EX-99.23t-1q2026exhibit992.htmEX-99.2 AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA Document
AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited
First Quarter
Percent
2026
2025
Change
Operating Revenues
Service
$
25,478
$
25,138
1.4
%
Equipment
6,028
5,488
9.8
%
Total Operating Revenues
31,506
30,626
2.9
%
Operating Expenses
Cost of revenues
Equipment
6,305
5,694
10.7
%
Other cost of revenues (exclusive of depreciation
and amortization shown separately below)
6,261
6,339
(1.2)
%
Selling, general and administrative
7,316
7,145
2.4
%
Asset impairments and abandonments and restructuring
—
504
—
%
Depreciation and amortization
4,966
5,190
(4.3)
%
Total Operating Expenses
24,848
24,872
(0.1)
%
Operating Income
6,658
5,754
15.7
%
Interest Expense
1,813
1,658
9.3
%
Equity in Net Income (Loss) of Affiliates
(41)
1,440
—
%
Other Income (Expense) — Net
594
455
30.5
%
Income from Continuing Operations Before Income Taxes
5,398
5,991
(9.9)
%
Income tax expense on continuing operations
1,179
1,299
(9.2)
%
Income From Continuing Operations
4,219
4,692
(10.1)
%
Loss from discontinued operations, net of tax
(38)
—
—
%
Net Income
4,181
4,692
(10.9)
%
Net Income Attributable to Noncontrolling Interest
(352)
(341)
(3.2)
%
Net Income Attributable to AT&T
$
3,829
$
4,351
(12.0)
%
Preferred Stock Dividends and Redemption Gain
(36)
44
—
%
Net Income Attributable to Common Stock
$
3,793
$
4,395
(13.7)
%
Basic Earnings Per Share Attributable to
Common Stock
Income from continuing operations
$
0.54
$
0.61
(11.5)
%
Loss from discontinued operations
$
—
$
—
—
%
$
0.54
$
0.61
(11.5)
%
Weighted Average Common Shares
Outstanding (000,000)
7,017
7,213
(2.7)
%
Diluted Earnings Per Share Attributable to
Common Stock
Income from continuing operations
$
0.54
$
0.61
(11.5)
%
Loss from discontinued operations
$
—
$
—
—
%
$
0.54
$
0.61
(11.5)
%
Weighted Average Common Shares
Outstanding with Dilution (000,000)
7,027
7,223
(2.7)
%
1
AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Mar. 31,
Dec. 31,
2026
2025
Assets
(Unaudited)
Current Assets
Cash and cash equivalents
$
11,964
$
18,234
Accounts receivable – net of related allowances for credit loss of $363 and $429
8,335
8,843
Inventories
2,451
2,420
Prepaid and other current assets
23,532
19,235
Total current assets
46,282
48,732
Property, Plant and Equipment – Net
133,124
131,559
Goodwill – Net
63,838
63,425
Licenses – Net
129,144
128,148
Other Intangible Assets – Net
6,135
5,254
Investments in and Advances to Equity Affiliates
1,108
1,106
Operating Lease Right-Of-Use Assets
22,756
22,642
Other Assets
18,801
19,332
Total Assets
$
421,188
$
420,198
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year
$
6,818
$
9,011
Accounts payable and accrued liabilities
37,304
38,514
Advanced billings and customer deposits
4,330
4,266
Dividends payable
1,969
1,989
Total current liabilities
50,421
53,780
Long-Term Debt
131,589
127,089
Deferred Credits and Other Noncurrent Liabilities
Noncurrent deferred tax liabilities
59,113
58,312
Postemployment benefit obligation
8,427
8,478
Operating lease liabilities
18,907
18,943
Other noncurrent liabilities
25,109
25,104
Total deferred credits and other noncurrent liabilities
111,556
110,837
Redeemable Noncontrolling Interest
2,003
2,001
Stockholders’ Equity
Preferred stock
—
—
Common stock
7,621
7,621
Additional paid-in capital
106,084
106,533
Retained earnings
17,620
15,768
Treasury stock
(20,273)
(18,529)
Accumulated other comprehensive income (loss)
(1,392)
(860)
Noncontrolling interest
15,959
15,958
Total stockholders’ equity
125,619
126,491
Total Liabilities and Stockholders’ Equity
$
421,188
$
420,198
2
AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited
First Quarter
2026
2025
Operating Activities
Income from continuing operations
$
4,219
$
4,692
Adjustments to reconcile income from continuing operations to net cash provided by
operating activities from continuing operations:
Depreciation and amortization
4,966
5,190
Provision for uncollectible accounts
560
516
