REG - AT & T Inc. - Annual Financial Report
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260505:nRSE8911Ca&default-theme=true
RNS Number : 8911C AT & T Inc. 01 May 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2025
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-8610
AT&T INC.
(Exact name of registrant as specified in its charter)
Delaware 43-1301883
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
208 S. Akard St.
Dallas, Texas 75202
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 210-821-4105
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class Trading Symbol(s) on which registered
Common Shares (Par Value $1.00 Per Share) T New York Stock Exchange
NYSE Texas
Depositary Shares, each representing a 1/1000th interest in a share of T PRA New York Stock Exchange
5.000% Perpetual Preferred Stock, Series A
Depositary Shares, each representing a 1/1000th interest in a share of T PRC New York Stock Exchange
4.750% Perpetual Preferred Stock, Series C
AT&T Inc. 3.550% Global Notes due November 18, 2025 T 25B New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025 T 25 New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026 T 26E New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026 T 26D New York Stock Exchange
AT&T Inc. 2.900% Global Notes due December 4, 2026 T 26A New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due September 16, 2027 T 27C New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028 T 28C New York Stock Exchange
AT&T Inc. 2.350% Global Notes due September 5, 2029 T 29D New York Stock Exchange
AT&T Inc. 4.375% Global Notes due September 14, 2029 T 29B New York Stock Exchange
AT&T Inc. 2.600% Global Notes due December 17, 2029 T 29A New York Stock Exchange
AT&T Inc. 0.800% Global Notes due March 4, 2030 T 30B New York Stock Exchange
AT&T Inc. 3.150% Global Notes due June 1, 2030 T 30C New York Stock Exchange
AT&T Inc. 3.950% Global Notes due April 30, 2031 T 31F New York Stock Exchange
AT&T Inc. 2.050% Global Notes due May 19, 2032 T 32A New York Stock Exchange
AT&T Inc. 3.550% Global Notes due December 17, 2032 T 32 New York Stock Exchange
AT&T Inc. 3.600% Global Notes due June 1, 2033 T 33A New York Stock Exchange
AT&T Inc. 5.200% Global Notes due November 18, 2033 T 33 New York Stock Exchange
Securities registered pursuant to Section 12(b) of the Act (continued): Name of each exchange
Title of each class Trading Symbol(s) on which registered
AT&T Inc. 3.375% Global Notes due March 15, 2034 T 34 New York Stock Exchange
AT&T Inc. 4.300% Global Notes due November 18, 2034 T 34C New York Stock Exchange
AT&T Inc. 2.450% Global Notes due March 15, 2035 T 35 New York Stock Exchange
AT&T Inc. 3.150% Global Notes due September 4, 2036 T 36A New York Stock Exchange
AT&T Inc. 4.050% Global Notes due June 1, 2037 T 37B New York Stock Exchange
AT&T Inc. 2.600% Global Notes due May 19, 2038 T 38C New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 14, 2039 T 39B New York Stock Exchange
AT&T Inc. 7.000% Global Notes due April 30, 2040 T 40 New York Stock Exchange
AT&T Inc. 4.250% Global Notes due June 1, 2043 T 43 New York Stock Exchange
AT&T Inc. 4.875% Global Notes due June 1, 2044 T 44 New York Stock Exchange
AT&T Inc. 4.000% Global Notes due June 1, 2049 T 49A New York Stock Exchange
AT&T Inc. 4.250% Global Notes due March 1, 2050 T 50 New York Stock Exchange
AT&T Inc. 3.750% Global Notes due September 1, 2050 T 50A New York Stock Exchange
AT&T Inc. 5.350% Global Notes due November 1, 2066 TBB New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.
Yes ☒ No ☐
Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically
every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or
for such shorter period that the registrant was required to submit such
files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, a smaller reporting company or an
emerging growth company. See the definitions of "large accelerated filer,"
"accelerated filer," "smaller reporting company" and "emerging growth company"
in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and
attestation to its management's assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the
Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting
firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by
check mark whether the financial statements of the registrant included in the
filing reflect the correction of an error to previously issued financial
statements. ☐
Indicate by check mark whether any of those error corrections are restatements
that required a recovery analysis of incentive-based compensation received by
any of the registrant's executive officers during the relevant recovery period
pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Act).
Yes ☐ No ☒
Based on the closing price of $28.94 per share on June 30, 2025, the aggregate
market value of our voting and non-voting common stock held by non-affiliates
was $207 billion.
At January 28, 2026, common shares outstanding were 7,000,577,201.
DOCUMENTS INCORPORATED BY REFERENCE
(1)Portions of AT&T Inc.'s Notice of 2026 Annual Meeting and Proxy
Statement dated on or about March 23, 2026, to be filed within the period
permitted under General Instruction G(3) (Part III).
TABLE OF CONTENTS
Item Page
PART I (#BKMK_13)
1. Business (#BKMK_14) 1 (#BKMK_14)
1A. (#BKMK_15) Risk Factors (#BKMK_15) 7 (#BKMK_15)
1B. (#BKMK_16) Unresolved Staff Comments (#BKMK_16) 15 (#BKMK_16)
1C. (#BKMK_17) Cybersecurity (#BKMK_17) 15 (#BKMK_17)
2. (#BKMK_18) Properties (#BKMK_18) 16 (#BKMK_18)
3. (#BKMK_19) Legal Proceedings (#BKMK_19) 16 (#BKMK_19)
4. (#BKMK_20) Mine Safety Disclosures (#BKMK_20) 16 (#BKMK_20)
Information about our Executive Officers (#BKMK_21) 17 (#BKMK_21)
PART II (#BKMK_22)
5. (#BKMK_23) Market for Registrant's Common Equity, Related Stockholder Matters and Issuer 18 (#BKMK_23)
Purchases of Equity (#BKMK_23)
Securities (#BKMK_23)
6. (#BKMK_24) Reserved (#BKMK_24) 19 (#BKMK_24)
7. (#BKMK_25) Management's Discussion and Analysis of Financial Condition and Results of 20 (#BKMK_25)
Operations (#BKMK_25)
7A. (#BKMK_26) Quantitative and Qualitative Disclosures about Market Risk (#BKMK_26) 37 (#BKMK_26)
8. (#BKMK_27) Financial Statements and Supplementary Data (#BKMK_27) 42 (#BKMK_27)
9. (#BKMK_28) Changes in and Disagreements with Accountants on Accounting and Financial 90 (#BKMK_28)
Disclosure (#BKMK_28)
9A. (#BKMK_29) Controls and Procedures (#BKMK_29) 90 (#BKMK_29)
9B. (#BKMK_30) Other Information (#BKMK_30) 90 (#BKMK_30)
9C. (#BKMK_31) Disclosure Regarding Foreign Jurisdictions that Prevent Inspections (#BKMK_31) 90 (#BKMK_31)
PART III (#BKMK_32)
10. (#BKMK_33) Directors, Executive Officers and Corporate Governance (#BKMK_33) 91 (#BKMK_33)
11. (#BKMK_34) Executive Compensation (#BKMK_34) 91 (#BKMK_34)
12. (#BKMK_35) Security Ownership of Certain Beneficial Owners and Management and Related 91 (#BKMK_35)
Stockholder Matters (#BKMK_35)
13. (#BKMK_36) Certain Relationships and Related Transactions, and Director Independence 92 (#BKMK_36)
(#BKMK_36)
14. (#BKMK_37) Principal Accountant Fees and Services (#BKMK_37) 92 (#BKMK_37)
PART IV (#BKMK_38)
15. (#BKMK_39) Exhibits and Financial Statement Schedules (#BKMK_39) 92 (#BKMK_39)
16. (#BKMK_40) Form 10-K Summary (#BKMK_40) 95 (#BKMK_40)
AT&T Inc.
Dollars in millions except per share amounts
PART I
ITEM 1. BUSINESS
GENERAL
AT&T Inc. ("AT&T," "we" or the "Company") is a holding company
incorporated under the laws of the State of Delaware in 1983 and has its
principal executive offices at 208 S. Akard St., Dallas, Texas, 75202
(telephone number 210-821-4105). We maintain an internet website at
www.att.com. (This website address is for information only and is not intended
to be an active link or to incorporate any website information into this
document.) We file electronically with the Securities and Exchange Commission
(SEC) required reports on Form 8-K, Form 10-Q and Form 10-K; proxy materials;
registration statements on Forms S-3 and S-8, as necessary; and other forms or
reports as required. The SEC maintains a website (www.sec.gov) that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC. We make available, free of
charge, on our website our annual report on Form 10-K, our quarterly reports
on Form 10-Q, current reports on Form 8-K and all amendments to those reports
as soon as reasonably practicable after such reports are electronically filed
with, or furnished to, the SEC. We also make available on that website, and in
print, if any stockholder or other person so requests, our "Code of Ethics"
applicable to all employees and Directors, our "Corporate Governance
Guidelines," and the charters for all committees of our Board of Directors,
including Audit, Human Resources and Governance and Policy committees. Any
changes to our Code of Ethics or waiver of our Code of Ethics for senior
financial officers, executive officers or Directors will be posted on that
website.
A reference to a "Note" refers to the Notes to Consolidated Financial
Statements in Item 8.
History
AT&T, formerly known as SBC Communications Inc. (SBC), was formed as one
of several regional holding companies created to hold AT&T Corp.'s (ATTC)
local telephone companies. On January 1, 1984, we were spun-off from ATTC
pursuant to an anti-trust consent decree, becoming an independent publicly
traded telecommunications services provider.
Following our formation, we expanded our communications footprint and
operations, most significantly:
•Our subsidiaries merged with incumbent local exchange carriers (ILEC)
Pacific Telesis Group in 1997 and Ameritech Corporation in 1999.
•In 2005, we merged one of our subsidiaries with ATTC, creating one of the
world's leading telecommunications providers. In connection with the merger,
we changed the name of our company from "SBC Communications Inc." to "AT&T
Inc."
•In 2006, we acquired ILEC BellSouth Corporation (BellSouth), which included
BellSouth's 40% economic interest in AT&T Mobility LLC (AT&T
Mobility), formerly Cingular Wireless LLC, resulting in 100% ownership of
AT&T Mobility.
•In 2014, we completed the acquisition of wireless provider Leap Wireless
International, Inc.
•In 2015, we acquired wireless properties in Mexico and acquired DIRECTV, a
leading provider of digital television entertainment services in both the
United States (included in our former Video business) and Latin America
(referred to as Vrio, which was sold in November 2021).
•In July 2021, we closed our transaction with TPG Capital (TPG) to form a
new company named DIRECTV Entertainment Holdings, LLC (DIRECTV). With the
close of the transaction (DIRECTV Transaction), we separated our Video
business, comprised of our U.S. video operations, and began accounting for our
investment in DIRECTV under the equity method. In July 2025, we sold our
remaining interest in DIRECTV to TPG.
General
We are a leading provider of telecommunications and technology services
globally. The services and products that we offer vary by market and utilize
various technology platforms in a range of geographies. Our reportable
segments are organized as follows:
The Communications segment provides wireless and wireline telecom and
broadband services to consumers located in the United States and businesses
globally. Our business strategies reflect integrated product offerings that
cut across product lines and utilize shared assets. This segment contains the
following business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, fixed
wireless services, IP Voice and managed professional services, as well as
legacy voice and data services and related equipment, to business customers.
•Consumer Wireline provides broadband services, including fiber connections
that provide multi-gig services, and our fixed wireless access product
(AT&T Internet Air or "AIA") that provides internet services delivered
over our 5G wireless network, to residential customers in select locations.
Consumer Wireline also provides legacy telephony voice communication services.
1
AT&T Inc.
Dollars in millions except per share amounts
The Latin America segment provides wireless service and equipment in Mexico.
Corporate support costs, including administrative support costs borne by
AT&T where business units do not influence decision making, and results
from business no longer integral to our operations are reported as Corporate
and Other, which reconciles our segment results to consolidated operating
income and income before income taxes.
Areas of Focus
We are a leader in providing connectivity services through our market focus
areas of 5G and fiber. Fiber underpins the connectivity we deliver, both wired
and wireless. Building on that fiber foundation is our solid spectrum
portfolio, strengthened through Federal Communications Commission (FCC)
auctions, other spectrum acquisitions and 5G deployment. We believe our fixed
wireline and mobile approach will differentiate our services and provide us
with additional convergence growth opportunities in the future as bandwidth
demands continue to grow. We will continue to demonstrate our commitment to
ensure management attention is sharply focused on growth areas and operational
efficiencies.
Our integrated telecommunications network utilizes different technological
platforms to provide instant connectivity at the higher speeds made possible
by our fiber network expansion and wireless network enhancements. Streaming,
augmented reality, "smart" technologies, user generated content and artificial
intelligence (AI) are expected to continue to drive greater demand for
broadband, which we believe will allow us to capitalize on our fiber and 5G
deployments. During 2026, we are focused on the core capabilities of our
products, our infrastructure and our network. We will also focus on
accelerating our fiber expansion, organically and through our pending
acquisition of substantially all of Lumen's Mass Markets fiber business. We
will continue to deploy low- and mid-band spectrum to improve speed and
capacity, including spectrum to be acquired from our pending transactions with
EchoStar Corporation (EchoStar) and other spectrum acquisitions. Our
concentration is to aggregate the most traffic on the largest, lowest marginal
cost, converged network through efficient spectrum deployment and construction
of the largest high-capacity broadband solutions in the United States, while
also working with regulators and customers to decommission high-cost legacy
technologies over the next several years.
Wireless Service We continue to experience rapid growth in data usage as
consumers are demanding seamless access across their wireless and wired
devices, and businesses and municipalities are connecting an increasing number
of equipment and facilities to the internet. The deployment of 5G, which
allows for faster connectivity, lower latency and greater bandwidth, requires
modifications of existing cell sites to add equipment supporting new
frequencies, like the C-Band and the 3.45 GHz band. The increased speeds and
network operating efficiency expected with 5G technology has enabled massive
deployment of devices connected to the internet as well as faster delivery of
data services. As the wireless industry has matured, with nearly full
penetration of smartphones in the U.S. population, future wireless growth will
depend on our ability to offer innovative services, plans and devices that
bundle product offerings, add converged customer relationships and take
advantage of our 5G wireless network.
