AT&T Inc【T】株式ニュース

AT&T Reports Strong First-Quarter 2026 Financial ResultsApril 22, 2026 6:36 AM
PR Newswire (US)

Results reflect consistent execution of the Company's investment-led customer-centric strategyThe Company reiterates all full-year 2026 and multi-year financial guidance and capital return plansDALLAS, April 22, 2026 /PRNewswire/ -- AT&T Inc. (NYSE: T) reported first-quarter results, achieving its fastest-ever year-over-year organic growth in its advanced connectivity convergence rate, with nearly 45%1 of advanced home internet subscribers also choosing AT&T wireless. Customers are increasingly purchasing their internet and wireless together from AT&T, highlighting the strength of the Company's differentiated, investment-led strategy to drive converged advanced connectivity at scale."We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built," said John Stankey, AT&T Chairman and CEO. "We're uniquely positioned to deliver more of what customers want — fiber and 5G all from one provider on the nation's largest advanced converged network, backed by the AT&T Guarantee. The actions we've taken this quarter are evidence of how we are improving the customer value proposition, scaling faster, and accelerating growth."Note: 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 first-quarter results, unless otherwise indicated. The acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, of which AT&T plans to sell a controlling interest to an equity partner that will co-invest in the ongoing business. As such, the subsidiary is classified as held-for-sale and reflected as discontinued operations.First-Quarter Consolidated Results Revenues totaled $31.5 billion, up 2.9% from the year-ago quarterDiluted EPS from continuing operations was $0.54, versus $0.61 in the year-ago quarter; adjusted EPS* was $0.57, versus $0.51 in the year-ago quarterOperating income was $6.7 billion; adjusted operating income* was $6.9 billionIncome from continuing operations was $4.2 billion; adjusted EBITDA* of $11.8 billionCash from operating activities from continuing operations was $7.6 billion, versus $9.0 billion in the year-ago quarter, which included $1.4 billion from the DIRECTV investmentCapital expenditures related to continuing operations were $4.9 billion; capital investment* was $5.1 billionFree cash flow* was $2.5 billion, versus $3.1 billion in the year-ago quarter, reflecting higher capital investment as the Company accelerates the pace of its fiber deploymentFirst-Quarter Highlights Advanced Connectivity service revenue of $22.9 billion, up 3.6% year over yearAdvanced Connectivity operating income of $6.9 billion, up 14.8% year over year with EBITDA* of $11.6 billion, up 5.6%42% of households with AT&T's advanced home internet services also chose AT&T wireless; this approaches 45% when excluding the impact of fiber customers acquired during the quarter, up over 3 percentage points year over year, representing the fastest-ever reported organic growth in the advanced home internet convergence rate584,000 total consumer and business Advanced Connectivity internet net adds, including 292,000 fiber and 292,000 fixed wireless512,000 consumer advanced home internet net adds, including 273,000 AT&T Fiber2 and 239,000 AT&T Internet Air294,000 postpaid phone net adds with postpaid phone churn of 0.89%Over 37 million total consumer and business locations reached with fiber3, including more than 4 million acquired from Lumen during the first quarter; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030Repurchased approximately $2.3 billion in common shares under the 2024 authorizationOutlook and Capital Allocation Plan AT&T maintains the long-term outlook and capital allocation plans provided with its fourth-quarter 2025 results. This includes the Company's 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 within approximately three years following the closing of its transaction with EchoStar.For 2026, AT&T continues to expect4:Service revenue growth in the low-single-digit range, including Advanced Connectivity service revenue growth of 5%+ and a decline in Legacy service revenue of 20%+Adjusted EBITDA* growth in the 3% to 4% range, including Advanced Connectivity EBITDA* growth of 6%+Adjusted EPS* of $2.25 to $2.35Capital investment* in the $23 billion to $24 billion rangeFree cash flow* of $18 billion+, including cash taxes of $1.0 billion to $1.5 billion and cash contributions to its employee pension plan of approximately $350 millionConsistent capital returns, including plans to maintain its current annualized common stock dividend of $1.11 per share and share repurchases of approximately $8 billionNote: AT&T's first-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, April 22, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.Consolidated Financial ResultsRevenues for the first quarter totaled $31.5 billion, versus $30.6 billion in the year-ago quarter, up 2.9%. This was largely due to growth in Advanced Connectivity wireless and fiber revenues, including two months of impact from the customers acquired from the Lumen transaction. Operating revenues in Mexico were also higher due to favorable foreign exchange impacts during the first quarter of 2026. Offsetting these increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network.Operating expenses were $24.8 billion, a slight decline versus $24.9 billion in the year-ago quarter. Operating expenses decreased primarily due to lower depreciation expense from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. Also contributing to the decline were higher restructuring charges in the year-ago quarter, cost reductions from transformation initiatives and lower content licensing fees. These decreases were largely offset by higher wireless sales volumes, which drove higher equipment, selling, and bad debt expenses, higher network costs that included vendor credits in the year-ago quarter, and incremental customer costs related to the acquired Mass Markets fiber business.Operating income was $6.7 billion, versus $5.8 billion in the year-ago quarter. When adjusting for certain items, adjusted operating income* was $6.9 billion, versus $6.4 billion in the year-ago quarter.Income from continuing operations was $4.2 billion, versus $4.7 billion in the year-ago quarter, which included equity in net income of DIRECTV.Income from continuing operations attributable to common stock was $3.8 billion, versus $4.4 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.54, versus $0.61 in the year-ago quarter. Adjusting for $0.03, which includes acquisition-related amortization and other items, adjusted earnings per diluted common share* was $0.57, versus $0.51 in the year-ago quarter.Adjusted EBITDA* was $11.8 billion, versus $11.5 billion in the year-ago quarter.Cash from operating activities from continuing operations was $7.6 billion, versus $9.0 billion in the year-ago quarter, which included $1.4 billion from the DIRECTV investment.Capital expenditures related to continuing operations were $4.9 billion, compared to $4.3 billion in the year-ago quarter. Capital investment* totaled $5.1 billion, versus $4.5 billion in the year-ago quarter. Cash payments for vendor financing totaled $0.2 billion, consistent with the year-ago quarter.Free cash flow* was $2.5 billion, versus $3.1 billion in the year-ago quarter.Total debt was $138.4 billion at the end of the first quarter, and net debt* was $126.4 billion.Segment ResultsEffective with the Company's first-quarter 2026 reporting, AT&T has revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.Advanced Connectivity service revenues grew 3.6% year over year, driving growth in operating income of 14.8% and EBITDA* of 5.6%. Internet net adds were 584,000 — comprised of 292,000 fiber and 292,000 fixed wireless — and postpaid phone net adds were 294,000.Advanced ConnectivityDollars in millionsFirst QuarterPercent Unaudited20262025Change

