT&T Owned and Operated locations, which reflect its customer locations
passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which
represent locations served from the recently acquired mass markets fiber
business, Gigapower, and other commercial open access providers.
4 The Company's long-term outlook for 2026-2028 is presented on a continuing
operations basis and excludes discontinued operations related to Forged Fiber
37. AT&T's long-term outlook for 2027-2028 excludes the held-for-sale Mexico
wireless business.
5 The strategy to remove legacy fixed costs across a geography is tied to the
decommissioning of infrastructure after all customers have been upgraded to
newer services. Gaining approvals could delay this decommissioning beyond 2029.
6 Effective with the Company’s first-quarter 2026 reporting, AT&T revised its
operating segments to reflect the evolution of its business model to focus on
delivering converged advanced connectivity services.
About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly
2.5 million businesses, connect to greater possibility. From the first phone
call 150 years ago to our 5G wireless and multi-gig internet offerings today, we
@ATT innovate to improve lives. For more information about AT&T Inc. ( NYSE:T ),
please visit us at about.att.com. Investors can learn more at investors.att.com.
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and
other forward-looking statements that are subject to risks and uncertainties,
and actual results might differ materially. A discussion of factors that may
affect future results is contained in AT&T’s filings with the Securities and
Exchange Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information or otherwise.
Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this
document to the most comparable financial measures under generally accepted
accounting principles (GAAP) can be found at investors.att.com and in our Form
8-K dated October 21, 2026. Adjusted EPS, adjusted operating income, EBITDA,
EBITDA margin, adjusted EBITDA, free cash flow, and net debt are non-GAAP
financial measures frequently used by investors and credit rating agencies. The
information below refers only to AT&T’s continuing operations and does not
include discussion of balances or activity related to discontinued operations.
Adjusted EPS
is calculated by excluding from operating revenues, operating expenses, other
income (expenses) and income tax expense, certain significant items that are
non-operational or non-recurring in nature, including dispositions and merger
integration and transaction costs, actuarial gains and losses, significant
abandonments and impairments, benefit-related gains and losses, employee
separation and other material gains and losses. Non-operational items arising
from asset acquisitions and dispositions include the amortization of intangible
assets. While the expense associated with the amortization of certain wireless
licenses and customer lists is excluded, the revenue of the acquired companies
is reflected in the measure and those assets contribute to revenue generation.
We also adjust for net actuarial gains or losses associated with our pension and
postemployment benefit plans due to the often-significant impact on our results
(we immediately recognize this gain or loss in the income statement, pursuant to
our accounting policy for the recognition of actuarial gains and losses).
Consequently, our adjusted results reflect an expected return on plan assets
rather than the actual return on plan assets, as included in the GAAP measure of
income. The tax impact of adjusting items is calculated using the adjusted
effective tax rate during the quarter except for adjustments that, given their
magnitude, can drive a change in the effective tax rate; in these cases, we use
the actual tax expense or combined marginal rate of approximately 25%.
For
3Q26
, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.13
adjusted for $0.41 impairment charge associated with the held-for-sale Mexico
wireless business, $0.09 employee separation charges, and $0.02 for benefit-
related, transaction, legal and other items. For
3Q25
, adjusted EPS of $0.54 is diluted EPS of $1.29 minus $0.79 gain on the sale of
the DIRECTV investment, plus $0.04 benefit-related, transaction, legal and other
items. Transaction, legal and other costs include certain legal reserves and
settlements that cover extended historical periods, novel theories of liability,
and/or are unpredictable in both magnitude and timing, and therefore are
distinct and separate from normal, recurring legal matters. Such costs are
presented net of expected insurance recoveries.
The Company expects adjustments to 2026 reported diluted EPS from continuing
operations to include acquisition-related amortization of approximately $0.3
billion (based on preliminary information), a non-cash mark-to-market benefit
plan gain/loss and other items. The Company expects the mark-to-market
adjustment, which is driven by interest rates and investment returns that are
not reasonably estimable at this time, to be a significant item. AT&T’s
projected adjusted EPS depends on future levels of revenues and expenses, most
of which are not reasonably estimable at this time. Accordingly, the Company
cannot provide a reconciliation between this projected non-GAAP metric and the
most comparable GAAP metric without unreasonable effort.
Adjusted operating income
is operating income adjusted for revenues and costs the Company considers non-
operational in nature, including items arising from asset acquisitions or
dispositions. For
3Q26
, adjusted operating income of $7.6 billion is calculated as operating income of
$4.1 billion, plus adjustments of $3.5 billion, which includes the impairment
charge associated with the held-for-sale Mexico wireless business. For
3Q25
, adjusted operating income of $6.6 billion is calculated as operating income of
$6.1 billion, plus $435 million of adjustments. Adjustments for all periods are
detailed in the Discussion and Reconciliation of Non-GAAP Measures included in
our Form 8-K dated October 21, 2026, and include transaction, legal, and other
costs as discussed above.