To support higher mobile data usage, our priority is to best utilize a
wireless network that has sufficient spectrum and capacity to support these
innovations on as broad a geographic basis as possible. We expect to continue
to invest significant capital in expanding our network capacity, as well as
obtaining additional spectrum, when needed and available, that meets our
long-term needs. We participate in FCC spectrum auctions, acquire spectrum
licenses from third parties as it becomes available and redeploy existing
spectrum previously used for more basic services to support more advanced
mobile internet services.
In North America, our network covers over 441 million people with 4G LTE and
over 322 million with 5G technology. In the United States, our network covers
all major metropolitan areas and more than 337 million people with our LTE
technology and more than 322 million people with our 5G technology.
Broadband Technology Fiber is a core priority for our business and over the
last several years we have enhanced our focus to expand our fiber footprint
and grow customers. At December 31, 2025, we had 10.4 million fiber consumer
wireline broadband customers, adding 1.1 million during the year. The
expansion builds on our recent investments to convert to a software-based
network, managing the migration of wireline customers to services using our
fiber infrastructure to provide broadband technology. Software-based
technologies align with our global leadership in software defined network
(SDN) and network function virtualization (NFV). This network approach
delivers a demonstrable cost advantage in the deployment of next-generation
technology over the traditional, hardware-intensive network approach. Our
virtualized network supports next-generation applications like 5G and
broadband-based services quickly and efficiently. At December 31, 2025, we had
16.0 million broadband connections, compared to 15.3 million broadband
connections in the prior year.
In areas where fiber services are not available, in recent years we have
offered fixed wireless access under our AT&T Internet Air (AIA) brand. At
December 31, 2025, we had 1.5 million AIA connections, adding 875,000 during
the year. With recent spectrum acquisitions, including our pending transaction
with EchoStar we are expanding the capacity of the wireless network over which
these services are provided to support this growth initiative.
2
AT&T Inc.
Dollars in millions except per share amounts
Copper Decommissioning While building the network of the future, we are
actively working to exit our legacy copper network operations across the large
majority of our wireline footprint. Our exit strategy includes migrating
customers to fiber and wireless alternatives, and working with policy-makers
to decommission our inefficient and less reliable copper network. At December
31, 2025, we had 2.1 million customer location switched access lines in
service and 2.8 million legacy consumer internet connections compared to 2.7
million customer location switched access lines in service and 4.1 million
legacy consumer internet connections in the prior year.
BUSINESS OPERATIONS
OPERATING SEGMENTS
Our segments are strategic business units that offer different products and
services over various technology platforms and/or in different geographies
that are managed accordingly. We have two reportable segments: Communications
and Latin America.
Additional information about our segments, including financial information, is
included under the heading "Segment Results" in Item 7 and in Note 4 of Item
8.
COMMUNICATIONS
Our Communications segment provides wireless and wireline telecom and
broadband services to consumers located in the United States and businesses
globally. Our Communications services and products are marketed under the
AT&T, AT&T Business, Cricket, AT&T PREPAIDSM, AT&T Fiber and
AT&T Internet Air brand names. The Communications segment provided
approximately 97% of 2025 segment operating revenues and accounted for
substantially all of our 2025 total segment operating income. This segment
contains the Mobility, Business Wireline and Consumer Wireline business units.
Mobility - Our Mobility business unit provides nationwide wireless service to
consumers and wholesale and resale wireless subscribers located in the United
States by utilizing our network to provide voice and data services, including
high-speed internet over wireless devices. We classify our subscribers as
either postpaid, prepaid or reseller. As of December 31, 2025, we served 120
million Mobility subscribers, including 91 million postpaid (74 million
phone), 18 million prepaid and 11 million through resellers. Our Mobility
business unit revenue includes the following categories: service and
equipment.
Service
We offer a comprehensive range of high-quality nationwide wireless voice and
data communications services in a variety of pricing plans to meet the
communications needs of targeted customer categories. Through FirstNet®
services, we also provide a nationwide wireless broadband network dedicated to
public safety.
Consumers continue to require increasing availability of data-centric services
and a network to connect and control wireless devices. An increasing number of
our subscribers are using more advanced devices, including embedded computing
systems and/or software, commonly called the Internet of Things (IoT). We
offer unlimited plans that include features allowing for the sharing of voice,
text and data across multiple devices, which attracts subscribers from other
providers and helps minimize subscriber churn. We continue to upgrade our
network and coordinate with equipment manufacturers and application developers
to further capitalize on the continued growing demand for wireless data
services.
We also offer nationwide wireless voice and data communications to certain
customers who prefer to pay in advance. These services are offered under the
Cricket and AT&T PREPAID brands and are typically monthly prepaid
services.
Equipment
We sell a wide variety of handsets, wireless data cards and wireless computing
devices manufactured by various suppliers for use with our voice and data
services. We also sell accessories, such as carrying cases/protective covers
and wireless chargers. We sell online and through our own company-owned
stores, agents and third-party retail stores. We provide our customers the
ability to purchase handsets on an installment basis and the opportunity to
bring their own device. Subscribers that bring their own devices or retain
handsets for longer periods impact upgrade activity. Like other wireless
service providers, we also provide postpaid contract subscribers promotional
equipment offers to initiate, renew or upgrade service.
Business Wireline - Our Business Wireline business unit provides services to
business customers, including multinational corporations, small and mid-sized
businesses, and governmental and wholesale customers. Our Business Wireline
business unit revenue includes the following categories: legacy and other
transitional services, fiber and advanced connectivity services, and
equipment.
Legacy and Other Transitional Services
We offer legacy voice and other transitional services comprised of
copper-based voice and data, Virtual Private Networks (VPN), wholesale,
outsourcing and IP sales. Historically, a majority of our Business Wireline
service revenues came from
3
AT&T Inc.
Dollars in millions except per share amounts
legacy copper-based voice and data and traditional products; however, over
recent years those services have been declining due to secular pressures. We
plan to continue to focus on our owned and operated connectivity services
powered by 5G and fiber as well as evaluating opportunities where we can turn
down existing copper infrastructure.
Fiber and Advanced Connectivity Services
We offer fiber and other advanced connectivity services, such as AT&T
Dedicated Internet, fiber ethernet and broadband, fixed wireless, and hosted
and managed professional services. We continue to reconfigure our wireline
network to take advantage of the latest technologies and services, and rely on
our SDN and NFV to enhance business customers' digital agility in a rapidly
evolving environment.
Equipment
Equipment revenues include customer premises equipment.
Consumer Wireline - Our Consumer Wireline business unit provides broadband
services, including fiber connections, AIA and legacy telephony voice
communication services, to customers in the United States by utilizing our
IP-based and copper wired network. Our Consumer Wireline business unit revenue
includes the following categories: broadband, legacy voice and data services
and other service and equipment.
Broadband Service
We provide broadband and internet services to approximately 14.7 million
customers, including 10.4 million fiber broadband connections and 1.5 million
AIA connections at December 31, 2025. With the continued rise of
data-intensive activities, like on-the-go video streaming, augmented reality,
user generated content, AI-enabled applications, remote work and the
widespread adoption of smart devices, we are experiencing increasing demand
for high-speed broadband services. We believe our investment in expanding our
industry-leading fiber network positions us to be a leader in wired
connectivity. Our focus on fiber and AIA brings owner's economics and expected
efficiencies while we continue to evaluate opportunities where we can turn
down existing copper infrastructure.
We believe that our flexible platform, with a broadband and wireless
connection, is the most efficient way to transport direct-to-consumer
experiences both at home and on mobile devices. Through this integrated
approach, we can optimize the use of storage in the home as well as in the
cloud, while also providing a seamless service for consumers across screens
and locations.
Legacy Voice and Data Services
Revenues from our traditional voice services continue to decline as customers
switch to wireless or VoIP services provided by us, cable companies or other
internet-based providers.
Other Service and Equipment
Other service revenues include VoIP services, customer fees and limited
equipment.
Additional information on our Communications segment is contained in the
"Overview" section of Item 7.
LATIN AMERICA
Our Latin America segment provides wireless service in Mexico. We utilize our
regional and national wireless networks in Mexico to provide consumer and
business customers with wireless data and voice communication services. The
Latin America segment provided approximately 3% of 2025 segment operating
revenues and less than 1% of our 2025 total segment operating income. We
divide our revenue into the following categories: service and equipment.
Service
We provide postpaid and prepaid wireless services in Mexico to approximately
24.7 million subscribers under the AT&T and Unefon brands. Postpaid
service allows for (1) no annual service contract for subscribers who bring
their own device or purchase a device on installment and (2) service contracts
for periods up to 36 months for subscribers who purchase their equipment under
the traditional device subsidy model. We also offer prepaid plans.
Equipment
We sell a wide variety of handsets, including smartphones manufactured by
various suppliers for use with our voice and data services. We sell through
our own company-owned stores, agents and third-party retail stores.
Additional information on our Latin America segment is contained in the
"Overview" section of Item 7.
4
AT&T Inc.
Dollars in millions except per share amounts
MAJOR CLASSES OF SERVICE
The following table sets forth the percentage of total consolidated reported
operating revenues by any class of service that accounted for 10% or more of
our consolidated total operating revenues in any of the last three fiscal
years:
Percentage of Total
Consolidated Operating Revenues
2025 2024 2023
Communications Segment
Wireless service 54 % 53 % 52 %
Fiber and advanced connectivity1 13 12 11
Legacy and other transitional 8 10 13
Equipment 18 17 17
Latin America Segment
Wireless service 2 2 2
Equipment 1 1 1
1 Includes Fiber revenues reported in our Consumer Wireline business unit and
Fiber and advanced connectivity services
reported in our Business Wireline business unit.
Additional information on our geographical distribution of revenues is
contained in Note 4 of Item 8.
GOVERNMENT REGULATION
Facilities-based wireless communications providers in the United States, like
AT&T, must be licensed by the FCC to provide communications services at
specified spectrum frequencies within defined geographic areas and must comply
with FCC rules and policies governing the use of the spectrum. The FCC's rules
have a direct impact on whether the wireless industry has sufficient spectrum
available to support the high-quality, innovative services our customers
demand. Wireless licenses are issued for a fixed time period, typically 10 to
15 years, and we must seek renewal of these licenses. While the FCC has
generally renewed licenses, the FCC has authority to both revoke a license for
cause and to deny a license renewal if a renewal is not in the public
interest. Additionally, while wireless communications providers' prices and
service offerings have historically not been subject to prescriptive
regulation, the federal government and various states periodically consider
new regulations and legislation relating to various aspects of wireless
services.
The Communications Act of 1934 and other related laws give the FCC authority
to regulate the U.S. operations of our interstate telecommunications services.
In addition, our ILEC subsidiaries are subject to regulation by state
governments, which may regulate intrastate services, provided such state
regulation is consistent with federal law. Some states have eliminated or
reduced regulations on our retail offerings. AT&T subsidiaries are also
subject to the jurisdiction of the FCC with respect to intercarrier
compensation, interconnection, and interstate and international services,
including interstate access charges. Access charges are a form of intercarrier
compensation designed to reimburse our wireline subsidiaries for the use of
their networks by other carriers.
We continue to support regulatory and legislative measures and efforts at both
the federal and state levels to minimize and/or moderate regulatory burdens
that are no longer appropriate in a competitive communications market and that
inhibit our ability to compete more effectively and offer services wanted and
needed by our customers, including initiatives to transition services from
traditional networks to all IP-based networks. At the same time, we also seek
to ensure that legacy regulations are not further extended to broadband or
wireless services, which are subject to vigorous competition.
Our subsidiaries operating outside the United States are subject to the
jurisdiction of national and supranational regulatory authorities in the
market where service is provided.
For a discussion of significant regulatory issues directly affecting our
operations, please see the information contained under the headings "Operating
Environment and Trends of the Business" and "Regulatory Landscape" of Item 7,
which information is incorporated herein by reference.
IMPORTANCE, DURATION AND EFFECT OF LICENSES
Certain of our subsidiaries own or have licenses to various patents,
copyrights, trademarks and other intellectual property necessary to conduct
business. Many of our subsidiaries also hold government-issued licenses or
franchises to provide wireline or wireless services. Additional information
relating to regulations affecting those rights is contained under the heading
"Regulatory Landscape" of Item 7. We actively pursue patents, trademarks and
service marks to protect our intellectual property within the United States
and abroad. We maintain a significant global portfolio of patents, trademarks
and service mark registrations. We have also entered into licenses that permit
other companies to utilize certain of our patents, trademarks,
5
AT&T Inc.
Dollars in millions except per share amounts
service marks, and technologies, in exchange for payments and subject to
appropriate safeguards and restrictions. As we transition our network from a
switch-based network to an IP, software-based network, we have increasingly
entered into licensing agreements with software developers.
We periodically license third-party patents and other intellectual rights in
exchange for payments. We also receive claims from third parties asserting
that our products, services or technologies infringe on their patents or other
intellectual property rights. These claims could require us to pay damages or
acquire license rights, stop offering the relevant products or services,
and/or cease network functions or other activities. While the outcome of any
litigation is uncertain, we do not believe that the resolution of any of these
infringement claims or the expiration or non-renewal of any of our
intellectual property rights would have a material adverse effect on our
results of operations.
MAJOR CUSTOMERS
No customer accounted for 10% or more of our consolidated revenues in 2025,
2024 or 2023.
COMPETITION
Competition continues to increase for communications and digital services from
traditional and nontraditional competitors. Technological advances have
expanded the types and uses of services and products available. In addition,
lack of or a reduced level of regulation of comparable legacy services has
lowered costs for alternative communications service providers. As a result,
we face continuing competition as well as some new opportunities in
significant portions of our business.
Wireless We face substantial competition in our wireless businesses. Under
current FCC rules, multiple licensees, who provide wireless services on the
cellular, PCS, Advanced Wireless Services, 700 MHz and other spectrum bands,
may operate in each of our U.S. service areas. Our competitors include two
national wireless providers; a larger number of regional providers and
resellers of each of those providers' services; and certain cable companies.
In addition, we face competition from providers who offer voice, text
messaging and other services as applications on data networks. We are one of
three facilities-based providers in Mexico (retail and wholesale), with the
most significant market share controlled by América Móvil. We may experience
significant competition from companies that provide similar services using
other communications technologies and services. While some of these
technologies and services are now operational, others are being developed or
may be developed. We compete for customers based principally on service/device
offerings, price, network quality, coverage area and customer service.