Operating Revenues$ 28,471
$ 27,192
4.7%Service22,863
22,060
3.6%Wireless Service16,941
16,651
1.7%Advanced Home Internet 2,799
2,198
27.3%Business Fiber and Advanced Connectivity 1,882
1,755
7.2%Business Transitional and Other 1,083
1,294
(16.3)%Other Service158
162
(2.5)%Equipment5,608
5,132
9.3%Operating Expenses21,618
21,220
1.9%Operating Income6,853
5,972
14.8%Operating Income Margin24.1%22.0%210BPEBITDA*$ 11,558
$ 10,945
5.6%EBITDA Margin*40.6%40.3%30BPAdvanced Connectivity segment revenues grew 4.7% year over year, driven by service revenue growth of 3.6% and increased equipment revenues of 9.3% from higher wireless device sales volumes. Wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, partially offset by the amortization of promotional activity. Advanced home internet revenue growth, which included two months of impact from the acquired Mass Markets fiber business, 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 transitional and other revenues decreased partly due to lower demand for virtual private network and wholesale services.Operating expenses were up 1.9% year over year, driven by higher wireless sales volumes, which drove higher wireless equipment, selling, and bad debt expenses. The increase also included higher network costs that included vendor credits in the year-ago quarter, and higher incremental customer costs related to the acquired Mass Markets fiber business, which were partially offset by cost reductions from transformation initiatives and lower content licensing fees. Depreciation expense was lower due to fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives.Operating income was $6.9 billion, up 14.8% year over year. EBITDA* was $11.6 billion, up $613 million year over year.Legacy revenues continued to decline year over year in line with AT&T's goal to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029.LegacyDollars in millionsFirst Quarter
Percent Unaudited2026
2025
Change

Operating Revenues$ 1,768
$ 2,368
(25.3)%Operating Expenses1,156
1,349
(14.3)%Operating Income612
1,019
(39.9)%Operating Income Margin34.6%43.0%(840)BPEBITDA*$ 612
$ 1,019
(39.9)%EBITDA Margin*34.6%43.0%(840)BPLegacy segment revenues were down 25.3% 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 $1.2 billion, down 14.3% 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, which were partially offset by vendor credits in the year-ago quarter. Operating income and EBITDA* were $612 million, down $407 million year over year.Latin AmericaDollars in millionsFirst QuarterPercent Unaudited20262025Change

Operating Revenues$ 1,173$ 97120.8 % Service75361522.4 % Equipment42035618.0 %Operating Expenses1,15392824.2 %Operating Income2043(53.5) %EBITDA*22019314.0 %Latin America segment revenues were up 20.8% year over year, driven by favorable foreign exchange impacts as well as growth in subscribers and increased equipment sales. Operating expenses were up 24.2% year over year due to unfavorable foreign exchange rates, increased sales volumes that resulted in higher equipment costs and bad debt expense, and higher depreciation expense. Operating income was $20 million, down $23 million year over year. EBITDA* was $220 million, up $27 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.1Advanced 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. 1Q26 convergence metrics are presented based on available information and are subject to revision. Organic convergence rate excludes customers from the recently acquired Mass Markets fiber business.2Includes net adds from the recently acquired Mass Markets fiber business after the close of the acquisition.3Total 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) Fiber Ventures locations, which represent locations served from the acquired Mass Markets fiber business, Gigapower, and other commercial open access providers.4The Company's 2026 outlook is presented on a continuing operations basis and excludes discontinued operations.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.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 April 22, 2026. Adjusted diluted EPS, adjusted operating income, EBITDA, 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 diluted 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 1Q26, adjusted EPS of $0.57 is diluted EPS from continuing operations of $0.54 adjusted for $0.01 acquisition-related amortization and $0.02 benefit-related, transaction, legal and other items. For 1Q25, adjusted EPS of $0.51 is diluted EPS of $0.61, adjusted for $0.05 restructuring, and a net $0.00 benefit-related, transaction, legal and other items, minus $0.15 equity in net income of DIRECTV. 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 and are primarily associated with legacy legal matters and cybersecurity events.The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion, 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 reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics 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 1Q26, adjusted operating income of $6.9 billion is calculated as operating income of $6.7 billion, plus $228 million of adjustments. For 1Q25, adjusted operating income of $6.4 billion is calculated as operating income of $5.8 billion plus $0.6 billion of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated April 22, 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.For 1Q26, adjusted EBITDA of $11.8 billion is calculated as income from continuing operations of $4.2 billion, plus income tax expense of $1.2 billion, plus interest expense of $1.8 billion, plus equity in net income (loss) of affiliates of $(41) million, minus other income (expense) – net of $0.6 billion, plus depreciation and amortization of $5.0 billion, plus $171 million of adjustments. For 1Q25, adjusted EBITDA of $11.5 billion is calculated as income from continuing operations of $4.7 billion, plus income tax expense of $1.3 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $1.4 billion, minus other income (expense) – net of $0.5 billion, plus depreciation and amortization of $5.2 billion, plus adjustments of $0.6 billion. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated April 22, 2026.At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 1Q26, Advanced Connectivity EBITDA of $11.6 billion is operating income of $6.9 billion plus depreciation and amortization of $4.7 billion. For 1Q25, Advanced Connectivity EBITDA of $10.9 billion is operating income of $6.0 billion plus depreciation and amortization of $5.0 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 1Q26 of $2.5 billion is cash from operating activities from continuing operations of $7.6 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.2 billion. For 1Q25, free cash flow of $3.1 billion is cash from operating activities of $9.0 billion, minus cash flows of $1.4 billion related to the DIRECTV investment that was sold in July 2025, minus capital expenditures of $4.3 billion and cash paid for vendor financing of $0.2 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 reconciliations 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 ($0.2 billion in 1Q26, $0.2 billion in 1Q25). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the Company is not able to provide reconciliations between projected capital investment and the most comparable GAAP metrics without unreasonable effort.Net debt of $126.4 billion at March 31, 2026, is calculated as total debt of $138.4 billion less cash and cash equivalents of $12.0 billion and time deposits (i.e. deposits at financial institutions that are greater than 90 days) of $0. 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.Discussion and Reconciliation of Non-GAAP Measures
We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP). On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.Free Cash Flow
Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.Free Cash Flow and Free Cash Flow Dividend Payout RatioDollars in millions

First Quarter
20262025Net Cash Provided by Operating Activities from Continuing Operations$ 7,595$ 9,049Less: Distributions from DIRECTV classified as operating activities—(1,423)Less: Capital expenditures(4,877)(4,277)Less: Payment of vendor financing(212)(203)Free Cash Flow2,5063,146

Less: Dividends paid(1,997)(2,091)Free Cash Flow after Dividends$ 509$ 1,055Free Cash Flow Dividend Payout Ratio79.7 %66.5 %Cash Paid for Capital Investment
In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems. Cash Paid for Capital InvestmentDollars in millions

First Quarter
20262025Capital expenditures$ (4,877)$ (4,277)Payment of vendor financing(212)(203)Cash paid for Capital Investment$ (5,089)$ (4,480)EBITDA
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance. There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. EBITDA and Adjusted EBITDADollars in millions