Asset impairments and abandonments and restructuring
—
504
Pension and postretirement benefit expense (credit)
(396)
(397)
Net (gain) loss on investments
28
81
Changes in operating assets and liabilities:
Receivables
(119)
15
Equipment installment receivables and related sales
255
1,212
Contract asset and cost deferral
(327)
(147)
Inventories, prepaid and other current assets
(173)
(661)
Accounts payable and other accrued liabilities
(2,770)
(3,297)
Changes in income taxes
1,147
1,285
Postretirement claims and contributions
(72)
(68)
Other - net
277
124
Total adjustments
3,376
4,357
Net Cash Provided by Operating Activities from Continuing Operations
7,595
9,049
Investing Activities
Capital expenditures
(4,877)
(4,277)
Acquisitions, net of cash acquired
(2,674)
(20)
Dispositions
628
11
(Purchases), sales and settlements of securities - net
(14)
45
Other - net
(547)
(717)
Net Cash Used in Investing Activities from Continuing Operations
(7,484)
(4,958)
Financing Activities
Issuance of long-term debt
8,098
2,956
Repayment of long-term debt
(5,247)
(1,526)
Payment of vendor financing
(212)
(203)
Redemption of preferred stock
—
(2,075)
Purchase of treasury stock
(2,475)
(218)
Issuance of treasury stock
1
17
Issuance of preferred interests in subsidiary
—
2,221
Dividends paid
(1,997)
(2,091)
Other - net
(265)
366
Net Cash Used in Financing Activities from Continuing Operations
(2,097)
(553)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations
(1,986)
3,538
Cash flows from Discontinued Operations:
Cash used in operating activities
(38)
—
Cash used in investing activities
(4,171)
—
Cash used in financing activities
—
—
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued
operations
(4,209)
—
Net increase (decrease) in cash and cash equivalents and restricted cash
$
(6,195)
$
3,538
Cash and cash equivalents and restricted cash beginning of year
18,527
3,406
Cash and Cash Equivalents and Restricted Cash End of Period
$
12,332
$
6,944
3
AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited
First Quarter
Percent
2026
2025
Change
Capital expenditures
Purchase of property and equipment
$
4,835
$
4,240
14.0
%
Interest during construction
42
37
13.5
%
Total Capital Expenditures
$
4,877
$
4,277
14.0
%
Acquisitions, net of cash acquired
Business acquisitions
$
1,656
$
—
—
%
Spectrum acquisitions
1,018
1
—
%
Interest during construction - spectrum
—
19
—
%
Total Acquisitions
$
2,674
$
20
—
%
Cash paid for interest
$
1,936
$
1,804
7.3
%
Cash paid for income taxes, net of (refunds)
$
1
$
11
(90.9)
%
Dividends Declared per Common Share
$
0.2775
$
0.2775
—
%
End of Period Common Shares Outstanding (000,000)
6,965
7,196
(3.2)
%
Debt Ratio
52.0
%
50.9
%
110
BP
Total Employees
132,590
139,970
(5.3)
%
4
ADVANCED CONNECTIVITY SEGMENT
The segment provides domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers.
Segment Results
Dollars in millions
Unaudited
First Quarter
Percent
2026
2025
Change
Operating Revenues
Wireless service
$
16,941
$
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 service
158
162
(2.5)
%
Total Service Revenues
22,863
22,060
3.6
%
Equipment
5,608
5,132
9.3
%
Total Segment Operating Revenues
28,471
27,192
4.7
%
Operating Expenses
Operations and support
16,913
16,247
4.1
%
Depreciation and amortization
4,705
4,973
(5.4)
%
Total Segment Operating Expenses
21,618
21,220
1.9
%
Operating Income
$
6,853
$
5,972
14.8
%
Operating Income Margin
24.1
%
22.0
%
210 BP
5
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited
March 31,
Percent
2026
2025
Change
Retail Wireless Subscribers1
109,292
108,418
0.8
%
Phone
91,057
90,193
1.0
%
Postpaid phone
74,503
73,031
2.0
%
Prepaid phone
16,554
17,162
(3.5)
%
Other
18,235
18,225
0.1
%
Retail Wireless Net Adds1, 2
158
256
(38.3)
%
Phone
222
304
(27.0)
%
Postpaid phone
294
324
(9.3)
%
Prepaid phone
(72)
(20)
—
%
Other
(64)
(48)
(33.3)
%
Phone churn3
1.20
%
1.16
%
4
BP
Postpaid phone churn3
0.89
%
0.83
%
6
BP
Prepaid phone churn3
2.62
%
2.55
%
7
BP
1Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines.
2Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity.
3Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period.
First Quarter
Percent
2026
2025
Change
Internet Connections
14,833
11,443
29.6
%
Fiber
12,501
10,211
22.4
%
AT&T Fiber
11,800
9,592
23.0
%
AT&T Business Fiber1
701
619
13.2
%
Fixed Wireless
2,332
1,232
89.3
%
AT&T Internet Air (AIA)
1,736
803
—
%
Business Fixed Wireless2
596
429
38.9
%
Internet Net Adds3
584
516
13.2
%
Fiber
292
283
3.2
%
AT&T Fiber
273
261
4.6
%
AT&T Business Fiber1
19
22
(13.6)
%
Fixed Wireless
292
233
25.3
%
AT&T Internet Air (AIA)
239
181
32.0
%
Business Fixed Wireless2
53
52
1.9
%
1Includes fiber broadband internet for businesses and excludes dedicated and ethernet fiber.
2Includes AT&T Internet Air for Business and historical fixed wireless services. Excludes integrated gateway wireless connections used for secondary or back-up connectivity.
3Excludes acquisition-related activity and the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.
6
LEGACY SEGMENT
The segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network. Legacy segment results include revenues derived from copper-based services and direct operating costs.
Segment Results
Dollars in millions
Unaudited
First Quarter
Percent
2026
2025
Change
Segment Operating Revenues
$
1,768
$
2,368
(25.3)
%
Segment Operating Expenses
Operations and support
1,156
1,349
(14.3)
%
Depreciation and amortization
—
—
—
%
Total Operating Expenses
1,156
1,349
(14.3)
%
Operating Income
$
612
$
1,019
(39.9)
%
Operating Income Margin
34.6
%
43.0
%
(840)
BP
7
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
Segment Results
Dollars in millions
Unaudited
First Quarter
Percent
2026
2025
Change
Operating Revenues
Wireless service
$
753
$
615
22.4
%
Wireless equipment
420
356
18.0
%
Total Segment Operating Revenues
1,173
971
20.8
%
Operating Expenses
Operations and support
953
778
22.5
%
Depreciation and amortization
200
150
33.3
%
Total Segment Operating Expenses
1,153
928
24.2
%
Operating Income
$
20
$
43
(53.5)
%
Operating Income Margin
1.7
%
4.4
%
(270)
BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited
March 31,
Percent
2026
2025
Change
Mexico Wireless Subscribers
Postpaid
7,088
5,997
18.2
%
Prepaid
16,835
17,376
(3.1)
%
Reseller
180
235
(23.4)
%
Total Mexico Wireless Subscribers
24,103
23,608
2.1
%
First Quarter
Percent
2026
2025
Change
Mexico Wireless Net Additions
Postpaid
337
160
—
%
Prepaid
(895)
(110)
—
%
Reseller
(19)
(18)
(5.6)
%
Total Mexico Wireless Net Additions
(577)
32
—
%
8
SUPPLEMENTAL INFORMATION - ADVANCED CONNECTIVITY
We provide supplemental information on our advanced consumer and business customer relationships in the following tables as the product lifecycles in these customer categories influence the growth trajectories of Advanced Connectivity segment results.
Consumer Results
Dollars in millions
Unaudited
First Quarter
Percent
2026
2025
Change
Operating Revenues
Wireless service
$
14,584
$
14,370
1.5
%
Advanced home internet
2,799
2,198
27.3
%
Other service
158
162
(2.5)
%
Total Service Revenues
17,541
16,730
4.8
%
Equipment
4,611
4,246
8.6
%
Total Operating Revenues
22,152
20,976
5.6
%
Operating Expenses
Operations and support
12,589
11,801
6.7
%
Depreciation and amortization
3,022
3,011
0.4
%
Total Operating Expenses
15,611
14,812
5.4
%
Operating Income
$
6,541
$
6,164
6.1
%
Operating Income Margin
29.5
%
29.4
%
10
BP
Business Results
Dollars in millions
Unaudited
First Quarter
Percent
2026
2025
Change
Operating Revenues
Wireless service
$
2,357
$
2,281
3.3
%
Fiber and advanced connectivity
1,882
1,755
7.2
%
Transitional and other service
1,083
1,294
(16.3)
%
Total Service Revenues
5,322
5,330
(0.2)
%
Equipment
997
886
12.5
%
Total Operating Revenues
6,319
6,216
1.7
%
Operating Expenses
Operations and support
4,324
4,446
(2.7)
%
Depreciation and amortization
1,683
1,962
(14.2)
%
Total Operating Expenses
6,007
6,408
(6.3)
%
Operating Income (Loss)
$
312
$
(192)
—
%
Operating Income Margin
4.9
%
(3.1)
%
800
BP
9
SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
March 31, 2026
Advanced Connectivity
Legacy
Latin America
Total Segment
Corporate & Other
AT&T Inc.