Broadband The desire for high-speed data on demand, including data-intensive
activities, is continuing to lead customers to terminate their traditional
wired or copper-based services and use our fiber or fixed wireless services or
competitors' fixed wireless, satellite and internet-based services. In most
U.S. markets, we compete for customers with large cable companies and wireless
broadband providers for high-speed internet and voice services.
Legacy Voice and Data We continue to lose legacy voice and data customers due
to industry-wide secular declines and competitors (e.g., wireless, cable and
VoIP providers) who can provide comparable services at lower prices because
they are not subject to traditional telephone industry regulation (or the
extent of regulation they are subject to is in dispute), utilize different
technologies or promote a different business model. In most U.S. markets, we
compete for customers with large cable companies and other smaller
telecommunications companies.
Additionally, we provide local and interstate telephone and switched services
to other service providers, primarily large internet service providers using
the largest class of nationwide internet networks (internet backbone),
wireless carriers, other telephone companies, cable companies and systems
integrators. These services are subject to additional competitive pressures
from the development of new technologies, the introduction of innovative
offerings and increasing satellite, wireless, fiber-optic and cable
transmission capacity for services.
RESEARCH AND DEVELOPMENT
AT&T scientists and engineers conduct research in a variety of areas,
including IP networking, advanced network design and architecture, network and
cybersecurity, network operations support systems and data analytics. The
majority of the development activities are performed to create new services
and to invent tools and systems to manage secure and reliable networks for us
and our customers. Research and development expenses were $843 in 2025, $955
in 2024, and $954 in 2023.
HUMAN CAPITAL
Number of Employees As of December 31, 2025, we employed approximately
133,030 persons.
Employee Development We believe our success depends on our employees' success
and that all employees must have the skills they need to thrive. We offer
training and elective courses that give employees the opportunity to enhance
their skills. We also intend to help cultivate the next generation of talent
that will lead our company into the future by providing employees with
educational opportunities through our internal training organization.
6
AT&T Inc.
Dollars in millions except per share amounts
Labor Contracts Approximately 43% of our employees are represented by the
Communications Workers of America (CWA), the International Brotherhood of
Electrical Workers (IBEW) or other unions. After expiration of collective
bargaining agreements, work stoppages or labor disruptions may occur in the
absence of new contracts or other agreements being reached. The main contracts
set to expire in 2026 include the following:
•A contract covering approximately 9,000 employees across 36 states and the
District of Columbia is set to expire in February.
•A contract covering approximately 4,300 employees across five states is set
to expire in April.
•Two wireline contracts covering approximately 1,800 employees across all 50
states as well as the U.S. Virgin Islands and Puerto Rico are set to expire in
April.
Compensation and Benefits In addition to salaries, we provide a variety of
benefit programs to help meet the needs of our employees. These programs cover
active and former employees and may vary by subsidiary and region. These
programs include 401(k) plans, pension benefits, and health and welfare
benefits, among many others. In addition to our active employee base, at
December 31, 2025, we had approximately 477,000 retirees and dependents who
were eligible to receive retiree benefits.
We review our benefit plans to maintain competitive packages that reflect the
needs of our workforce. We also adapt our compensation model to provide fair
and inclusive pay practices across our business. We are committed to pay
equity for employees who hold the same jobs, work in the same geographic area,
and have the same levels of experience and performance.
Employee Wellness We provide our employees access to flexible and convenient
health and welfare programs and workplace accommodations. We have prioritized
self-care and emphasized a focus on wellness and providing flexible scheduling
or time-off options.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this document, including the
matters contained under the heading "Cautionary Language Concerning
Forward-Looking Statements," you should carefully read the matters described
below. We believe that each of these matters could materially affect our
business. Most, if not all, of these factors are beyond our ability to
control.
Macro-Economic Factors:
Adverse changes in the U.S. securities markets, a higher interest rate
environment, rising inflation and medical costs could materially increase our
benefit plan costs and future funding requirements.
Our costs to provide current benefits and funding for future benefits are
subject to increases, primarily due to continuing increases in medical and
prescription drug costs, in part due to inflation, and can be affected by
lower returns on assets held by our pension and other benefit plans, which are
reflected in our financial statements for that year. In calculating the
recognized benefit costs, we have made certain assumptions regarding future
investment returns, interest rates and medical costs. These assumptions could
change significantly over time and could be materially different than
originally projected. Lower than assumed investment returns, an increase in
our benefit obligations, and higher than assumed medical and prescription drug
costs will increase expenses.
The Financial Accounting Standards Board (FASB) requires companies to
recognize the funded status of defined benefit pension and postretirement
plans as an asset or liability in their statement of financial position and to
recognize changes in that funded status in the year in which the changes
occur. We have elected to reflect the annual adjustments to the funded status
in our consolidated statement of income. Therefore, an increase in our costs
or adverse market conditions will have a negative effect on our operating
results.
Significant adverse changes in capital markets could result in the
deterioration of our defined benefit plans' funded status.
Inflationary pressures on costs, such as inputs for devices we sell and
network components, labor and distribution costs, may impact our network
construction, our financial condition or results of operations.
As a provider of telecommunications and technology services, we sell handsets,
wireless data cards, wireless computing devices and customer premises
equipment manufactured by various suppliers for use with our voice and data
services and depend on suppliers to provide us, directly or through other
suppliers, with items such as network equipment, customer premises equipment,
and wireless-related equipment such as mobile hotspots, handsets, wirelessly
enabled computers, wireless data cards and other connected devices for our
customers. In recent years, the costs of these inputs and the costs of labor
necessary to develop, deploy and maintain our networks and our products and
services have increased. In addition, many of these inputs are subject to
price fluctuations from a number of factors, including, but not limited to,
market conditions, demand for raw
7
AT&T Inc.
Dollars in millions except per share amounts
materials used in the production of these devices and network components,
severe weather, energy costs, currency fluctuations, supplier capacities,
governmental actions, import and export requirements (including tariffs), and
other factors beyond our control. Recent spending by hyperscalers and others
to support AI is beginning to pressure supply chains for goods such as
semiconductors and other network components. Inflationary and supply pressures
may continue into the future and could have an adverse impact on our ability
to source materials.
Our attempts to offset these cost and supply pressures, such as through
increases in the selling prices of some of our products and services, may not
be successful. Higher product or service prices may result in reductions in
sales volume or increases in subscriber churn. Consumers may be less willing
to pay a price differential for our products and services and may increasingly
purchase lower-priced offerings from us or our competitors, or may forego some
purchases altogether, during a period of inflationary pressure or an economic
downturn. To the extent that price increases are not sufficient to offset
these increased costs adequately or in a timely manner, and/or if they result
in significant decreases in sales volume, our business, financial condition or
operating results may be adversely affected. Furthermore, we may not be able
to offset any cost increases through productivity and cost-saving initiatives.
Adverse changes in global financial markets could limit our ability and our
larger customers' and suppliers' ability to access capital or increase the
cost of capital needed to fund business operations.
In recent years, uncertainty surrounding global growth rates, inflation and
the interest rate environment produced volatility in the credit, currency and
equity markets. Volatility may affect companies' access to the credit markets,
leading to higher borrowing costs, or, in some cases, the inability to fund
ongoing operations. In addition, we contract with large financial institutions
to support our own treasury operations, including contracts to hedge our
exposure to interest rates and foreign exchange and the funding of credit
lines and other short-term debt obligations, including commercial paper. These
financial institutions face stricter capital-related and other regulations in
the United States and Europe, as well as ongoing legal and financial issues
concerning their loan portfolios, which may hamper their ability to provide
credit or raise the cost of providing such credit.
While we have been successful in continuing to access the credit and fixed
income markets when needed, adverse changes in the financial markets could
render us either unable to access these markets or able to access these
markets only at higher interest costs and with restrictive financial or other
conditions, severely affecting our business operations. Additionally,
downgrades of our credit rating by the major credit rating agencies could
increase our cost of borrowing and also impact the collateral we would be
required to post under certain agreements we have entered into with our
derivative counterparties, which could negatively impact our liquidity.
Further, valuation changes in our derivative portfolio due to interest rates
and foreign exchange rates could require us to post collateral and thus may
negatively impact our liquidity.
Our international operations increase our exposure to political instability,
to changes in the international economy and to regulation on our business, and
these risks could offset our expected growth opportunities.
We have international operations, particularly in Mexico, and other countries
worldwide where we need to comply with a wide variety of complex local laws,
regulations and treaties, and are subject to evolving political environments.
In addition, we are exposed to, among other factors, fluctuations in currency
values, changes in relationships between U.S. and foreign governments, war or
other hostilities, and other regulations that may materially affect our
earnings. Involvement with foreign firms also exposes us to the risk of being
unable to control the actions of those firms and therefore exposes us to risks
associated with our obligation to comply with the Foreign Corrupt Practices
Act (FCPA). Violations of the FCPA could have a material adverse effect on our
operating results.
Industry-Wide Factors:
Changes to federal, state and foreign government regulations and decisions in
regulatory proceedings, as well as private litigation, could further increase
our operating costs and/or alter customer perceptions of our operations, which
could materially adversely affect us.
Our subsidiaries providing wired services are subject to significant federal
and state regulation, while many of our competitors are not. In addition, our
subsidiaries and affiliates operating outside the United States are also
subject to the jurisdiction of national and supranational regulatory
authorities in the markets where service is provided. Our wireless
subsidiaries are regulated to varying degrees by the FCC and in some
instances, by state and local agencies. Adverse regulations and rulings by the
courts, the FCC or states relating to broadband and wireless deployment could
impede our ability to manage our networks and recover costs and lessen
incentives to invest in our networks. The continuing growth of IP-based
services, especially when accessed by wireless devices, has created or
potentially could create conflicting regulation between the FCC and various
state and local authorities, which may involve lengthy litigation to resolve
and may result in outcomes unfavorable to us. In addition, increased public
focus on a variety of issues related to our operations, such as privacy
issues, government requests or orders for customer data, state rate regulation
of broadband and concerns about global climate change, have led to proposals
or new
8
AT&T Inc.
Dollars in millions except per share amounts
legislation at state, federal and foreign government levels to change or
increase regulation on our operations, which could result in additional costs
of compliance or litigation. Enactment of new privacy laws and regulations
could, among other things, adversely affect our ability to collect data and
offer targeted advertisements or result in additional costs of compliance or
litigation. Should customers decide that our competitors offer a more
customer-friendly environment, our competitive position, results of operations
or financial condition could be materially adversely affected.
Extreme weather events and other potential effects of climate change may
impose risk of damage to our infrastructure, our ability to provide services,
and may cause changes in federal, state and foreign government regulation, all
of which may result in potential adverse impact to our financial results.
The potential physical effects of extreme weather events and other potential
effects of climate change, such as increased frequency and severity of storms,
floods, fires, freezing conditions, sea-level rise and other climate-related
events, could damage our networks and cause disruptions in our services, which
could adversely affect our operations, infrastructure and financial results.
Operational impacts resulting from the potential physical effects of climate
change, such as damage to our network infrastructure, could result in
increased costs and loss of revenue. While we currently do not believe the
potential losses or costs associated with the physical effects of climate
change will be material, it is difficult to accurately and precisely calculate
the future impacts of the physical effects of climate change given the dynamic
nature of its impacts on the environment.
Continuing growth in and the converging nature of wireless and broadband
services will require us to deploy significant amounts of capital and require
ongoing access to spectrum in order to provide attractive services to
customers.
Wireless and broadband services are undergoing rapid and significant
technological changes and a dramatic increase in usage, including, in
particular, the demand for faster and seamless usage of data across mobile and
fixed devices. Recent world events and trends accelerated these changes and
also resulted in higher network utilization, as more customers consumed
bandwidth. Streaming, augmented reality, "smart" technologies, user generated
content and AI are expected to continue to drive greater demand for broadband.
We must continually invest in our networks in order to improve our wireless
and broadband services to meet this increasing demand and changes in customer
expectations while remaining competitive. Improvements in these services
depend on many factors, including continued access to and deployment of
adequate spectrum and the capital needed to expand our wireline network to
support transport of these services. In order to stem broadband connectivity
losses to cable competitors in our non-fiber wireline areas, we have been
expanding our all-fiber wireline network and where we offer our fixed wireless
access product. We must maintain and expand our network capacity and coverage
for transport of data, including video, and voice between cell and fixed
landline sites. To this end, we participate in spectrum auctions and continue
to deploy software and other technology advancements in order to efficiently
invest in our network.
We have spent, and plan to continue spending, significant capital and other
resources on the ongoing development and deployment of our 5G and fiber
networks. This deployment and other network service enhancements and product
launches may not occur as scheduled or at the cost expected due to many
factors, including unexpected inflation, delays in determining equipment and
wireless handset operating standards, supplier delays, software issues,
increases in network and handset component costs, regulatory permitting delays
for tower sites or enhancements, or labor-related delays. Deployment of new
technology also may adversely affect the performance of the network for
existing services. If we cannot acquire needed spectrum, if our 5G and fiber
standalone or converged offerings fail to gain acceptance in the marketplace
or if we otherwise fail to deploy the services customers desire on a timely
basis with acceptable quality and at reasonable costs, then our ability to
attract and retain customers, and, therefore, maintain and improve our
operating margins, could be materially adversely affected.
Increasing competition could materially adversely affect our operating
results.
We have multiple wireless competitors in each of our service areas and compete
for customers based principally on service/device offerings, price, network
quality, reliability, speed, coverage area and customer service. In addition,
we are facing growing competition from providers offering services using
advanced wireless technologies and IP-based networks, among others. We expect
market saturation to continue, which may cause the wireless industry's
customer growth rate to moderate in comparison with historical growth rates,
leading to increased competition for customers, including from strategic
alliances in converged connectivity. Our share of industry sales could be
reduced due to aggressive pricing or promotional strategies pursued by
competitors. We also expect that our customers' growing demand for high-speed
video and data services will place constraints on our network capacity. These
competition and capacity constraints will continue to put pressure on pricing
and margins as companies compete for potential customers. Additionally, we may
not be able to accurately predict future consumer demands or the success of
new services in markets. Our ability to address these issues will depend,
among other things, on continued improvement in network quality and customer
service and our ability to price our products and services competitively as
well as effective marketing of attractive products and services. These efforts
will involve significant expenses and require strategic management decisions
on, and timely implementation of, equipment choices, network deployment and
service offerings. In addition, a sustained decline in a reporting unit's
revenues and earnings has resulted in the past, and may
9
AT&T Inc.