First Quarter
20262025Income from Continuing Operations$ 4,219$ 4,692Additions:

Income Tax Expense1,1791,299Interest Expense1,8131,658Equity in Net (Income) Loss of Affiliates41(1,440)Other (Income) Expense - Net(594)(455)Depreciation and amortization4,9665,190EBITDA11,62410,944Transaction, legal and other costs14679 Benefit-related (gain) loss 256Asset impairments and abandonments and restructuring—504Adjusted EBITDA1$ 11,795$ 11,533 1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. Segment EBITDA and EBITDA MarginDollars in millions

First Quarter
20262025Advanced Connectivity Segment

Operating Income$ 6,853
$ 5,972
Add: Depreciation and amortization4,705
4,973
EBITDA$ 11,558
$ 10,945

Total Operating Revenues$ 28,471
$ 27,192
Operating Income Margin24.1%22.0%EBITDA Margin40.6%40.3%

Legacy Segment

Operating Income$ 612
$ 1,019
Add: Depreciation and amortization—
—
EBITDA$ 612
$ 1,019

Total Operating Revenues$ 1,768
$ 2,368
Operating Income Margin34.6%43.0%EBITDA Margin34.6%43.0%

Latin America Segment

Operating Income$ 20
$ 43
Add: Depreciation and amortization200
150
EBITDA$ 220
$ 193

Total Operating Revenues$ 1,173
$ 971
Operating Income Margin1.7%4.4%EBITDA Margin18.8%19.9%Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including 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 that 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%. Adjusting ItemsDollars in millions

First Quarter

20262025Operating Expenses

Transaction, legal and other costs1
$ 146$ 79 Benefit-related (gain) loss
256Asset impairments and abandonments and restructuring
—504Adjustments to Operations and Support Expenses
171589 Amortization of intangible assets
579Adjustments to Operating Expenses
228598Other

Equity in net income of DIRECTV
—(1,423) Benefit-related (gain) loss, impairments of investments and other
2864Adjustments to Income from Continuing Operations Before Income Taxes
256(761) Tax impact of adjustments
59(165)Adjustments to Income From Continuing Operations
$ 197$ (596) Preferred stock redemption gain
—(90)Adjustments to Income From Continuing Operations Attributable to Common Stock
$ 197$ (686) 1 Includes 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 and are primarily associated with legacy legal matters and cybersecurity events. Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) 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. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.Adjusted Operating Income, Adjusted Operating Income Margin,Adjusted EBITDA and Adjusted EBITDA Margin Dollars in millions

First Quarter

20262025Operating Income
$ 6,658$ 5,754Adjustments to Operating Expenses
228598Adjusted Operating Income
$ 6,886$ 6,352

EBITDA
$ 11,624$ 10,944Adjustments to Operations and Support Expenses
171589Adjusted EBITDA
$ 11,795$ 11,533

Total Operating Revenues
$ 31,506$ 30,626

Operating Income Margin
21.1 %18.8 %Adjusted Operating Income Margin
21.9 %20.7 %Adjusted EBITDA Margin
37.4 %37.7 % Adjusted Diluted EPS

First Quarter

20262025Diluted Earnings Per Share (EPS) From Continuing Operations
$ 0.54$ 0.61Equity in net income of DIRECTV
—(0.15) Restructuring and impairments
—0.05 Benefit-related, transaction, legal and other items
0.03—Adjusted EPS
$ 0.57$ 0.51Year-over-year growth - Adjusted
11.8 %
Weighted Average Common Shares Outstanding withDilution (000,000)
7,0277,223Net Debt to Adjusted EBITDA
Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.Net Debt to Adjusted EBITDA - 2026Dollars in millions

Three Months Ended

June 30,
Sept. 30,
Dec. 31,
March 31,
FourQuarters
20251
20251
20251
2026
Adjusted EBITDA$ 11,731
$ 11,861
$ 11,236
$ 11,795
$ 46,623End-of-period current debt

6,818End-of-period long-term debt

131,589Total End-of-Period Debt

138,407Less: Cash and Cash Equivalents

11,964Net Debt Balance

126,443Annualized Net Debt to Adjusted EBITDA Ratio

2.71 1 As reported in AT&T's Form 8-K filed January 28, 2026. Net Debt to Adjusted EBITDA - 2025Dollars in millions

Three Months Ended

June 30,
Sept. 30,
Dec. 31,
March 31,
Four Quarters
20241
20241
20241
20251
Adjusted EBITDA$ 11,337
$ 11,586
$ 10,791
$ 11,533
$ 45,247End-of-period current debt

8,902End-of-period long-term debt

117,259Total End-of-Period Debt

126,161Less: Cash and Cash Equivalents

6,885Less: Time Deposits

150Net Debt Balance

119,126Annualized Net Debt to Adjusted EBITDA Ratio

2.63 1 As reported in AT&T's Form 8-K filed January 28, 2026.© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

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Original: AT&T Reports Strong First-Quarter 2026 Financial Results

AT&T Reports Strong Fourth-Quarter and Full-Year 2025 Financial Performance Driven by Growth in Converged Fiber and 5G CustomersJanuary 28, 2026 11:32 AM
PR Newswire (US)