Operating Revenues
Wireless service
$
16,941
$
—
$
753
$
17,694
$
—
$
17,694
Consumer
14,584
Business
2,357
Advanced home internet
2,799
—
—
2,799
—
2,799
Business fiber and advanced connectivity
1,882
—
—
1,882
—
1,882
Business transitional and other
1,083
—
—
1,083
—
1,083
Other service
158
1,768
—
1,926
94
2,020
Total Service
22,863
1,768
753
25,384
94
25,478
Equipment
5,608
—
420
6,028
—
6,028
Operating Revenues
28,471
1,768
1,173
31,412
94
31,506
Operating Expenses
Operations and support expenses
16,913
1,156
953
19,022
714
19,736
Asset impairment and abandonment and restructuring
—
—
—
—
—
—
Transaction, legal and other costs
—
—
—
—
146
146
Depreciation and amortization
4,705
—
200
4,905
61
4,966
Operating Expenses
21,618
1,156
1,153
23,927
921
24,848
Operating Income (Loss)
$
6,853
$
612
$
20
$
7,485
$
(827)
$
6,658
Total other income (expense)
(1,260)
Income from continuing operations before income tax
$
5,398
March 31, 2025
Advanced Connectivity
Legacy
Latin America
Total Segment
Corporate & Other
AT&T Inc.
Operating Revenues
Wireless service
$
16,651
$
—
$
615
$
17,266
$
—
$
17,266
Consumer
14,370
Business
2,281
Advanced home internet
2,198
—
—
2,198
—
2,198
Business fiber and advanced connectivity
1,755
—
—
1,755
—
1,755
Business transitional and other
1,294
—
—
1,294
—
1,294
Other service
162
2,368
—
2,530
95
2,625
Total Service
22,060
2,368
615
25,043
95
25,138
Equipment
5,132
—
356
5,488
—
5,488
Operating Revenues
27,192
2,368
971
30,531
95
30,626
Operating Expenses
Operations and support expenses
16,247
1,349
778
18,374
725
19,099
Asset impairment and abandonment and restructuring
—
—
—
—
504
504
Transaction, legal and other costs
—
—
—
—
79
79
Depreciation and amortization
4,973
—
150
5,123
67
5,190
Operating Expenses
21,220
1,349
928
23,497
1,375
24,872
Operating Income (Loss)
$
5,972
$
1,019
$
43
$
7,034
$
(1,280)
$
5,754
Total other income (expense)
237
Income from continuing operations before income tax
$
5,991
10
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 4 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 0 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · wireless subscriber momentum
“Postpaid phone 294 net adds; Retail Wireless Subscribers 109,292 thousand, up 0.8%”
Theme · fiber expansion driving internet growth
“Advanced home internet $2,799M, up 27.3%; Fiber net adds 292 thousand”
Theme · margin expansion in core connectivity
“Operating Income Margin 24.1%, up 210 BP”
Theme · capex and spectrum investment acceleration
“Capital expenditures $4,877M, up 14.0%; Spectrum acquisitions $1,018M”
Theme · legacy revenue decline
“Legacy Segment Operating Revenues $1,768M, down 25.3%”
Theme · churn pressure across subscriber base
“Postpaid phone churn 0.89%, up 6 BP; Prepaid phone churn 2.62%, up 7 BP”
Theme · equity affiliate headwinds
“Equity in Net Income (Loss) of Affiliates $(41)M vs. $1,440M prior year”
Theme · share repurchase activity
“Purchase of treasury stock $2,475M”
Theme · mexico wireless growth
“Postpaid 337 net adds; Total Mexico Wireless Subscribers 24,103 thousand, up 2.1%”
Theme · debt issuance and refinancing
“Issuance of long-term debt $8,098M; Repayment of long-term debt $5,247M”
Source: SEC EDGAR · public domain · Highlights by Palanor