Dollars in millions except per share amounts
again result in the future, in a significant negative impact on its fair
value, requiring us to record an impairment charge, which could have an
adverse impact on our results of operations.
Intellectual property rights may be inadequate to take advantage of business
opportunities, which may materially adversely affect our operations.
We may need to spend significant amounts of money to protect our intellectual
property rights. Any impairment of our intellectual property rights, including
due to changes in U.S. or foreign intellectual property laws or the absence of
effective legal protections or enforcement measures, could materially
adversely impact our operations.
Incidents or public assertions leading to damage to our reputation or
questions about our business conduct, and any resulting lawsuits, claims or
other legal proceedings, could have a material adverse effect on our business.
We believe that our brand image, awareness and reputation strengthen our
relationship with consumers and contribute significantly to the success of our
business. Our reputation and brand image could be negatively affected by a
number of factors, including the safety, quality or reliability of our
services, products and operations; cybersecurity incidents and data breaches,
including our actual or perceived responses thereto; regulatory compliance;
governance issues; our actual or perceived position or lack of position on
social and other sensitive matters; and the conduct of our employees and
former employees. Our ability to attract and retain employees is highly
dependent upon our commitment to an inclusive workplace, ethical business
practices and other qualities.
We currently are, and may in the future be, named as a defendant in lawsuits,
claims and other legal proceedings that arise in or outside the ordinary
course of our business based on alleged acts of misconduct by employees,
contractors or other third parties. These actions seek, among other things,
compensation for alleged personal injury (including claims for loss of life),
workers' compensation, employment discrimination, sexual harassment, workplace
misconduct, wage and hour claims and other employment-related damages,
compensation for breach of contract, statutory or regulatory claims,
negligence or gross negligence, punitive damages, consequential damages, and
civil penalties or other losses or injunctive or declaratory relief. The
outcome of any allegations, lawsuits, claims or legal proceedings is
inherently uncertain and could result in significant costs, damage to our
brands or reputation and diversion of management's attention from our
business. In 2023, The Wall Street Journal published a series of articles
alleging that lead-clad telecommunications cables are a public health hazard
or may pose environmental risks. We are currently subject to litigation and
have received inquiries from government authorities as a result of these
assertions. We may be subject to additional litigation, government
investigations and potentially new regulation or legislation relating to
lead-clad cables. Any damage to our reputation or payments of significant
amounts as a result of any of these issues, even if reserved, could materially
and adversely affect our business, ability to serve customers, reputation,
financial condition, results of operations and cash flows.
Our business is subject to risks related to public health crises.
Public health crises and resulting mitigation measures have in the past, and
may in the future, cause a negative effect on our operating results. These
effects include, but are not limited to, closure of retail stores; impact on
our customers' ability to pay for our products and services; reduction in
international roaming revenue; and reduced staffing levels in call centers and
field operations. We also have in the past, and may in the future, incur
significantly higher expenses attributable to infrastructure investments and
increased labor costs due to public health crises.
Company-Specific Financial Factors:
Customer adoption of new software-based technologies may require
higher-quality services from us, and meeting these demands could create supply
chain issues and could increase capital costs.
The communications industry has experienced rapid changes in the past several
years. An increasing number of our customers are using mobile devices for
using AI-enabled applications and as their primary means of viewing video. In
addition, businesses and government bodies are broadly shifting to
wireless-based services for homes and infrastructure to improve services to
their respective customers and constituencies. We have spent, and continue to
spend, significant capital to shift our wired network to software-based
technology and are expanding 5G wireless technology to address these demands.
We have entered and continue to enter into a significant number of software
licensing agreements and continue to work with software developers to provide
network functions in lieu of installing switches or other physical network
equipment in order to respond to rapid developments in wireless demand. While
software-based functionality can be changed much more quickly than, for
example, physical switches, the rapid pace of development means that we may
increasingly need to rely on single-source and software solutions that have
not previously been deployed in production environments. Should this software
not function as intended or our license agreements provide inadequate
protection from intellectual property infringement claims, we could be forced
to either substitute (if available) or else spend time to develop alternative
technologies at a much higher cost and incur harm to our reputation for
reliability, and, as a result, our ability to remain competitive could be
materially adversely affected.
10
AT&T Inc.
Dollars in millions except per share amounts
We depend on various suppliers to provide equipment to operate our business
and satisfy customer demand, and interruption or delay in supply can adversely
impact our operating results.
We depend on suppliers to provide us, directly or through other suppliers,
with items such as network equipment, customer premises equipment and
wireless-related equipment such as mobile hotspots, handsets, wirelessly
enabled computers, wireless data cards and other connected devices for our
customers. In some instances, we depend on key single-source suppliers to
provide important inputs where there are few alternative suppliers available.
These suppliers could fail to provide equipment on a timely or cost-effective
basis, or fail to meet our performance expectations, for a number of reasons,
including difficulties in obtaining export licenses for certain technologies,
inflationary pressures, inability to secure component parts, general business
disruption, natural disasters, safety issues, economic and political
instability, including the outbreak of war and other hostilities, and public
health emergencies. In certain circumstances, we could be liable for the
actions of our suppliers and other third parties we do business with. These
factors have caused, and may again cause, delays in the development,
manufacturing (including the sourcing of key components) and shipment of
products to the extent that we or our suppliers are impacted. In certain
limited circumstances, suppliers have been unable to supply products in a
timely fashion, affecting our ability to provide products and services
precisely as and when requested by our customers. It is possible that, in some
circumstances, we could be forced to switch to a different key supplier or be
unable to meet customer demand for certain products or services. Because of
the cost and time lag that can be associated with transitioning from one
supplier to another, our business could be substantially disrupted if we were
required to, or chose to, replace the products of one or more key suppliers
with products from another source, especially if the replacement became
necessary on short notice. Any such disruption could increase our costs,
decrease our operating efficiencies and have a negative effect on our
operating results.
Increasing costs to provide services and failure to renew agreements on
favorable terms, or at all, could adversely affect operating margins.
Our operating costs, including customer acquisition and retention costs, could
continue to put pressure on margins and customer retention levels.
A number of our competitors offering comparable legacy services that rely on
alternative technologies and business models are typically subject to less
regulation, and therefore are able to operate with lower costs. These
competitors generally can focus on discrete customer segments since they do
not have regulatory obligations to provide universal service. Also, these
competitors have cost advantages compared to us, due in part to operating on
newer, more technically advanced and lower-cost networks with a nonunionized
workforce, lower employee benefits and fewer retirees. We are transitioning
services from our copper-based network and seeking regulatory approvals, where
needed, at both the state and federal levels. If we do not obtain regulatory
approvals for our network transition or obtain approvals with onerous
conditions, we could experience significant cost and competitive
disadvantages.
A significant portion of our workforce is represented by labor unions, and we
could incur additional costs or experience work stoppages as a result of the
renegotiation of our labor contracts.
As of December 31, 2025, approximately 43% of our workforce was represented
by the Communications Workers of America (CWA), the International Brotherhood
of Electrical Workers (IBEW) or other unions. While we have labor contracts in
place with these unions, with subsequent negotiations we have in the past and
could in the future incur additional costs and/or experience work stoppages,
which could adversely affect our business operations.
We may not realize or sustain the expected benefits from acquisitions, joint
ventures or our business transformation initiatives, including dispositions,
which could have a material adverse effect on our business, operations,
financial condition, results of operations and competitive position.
We have been and will be undertaking certain transformation initiatives and
investments, which are designed to reduce costs, enable legacy
rationalization, streamline and modernize distribution and customer service,
improve our products and services, remove redundancies and simplify and
improve processes and support functions. Our focus is on supporting added
customer value with an improved customer experience. We intend for these
efficiencies to enable increased investments in our strategic areas of focus,
which include improving broadband connectivity (for example, fiber and 5G). We
also expect these initiatives to drive efficiencies and improved margins. If
we do not successfully manage and timely execute these initiatives and
investments, which may include acquisitions, joint ventures, particularly
those aimed at enhancing our fiber serviceable locations, and other strategic
transactions, or if they are inadequate or ineffective, we may fail to meet
our financial goals and achieve anticipated benefits, improvements may be
delayed, not sustained or not realized, and our business, operations and
competitive position could be adversely affected. In addition, any such
initiative or investment entails certain risks and could present financial,
managerial and operational challenges. Further, we are using and intend to
further use AI-driven efficiencies in our network design and operations,
software development, sales, marketing, customer support services and general
and administrative costs. The models used in those products or operations,
particularly generative AI models, may produce output or take action that is
incorrect, release private or confidential information, reflect biases
included in the data on which they are trained, infringe on the intellectual
property rights of others, or be otherwise harmful. AI-related laws and
regulations continue to remain uncertain and may vary from jurisdiction to
jurisdiction. There can be no assurance that the usage of AI will meaningfully
enhance our
11
AT&T Inc.
Dollars in millions except per share amounts
products or operations, and any of these risks could expose us to liability or
adverse legal or regulatory consequences and harm our reputation and the
public perception of our business or the effectiveness of our security
measures.
Unfavorable litigation or governmental investigation results could require us
to pay significant amounts or lead to onerous operating procedures.
We are subject to a number of lawsuits both in the United States and in
foreign countries, including, at any particular time, claims relating to
antitrust, patent infringement, wage and hour, personal injury, environmental,
customer data and privacy violations, cyberattacks, regulatory proceedings,
breach of contract, and selling and collection practices. We also spend
substantial resources complying with various government standards, which may
entail related investigations and litigation. In the wireless and wireline
area, we also face current and potential litigation relating to alleged
adverse health effects on customers or employees who use such technologies
including, for example, wireless devices. We may incur significant expenses
defending such suits or government charges and may be subject to injunctions
or required to pay amounts or otherwise change our operations in ways that
could materially adversely affect our operations or financial results.
Cyberattacks impacting our networks, systems or data or those of our suppliers
or vendors may have a material adverse effect on our operations or results of
operations.
Cyberattacks - including through the use of malware, computer viruses,
distributed denial of services attacks, ransomware attacks, credential
harvesting, social engineering and other means for obtaining unauthorized
access to or disrupting the operation of our networks and systems or accessing
our data and those of our suppliers, vendors and other service providers -
could have a material adverse effect on our operations or results of
operations. As a critical infrastructure service provider, we believe that we
are a particularly attractive target for such cyberattacks, including from
nation states and highly sophisticated, state-sponsored, or otherwise
well-funded actors, and we experience heightened risk from time to time as a
result of geopolitical events.
Cyberattacks have caused, and may in the future cause, equipment or network
failures, copying or loss of information, including sensitive personal
information of customers or employees or proprietary information, as well as
disruptions to our or our customers', suppliers' or vendors' operations, which
have and in the future could result in significant expenses, potential
investigations and legal liability, a loss of current or future customers and
reputational damage. Additional resources and management attention may be
necessary to respond to government inquiries and requirements, including
potentially conflicting demands and requirements from multiple government
agencies. Moreover, the amount and scope of insurance that we maintain against
losses resulting from any such events or security breaches may not be
sufficient to cover our losses or otherwise adequately compensate us for any
disruptions to our business that may result. As our networks evolve, they are
becoming increasingly reliant on software and cloud technologies to handle
growing demands for data consumption. Cyberattacks against us and our
suppliers and vendors have occurred in the past, including from highly
sophisticated, state-sponsored actors as noted above, and will continue to
occur in the future and are increasing in frequency, scope and potential harm
over time. For example, in July 2024, we disclosed a cybersecurity incident on
Item 1.05 of Form 8-K relating to the copying of mobile customer call data.
Due to the complexity and interconnectedness of our systems and those of our
suppliers, vendors and other service providers, the process of enhancing our
protective measures can itself create a risk of systems disruptions and
security issues. Further, the use of artificial intelligence and machine
learning by cybercriminals may increase the frequency and severity of
cybersecurity attacks against us or our suppliers, vendors and other service
providers. In addition, despite our efforts to detect unlawful intrusions, an
attack may persist for an extended period of time before being detected, and,
following detection, it may take considerable time for us to obtain sufficient
information about the nature, scope and timing of the incident as well as the
impact or reasonably likely impact on us. Indeed, as cyberattacks become
increasingly sophisticated, a post-attack investigation may not be able to
ascertain the entire scope of the attack's impact.
Extensive and costly efforts are undertaken to develop and test systems before
deployment and to conduct ongoing monitoring and updating to prevent and
withstand such attacks. While we may have contractual rights to assess the
effectiveness of many of our suppliers' and vendors' systems and protocols, we
cannot know or assess the effectiveness of all of our providers' systems and
controls at all times. While, to date, we have not been subject to a
cyberattack that has had a material adverse effect on our operations or
results of operations, the preventive actions we take, or our suppliers or
vendors take, to reduce the risks associated with cyberattacks may be
insufficient to repel or mitigate the effects of a major cyberattack in the
future.
Natural disasters, extreme weather conditions or terrorist or other hostile
acts could cause damage to our infrastructure and result in significant
disruptions to our operations.
Our business operations could be subject to interruption by equipment or
network failures caused by human error, system failures, unauthorized access
to our network and critical infrastructure, power outages, terrorist or other
hostile acts, including acts of war, and natural disasters, such as flooding,
hurricanes and forest fires. Such events could cause significant damage to the
infrastructure upon which our business operations rely, resulting in
degradation or disruption of service to our customers, as well as significant
recovery time and expenditures to resume operations. Our system redundancy and
other measures we take to
12
AT&T Inc.
Dollars in millions except per share amounts
protect our infrastructure and operations from the impacts of such events may
be ineffective or inadequate to sustain our operations through all such
events. Any of these occurrences could result in lost revenues from business
interruption, damage to our reputation and reduced profits.
Increases in our debt levels to fund spectrum purchases, or other strategic
decisions could adversely affect our ability to finance future debt at
attractive rates and reduce our ability to respond to competition and adverse
economic trends.
We intend to and have incurred debt to fund significant acquisitions, as well
as spectrum purchases needed to compete in our industry. While we believe such
decisions were prudent and necessary to take advantage of both growth
opportunities and respond to industry developments, we did experience credit
rating downgrades from historical levels. Banks and potential purchasers of
our publicly traded debt may decide that these strategic decisions and similar
actions we may take in the future, as well as expected trends in the industry,
will continue to increase the risk of investing in our debt and may demand a
higher rate of interest, impose restrictive covenants or otherwise limit the
amount of potential borrowing. Additionally, our capital allocation plan is
focused on, among other things, managing our debt level. Any failure to
successfully execute this plan could adversely affect our cost of funds,
liquidity, competitive position and access to capital markets.
