01—Abstract
Summary
Summary of the 10-Q filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.
AT&T Inc. reported solid financial results for the six months ended June 30, 2026, with total operating revenues increasing by 2.6% to $63.1 billiona.
This growth was primarily driven by the Advanced Connectivity segment, which saw a 4.4% revenue increase to $57.1 billionb, bolstered by the recent acquisition of Lumen's mass markets fiber business and continued expansion of fiber and fixed wireless services. The company's strategic focus on 5G and fiber is evident in the segment's operating income growth of 17.6%. Despite overall revenue growth, net income attributable to common stock saw a slight decrease to $8.46 billion from $8.86 billion in the prior year period, largely impacted by a reduction in "Equity in net income (loss) of affiliates" due to the sale of DIRECTV Entertainment Holdings, LLC.
The company continues to manage its legacy operations, with a significant revenue decline in the Legacy segment, aligning with its strategic shift. AT&T also demonstrated a commitment to shareholder returns through substantial share repurchases and dividend payments, while actively managing its debt profile.
02—Key points
Key Highlights
- Total operating revenues for the six months ended June 30, 2026, increased by 2.6% to $63.1 billion, driven by strong performance in the Advanced Connectivity segment.
- The Advanced Connectivity segment reported a 4.4% revenue increase to $57.1 billion, including contributions from the acquisition of Lumen's mass markets fiber business and growth in 5G and fiber services.
- Operating income from continuing operations increased by 11.8% to $13.7 billion for the six months ended June 30, 2026, indicating improved profitability.
- Net income attributable to common stock for the six months ended June 30, 2026, was $8.46 billion, a decrease from $8.86 billion in the prior year, influenced by lower equity in net income of affiliates.
- The company repurchased approximately $4.4 billion of its common stock during the first six months of 2026, demonstrating a commitment to returning value to shareholders.
- Capital expenditures for the first six months of 2026 totaled $10.58 billion, primarily focused on network upgrades and strategic initiatives like fiber expansion.
- The Legacy segment experienced a significant revenue decline of 25.6% as AT&T continues to decommission its copper-based network.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 22, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $31.56B$30.85B | +2.3% |
| SG&A Expenses | $7.22B$6.95B | +4.0% |
| Operating Expenses | $24.52B$24.35B | +0.7% |
| Operating Income | $7.04B$6.50B | +8.3% |
| Net Income | $4.63B$4.50B | +2.8% |
| EPS (Basic) | $0.66$0.62 | +6.5% |
| EPS (Diluted) | $0.66$0.62 | +6.5% |
| Shares Outstanding (Basic) | 6.94B7.21B | −3.8% |
| Shares Outstanding (Diluted) | 6.95B7.22B | −3.8% |
05—Questions
Frequently Asked Questions
What drove the increase in AT&T's operating revenues for the six months ended June 30, 2026?
AT&T's operating revenues increased by 2.6% to $63.1 billion primarily due to growth in the Advanced Connectivity segment. This growth was fueled by the acquisition of Lumen's mass markets fiber business, ongoing expansion of fiber and fixed wireless services, and contributions from wireless services. The Latin America segment also saw revenue growth driven by favorable foreign exchange impacts and postpaid subscriber increases.
How did the acquisition of Lumen's fiber business impact AT&T's financial results?
The acquisition of Lumen's mass markets fiber business, completed in February 2026, contributed to the revenue growth of the Advanced Connectivity segment. This business is reflected as discontinued operations in the financial statements while it is held for sale. The acquisition included customer relationships and fiber network assets, which are being integrated into AT&T's advanced home internet and fiber services.
What is the company's strategy regarding its Legacy segment?
AT&T is actively decommissioning its copper-based legacy network. This strategic shift is reflected in the significant decline in operating revenues and operating income within the Legacy segment, which decreased by 25.6% and 42.6%, respectively, for the six months ended June 30, 2026. This aligns with the company's focus on advanced connectivity services.
What is AT&T's approach to shareholder returns, and how was it demonstrated in this filing?
AT&T demonstrated its commitment to shareholder returns through a robust common stock repurchase program and consistent dividend payments. In the first six months of 2026, the company repurchased approximately $4.4 billion of its common stock under its authorized repurchase programs. Dividends paid on common and preferred shares totaled $3.97 billion during the same period.
06—Continue