Company met or exceeded all 2025 consolidated financial guidance and provides long-term outlook for improved growth in Adjusted EBITDA* and Adjusted EPS* and higher free cash flow* through 2028Company returned over $12 billion to shareholders in 2025 through dividends and share repurchases and expects to return an additional $45 billion+ from 2026-2028 Consistent execution of customer-centric, investment-led strategy delivered increased convergence rate, leading to growth in profitability and industry-best customer satisfaction for subscribers with both wireless and internet connectivity1DALLAS, Jan. 28, 2026 /PRNewswire/ -- AT&T Inc. (NYSE: T) reported strong fourth-quarter and full-year results that met, or exceeded, all 2025 consolidated financial guidance as it delivered its best year for consumer broadband subscriber growth in a decade. More customers are increasingly choosing AT&T as their one trusted provider for all of their connectivity needs – driving the fastest annual increase in its convergence rate with 42%2 of AT&T Fiber households also choosing AT&T for wireless. In 2025, in areas where AT&T offers converged services, it ranked #1 across customer satisfaction scores with consumers and small businesses in both wireless and internet connectivity.1 This solid momentum demonstrates the sustained success of the Company's investment-led, customer-centric strategy."We achieved or surpassed all of our consolidated full-year guidance for 2025," said John Stankey, AT&T Chairman and CEO. "With new investments in spectrum and fiber, we're set to win more customers in more categories and geographies across the U.S. Backed by the best assets in the industry, we are accelerating our strategy to deliver improved growth, the best customer experience and enhanced returns for shareholders over the next three years."Fourth-Quarter Consolidated Results Revenues of $33.5 billionDiluted EPS of $0.53, versus $0.56 in the year-ago quarter; adjusted EPS* of $0.52, versus $0.43 in the year-ago quarterOperating income of $5.8 billion; adjusted operating income* of $6.1 billionNet income of $4.2 billion; adjusted EBITDA* of $11.2 billionCash from operating activities of $11.3 billion, versus $11.9 billion in the year-ago quarterCapital expenditures of $6.8 billion; capital investment* of $7.1 billionFree cash flow* of $4.2 billion, versus $4.0 billion in the year-ago quarterFourth-Quarter Highlights 421,000 postpaid phone net adds with postpaid phone churn of 0.98%Mobility service revenues of $17.0 billion, up 2.4% year over year283,000 AT&T Fiber net adds and 221,000 AT&T Internet Air net adds, representing more than half a million combined advanced home internet net additions for the second consecutive quarterConsumer Wireline fiber revenues of $2.2 billion, up 13.6% year over yearFull-Year Consolidated ResultsRevenues of $125.6 billionDiluted EPS of $3.04, versus $1.49 a year ago; adjusted EPS* of $2.12 versus $1.95 a year agoOperating income of $24.2 billion; adjusted operating income* of $25.5 billionNet income of $23.4 billion; adjusted EBITDA* of $46.4 billionCash from operating activities of $40.3 billion, versus $38.8 billion a year agoCapital expenditures of $20.8 billion; capital investment* of $22.0 billionFree cash flow* of $16.6 billion, versus $15.3 billion in 2024Full-Year HighlightsMore than 1.5 million postpaid phone net adds for fifth straight yearMobility service revenues of $67.4 billion, up 3.1% year over yearMore than 1 million AT&T Fiber net adds for eighth consecutive year, and 875,000 AT&T Internet Air net addsConsumer Wireline fiber revenues of $8.6 billion, up 17.0% year over yearRepurchased approximately $4.3 billion in common shares under the 2024 authorization32.0 million consumer and business locations passed with fiberNew Segment ReportingBeginning with the Company's first-quarter 2026 results, AT&T plans to revise its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services across 5G and fiber to consumer and business customers. Accordingly, the Company's planned new reportable segments are:Advanced Connectivity, which represents results primarily from the Company's domestic 5G and fiber based wireless, internet and other advanced connectivity services, on a recast basis contributed approximately 90% of consolidated revenues in 2025. Results for this segment will be provided in aggregate with supplemental disclosures for performance of the Company's consumer and business relationships.Legacy, which represents results from the Company's domestic legacy voice and data services provided over its copper-based network to consumer and business customers. These results include revenues derived from copper-based services and direct operating costs.Latin America, which will continue to represent results for the Company's wireless business in Mexico.To assist investors and analysts with this planned transition to the new segment reporting structure, the Company has provided a recast of its historical quarterly and annual results for 2023 through 2025 for these segments in its Form 8-K dated January 28, 2026, and additional information is available at investors.att.com.Long-Term Outlook As a result of the Company's investments in 5G and fiber, including its previously announced acquisitions that are expected to close in early 2026 of substantially all of Lumen's Mass Markets fiber business and wireless spectrum licenses from EchoStar, AT&T expects to achieve improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028. The Company's long-term outlook for 2026-2028 includes:Service revenue growth in the low-single-digit range annually.Adjusted EBITDA* growth in the 3% to 4% range in 2026, improving to 5% or better in 2028 as growth in Advanced Connectivity increasingly more than offsets declines in Legacy.Adjusted EPS* of $2.25 to $2.35 in 2026 with a double-digit 3-year CAGR through 2028.The Company's outlook for adjusted EPS* anticipates that its acquisitions mentioned above will be modestly dilutive to adjusted EPS* in 2026-2027 and accretive beginning in 2028.Capital investment* in the $23 billion to $24 billion range annually during 2026-2028.Free cash flow* of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028.The Company's free cash flow* outlook anticipates annual cash taxes of $1.0 billion to $1.5 billion and cash contributions to its employee pension plan of approximately $350 million in 2026, with no significant additional cash contributions expected until 2030.The Company's outlook for cash taxes reflects further assessment of its expected savings due to tax provisions in the One Big Beautiful Bill Act, as compared to the outlook it provided in its second-quarter 2025 earnings release. Management expects to use incremental tax savings to fund working capital and growth initiatives.The Company's consolidated financial outlook anticipates strong and sustained growth in Advanced Connectivity segment financial performance during 2026-2028, including:Advanced Connectivity service revenue growth in the mid-single-digit range annually, including expected growth of 5%+ in 2026, which includes approximately 100 basis points of growth from the planned acquisition of retail fiber subscribers from Lumen.Advanced Connectivity EBITDA* growth in the mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026. The Company does not expect its planned acquisition of retail fiber subscribers from Lumen to materially impact EBITDA* in 2026.The Company's consolidated financial outlook assumes sustained declines in service revenues within its Legacy segment as it makes progress against its objective of powering-down its energy-intensive copper-based network across the large majority of its footprint by the end of 2029 and upgrading customers to advanced connectivity services powered by 5G and fiber. AT&T expects Legacy service revenue to decline 20%+ in 2026 and to be immaterial by the end of 2029 with negative EBITDA* from this segment expected after 2027 until it has substantially eliminated direct costs associated with operating its copper-based network.3Upon closing of the Lumen transaction, AT&T will hold the acquired fiber network assets, including certain fiber network build capabilities, in a wholly owned subsidiary. The Company plans to sell partial ownership in this subsidiary to an equity partner that will co-invest in the ongoing business. Beginning with the closing of the Lumen transaction, AT&T expects to report this business as held-for-sale and discontinued operations, with the results of operations and direct cash flows excluded from the Company's continuing operations. After closing the anticipated sale of partial ownership to an equity partner, AT&T's share of the equity income (loss) of this subsidiary will be included in adjusted EPS* from continuing operations. The Company's long-term outlook provided above is presented on a continuing operations basis and excludes discontinued operations.Long-Term Capital Allocation PlanAT&T expects to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases. Under this capital return plan, the Company expects to maintain its current annualized common stock dividend of $1.11 per share. Management also expects to complete share repurchases under its current $10 billion authorization before the end of 2026 and to commence repurchases under a subsequent $10 billion authorization that has been approved by the Company's Board of Directors. The Company expects to repurchase approximately $8 billion of common stock during 2026 under these authorizations and to maintain a consistent pace of share repurchases through 2028, pending additional Board authorization.AT&T expects its net debt-to-adjusted EBITDA ratio* to increase to approximately 3.2x following its transactions with Lumen and EchoStar and to decline to approximately 3x by the end of 2026. AT&T continues to expect net leverage will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of these acquisitions. The Company expects to maintain a consistent approach to capital returns while reducing net leverage to its target range.Note: AT&T's fourth-quarter and full-year 2025 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, January 28, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.Consolidated Financial ResultsRevenues for the fourth quarter totaled $33.5 billion, versus $32.3 billion in the year-ago quarter, up 3.6%. This was due to higher Mobility, Consumer Wireline, and Mexico revenues, partially offset by a decline in Business Wireline.Operating expenses were $27.7 billion, versus $27.0 billion in the year-ago quarter. Operating expenses increased primarily due to higher sales volumes in the Company's Mobility business unit, which drove higher equipment, advertising, selling, and bad debt expenses. Also contributing to higher costs were higher restructuring charges that were offset by benefits of continued transformation initiatives and lower content licensing fees. Operating expense declines also included lower depreciation expense as certain legacy assets were fully depreciated, partially offset by continued fiber investment and network upgrades.Operating income was $5.8 billion, versus $5.3 billion in the year-ago quarter. When adjusting for certain items, adjusted operating income* was $6.1 billion, versus $5.4 billion in the year-ago quarter.Equity in net income (loss) of affiliates declined $1.1 billion versus the year-ago quarter, reflecting the completed sale of the DIRECTV investment in the third-quarter 2025.Net income was $4.2 billion, versus $4.4 billion in the year-ago quarter.Net income (loss) attributable to common stock was $3.8 billion, versus $4.0 billion in the year-ago quarter. Earnings per diluted common share was $0.53, versus $0.56 in the year-ago quarter. Adjusting for $(0.01) which removes a benefit from tax items, and excludes an actuarial loss on benefit plans, restructuring costs, and other items, adjusted earnings per diluted common share* was $0.52, versus $0.43 in the year-ago quarter.Adjusted EBITDA* was $11.2 billion, versus $10.8 billion in the year-ago quarter.Cash from operating activities was $11.3 billion, versus $11.9 billion in the year-ago quarter. Operational growth and lower cash tax payments in the quarter were more than offset by lower distributions from DIRECTV, a voluntary pension plan contribution of $750 million, and cash payments for apportioned legal settlements. The voluntary pension plan contribution included a pull-forward of $350 million that the Company previously planned to contribute in 2026, which was offset by lower than anticipated cash tax payments as a result of recent tax legislation.Capital expenditures were $6.8 billion, consistent with the year-ago quarter. Capital investment* totaled $7.1 billion, consistent with the year-ago quarter. Cash payments for vendor financing totaled $0.4 billion, versus $0.2 billion in the year-ago quarter.Free cash flow,* which excludes cash flows from DIRECTV, was $4.2 billion, versus $4.0 billion in the year-ago quarter.Full-Year Financial Results Revenues for the full year totaled $125.6 billion, versus $122.3 billion in 2024, up 2.7%. This was due to higher Mobility, Consumer Wireline and Mexico revenues, partially offset by a decline in Business Wireline.Operating expenses for the full year were $101.5 billion, versus $103.3 billion in 2024. Operating expenses decreased primarily due to a $4.4 billion non-cash goodwill impairment in the prior year, lower costs from continued transformation initiatives, and lower content licensing fees. These decreases were partially offset by higher sales volumes in the Company's Mobility business unit, which drove higher equipment, advertising, selling, and bad debt expenses. Also contributing to higher costs were apportioned legal settlements during 2025, higher restructuring charges, higher network-related expenses, higher advertising costs associated with a new campaign in 2025, and increased depreciation expense from continued fiber investment and network upgrades.Operating income for the full year was $24.2 billion, versus $19.0 billion in 2024. When adjusting for certain items, adjusted operating income* was $25.5 billion, versus $24.2 billion last year.Equity in net income of affiliates for the full year was $1.9 billion, versus $2.0 billion in 2024, reflecting cash distributions received by AT&T, prior to the sale of the DIRECTV investment, in excess of the carrying amount of the Company's investment.Net income for the full year was $23.4 billion, including a $5.6 billion gain on the sale of the DIRECTV investment, versus $12.3 billion in 2024, which included a $4.4 billion non-cash goodwill impairment.Net income attributable to common stock for the full year was $21.9 billion, versus $10.7 billion a year ago. Earnings per diluted common share was $3.04, versus $1.49 a year ago. Adjusting for $(0.92) which removes a gain on the sale of the DIRECTV investment and equity in net income of DIRECTV, and excludes other items, adjusted earnings per diluted common share* was $2.12, versus $1.95 last year.Adjusted EBITDA* for the full year was $46.4 billion, versus $44.8 billion a year ago.Cash from operating activities for the full year was $40.3 billion, versus $38.8 billion a year ago. Operational growth and lower cash tax payments for the year were partially offset by voluntary pension plan contributions of $1.15 billion, advanced cash payments for wholesale access which can be utilized on invoices over future periods, and cash payments for apportioned legal settlements.Capital expenditures for the full year were $20.8 billion, versus $20.3 billion a year ago. Capital investment* totaled $22.0 billion for the full year, relatively consistent with $22.1 billion a year ago. Cash payments for vendor financing totaled $1.2 billion, versus $1.8 billion in 2024.Free cash flow,* which excludes cash flows from DIRECTV, was $16.6 billion for the full year compared to $15.3 billion a year ago.Total debt was $136.1 billion at the end of the fourth-quarter 2025, and net debt* was $117.4 billion.Segment and Business Unit ResultsCommunications segment revenues were $32.1 billion, up 3.2% year over year, with operating income of $6.8 billion, up 9.5% year over year.Communications Segment
Dollars in millionsFourth Quarter
Percent Unaudited2025
2024
Change

