10-QPeriod: Q1 FY2026

AT&T INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 27, 2026For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. reported solid financial results for the first quarter of 2026, with total operating revenues reaching $31.5 billion, a 2.9% increase year-over-year. This growth was primarily driven by the Advanced Connectivity segment, which saw a 4.7% increase in total segment operating revenues, boosted by strong performance in wireless service revenue and advanced home internet, including contributions from the recent acquisition of Lumen's Mass Markets fiber business. Operating income saw a significant 15.7% increase to $6.7 billion, with the operating income margin expanding to 21.1%, reflecting improved operational efficiencies and strategic focus. While the company continues its strategic shift towards advanced connectivity, the Legacy segment experienced a 25.3% revenue decline, consistent with the ongoing decommissioning of its copper-based network. The Latin America segment showed robust growth, with revenues up 20.8% driven by favorable foreign exchange and subscriber increases. The company also demonstrated a strong commitment to shareholder returns, repurchasing nearly 95 million shares of common stock during the quarter under its expanded authorization, while maintaining compliance with its debt-to-EBITDA covenants.

Financial Highlights

46 data points
Beta

Revenue

$31.51B

Net Income

$3.83B

12.2% Net Margin

EPS (Diluted)

$0.54

Total Assets

$421.19B

Cash & Equivalents

$11.96B

Free Cash Flow

$7.59B

Financial Statements
Beta
Revenue$31.51B
SG&A Expenses$7.32B
Operating Expenses$24.85B
Operating Income$6.66B
Net Income$3.83B
EPS (Basic)$0.54
EPS (Diluted)$0.54
Shares Outstanding (Basic)7.02B
Shares Outstanding (Diluted)7.03B

Key Highlights

  • 1Total operating revenues increased by 2.9% to $31.5 billion, driven by the Advanced Connectivity segment.
  • 2Operating income grew by 15.7% to $6.7 billion, with an improved operating income margin of 21.1%.
  • 3The Advanced Connectivity segment saw a 4.7% revenue increase, with significant growth in advanced home internet services.
  • 4The Lumen Mass Markets fiber acquisition, now classified as discontinued operations, contributed to revenue growth in the Advanced Connectivity segment.
  • 5The Legacy segment continues its decline with a 25.3% decrease in operating revenues, in line with network decommissioning efforts.
  • 6Latin America segment revenues increased by 20.8%, benefiting from favorable foreign exchange rates and subscriber growth.
  • 7AT&T repurchased approximately 95 million shares of common stock for roughly $2.5 billion during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by the Advanced Connectivity segment, which saw increased wireless service revenue and strong performance in advanced home internet. The acquisition of Lumen's Mass Markets fiber business also contributed to the top-line growth.

The company is actively decommissioning its copper-based legacy network, which has led to a significant decline in revenues for the Legacy segment (down 25.3%). This strategic shift is expected to continue as they focus on more advanced connectivity services.

AT&T continues to prioritize shareholder returns. During the first quarter of 2026, the company repurchased approximately 95 million shares of common stock under its announced buyback programs. Dividend payments also continued.

The acquisition of Lumen's Mass Markets fiber business, completed in February 2026, is classified as discontinued operations in the financial statements. However, its associated customer relationships and network assets are integrated into the Advanced Connectivity segment, contributing to its revenue growth. The financial impact is detailed in Note 8 and Note 12.