Our business may be impacted by changes in tax laws and regulations, judicial
interpretations of the same or administrative actions by federal, state, local
and foreign taxing authorities.
Tax laws are dynamic and subject to change as new laws are passed and new
interpretations of the law are issued or applied. In many cases, the
application of existing, newly enacted or amended tax laws may be uncertain
and subject to differing interpretations, especially when evaluated against
ever-changing products and services provided by our global telecommunications
and technology businesses. In addition, tax legislation has been introduced or
is being considered in various jurisdictions that could significantly impact
our tax rate, tax liabilities and carrying value of deferred tax assets or
deferred tax liabilities. Any of these changes could materially impact our
financial performance and our tax provision, net income and cash flows.
We are also subject to ongoing examinations by taxing authorities in various
jurisdictions. Although we regularly assess the likelihood of an adverse
outcome resulting from these examinations to determine the adequacy of
provisions for taxes, there can be no assurance as to the outcome of these
examinations. In the event that we have not accurately or fully described,
disclosed or determined, calculated or remitted amounts that were due to
taxing authorities or if the ultimate determination of our taxes owed is for
an amount in excess of amounts previously accrued, we could be subject to
additional taxes, penalties and interest, which could materially impact our
business, financial condition and operating results.
13
AT&T Inc.
Dollars in millions except per share amounts
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this report contains forward-looking statements that
are subject to risks and uncertainties, and actual results could differ
materially. Many of these factors are discussed in more detail in the "Risk
Factors" section. We claim the protection of the safe harbor for
forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995.
The following factors could cause our future results to differ materially from
those expressed in the forward-looking statements:
•Adverse economic and political changes, public health emergencies and our
ability to access financial markets on favorable terms.
•Increases in our benefit plans' costs, including due to worse-than-assumed
investment returns and discount rates, mortality assumptions, medical cost
trends, or healthcare laws or regulations.
•The final outcome of FCC and other federal, state or foreign government
agency proceedings (including judicial review of such proceedings) and
legislative and regulatory efforts involving issues important to our business,
including, without limitation, results of pending governmental investigations;
the transition from legacy technologies to IP-based infrastructure, including
the withdrawal of legacy TDM-based services; universal service; broadband
deployment; wireless equipment siting regulations; E911 services; rules
concerning digital discrimination; competition policy; privacy; net
neutrality; copyright protection; availability of new spectrum on fair and
reasonable terms; and wireless and satellite license awards and renewals, and
our response to such legislative and regulatory efforts.
•Enactment of or changes to state, local, federal and/or foreign tax laws
and regulations, and actions by tax agencies and judicial authorities, and the
resolution of disputes with any taxing jurisdictions.
•U.S. and foreign laws and regulations regarding intellectual property
rights protection and privacy, personal data protection and user consent.
•Our ability to compete in a competitive industry and against competitors
that can offer product/service offerings at lower prices due to lower cost
structures and regulatory and legislative actions adverse to us, including
non-regulation of comparable alternative technologies and/or government-owned
or subsidized networks, and our response to such competition and emerging
technologies, including artificial intelligence.
•Disruptions in our supply chain that have a material impact on our ability
to acquire needed goods and services.
•The development and delivery of attractive and profitable wireless and
broadband offerings and devices, including our ability to match speeds offered
by competitors; and the availability, cost and/or reliability of technologies
required to provide such offerings.
•Our ability to adequately fund additional wireless spectrum and network
development, deployment and maintenance; and regulations and conditions
relating to spectrum use, licensing, obtaining additional spectrum, technical
standards and deployment and usage, including network management rules.
•Our ability to manage growth in wireless data services, including network
quality.
•The outcome of pending, threatened or potential litigation and arbitration.
•The impact from major equipment, software or other failures or errors that
disrupt our networks or cyber incidents; the effect of security breaches
related to the network or customer information; our inability to obtain
handsets, equipment/software or have handsets, equipment/software serviced in
a timely and cost-effective manner; severe weather conditions or other natural
disasters including earthquakes and forest fires; public health emergencies;
energy shortages; or wars or terrorist attacks.
•The issuance by the FASB or other accounting oversight bodies of new or
revised accounting standards.
•The imposition of tariffs and their duration and uncertainty surrounding
further tariffs and congressional action regarding spending and taxation,
which may result in changes in government spending and affect business and
consumer spending trends.
•Our ability to realize or sustain the expected benefits of our business
transformation initiatives, which are designed to reduce costs, enable legacy
rationalization, streamline distribution, remove redundancies and simplify and
improve processes and support functions.
•Our ability to successfully complete acquisitions, divestitures and joint
venture transactions, as well as achieve our expectations regarding the
financial impact of completed and/or pending transactions.
Readers are cautioned that other factors discussed in this report, although
not enumerated here, also could materially affect our future earnings.
14
AT&T Inc.
Dollars in millions except per share amounts
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 1C. CYBERSECURITY
Governance
Board and Audit Committee Oversight
Our Board of Directors has delegated to the Audit Committee the oversight
responsibility to review and discuss with management the Company's privacy and
data security, including cybersecurity, risk exposures, policies and
practices, and the steps management has taken to detect, monitor and control
such risks and the potential impact of those exposures on our business,
financial results, operations and reputation. The full Board and Audit
Committee regularly receive reports and presentations on privacy and data
security, which address relevant cybersecurity issues and risks and span a
wide range of topics. These reports and presentations are provided by officers
with responsibility for privacy and data security, who include our Chief
Information Security Officer (CISO), Chief Technology Officer (CTO) and
AT&T's Legal team. In addition to regular reports to the Audit Committee,
we have protocols by which certain security incidents are escalated within the
Company and, where appropriate, reported in a timely manner to the Audit
Committee.
Chief Security Office/CISO
We maintain a Chief Security Office (CSO), which is charged with
management-level responsibility for all aspects of network and information
security within the Company. Led by our CISO and comprised of a large team of
highly trained security professionals across multiple countries, the CSO is
responsible for:
a.establishing the policies, standards and requirements for the security of
AT&T's computing and network environments;
b.protecting AT&T-owned and -managed assets and resources against
unauthorized access by monitoring potential security threats, correlating
network events and overseeing the execution of corrective actions;
c.promoting compliance with AT&T's security policies and network and
information security program in a consistent manner on network systems and
applications; and
d.providing security thought leadership in the global security arena.
Our CISO plays the key management role in assessing and managing our material
risks from cybersecurity threats. The CISO also works closely with AT&T
Legal to oversee compliance with legal, regulatory and contractual security
requirements. The CISO has extensive technical leadership experience and
cybersecurity expertise, gained from over 20 years of experience, including
serving as the Chief Information Security Officer and Director of the Office
of Cybersecurity at a U.S. government agency, in addition to serving as the
Chief Information Security Officer of two large public companies. Prior to
that, he served for 20 years in the U.S. military, in various information
technology roles of increasing seniority. The security professionals in the
CSO have cybersecurity backgrounds and expertise relevant to their roles,
including, in certain circumstances, relevant industry certifications.
Risk Management and Strategy
We maintain a network and information security program that is reasonably
designed to protect our information, and that of our customers, from
unauthorized risks to their confidentiality, integrity or availability. Our
program encompasses the CSO and its policies, platforms, procedures and
processes for assessing, identifying and managing risks from cybersecurity
threats, including third-party risk from vendors and suppliers. The program is
integrated into our overall risk management framework and is generally
designed to identify and respond to security incidents and threats in a timely
manner to minimize the loss or compromise of information assets and to
facilitate incident resolution.
We maintain continuous and near-real-time security monitoring of the AT&T
network for investigation, action and response to network security events.
This security monitoring leverages tools, where available, such as
near-real-time data correlation, situational awareness reporting, active
incident investigation, case management, trend analysis and predictive
security alerting. We assess, identify and manage risks from cybersecurity
threats through various mechanisms, which from time to time may include
tabletop exercises to test our preparedness and incident response process,
business unit assessments, control gap analyses, threat modeling, impact
analyses, internal audits, external audits, penetration tests and engaging
third parties to conduct analyses of our information security program. When
circumstances warrant, we also retain external cybersecurity experts to assist
the CSO. We conduct vulnerability testing and assess identified
vulnerabilities for severity, the potential impact to AT&T and our
customers, and likelihood of occurrence. We regularly evaluate security
controls to maintain their functionality in accordance with security policy.
We also obtain cybersecurity threat intelligence from recognized forums, third
parties and other sources as part of our risk assessment process. In addition,
as a critical infrastructure entity, we collaborate
15
AT&T Inc.
Dollars in millions except per share amounts
with numerous agencies in the U.S. government to help protect U.S.
communications networks and critical infrastructure, which, in turn, informs
our cybersecurity threat intelligence.
With respect to incident response, the Company has adopted a Cybersecurity
Incident Response Plan, as well as a Data Privacy Incident Response Plan that
applies if customer information has been compromised (together, the "IRPs"),
to provide a common framework for responding to security incidents. This
framework establishes procedures for identifying, validating, categorizing,
documenting and responding to security events that are identified by or
reported to the CSO. The IRPs apply to all AT&T personnel (including
contractors and partners) that perform functions or services that require
securing AT&T information and computing assets, and to all devices and
network services that are owned or managed by the Company.
The IRPs set out a coordinated, multi-functional approach for investigating,
containing and mitigating incidents, including reporting findings to senior
management and other key stakeholders and keeping them informed and involved
as appropriate. In general, our incident response process follows the NIST
(National Institute of Standards and Technology) framework and focuses on four
phases: preparation; detection and analysis; containment, eradication and
recovery; and post-incident remediation.
Impact of Cybersecurity Risk
In 2025, we did not identify and were not aware of any risks from
cybersecurity threats, including as a result of any previous cybersecurity
incidents, that we believe have materially affected or are reasonably likely
to materially affect our business strategy, results of operations or financial
condition. For a discussion of cybersecurity risk, please see the information
contained under the heading "Cyberattacks impacting our networks, systems or
data or those of our suppliers or vendors may have a material adverse effect
on our operations or results of operations" of Item 1A.
ITEM 2. PROPERTIES
Our properties do not lend themselves to description by character and location
of principal units. At December 31, 2025, of our total property, plant and
equipment, outside plant (including cable, wiring and other non-central office
network equipment) represented 29%; other equipment, comprised principally of
wireless network equipment attached to towers, furniture and office equipment
and vehicles and other work equipment, represented 26%; central office
equipment represented 25%; land, building and wireless communications towers
represented 12%; and other miscellaneous property represented 8%.
For our Communications segment, substantially all of the installations of
central office equipment are located in buildings and on land we own. Many
garages, administrative and business offices, wireless towers, telephone
centers and retail stores are leased. Property on which communications towers
are located may be either owned or leased.
ITEM 3. LEGAL PROCEEDINGS
We are a party to numerous lawsuits, regulatory proceedings and other matters
arising in the ordinary course of business. As of the date of this report, we
do not believe any pending legal proceedings to which we or our subsidiaries
are subject are required to be disclosed as material legal proceedings
pursuant to this item.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
16
AT&T Inc.
Dollars in millions except per share amounts
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
As of February 1, 2026
Name Age Position Held Since
John T. Stankey 63 Chairman of the Board, Chief Executive Officer and President 2/2025
Darcie (Henry) Cakaric 54 Senior Executive Vice President and Chief Human Resources Officer 10/2025
Pascal Desroches 61 Senior Executive Vice President and Chief Financial Officer 4/2021
Edward W. Gillespie 64 Senior Executive Vice President - External and Legislative Affairs, AT&T 4/2020
Services, Inc.
Kellyn S. Kenny 48 Chief Marketing and Growth Officer 5/2022
Lori M. Lee 60 Global Marketing Officer and Senior Executive Vice President - International 12/2022
Jeremy Legg 56 Chief Technology Officer, AT&T Services, Inc. 5/2022
David R. McAtee II 57 Senior Executive Vice President and General Counsel 10/2015
Jeffery S. McElfresh 55 Chief Operating Officer 5/2022
The above executive officers have held high-level managerial positions with
AT&T or its subsidiaries for more than the past five years, except for Ms.
Cakaric. Executive officers are not appointed to a fixed term of office.
Ms. Cakaric was previously Chief People Officer of StackAdapt from July 2024
to October 2025, Chief People Officer of Flexport from September 2023 to July
2024, Chief People Officer of Snap from October 2022 to September 2023, Chief
Human Resources Officer of Amazon.com from July 2021 to October 2022 and Vice
President of Human Resources of Amazon.com from June 2016 to June 2021.
17
AT&T Inc.
Dollars in millions except per share amounts
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is listed on the New York Stock Exchange and NYSE Texas under
the ticker symbol "T". The number of stockholders of record as of
December 31, 2025 and 2024 was 671,341 and 712,700. The number of
stockholders of record as of January 28, 2026, was 668,838. We declared
dividends on common stock, on a quarterly basis, totaling $1.11 per share in
2025 and 2024.
18
AT&T Inc.
Dollars in millions except per share amounts
A summary of our repurchases of common stock during the fourth quarter of 2025
is as follows:
ISSUER PURCHASES OF EQUITY SECURITIES
(a) (b) (c) (d)
Period Total Number of Average Price Paid Per Share (or Unit) Total Number of Shares (or Units) Purchased Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet
Be Purchased Under The Plans or Programs1
Shares (or Units) Purchased1,2 as Part of Publicly Announced Plans or Programs1
October 1, 2025 -
October 31, 2025 25,877,433 $ 26.09 25,875,113 $ 6,881
November 1, 2025 -
November 30, 2025 20,730,081 $ 25.23 20,700,000 $ 6,359
December 1, 2025 -
December 31, 2025 25,622,121 $ 24.70 25,421,711 $ 5,731
Total 72,229,635 $ 25.35 71,996,824
1 In December 2024, our Board of Directors approved, and we announced, an
authorization to repurchase up to $10,000 of common stock (the "2024
Authorization"). Amounts in Column (d) represent amounts remaining under the
2024 Authorization. In January 2026, our Board of Directors approved, and we
announced, an authorization to repurchase an additional $10,000 of common
stock. The authorizations have no expiration date.