Operating Revenues$ 32,121
$ 31,139
3.2%Operating Income6,775
6,189
9.5%Operating Income Margin21.1%19.9%120BPMobility service revenues grew 2.4% year over year, driving growth in operating income of 4.5% and EBITDA* of 3.1%. Operating income margin declined 20 basis points year over year, with EBITDA* service margin improving by 30 basis points year over year.Mobility
Dollars in millions; Subscribers in thousandsFourth Quarter
Percent Unaudited2025
2024
Change

Operating Revenues$ 24,354
$ 23,129
5.3% Service16,954
16,563
2.4% Equipment7,400
6,566
12.7%Operating Expenses17,954
17,005
5.6%Operating Income6,400
6,124
4.5%Operating Income Margin26.3%26.5%(20)BPEBITDA*$ 9,163
$ 8,888
3.1%EBITDA Margin*37.6%38.4%(80)BPEBITDA Service Margin*54.0%53.7%30BPTotal Wireless Net Adds41,157
1,813

Postpaid641
839

Postpaid Phone421
482

Postpaid Other220
357

Prepaid Phone(255)
(119)

Postpaid Churn1.12%1.00%12BPPostpaid Phone Churn0.98%0.85%13BPPrepaid Churn2.89%2.73%16BPPostpaid Phone ARPU$ 56.57
$ 56.72
(0.3)%Mobility revenues were up 5.3% year over year, driven by service revenue growth of 2.4% and equipment revenue growth of 12.7% from higher wireless device sales volumes. Operating expenses were up 5.6% year over year, driven by higher sales volumes, which drove higher equipment, advertising, selling, and bad debt expenses. These increases were partially offset by lower content licensing fees and expense declines from transformation initiatives. Operating income was $6.4 billion, up 4.5% year over year. EBITDA* was $9.2 billion, up $275 million year over year.Business Wireline revenues declined year over year, driven by continued secular pressures on legacy and other transitional services, which were partially offset by accelerated growth in fiber and advanced connectivity services.Business Wireline
Dollars in millionsFourth Quarter
Percent Unaudited2025
2024
Change