EBITDA
is income from continuing operations plus income tax, interest, and depreciation
and amortization expenses minus equity in net income (loss) of affiliates and
other income (expense) – net.
Adjusted EBITDA
is calculated by excluding from EBITDA certain significant items that are non-
operational or non-recurring in nature, including dispositions and merger
integration and transaction costs, significant abandonments and impairments,
benefit-related gains and losses, employee separation, and other material gains
and losses. Adjustments include transaction, legal, and other costs as discussed
above.
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.
For
3Q26
, adjusted EBITDA of $12.5 billion is calculated as income from continuing
operations of $1.3 billion, plus income tax expense of $1.4 billion, plus
interest expense of $2.0 billion, plus equity in net income (loss) of affiliates
of $(10) million, minus other income (expense) – net of $0.6 billion, plus
depreciation and amortization of $5.0 billion, plus adjustments of $3.4 billion,
which includes the impairment charge associated with the held-for-sale Mexico
wireless business. For
3Q25
, adjusted EBITDA of $11.9 billion is calculated as income from continuing
operations of $9.7 billion, plus income tax expense of $1.0 billion, plus
interest expense of $1.7 billion, plus equity in net income (loss) of affiliates
of $(20) million, minus other income (expense) – net of $6.3 billion, plus
depreciation and amortization of $5.3 billion, plus adjustments of $425 million.
Adjustments for all periods are detailed in the Discussion and Reconciliation of
Non-GAAP Measures included in our Form 8-K dated October 21, 2026.
At the segment level,
EBITDA
is operating income before depreciation and amortization.
EBITDA margin
is EBITDA divided by total revenues. For
3Q26
, Advanced Connectivity EBITDA of $12.3 billion is operating income of $7.6
billion plus depreciation and amortization of $4.7 billion. For
3Q25
, Advanced Connectivity EBITDA of $11.5 billion is operating income of $6.4
billion plus depreciation and amortization of $5.1 billion.
Adjusted EBITDA, Advanced Connectivity EBITDA, and Legacy EBITDA estimates
depend on future levels of revenues and expenses which are not reasonably
estimable at this time. Accordingly, we cannot provide reconciliations between
these projected non-GAAP metrics and the most comparable GAAP metrics without
unreasonable effort.
Free cash flow
for
3Q26
of $5.0 billion is cash from operating activities from continuing operations of
$10.5 billion, minus capital expenditures of $5.1 billion and cash paid for
vendor financing of $0.5 billion. For
3Q25
, free cash flow of $4.9 billion is cash from operating activities of $10.2
billion, minus capital expenditures of $4.9 billion and cash paid for vendor
financing of $0.4 billion. Due to high variability and difficulty in predicting
items that impact cash from operating activities, capital expenditures and
vendor financing payments, the Company is not able to provide a reconciliation
between projected free cash flow and the most comparable GAAP metric without
unreasonable effort.
Capital investment
provides a comprehensive view of cash used to invest in our networks, product
developments, and support systems. In connection with capital improvements, we
have favorable payment terms of 120 days or more with certain vendors, referred
to as vendor financing, which are excluded from capital expenditures and
reported as financing activities. Capital investment includes capital
expenditures and cash paid for vendor financing ($0.5 billion in 3Q26, $0.4
billion in 3Q25). Due to high variability and difficulty in predicting items
that impact capital expenditures and vendor financing payments, the Company is
not able to provide a reconciliation between projected capital investment and
the most comparable GAAP metric without unreasonable effort.
Net debt
of $149.8 billion at September 30, 2026, is calculated as total debt (debt
maturing within one year and long-term debt) of $159.6 billion, plus debt
classified as held-for-sale related to the Mexico wireless business of $1.2
billion, less cash and cash equivalents of $10.8 billion and time deposits
(i.e., deposits at financial institutions that are greater than 90 days) of $0.3
billion. Net debt-to-adjusted EBITDA is calculated by dividing net debt by the
sum of the most recent four quarters of adjusted EBITDA. Net debt and adjusted
EBITDA estimates depend on future levels of revenues, expenses and other metrics
which are not reasonably estimable at this time. Accordingly, we cannot provide
a reconciliation between projected net debt-to-adjusted EBITDA and the most
comparable GAAP metrics and related ratios without unreasonable effort.
For more information, contact:
Brennan Edwards
AT&T Inc.
Phone: (972) 209-2753
Email: brennan.edwards@att.com
* Further clarification and explanation of non-GAAP measures and reconciliations
to the most comparable GAAP measures can be found in the “Non-GAAP Measures and
Reconciliations to GAAP Measures” section of the release and at
investors.att.com.
© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo
are registered trademarks of AT&T Intellectual Property.