10-QPeriod: Q2 FY2026

AT&T INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 22, 2026For Securities:TT-PCTBBT-PA

Summary

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 billion. This growth was primarily driven by the Advanced Connectivity segment, which saw a 4.4% revenue increase to $57.1 billion, 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.

Key Highlights

  • 1Total 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.
  • 2The 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.
  • 3Operating income from continuing operations increased by 11.8% to $13.7 billion for the six months ended June 30, 2026, indicating improved profitability.
  • 4Net 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.
  • 5The 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.
  • 6Capital expenditures for the first six months of 2026 totaled $10.58 billion, primarily focused on network upgrades and strategic initiatives like fiber expansion.
  • 7The Legacy segment experienced a significant revenue decline of 25.6% as AT&T continues to decommission its copper-based network.

Frequently Asked Questions

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.

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.

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.

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.