Operating Revenues$ 4,202
$ 4,545
(7.5)%Operating Expenses4,365
4,756
(8.2)%Operating Income/(Loss)(163)
(211)
22.7%Operating Income Margin(3.9)%(4.6)%70BPEBITDA*$ 1,117
$ 1,197
(6.7)%EBITDA Margin*26.6%26.3%30 BPBusiness Wireline revenues were down 7.5% year over year due to continued declines in legacy and other transitional services of 17.5%, partially offset by 6.8% growth in fiber and advanced connectivity services. Operating expenses were down 8.2% year over year due to lower personnel costs and savings from transformation initiatives, and lower network costs. Depreciation expense was lower year over year as certain legacy assets were fully depreciated, partially offset by ongoing capital investment for strategic initiatives, such as fiber. Operating income was $(163) million, versus $(211) million in the year-ago quarter, and EBITDA* was $1.1 billion, down $80 million year over year.Consumer Wireline delivered strong year-over-year broadband revenue growth, driven by a 13.6% increase in fiber revenue. Consumer Wireline also achieved positive broadband net adds for the tenth consecutive quarter, driven by 283,000 AT&T Fiber net adds and 221,000 AT&T Internet Air net adds.Consumer Wireline
Dollars in millions; Subscribers in thousandsFourth Quarter
Percent Unaudited2025
2024
Change

Operating Revenues$ 3,565
$ 3,465
2.9%Operating Expenses3,027
3,189
(5.1)%Operating Income538
276
94.9%Operating Income Margin15.1%8.0%710BPEBITDA*$ 1,370
$ 1,218
12.5%EBITDA Margin*38.4%35.2%320BPBroadband Net Adds210
123

Fiber283
307

Non Fiber(73)
(184)

AT&T Internet Air221
157

Broadband ARPU$ 70.89
$ 69.69
1.7%Fiber ARPU$ 72.87
$ 71.71
1.6%Consumer Wireline revenues were up 2.9% year over year, driven by broadband revenue growth of 6.7% due to fiber revenue growth of 13.6%, partially offset by declines in legacy voice and data services and other services. Operating expenses were down 5.1% year over year due to lower depreciation expense, as certain legacy assets were fully depreciated, partially offset by ongoing capital investment for strategic initiatives, such as fiber and network upgrades and expansion. Expenses also decreased from lower content licensing fees and customer support costs. These decreases were partially offset by higher network costs. Operating income was $538 million, versus $276 million in the year-ago quarter, and EBITDA* was $1.4 billion, up $152 million year over year.Latin America profitability continues to improve with full-year growth in operating income of more than $100 million.Latin America SegmentDollars in millions; Subscribers in thousandsFourth QuarterPercent Unaudited20252024Change

Operating Revenues$ 1,259$ 1,04420.6 % Service74263417.0 % Equipment51741026.1 %Operating Expenses1,2251,02319.7 %Operating Income/(Loss)342161.9 %EBITDA*$ 223$ 17130.4 %Total Wireless Net Adds531665
Postpaid328204
Prepaid222490
Reseller(19)(29)
Latin America segment revenues were up 20.6% year over year, driven by increased equipment sales and growth in subscribers and ARPU, as well as the favorable impacts of foreign exchange. Operating expenses were up 19.7% due to the unfavorable impacts of foreign exchange rates, higher equipment and bad debt expense due to subscriber growth, and higher depreciation expense. Operating income was $34 million compared to $21 million in the year-ago quarter. EBITDA* was $223 million compared to $171 million 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.1 Customer satisfaction scores include brand love and net promoter score (NPS). Brand love and consumer NPS scores are based on AT&T's fiber footprint. Internet services for consumers means AT&T Fiber. For businesses, includes all AT&T internet technologies, nationwide.2 AT&T Fiber connections with AT&T Mobility is defined as AT&T Fiber connections that are also primary Mobility 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 AT&T Fiber connections. 4Q25 convergence metrics are presented based on available information and are subject to revision.3 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 approval of California regulators could delay this decommissioning beyond 2029.4 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.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 140+ 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.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 January 28, 2026. Adjusted diluted EPS, adjusted operating income, EBITDA, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. Prior periods for free cash flow and adjusted diluted EPS have been recast to conform to the current period presentation to remove cash flows and equity in net income from our investment in DIRECTV.Adjusted diluted 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 4Q25, adjusted EPS of $0.52 is diluted EPS of $0.53 adjusted to remove $0.08 benefit from tax items, $0.02 benefit-related, transaction, legal and other items, and $0.01 gain on sale of DIRECTV, plus $0.06 actuarial loss on benefit plans and $0.04 restructuring. For 4Q24, adjusted EPS of $0.43 is diluted EPS of $0.56, adjusted to remove $0.12 equity in net income of DIRECTV and $0.03 benefit from tax items, plus $0.01 actuarial loss on benefit plans, and $0.01 benefit-related, transaction, legal and other costs. For 2025, adjusted EPS of $2.12 is diluted EPS of $3.04 adjusted to remove $0.80 gain on the sale of the DIRECTV investment and $0.21 equity in net income of DIRECTV, and $0.08 benefit from tax items, plus $0.09 restructuring, $0.06 actuarial loss on benefit plans, and $0.02 of benefit-related, transaction, legal, and other costs. For 2024, adjusted EPS of $1.95 is diluted EPS of $1.49 adjusted for $0.72 restructuring and impairments and $0.01 actuarial loss on benefit plans, minus $0.22 equity in net income of DIRECTV, $0.03 benefit from tax items, and $0.02 of benefit-related, transaction and other costs. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods 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 and are primarily associated with legacy legal matters and the expected resolution of certain litigation associated with cyberattacks disclosed in 2024. The year ended December 31, 2025 also includes approximately $440 million of apportioned property and casualty settlements.The Company expects adjustments to 2026 reported diluted EPS to include acquisition-related amortization, 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 2026-2028 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 reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics 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 4Q25, adjusted operating income of $6.1 billion is calculated as operating income of $5.8 billion, plus $330 million of adjustments. For 4Q24, adjusted operating income of $5.4 billion is calculated as operating income of $5.3 billion plus $101 million of adjustments. For 2025, adjusted operating income of $25.5 billion is calculated as operating income of $24.2 billion plus $1.4 billion of adjustments, which include the transaction, legal, and other operating costs discussed above under Adjusted diluted EPS. For 2024, adjusted operating income of $24.2 billion is calculated as operating income of $19.0 billion plus $5.2 billion of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated January 28, 2026.EBITDA is net income plus income tax, interest, and depreciation and amortization expenses minus equity in net income 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.For 4Q25, adjusted EBITDA of $11.2 billion is calculated as net income of $4.2 billion, plus income tax expense of $0.1 billion, plus interest expense of $1.8 billion, plus equity in net income (loss) of affiliates of $(10) million, minus other income (expense) – net of $0.3 billion, plus depreciation and amortization of $5.1 billion, plus $320 million of adjustments. For 4Q24, adjusted EBITDA of $10.8 billion is calculated as net income of $4.4 billion, plus income tax expense of $0.9 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $1.1 billion, minus other income (expense) – net of $0.6 billion, plus depreciation and amortization of $5.4 billion, plus adjustments of $91 million. For 2025, adjusted EBITDA of $46.4 billion is calculated as net income of $23.4 billion, plus income tax expense of $3.6 billion, plus interest expense of $6.8 billion, minus equity in net income of affiliates of $1.9 billion, minus other income (expense) – net of $7.8 billion, plus depreciation and amortization of $20.9 billion, plus adjustments of $1.3 billion, which include the transaction, legal, and other operating costs discussed above under Adjusted diluted EPS. For 2024, adjusted EBITDA of $44.8 billion is calculated as net income of $12.3 billion, plus income tax expense of $4.4 billion, plus interest expense of $6.8 billion, minus equity in net income of affiliates of $2.0 billion, minus other income (expense) – net of $2.4 billion, plus depreciation and amortization of $20.6 billion, plus adjustments of $5.1 billion. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated January 28, 2026.At the segment or business unit level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. EBITDA service margin is EBITDA divided by total service revenues.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 4Q25 of $4.2 billion is cash from operating activities of $11.3 billion, minus capital expenditures of $6.8 billion and cash paid for vendor financing of $0.4 billion. For 4Q24, free cash flow of $4.0 billion is cash from operating activities of $11.9 billion, less cash distributions from DIRECTV classified as operating activities of $1.1 billion, less cash taxes paid on DIRECTV of $0.3 billion, minus capital expenditures of $6.8 billion and cash paid for vendor financing of $0.2 billion. For 2025, free cash flow excluding DIRECTV of $16.6 billion is cash from operating activities of $40.3 billion, less cash distributions from DIRECTV classified as operating activities of $1.9 billion, less cash taxes paid on DIRECTV of $0.3 billion, minus capital expenditures of $20.8 billion and cash paid for vendor financing of $1.2 billion. For 2024, free cash flow excluding DIRECTV of $15.3 billion is cash from operating activities of $38.8 billion, less cash distributions from DIRECTV classified as operating activities of $2.0 billion, less cash taxes paid on DIRECTV of $0.7 billion, minus capital expenditures of $20.3 billion and cash paid for vendor financing of $1.8 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 reconciliations between projected 2026-2028 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 ($0.4 billion in 4Q25, $0.2 billion in 4Q24, $1.2 billion in 2025, and $1.8 billion in 2024). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the Company is not able to provide reconciliations between projected capital investment for 2026-2028 and the most comparable GAAP metrics without unreasonable effort.Net debt of $117.4 billion at December 31, 2025, is calculated as total debt of $136.1 billion less cash and cash equivalents of $18.2 billion and time deposits (i.e. deposits at financial institutions that are greater than 90 days) of $0.5 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.Discussion and Reconciliation of Non-GAAP MeasuresWe believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP). Prior periods have been recast to conform to the current period presentation to remove cash flows and equity in net income from our investment in DIRECTV, which we sold to TPG Capital on July 2, 2025.Free Cash FlowFree cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment (cash distributions minus cash taxes from DIRECTV), minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.Free Cash Flow and Free Cash Flow Dividend Payout RatioDollars in millions

