10-KPeriod: FY2025

AT&T INC. Annual Report, Year Ended Dec 31, 2025

Filed February 9, 2026For Securities:TT-PCTBBT-PA

Summary

AT&T Inc.'s 2025 Annual Report (10-K) indicates a year of significant revenue growth, driven primarily by its Communications segment, which accounts for approximately 97% of total segment operating revenues. The company saw increased revenues in its Mobility and Consumer Wireline businesses, bolstered by subscriber growth and expanded fiber and fixed wireless offerings. While the Business Wireline segment experienced revenue declines due to a shift away from legacy services, the overall growth in Communications, coupled with improved operating income margins, demonstrates the company's strategic focus on high-growth areas. The company continues to invest heavily in its 5G and fiber networks, anticipating that these investments will fuel future demand and revenue. A notable event during the year was the sale of AT&T's remaining interest in DIRECTV, which contributed a substantial gain to 'Other income (expense) – net' and improved the company's financial flexibility. Management remains focused on operational efficiencies and cost transformation initiatives, expecting these to continue offsetting investments in network expansion and technological advancements, including AI.

Financial Highlights

47 data points
Beta

Revenue

$125.65B

Net Income

$21.95B

17.5% Net Margin

EPS (Diluted)

$3.04

Total Assets

$420.20B

Cash & Equivalents

$18.23B

Free Cash Flow

$40.28B

Financial Statements
Beta
Revenue$125.65B
SG&A Expenses$28.94B
Operating Expenses$101.49B
Operating Income$24.16B
Net Income$21.95B
EPS (Basic)$3.04
EPS (Diluted)$3.04
Shares Outstanding (Basic)7.17B
Shares Outstanding (Diluted)7.18B

Key Highlights

  • 1AT&T reported a 2.7% increase in total operating revenues to $125.6 billion in 2025, driven by strong performance in the Communications segment.
  • 2The Communications segment, representing 97% of total segment revenues, saw growth in Mobility (5.0% increase) and Consumer Wireline (4.5% increase), while Business Wireline declined by 8.4%.
  • 3Mobility operating income increased by 3.4% to $27.2 billion, with a stable operating income margin of 30.4%.
  • 4Consumer Wireline operating income surged by 78.0% to $1.5 billion, driven by a 8.7% increase in broadband revenue, particularly from fiber connections.
  • 5The company completed the sale of its remaining interest in DIRECTV in July 2025, recognizing a gain of approximately $5.6 billion.
  • 6AT&T invested $20.8 billion in capital expenditures, primarily for network upgrades, including fiber and 5G deployment.
  • 7The company anticipates continued revenue growth in 2026 from its wireless and broadband businesses, supported by ongoing investments in 5G and fiber infrastructure.

Frequently Asked Questions

AT&T demonstrated solid financial performance in 2025, with total operating revenues increasing by 2.7% to $125.6 billion. Operating income saw a significant increase of 26.8% to $24.2 billion, largely influenced by a substantial gain from the sale of its DIRECTV interest. The company's core Communications segment, which constitutes the vast majority of its business, showed robust growth, particularly in Mobility and Consumer Wireline.

The Communications segment remains the company's powerhouse, growing revenues by 2.8% to $120.9 billion. Within this segment, Mobility revenue increased by 5.0% due to subscriber growth and higher equipment sales, while Consumer Wireline revenues grew by 4.5%, driven by increased fiber broadband customer adoption. The Business Wireline segment experienced an 8.4% revenue decrease, reflecting a strategic shift away from legacy services towards fiber and advanced connectivity solutions.

AT&T's strategic focus remains on expanding its 5G and fiber networks to meet increasing customer demand for high-speed data and connectivity. The company plans to continue investing in network modernization and deployment to drive future growth. Key initiatives include strengthening its wireless subscriber momentum, accelerating fiber expansion, and leveraging AI for operational efficiencies. The company also anticipates ongoing efforts to rationalize its product portfolio and transition from legacy copper networks to more advanced technologies.

AT&T had $18.2 billion in cash and cash equivalents at the end of 2025, a significant increase from the prior year, partly due to proceeds from the DIRECTV sale. Total debt stood at $136.1 billion. The company continues to manage its debt levels and capital structure, with a stated focus on funding acquisitions, paying dividends, and repurchasing stock. It maintains access to credit facilities and commercial paper programs to manage its liquidity. AT&T's debt ratio was 51.4% at year-end 2025.