2 Of the shares purchased, 232,811 shares were acquired through the
withholding of taxes on the vesting of restricted stock and performance shares
or in respect of the exercise price of options.
ITEM 6. RESERVED
19
AT&T Inc.
Dollars in millions except per share amounts
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
AT&T Inc. is referred to as "we," "AT&T" or the "Company" throughout
this document. AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not
by AT&T Inc., and the names of the particular subsidiaries and affiliates
providing the services generally have been omitted. AT&T is a holding
company whose subsidiaries and affiliates operate worldwide in the
telecommunications and technology industries. You should read this discussion
in conjunction with the consolidated financial statements and accompanying
notes (Notes).
Our Management's Discussion and Analysis of Financial Condition and Results of
Operations included in this document generally discusses 2025 and 2024 items
and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items
and year-to-year comparisons between 2024 and 2023 that are not included in
this document can be found in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in Part II, Item 7 of our
Annual Report on Form 10‑K for the fiscal year ended December 31, 2024.
We have two reportable segments: Communications and Latin America. Our segment
results presented in Note 4 and discussed below follow our internal management
reporting. Each segment's percentage calculation of total segment operating
revenue is derived from our segment results table in Note 4. Segment operating
income is primarily attributable to our Communications segment due to
prior-years operating losses in Latin America. Percentage increases and
decreases that are not considered meaningful are denoted with a dash.
Percent Change
2025 2024 2023 2025 vs. 2024 2024 vs. 2023
Operating Revenues
Communications $ 120,896 $ 117,652 $ 118,038 2.8 % (0.3) %
Latin America 4,379 4,232 3,932 3.5 7.6
Corporate 373 452 458 (17.5) (1.3)
AT&T Operating Revenues $ 125,648 $ 122,336 $ 122,428 2.7 % (0.1) %
Operating Income (Loss)
Communications $ 27,927 $ 27,095 $ 27,801 3.1 % (2.5) %
Latin America 145 40 (141) - -
Segment Operating Income 28,072 27,135 27,660 3.5 (1.9)
Corporate (2,559) (2,902) (2,961) 11.8 2.0
Certain significant items (1,351) (5,184) (1,238) 73.9 -
AT&T Operating Income $ 24,162 $ 19,049 $ 23,461 26.8 % (18.8) %
The Communications segment accounted for approximately 97% of our 2025 and
2024 total segment operating revenues and accounted for substantially all
segment operating income in 2025 and 2024. This segment provides services to
businesses and consumers located in the United States and businesses globally.
Our business strategies reflect integrated product offerings that cut across
product lines and utilize shared assets. This segment contains the following
business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, fixed
wireless services, IP Voice and managed professional services, as well as
legacy voice and data services and related equipment, to business customers.
•Consumer Wireline provides broadband services, including fiber connections
that provide multi-gig services, and AT&T Internet Air (AIA) services, to
residential customers in select locations. Consumer Wireline also provides
legacy telephony voice communication services.
The Latin America segment accounted for approximately 3% of our 2025 and 2024
total segment operating revenues and less than 1% of segment operating income
in 2025 and 2024. This segment provides wireless service and equipment in
Mexico.
20
AT&T Inc.
Dollars in millions except per share amounts
RESULTS OF OPERATIONS
Consolidated Results Our financial results are summarized in the following
table. We then discuss factors affecting our overall results. Additional
analysis is discussed in our "Segment Results" section. We also discuss our
expected revenue and expense trends for 2026 in the "Operating Environment and
Trends of the Business" section.
Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Operating revenues
Service $ 101,158 $ 100,135 $ 99,649 1.0 % 0.5 %
Equipment 24,490 22,201 22,779 10.3 (2.5)
Total Operating Revenues 125,648 122,336 122,428 2.7 (0.1)
Operating expenses
Operations and support 79,762 77,632 78,997 2.7 (1.7)
Asset impairments and abandonments 838 5,075 1,193 (83.5) -
and restructuring
Depreciation and amortization 20,886 20,580 18,777 1.5 9.6
Total Operating Expenses 101,486 103,287 98,967 (1.7) 4.4
Operating Income 24,162 19,049 23,461 26.8 (18.8)
Interest expense 6,804 6,759 6,704 0.7 0.8
Equity in net income of affiliates 1,895 1,989 1,675 (4.7) 18.7
Other income (expense) - net 7,754 2,419 1,416 - 70.8
Income Before Income Taxes 27,007 16,698 19,848 61.7 (15.9)
Net Income 23,386 12,253 15,623 90.9 (21.6)
Net Income Attributable to AT&T 21,953 10,948 14,400 - (24.0)
Net Income Attributable to Common Stock $ 21,889 $ 10,746 $ 14,192 - % (24.3) %
OVERVIEW
Operating revenues increased in 2025, reflecting higher Mobility and Consumer
Wireline revenues, partially offset by declines in Business Wireline.
Operating revenues in Mexico were also higher, overcoming unfavorable foreign
exchange impacts during the first half of 2025.
Operations and support expenses increased in 2025, reflecting higher sales
volumes in our Mobility business unit, which drove higher equipment,
advertising, selling and bad debt expenses. Also contributing to higher costs
were approximately $440 of apportioned legal settlements during 2025, higher
network-related expenses and advertising costs due to the launch of a new
campaign in 2025. Increases were partially offset by declines from our
continued transformation efforts and lower content licensing fees.
Asset impairments and abandonments and restructuring decreased in 2025, with
higher impairments in 2024. Noncash charges in 2024 primarily related to a
goodwill impairment charge of $4,422 associated with our Business Wireline
reporting unit as well as restructuring charges, including termination fees
associated with our network modernization program to deploy commercial scale
open radio access network (Open RAN). Expenses in 2025 primarily relate to
restructuring severance charges.
Depreciation and amortization expense increased in 2025, primarily due to
ongoing capital spending for strategic initiatives such as fiber and network
upgrades, partially offset by lower depreciation from fully depreciated legacy
assets and impacts from our Open RAN network modernization efforts.
Operating income increased in 2025 and decreased in 2024. Our operating margin
was 19.2% in 2025, compared to 15.6% in 2024, and 19.2% in 2023.
Interest expense increased in 2025, primarily due to lower capitalized
interest associated with spectrum acquisitions. The increase was partially
offset by lower average commercial paper balances.
21
AT&T Inc.
Dollars in millions except per share amounts
Equity in net income of affiliates decreased in 2025, reflecting our sale of
DIRECTV in July 2025. The decrease was partially offset by cash distributions
received by AT&T in excess of the carrying amount of our investment in
DIRECTV prior to disposition (see Notes 10 and 19).
Other income (expense) - net increased in 2025. The increase was primarily due
to a gain of approximately $5,600 recognized on the sale of our interest in
DIRECTV (see Note 10). The increase was also driven by a gain on a prior
disposition and noncash impairment charges for a held-for-sale business and
our SKY Mexico equity investment. Partially offsetting the increases were
lower pension and postretirement benefit credits and lower returns on other
benefit-related investments.
Income tax expense decreased in 2025, primarily due to a lower effective tax
rate driven by a tax-free gain on sale of DIRECTV in 2025 and a goodwill
impairment in 2024, which is not deductible for tax purposes.
Our effective tax rate was 13.4% in 2025, 26.6% in 2024, and 21.3% in 2023,
reflecting the nonrecognition of income taxes on the DIRECTV gain and larger
discrete tax benefits in 2025, and the goodwill impairment in 2024, which was
not deductible for tax purposes.
Segment Results Our segments are comprised of strategic business units or
other operations that offer products and services to different customer
segments over various technology platforms and/or in different geographies
that are managed accordingly. We evaluate segment performance based on
operating income as well as EBITDA and/or EBITDA margin. See "Discussion and
Reconciliation of Non-GAAP Measures" for a reconciliation of EBITDA and EBITDA
margin to the most comparable financial measures calculated and presented in
accordance with U.S. generally accepted accounting principles (GAAP).
COMMUNICATIONS SEGMENT Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Segment Operating Revenues
Mobility $ 89,482 $ 85,255 $ 83,982 5.0 % 1.5 %
Business Wireline 17,231 18,819 20,883 (8.4) (9.9)
Consumer Wireline 14,183 13,578 13,173 4.5 3.1
Total Segment Operating Revenues $ 120,896 $ 117,652 $ 118,038 2.8 % (0.3) %
Segment Operating Income (Loss)
Mobility $ 27,196 $ 26,314 $ 25,861 3.4 % 1.8 %
Business Wireline (816) (88) 1,289 - -
Consumer Wireline 1,547 869 651 78.0 33.5
Total Segment Operating Income $ 27,927 $ 27,095 $ 27,801 3.1 % (2.5) %
Operating revenues increased in 2025, driven by increases in Mobility service
revenue and our Consumer Wireline business unit, driven by gains in wireless
and broadband services. Partially offsetting these increases were declines in
our Business Wireline business unit, which reflects lower demand for legacy
services.
Operating income increased in 2025 and decreased in 2024. The 2025 operating
income reflects an increase in operating income from our Mobility and Consumer
Wireline business units, partially offset by a decrease in our Business
Wireline business unit. Our Communications segment operating income margin was
23.1% in 2025, 23.0% in 2024 and 23.6% in 2023. Our Communications segment
EBITDA margin was 39.6% in 2025, 39.5% in 2024 and 38.3% in 2023.
22
AT&T Inc.
Dollars in millions except per share amounts
Communications Business Unit Discussion
Mobility Results
Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Operating revenues
Service $ 67,384 $ 65,373 $ 63,175 3.1 % 3.5 %
Equipment 22,098 19,882 20,807 11.1 (4.4)
Total Operating Revenues 89,482 85,255 83,982 5.0 1.5
Operating expenses
Operations and support 51,864 48,724 49,604 6.4 (1.8)
Depreciation and amortization 10,422 10,217 8,517 2.0 20.0
Total Operating Expenses 62,286 58,941 58,121 5.7 1.4
Operating Income $ 27,196 $ 26,314 $ 25,861 3.4 % 1.8 %
The following tables highlight other key measures of performance for Mobility:
Subscribers
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Postpaid 90,879 89,200 87,104 1.9 % 2.4 %
Postpaid phone 74,214 72,749 71,255 2.0 2.1
Prepaid 18,294 19,023 19,236 (3.8) (1.1)
Reseller 10,932 9,628 7,468 13.5 28.9
Total Mobility Subscribers1 120,105 117,851 113,808 1.9 % 3.6 %
1Wireless subscribers and net additions exclude customers with free lines
provided under promotional pricing until such lines are converted to paying
lines.
Mobility Net Additions
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Postpaid Phone Net Additions 1,551 1,653 1,744 (6.2) % (5.2) %
Total Phone Net Additions 1,159 1,525 1,801 (24.0) (15.3)
Postpaid1 1,738 2,250 2,315 (22.8) (2.8)
Prepaid (536) (102) 128 - -
Reseller 1,112 2,020 1,279 (45.0) 57.9
Mobility Net Subscriber Additions2,3 2,314 4,168 3,722 (44.5) % 12.0 %
Postpaid Churn4 1.05 % 0.92 % 0.98 % 13 BP (6) BP
Postpaid Phone Churn4 0.90 % 0.76 % 0.81 % 14 BP (5) BP
1In addition to postpaid phones, includes tablets and wearables and other.
Tablet net adds (losses) were 143, 167 and (68) for the years ended December
31, 2025, 2024 and 2023, respectively. Wearables and other net adds were 44,
430 and 639 for the years ended December 31, 2025, 2024 and 2023,
respectively.
2Excludes migrations between wireless subscriber categories, including
connected devices, and acquisition-related activity during the period.
3Wireless subscribers and net additions exclude customers with free lines
provided under promotional pricing until such lines are converted to paying
lines.
4Calculated 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.
23
AT&T Inc.
Dollars in millions except per share amounts
Service revenue increased during 2025, largely due to growth from subscriber
gains, partially offset by promotional activity.
ARPU
Postpaid ARPU increased in 2025 reflecting pricing actions that were largely
offset by increased promotional activity, growth in our converged customer
relationships, and our success in attracting customers in underpenetrated
segments with lower ARPUs but attractive lifetime values, such as age 55-plus
in our "value customers."
Churn
The effective management of subscriber churn is critical to our ability to
maximize revenue growth and to maintain and improve margins. Postpaid churn
and postpaid phone churn were higher in 2025, partially driven by an increase
in our customer base that reached the end of device financing periods, which
normalized in the second half of 2025.
Equipment revenue increased in 2025, primarily driven by higher wireless
device sales volumes.
Operations and support expenses increased in 2025, primarily due to higher
sales volumes, which drove higher equipment, advertising, selling and bad debt
expenses. The increase also reflected higher advertising due to the launch of
a new campaign, and higher network costs that were partially offset by lower
content licensing fees and expense declines from transformation efforts.
Depreciation expense increased in 2025, primarily due to ongoing capital
spending for network upgrades and expansion, partially offset by lower
depreciation impacts from our network modernization efforts.
Operating income increased in 2025 and 2024. Our Mobility operating income
margin was 30.4% in 2025, 30.9% in 2024 and 30.8% in 2023. Our Mobility EBITDA
margin was 42.0% in 2025, 42.8% in 2024 and 40.9% in 2023.
Business Wireline Results
Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Operating revenues
Legacy and other transitional services $ 9,170 $ 11,095 $ 13,680 (17.4) % (18.9) %
Fiber and advanced connectivity 7,333 6,969 6,594 5.2 5.7
services
Equipment 728 755 609 (3.6) 24.0
Total Operating Revenues 17,231 18,819 20,883 (8.4) (9.9)
Operating expenses
Operations and support 12,213 13,352 14,217 (8.5) (6.1)
Depreciation and amortization 5,834 5,555 5,377 5.0 3.3
Total Operating Expenses 18,047 18,907 19,594 (4.5) (3.5)
Operating Income (Loss) $ (816) $ (88) $ 1,289 - % - %
Legacy and other transitional services revenues decreased in 2025, driven by
lower demand for legacy and VPN services, which we expect to continue as we
decommission our copper-based legacy network. These revenue declines were
partially offset by targeted pricing actions in the first quarter of 2025.
Fiber and advanced connectivity services revenues increased in 2025, driven by
higher fiber and fixed wireless revenues.