Fourth Quarter
Year Ended
20252024
20252024Net cash provided by operating activities$ 11,320$ 11,896
$ 40,284$ 38,771Less: Distributions from DIRECTV classified as operating activities—(1,072)
(1,926)(2,027)Less: Cash taxes paid on DIRECTV—254
251656Less: Capital expenditures(6,781)(6,843)
(20,842)(20,263)Less: Payment of vendor financing(358)(221)
(1,181)(1,792)Free Cash Flow4,1814,014
16,58615,345

Less: Dividends paid(2,012)(2,037)
(8,180)(8,208)Free Cash Flow after Dividends$ 2,169$ 1,977
$ 8,406$ 7,137Free Cash Flow Dividend Payout Ratio48.1 %50.7 %
49.3 %53.5 %Cash Paid for Capital InvestmentIn connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems. Cash Paid for Capital InvestmentDollars in millions

Fourth Quarter
Year Ended
20252024
20252024Capital Expenditures$ (6,781)$ (6,843)
$ (20,842)$ (20,263)Payment of vendor financing(358)(221)
(1,181)(1,792)Cash paid for Capital Investment$ (7,139)$ (7,064)
$ (22,023)$ (22,055)EBITDAOur calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these either do not reflect the operating results of our subscriber base or are operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. EBITDA service margin is calculated as EBITDA divided by service revenues.These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance. We believe EBITDA Service Margin (EBITDA as a percentage of service revenues) to be an additional relevant measure to EBITDA Margin (EBITDA as a percentage of total revenue) for our Mobility business unit operating margin. We also use wireless service revenues to calculate margin to facilitate comparison, both internally and externally with our wireless competitors, as they calculate their margins using wireless service revenues as well. There are material limitations to using these non-GAAP financial measures. EBITDA, EBITDA margin and EBITDA service margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA, EBITDA margin and EBITDA service margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. EBITDA and Adjusted EBITDADollars in millions

Fourth Quarter
Year Ended
20252024
20252024Net Income$ 4,156$ 4,408
$ 23,386$ 12,253Additions:

Income Tax Expense109900
3,6214,445Interest Expense1,7911,661
6,8046,759Equity in Net (Income) Loss of Affiliates10(1,074)
(1,895)(1,989)Other (Income) Expense - Net(278)(569)
(7,754)(2,419)Depreciation and amortization5,1285,374
20,88620,580EBITDA10,91610,700
45,04839,629Transaction, legal and other costs1222
627123Benefit-related (gain) loss (26)55
(152)(67)Asset impairments and abandonments and restructuring33414
8385,075Adjusted EBITDA1$ 11,236$ 10,791
$ 46,361$ 44,760 1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin
Dollars in millions

Fourth Quarter

Year Ended

20252024
20252024Communications Segment
Operating Income$ 6,775
$ 6,189

$ 27,927
$ 27,095
Add: Depreciation and amortization4,875
5,114

19,959
19,433
EBITDA$ 11,650
$ 11,303

$ 47,886
$ 46,528

Total Operating Revenues$ 32,121
$ 31,139

$ 120,896
$ 117,652
Operating Income Margin21.1%19.9%
23.1%23.0%EBITDA Margin36.3%36.3%
39.6%39.5%