Equipment revenues decreased in 2025, driven by lower customer premises
equipment sales, which can vary from year to year based on the nature of
services purchased.
Operations and support expenses decreased in 2025, primarily driven by lower
personnel and customer support costs associated with ongoing transformation
initiatives. Expense declines also include lower network and advertising
costs.
Depreciation expense increased in 2025, primarily due to ongoing capital
investment for strategic initiatives such as fiber, partially offset by fully
depreciated legacy assets.
24
AT&T Inc.
Dollars in millions except per share amounts
Operating income decreased in 2025 and 2024. Our Business Wireline operating
income margin was (4.7)% in 2025, (0.5)% in 2024 and 6.2% in 2023. Our
Business Wireline EBITDA margin was 29.1% in 2025, 29.1% in 2024 and 31.9% in
2023.
Consumer Wireline Results
Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Operating revenues
Broadband $ 12,187 $ 11,212 $ 10,455 8.7 % 7.2 %
Legacy voice and data services 1,013 1,265 1,508 (19.9) (16.1)
Other service and equipment 983 1,101 1,210 (10.7) (9.0)
Total Operating Revenues 14,183 13,578 13,173 4.5 3.1
Operating expenses
Operations and support 8,933 9,048 9,053 (1.3) (0.1)
Depreciation and amortization 3,703 3,661 3,469 1.1 5.5
Total Operating Expenses 12,636 12,709 12,522 (0.6) 1.5
Operating Income $ 1,547 $ 869 $ 651 78.0 % 33.5 %
The following tables highlight other key measures of performance for Consumer
Wireline:
Broadband Connections
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Broadband1 14,704 13,987 13,729 5.1 % 1.9 %
Fiber Broadband Connections 10,406 9,331 8,307 11.5 % 12.3 %
1Includes AIA.
Broadband Net Additions
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Broadband Net Additions1,2 729 258 (24) - % - %
Fiber Broadband Net Additions 1,075 1,024 1,092 5.0 % (6.2) %
1Includes AIA.
2Excludes the impact of customer disconnections resulting from the termination
of AIA services in areas with unfavorable regulatory requirements in the first
quarter of 2025.
Broadband revenues increased in 2025, driven by an increase in fiber revenues
of 17.0%. Higher fiber revenues reflect an increase in fiber customers, which
we expect to continue as we invest further in building our fiber footprint,
and higher ARPU. This increase also includes growth in AIA revenues and was
partially offset by declines in copper-based broadband services.
Legacy voice and data service revenues decreased in 2025, reflecting the
continued decline in demand for these services in favor of other technologies,
such as wireless and fiber services.
Other service and equipment revenues decreased in 2025, reflecting the
continued decline in the number of VoIP customers.
Operations and support expenses decreased in 2025, driven by lower customer
support costs and content licensing fees, offset by higher network-related
expenses and marketing costs.
Depreciation expense increased in 2025, primarily due to ongoing capital
spending for strategic initiatives such as fiber and network upgrades and
expansion, partially offset by fully depreciated legacy assets.
Operating income increased in 2025 and 2024. Our Consumer Wireline operating
income margin was 10.9% in 2025, 6.4% in 2024 and 4.9% in 2023. Our Consumer
Wireline EBITDA margin was 37.0% in 2025, 33.4% in 2024 and 31.3% in 2023.
25
AT&T Inc.
Dollars in millions except per share amounts
LATIN AMERICA SEGMENT Percent Change
2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Segment Operating revenues
Service $ 2,715 $ 2,668 $ 2,569 1.8 % 3.9 %
Equipment 1,664 1,564 1,363 6.4 14.7
Total Segment Operating Revenues 4,379 4,232 3,932 3.5 7.6
Segment Operating expenses
Operations and support 3,563 3,535 3,349 0.8 5.6
Depreciation and amortization 671 657 724 2.1 (9.3)
Total Segment Operating Expenses 4,234 4,192 4,073 1.0 2.9
Operating Income (Loss) $ 145 $ 40 $ (141) - % - %
The following tables highlight other key measures of performance for Mexico:
Subscribers
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Postpaid 6,751 5,837 5,236 15.7 % 11.5 %
Prepaid 17,730 17,486 16,663 1.4 4.9
Reseller 199 253 417 (21.3) (39.3)
Mexico Wireless Subscribers 24,680 23,576 22,316 4.7 % 5.6 %
Mexico Wireless Net Additions
Percent Change
(in 000s) 2025 2024 2023 2025 vs. 2024 vs.
2024 2023
Postpaid 914 601 311 52.1 % 93.2 %
Prepaid 244 823 459 (70.4) 79.3
Reseller (54) (164) (57) 67.1 -
Mexico Wireless Net Additions 1,104 1,260 713 (12.4) % 76.7 %
Service revenues increased in 2025, reflecting growth in subscribers and ARPU,
partially offset by unfavorable foreign exchange impacts.
Equipment revenues increased in 2025, driven by higher equipment sales,
partially offset by unfavorable foreign exchange impacts.
Operations and support expenses increased in 2025, driven by increased sales
volume, resulting in higher equipment, selling and bad debt expense, partially
offset by favorable impact of foreign exchange.
Depreciation expense increased in 2025, primarily due to accelerated
depreciation on certain network assets and higher in-service assets, partially
offset by favorable impact of foreign exchange.
Operating income improved in 2025 and 2024. Our Mexico operating income margin
was 3.3% in 2025, 0.9% in 2024 and (3.6)% in 2023. Our Mexico EBITDA margin
was 18.6% in 2025, 16.5% in 2024 and 14.8% in 2023.
OPERATING ENVIRONMENT AND TRENDS OF THE BUSINESS
2026 Revenue Trends We expect revenue growth in our wireless and broadband
businesses as customers demand instant connectivity and higher speeds made
possible by wireless network enhancements through 5G deployment and our fiber
network expansion. We believe that our simplified go-to-market strategy for 5G
in underpenetrated markets will continue to contribute
26
AT&T Inc.
Dollars in millions except per share amounts
to wireless subscriber and service revenue growth and that expansion of our
fiber and AIA serviceable locations will drive greater demand for broadband
services. We expect that an increasing portion of our revenues will come from
converged customers with seamless connectivity through an innovative product
portfolio and strong customer relationships.
As we expand our fiber reach, we will be orienting our business portfolio to
leverage this opportunity to offset continuing declines in legacy Business
Wireline products by growing connectivity with small to mid-sized businesses.
We plan to use our strong fiber and wireless assets, broad distribution and
integrated product offerings to strengthen our overall market position. We
will continue to rationalize our product portfolio with a longer-term shift of
the business to fiber and wireless connectivity, and growth in value-added
services. As customers are demanding faster and more reliable services, we are
decommissioning our legacy copper network and enhancing our offerings to
include services that provide better experiences over newer technologies, such
as AT&T Internet Air.
2026 Expense Trends During 2026, we expect expense trends consistent with the
prior year, and that we will continue to focus on efficiency, led by our cost
transformation initiative. We expect the spending required to support growth
and efficiency initiatives, primarily our continued deployment of fiber and
5G, to pressure expense trends in 2026. These investments will help prepare us
to meet the continued increase in customer demand for enhanced wireless and
broadband services, including on-the-go video streaming, augmented reality,
"smart" technologies, user generated content and AI. Our network modernization
efforts should result in a more efficient use of capital and lower
network-related expenses in the coming years. Furthermore, access to our
network and newer technology may drive customers to upgrade devices and
equipment, the expenses associated with those equipment sales are expected to
contribute to higher costs.
We continue to transform our operations to be more efficient and effective. We
are restructuring businesses, working with regulators and customers to sunset
legacy networks, improving customer service and ordering functions through
digital transformation, sizing our support costs and staffing with current
activity levels, and reassessing overall benefit costs. We also expect cost
savings through AI-driven efficiencies in network design and operations,
software development, sales, marketing, customer support services and general
and administrative costs.
Market Conditions In recent years, uncertainty surrounding global growth
rates, tariffs, inflation and a higher interest rate environment continued to
produce volatility in the credit, currency and equity markets. We expect
ongoing pressure on pricing during 2026 as we respond to the geopolitical and
macroeconomic environment and our competitive marketplace, especially in
wireless services.
Included on our consolidated balance sheets are assets held by benefit plans
for the payment of future benefits. Our pension plans are subject to funding
requirements of the Employee Retirement Income Security Act of 1974, as
amended (ERISA). We plan to voluntarily contribute approximately $350 to our
pension plans in 2026 and expect only minimal ERISA contribution requirements.
Investment returns on these assets depend largely on trends in the economy,
and a weakness in the equity, fixed income and real asset markets could
require us to make future contributions to the pension plans. In addition, our
policy of recognizing actuarial gains and losses related to our pension and
other postretirement plans in the period in which they arise subjects us to
earnings volatility caused by changes in market conditions; however, these
actuarial gains and losses do not impact segment performance as they are
required to be recorded in "Other income (expense) - net." Changes in our
discount rate, which are tied to changes in the bond market, and changes in
the performance of equity markets, may have significant impacts on the
valuation of our pension and other postretirement obligations at the end of
2026 (see "Critical Accounting Policies and Estimates").
Expected Growth Areas Over the next few years, we expect our growth to come
from wireless and IP-based fiber broadband services. We provide integrated
services to diverse groups of customers in the United States. on a converged
telecommunications network utilizing different technological platforms. In
2026, our key initiatives include:
•Continuing our wireless subscriber momentum and 5G deployment, with
expansion of wireless subscribers in underpenetrated markets and converged
connectivity.
•Continuing our fiber deployment, improving fiber penetration, growing
AT&T Internet Air services, accelerating connectivity growth and
increasing broadband revenues, inclusive of impact of integrating recent
acquisitions of spectrum and fiber assets.
•Continuing our deployment of Open RAN to build a more robust ecosystem of
network infrastructure providers and suppliers, fostering lower network costs,
improved operational efficiencies and allowing for continued investment in our
fast-growing broadband network.
•Continuing to drive efficiencies and a competitive advantage through cost
transformation initiatives, including modernization of our IT infrastructure
and product simplification.
Wireless We expect to continue to deliver revenue growth in the coming years.
We are in a period of rapid growth in wireless video and data usage and
believe that there are substantial opportunities available for next-generation
integrated services that
27
AT&T Inc.
Dollars in millions except per share amounts
combine technologies and services. As of December 31, 2025, we served 145
million wireless subscribers in North America, with 120 million in the United
States.
Our LTE technology covers over 441 million people in North America, and in the
United States, we cover all major metropolitan areas and over 337 million
people. At December 31, 2025, our network covers more than 322 million people
with 5G technology in the United States and North America. When combined with
our upgraded backhaul network, we provide enhanced network capabilities and
superior mobile broadband speeds for data and video services.
Our networks covering both the United States and Mexico have enabled our
customers to use wireless services without roaming on other companies'
networks. At December 31, 2025, we provided LTE coverage to over 104 million
people in Mexico.
Integration of Wireless and Fiber Services The communications industry has
evolved into internet-based technologies capable of converging the offering of
wireline and wireless services. As the owner and operator of scaled wireless
and fiber networks, we plan to continue to focus on expanding our wireless
network capabilities and providing broadband offerings that allow customers to
integrate their home or business fixed services with their mobile service. We
intend to continue to develop and provide unique integrated mobile and
broadband/fiber solutions.
REGULATORY LANDSCAPE
AT&T subsidiaries operating within the United States are subject to
federal and state regulatory authorities. While these issues may apply only to
certain subsidiaries, the words "we," "AT&T" and "our" are used to
simplify the discussion. The following discussions are intended as a condensed
summary of the issues rather than as a comprehensive legal analysis and
description of all of these specific issues.
International Regulation
Our subsidiaries operating outside the United States are subject to the
jurisdiction of regulatory authorities in the territories in which the
subsidiaries operate. Our licensing, compliance and advocacy initiatives in
foreign countries primarily enable the provision of enterprise (i.e., large
business) services globally and wireless services in Mexico.
The General Data Protection Regulation went into effect in Europe in May of
2018. This regulation created a range of new compliance obligations and
significantly increased financial penalties for noncompliance. AT&T
processes and handles personal data of its customers and subscribers,
employees of its enterprise customers and its employees.
U.S. Regulation
In the Telecommunications Act of 1996 (Telecom Act), Congress established a
national policy framework intended to bring the benefits of competition and
investment in advanced telecommunications facilities and services to all
Americans by opening all telecommunications markets to competition and
reducing or eliminating regulatory burdens that harm consumer welfare.
Nonetheless, since then, the FCC and some state regulatory commissions have
maintained, re-imposed or expanded certain regulatory requirements that were
imposed decades ago on our traditional wireline subsidiaries when they
operated as legal monopolies. Recently, the FCC's regulatory approach has
depended on control of the executive branch, eliminating a variety of
antiquated and unnecessary regulations in a number of areas, while imposing or
re-imposing regulations in other areas. We continue to support regulatory and
legislative measures and efforts, at both the state and federal levels, to
reduce inappropriate regulatory burdens that inhibit our ability to compete
effectively and offer needed services to our customers, including initiatives
to transition services from traditional networks to all IP-based networks. At
the same time, we also seek to ensure that legacy regulations are not further
extended to broadband or wireless services, which are subject to vigorous
competition. We have organized the following discussion by service impacted.
Internet Until 2015, the FCC classified fixed and mobile consumer broadband
internet access services as information services subject to minimal
regulation. In 2015, the FCC reclassified such services as telecommunications
services subject to broader regulation by the FCC and imposed "net neutrality
rules." Since then, the FCC has twice reversed course, most recently again
reclassifying such services as telecommunications services subject to broader
regulation by the FCC in an order adopted on April 25, 2024. Multiple trade
associations and other parties challenged the FCC's reclassification decision
in appeals consolidated in the U.S. Court of Appeals for the Sixth Circuit.
The trade associations petitioned the Sixth Circuit to stay the FCC's order.
On August 1, 2024, the Sixth Circuit issued a stay of the FCC order pending
review of the appeals, holding that broadband providers are likely to succeed
on the merits. On January 2, 2025, the Sixth Circuit issued an order granting
the petition for review and setting aside the FCC net neutrality order,
holding that broadband internet access service is an information service.