Mobility
Operating Income$ 6,400
$ 6,124

$ 27,196
$ 26,314
Add: Depreciation and amortization2,763
2,764

10,422
10,217
EBITDA$ 9,163
$ 8,888

$ 37,618
$ 36,531

Total Operating Revenues$ 24,354
$ 23,129

$ 89,482
$ 85,255
Service Revenues16,954
16,563

67,384
65,373
Operating Income Margin26.3%26.5%
30.4%30.9%EBITDA Margin37.6%38.4%
42.0%42.8%EBITDA Service Margin54.0%53.7%
55.8%55.9%

Business Wireline
Operating Income (Loss)$ (163)
$ (211)

$ (816)
$ (88)
Add: Depreciation and amortization1,280
1,408

5,834
5,555
EBITDA$ 1,117
$ 1,197

$ 5,018
$ 5,467

Total Operating Revenues$ 4,202
$ 4,545

$ 17,231
$ 18,819
Operating Income Margin(3.9)%(4.6)%
(4.7)%(0.5)%EBITDA Margin26.6%26.3%
29.1%29.1%

Consumer Wireline
Operating Income$ 538
$ 276

$ 1,547
$ 869
Add: Depreciation and amortization832
942

3,703
3,661
EBITDA$ 1,370
$ 1,218

$ 5,250
$ 4,530

Total Operating Revenues$ 3,565
$ 3,465

$ 14,183
$ 13,578
Operating Income Margin15.1%8.0%
10.9%6.4%EBITDA Margin38.4%35.2%
37.0%33.4%

Latin America Segment
Operating Income$ 34
$ 21

$ 145
$ 40
Add: Depreciation and amortization189
150

671
657
EBITDA$ 223
$ 171

$ 816
$ 697

Total Operating Revenues$ 1,259
$ 1,044

$ 4,379
$ 4,232
Operating Income Margin2.7%2.0%
3.3%0.9%EBITDA Margin17.7%16.4%
18.6%16.5%Adjusting ItemsAdjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including 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 that 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%.   Adjusting ItemsDollars in millions

Fourth Quarter
Year Ended
20252024
20252024Operating Expenses

Transaction, legal and other costs1$ 12$ 22
$ 627$ 123Benefit-related (gain) loss(26)55
(152)(67)Asset impairments and abandonments and restructuring33414
8385,075Adjustments to Operations and Support Expenses32091
1,3135,131   Amortization of intangible assets1010
3853Adjustments to Operating Expenses330101
1,3515,184Other

   Equity in net income of DIRECTV—(1,072)
(1,926)(2,027)Gain on sale of DIRECTV(101)—
(5,580)—Benefit-related (gain) loss, impairments of investments and other(22)10
(246)156Actuarial loss – net51956
51956Adjustments to Income Before Income Taxes726(905)
(5,882)3,369Tax impact of adjustments193(190)
(73)(221)Tax-related items592222
769222Adjustments to Net Income$ (59)$ (937)
$ (6,578)$ 3,368Preferred stock redemption gain——
(90)—Adjustments to Net Income Attributable to Common Stock$ (59)$ (937)
$ (6,668)$ 3,368 1 Includes certain legal reserves and settlements that cover extended historical periods 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 and are primarily associated with legacy legal matters and the expected resolution of certain litigation associated with cyberattacks disclosed in 2024. The year ended December 31, 2025 also includes approximately $440 of apportioned property and
casualty settlements. Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) 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. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.Adjusted Operating Income, Adjusted Operating Income Margin,Adjusted EBITDA and Adjusted EBITDA MarginDollars in millions

Fourth Quarter
Year Ended
20252024
20252024Operating Income$ 5,788$ 5,326
$ 24,162$ 19,049Adjustments to Operating Expenses330101
1,3515,184Adjusted Operating Income6,1185,427
25,51324,233

EBITDA10,91610,700
45,04839,629Adjustments to Operations and Support Expenses32091
1,3135,131Adjusted EBITDA11,23610,791
46,36144,760

Total Operating Revenues33,46632,298
125,648122,336

Operating Income Margin17.3 %16.5 %
19.2 %15.6 %Adjusted Operating Income Margin18.3 %16.8 %
20.3 %19.8 %Adjusted EBITDA Margin33.6 %33.4 %
36.9 %36.6 % Adjusted Diluted EPS
Fourth Quarter
Year Ended
20252024
20252024Diluted Earnings Per Share (EPS)$ 0.53$ 0.56
$ 3.04$ 1.49Gain on sale of DIRECTV(0.01)—
(0.80)—Equity in net income of DIRECTV—(0.12)
(0.21)(0.22)Actuarial loss – net10.060.01
0.060.01   Restructuring and impairments0.04—
0.090.72 Benefit-related, transaction, legal and other items(0.02)0.01
0.02(0.02)Tax-related items(0.08)(0.03)
(0.08)(0.03)Adjusted EPS$ 0.52$ 0.43
$ 2.12$ 1.95Year-over-year growth - Adjusted20.9 %

8.7 %
Weighted Average Common Shares Outstanding    with Dilution (000,000)7,1087,215
7,1797,2041 Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the
income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded a total net actuarial loss of $0.5 billion in 2025.
As a result, adjusted EPS reflects an expected return on plan assets of $2.1 billion (based on an average expected return on plan assets of 7.75% for our
pension trust and 4.00% for our VEBA trusts), rather than the actual return on plan assets of $2.6 billion (actual pension return of 9.8% and VEBA return
of 6.5%), included in the GAAP measure of income.Net Debt to Adjusted EBITDANet Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.Net Debt to Adjusted EBITDA - 2025Dollars in millions

Three Months Ended

March 31,
June 30,
Sept. 30,
Dec. 31,
Four Quarters

2025 1
2025 1
2025 1
2025
Adjusted EBITDA
$ 11,533
$ 11,731
$ 11,861
$ 11,236
$ 46,361End-of-period current debt

9,011End-of-period long-term debt

127,089Total End-of-Period Debt

136,100Less: Cash and Cash Equivalents

18,234Less: Time Deposits

500Net Debt Balance

117,366Annualized Net Debt to Adjusted EBITDA Ratio

2.53 1 As reported in AT&T's Form 8-K filed October 22, 2025. Net Debt to Adjusted EBITDA - 2024Dollars in millions

Three Months Ended

March 31,
June 30,
Sept. 30,
Dec. 31,
Four Quarters

2024 1
2024 1
2024 1
2024 1
Adjusted EBITDA
$ 11,046
$ 11,337
$ 11,586
$ 10,791
$ 44,760End-of-period current debt

5,089End-of-period long-term debt

118,443Total End-of-Period Debt

123,532Less: Cash and Cash Equivalents

3,298Less: Time Deposits

150Net Debt Balance

120,084Annualized Net Debt to Adjusted EBITDA Ratio

2.68 1 As reported in AT&T's Form 8-K filed October 22, 2025. © 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

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Original: AT&T Reports Strong Fourth-Quarter and Full-Year 2025 Financial Performance Driven by Growth in Converged Fiber and 5G Customers