In 2021, New York enacted the Affordable Broadband Act (ABA), requiring ISPs
offering "fixed" mass-market broadband service, including fixed wireless, to
offer discounted plans to low-income customers. In June 2021, the ABA was
enjoined by a federal district court, which found the ABA preempted by federal
law. In April 2024, the Second Circuit overruled and vacated the district
court order. The Supreme Court subsequently denied the trade association's
request for review. Under an agreement
28
AT&T Inc.
Dollars in millions except per share amounts
with the New York Attorney General, the law began to be enforced on January
15, 2025. A number of state legislatures have since considered legislation
regulating the rates of fixed broadband service, with Connecticut adopting a
law requiring wireline ISPs that are state contractors to stand up a
discounted broadband offering to low-income customers.
Since 2018, some states have adopted legislation or issued executive orders
that established state net neutrality rules, including California, Maine,
Minnesota, Vermont and Washington. Additional states may seek to impose net
neutrality requirements in the future.
On November 15, 2023, the FCC adopted rules to "facilitate" equal access to
broadband and prevent digital discrimination in broadband access. The rules,
which became effective March 22, 2024, prohibit covered entities from
implementing policies or practices not justified by genuine issues of
technical or economic feasibility, that differentially impact consumers'
access to broadband internet access service based on prohibited
characteristics (including income level, race and ethnicity) or that have such
differential impact, whether intentional or not. The rules broadly apply
prospectively to all aspects of an ISP's service that could impact a
consumer's ability to access broadband, including deployment, marketing and
credit checks, among other things. We may be required to answer complaints
alleging that the company has violated the FCC rules, and those complaints may
seek relief, including changes to our business practices or civil forfeitures
that could result in significant costs or reputational harm. It is currently
uncertain how the FCC will enforce these new rules. Several business
associations have filed appeals challenging the rules and several of those
appeals have been consolidated in the Eighth Circuit, which held oral argument
on September 25, 2024.
Privacy-related legislation continues to be adopted or considered in a number
of jurisdictions. Legislative, regulatory and litigation actions could result
in increased costs of compliance, further regulation or claims against
broadband internet access service providers and others, and increased
uncertainty in the value and availability of data.
Infrastructure Investment On November 15, 2021, the Infrastructure Investment
and Jobs Act (IIJA) was signed into law. The legislation appropriates $65,000
to support broadband deployment and adoption. The National Telecommunications
and Information Agency (NTIA) is responsible for distributing more than
$48,000 of this funding, including $42,500 in state grants for broadband
deployment projects in unserved and underserved areas through the Broadband,
Equity, Access and Deployment (BEAD) Programs. NTIA and states are in the
process of administering these grants. Where appropriate, AT&T has applied
for, and in some cases has been awarded, and may continue to apply for grants
under this or other government infrastructure programs.
Wireless Industry-wide network densification and 5G technology expansion
efforts, which are needed to satisfy extensive demand for video and internet
access, will involve significant deployment of "small cell" equipment. This
increases the importance of local permitting processes that allow for the
placement of small cell equipment in the public right-of-way on reasonable
timelines and terms. The FCC has adopted multiple Orders streamlining federal,
state and local wireless structure review processes that had the tendency to
delay and impede deployment of small cell and related infrastructure used to
provide telecommunications and broadband services. Additional spectrum will be
needed industrywide for 5G and future services. On July 4, 2025, as part of
the omnibus reconciliation package (One Big Beautiful Bill (OBBB)), the
President signed into law a provision that reauthorized, for 10 years, FCC
statutory authority to conduct spectrum auctions and further required auction
of 800 MHz of spectrum within eight years. The FCC's implementation of this
legislation will have a direct impact on whether the wireless industry has
sufficient spectrum to support future wireless services. As a first step, in
November 2025, the FCC opened a rulemaking to consider the auctioning of
spectrum in the upper C-Band, as required by OBBB.
ACCOUNTING POLICIES AND STANDARDS
Critical Accounting Policies and Estimates Because of the size of the
financial statement line items they relate to or the extent of judgment
required by our management, some of our accounting policies and estimates have
a more significant impact on our consolidated financial statements than
others.
Pension and Postretirement Benefits Our actuarial estimates of retiree benefit
expense and the associated significant weighted-average assumptions are
discussed in Note 14. Our assumed weighted-average discount rates for pension
and postretirement benefits of 5.50% and 5.30%, respectively, at December 31,
2025, reflect the hypothetical rate at which the projected benefit obligations
could be effectively settled or paid out to participants. We determined our
discount rate based on a range of factors, including a yield curve composed of
the rates of return on several hundred high-quality, fixed income corporate
bonds available at the measurement date and corresponding to the related
expected durations of future cash outflows for the obligations. These bonds
had an average rating of at least Aa3 or AA- by the nationally recognized
statistical rating organizations, denominated in U.S. dollars, and generally
not callable, convertible or index linked. For the year ended December 31,
2025, when compared to the year ended December 31, 2024, we decreased our
pension discount rate by 0.20%, resulting in an increase in our pension plan
benefit obligation of $680, and decreased our postretirement discount rate by
0.30%, resulting in an increase in our postretirement benefit obligation of
$167.
29
AT&T Inc.
Dollars in millions except per share amounts
Our expected long-term rate of return is 7.75% on pension plan assets and
4.00% on postretirement plan assets for 2025 and 2026. Our expected return on
plan assets is calculated using the actual fair value of plan assets. If all
other factors were to remain unchanged, we expect that a 0.50% decrease in the
expected long-term rate of return would cause 2026 combined pension and
postretirement cost to increase $139, which under our accounting policy would
be adjusted to actual returns in the current year upon remeasurement of our
retiree benefit plans.
We recognize gains and losses on pension and postretirement plan assets and
obligations immediately in "Other income (expense) - net" in our consolidated
statements of income. These gains and losses are generally measured annually
as of December 31, and accordingly, will normally be recorded during the
fourth quarter, unless an earlier remeasurement is required. Should actual
experience differ from actuarial assumptions, the projected pension benefit
obligation and net pension cost and accumulated postretirement benefit
obligation and postretirement benefit cost would be affected in future years.
See Note 14 for additional discussions regarding our assumptions.
Asset Valuations and Impairments Goodwill and other indefinite-lived
intangible assets are not amortized but tested at least annually on October 1
for impairment. For impairment testing, we estimate fair values using models
that predominantly rely on the expected cash flows to be derived from the
reporting unit or use of the asset. Long-lived assets are reviewed for
impairment whenever events or circumstances indicate that the book value may
not be recoverable over the remaining life. Inputs underlying the expected
cash flows include, but are not limited to, subscriber counts, revenue per
user, capital investment and acquisition costs per subscriber, and ongoing
operating costs. We based our assumptions on a combination of our historical
results, trends, business plans and marketplace participant data.
Annual Goodwill Testing
Goodwill is tested on a reporting unit basis by comparing the estimated fair
value of each reporting unit to its book value. If the fair value exceeds the
book value, then no impairment is measured. We estimate fair values using an
income approach (also known as a discounted cash flow model) and market
multiple approaches. The income approach utilizes our future cash flow
projections with a perpetuity value discounted at an appropriate weighted
average cost of capital. The market multiple approach uses the multiples of
publicly traded companies whose services are comparable to those offered by
the reporting units.
As of October 1, 2025, the calculated fair values of the reporting units with
remaining goodwill exceeded their book values in all circumstances in excess
of 10%. If either the projected long-term growth rates declined by 0.5%, if
the projected long-term EBITDA margin declined by 0.5%, or if the weighted
average cost of capital increased by 0.5%, the fair values would still be
higher than the book value of the reporting units.
The fair values of our remaining reporting units could be negatively impacted
by future sustained declines in macroeconomic or business conditions, higher
discount rates or declines in the value of AT&T stock and could result in
goodwill impairment charges in future periods.
U.S. Wireless Licenses
We have the option to first perform a qualitative assessment to determine
whether it is more likely than not that the book value of our wireless
licenses exceeds the fair value. On a periodic basis, or if the qualitative
assessment indicates potential impairment, we will perform a quantitative
impairment test.
Our quantitative assessment involves assessing the fair value of U.S. wireless
licenses using a discounted cash flow model (the Greenfield Approach) and a
qualitative corroborative market approach based on auction prices, depending
upon auction activity. The Greenfield Approach assumes a company initially
owns only the wireless licenses and makes investments required to build an
operation comparable to current use. These licenses are tested annually for
impairment on an aggregated basis, consistent with their use on a national
scope for the United States. For impairment testing, we assume subscriber and
revenue growth will trend up to projected levels, with a long-term growth rate
reflecting expected long-term inflation trends. We assume churn rates will
initially exceed our current experience but decline to rates that are in line
with industry-leading churn.
During 2025, we performed a qualitative impairment assessment that considered
several factors, including macroeconomic conditions, industry and regulatory
considerations, recent and projected performance of the reporting unit and the
prior quantitative impairment testing results. The qualitative assessment
indicated it is more likely than not that the fair value of our wireless
licenses exceeded the book value; thus, a quantitative assessment was not
performed.
For our most recent quantitative assessment, which was performed in 2024, we
used a discount rate of 8.75%, based on the optimal long-term capital
structure of a market participant and its associated cost of debt and equity
for the licenses, to calculate the present value of the projected cash flows.
The quantitative impairment assessment indicated the fair value of our
wireless licenses exceeded their book value by more than 10%. If either the
projected rate of long-term growth of cash flows or revenues
30
AT&T Inc.
Dollars in millions except per share amounts
declined by 0.5%, or if the discount rate increased by 0.5%, the fair values
of these wireless licenses would still be higher than the book value.
Income Taxes Our estimates of income taxes and the significant items giving
rise to the deferred assets and liabilities are shown in Note 13 and reflect
our assessment of actual future taxes to be paid on items reflected in the
financial statements, giving consideration to both timing and probability of
these estimates. Actual income taxes could vary from these estimates due to
future changes in income tax law or the final review of our tax returns by
federal, state or foreign tax authorities.
We use our judgment to determine whether it is more likely than not that we
will sustain positions that we have taken on tax returns and, if so, the
amount of benefit to initially recognize within our financial statements. We
regularly review our uncertain tax positions and adjust our unrecognized tax
benefits (UTBs) in light of changes in facts and circumstances, such as
changes in tax law, interactions with taxing authorities and developments in
case law. These adjustments to our UTBs may affect our income tax expense.
Settlement of uncertain tax positions may require use of our cash.
New Accounting Standards
See Note 1 for discussion of recently issued or adopted accounting standards.
OTHER BUSINESS MATTERS
Environmental We are subject from time to time to judicial and administrative
proceedings brought by various governmental authorities under federal, state
or local environmental laws. We reference in our Forms 10-Q and 10-K certain
environmental proceedings that could result in monetary sanctions (exclusive
of interest and costs) of three hundred thousand dollars or more. However, we
do not believe that any of those currently pending will have a material
adverse effect on our results of operations.
LIQUIDITY AND CAPITAL RESOURCES
For the years ended December 31, 2025 2024 2023
Cash provided by operating activities $ 40,284 $ 38,771 $ 38,314
Cash used in investing activities (18,777) (17,490) (19,660)
Cash used in financing activities (6,386) (24,708) (15,614)
At December 31, 2025 2024
Cash and cash equivalents $ 18,234 $ 3,298
Total debt 136,100 123,532
We had $18,234 in cash and cash equivalents available at December 31, 2025,
increasing $14,936 since December 31, 2024. Cash and cash equivalents
included cash of $3,521 and money market funds and other cash equivalents of
$14,713. Approximately $1,330 of our cash and cash equivalents were held in
accounts outside of the United States and may be subject to restrictions on
repatriation. Our cash and cash equivalents at December 31, 2025 was elevated
in anticipation of the consummation of announced transactions. (See Note 6)
In 2025, cash inflows were primarily provided by cash receipts from
operations, including cash from our sale and transfer of our receivables to
third parties, and the disposition of our investment in DIRECTV. These inflows
exceeded cash used to meet the needs of the business, including, but not
limited to, payment of operating expenses, including higher device payments
from higher sales volumes. The cash generated from operating activities was
primarily used to fund capital improvements, make dividend payments to
stockholders, repurchase preferred and common stock, and repay long-term debt.
We maintain availability under our credit facilities and our commercial paper
program to meet our short-term liquidity requirements.
Refer to "Contractual Obligations" discussion below for additional information
regarding our cash requirements.
Cash Provided by Operating Activities
During 2025, cash provided by operating activities was $40,284, compared to
$38,771 in 2024, driven by operational growth and lower cash tax payments.
Partially offsetting this increase and lowering cash from operations during
2025 were voluntarily pension contributions of approximately $1,150 and
advanced cash payments of about $900 to Frontier Communications, a subsidiary
of Verizon Communications Inc.
We actively manage the timing of our supplier payments for operating items to
optimize the use of our cash. Among other things, we seek to make payments on
90-day or greater terms, while providing the suppliers with access to bank
facilities that
31
AT&T Inc.
Dollars in millions except per share amounts
permit earlier payments at their cost (referred to as supplier financing
program). In addition, for payments to suppliers of handset inventory, as part
of our working capital initiatives, we have arrangements that allow us to
extend the stated payment terms by up to 90 days at an additional cost to us
(referred to as direct supplier financing). The net impact of direct supplier
financing, including principal and interest payments, was to improve cash from
operating activities $443 in 2025 and $661 in 2024. All supplier financing
payments are due within one year. (See Note 22)
Cash Used in Investing Activities
During 2025, cash used in investing activities totaled $18,777, consisting
primarily of $20,842 (including interest during construction) for capital
expenditures. During 2025, investing activities also included $148 of FirstNet
sustainability receipts net of investment and $620 for our investment in a new
strategic partner, DriveNets, related to wireline network transformation
accounted for under the equity method of accounting.
On July 2, 2025, we completed the sale of our interest in DIRECTV to TPG and
recorded a current note receivable of approximately $3,600, of which we had
received $3,100 by the end of 2025, and a long-term note receivable of $500.
(See Note 10)
We enter into multi-year software licensing arrangements, which are typically
paid over the license terms of two to five years and referred to as vendor
financing. Additionally, for capital improvements, we have negotiated
favorable vendor payment terms of 120 days or more with some of our vendors,
which are also referred to as vendor financing. Vendor financing is excluded
from capital expenditures and reported as financing activities. Vendor
financing payments were $1,181 in 2025, compared to $1,792 in 2024. Capital
expenditures in 2025 were $20,842, and when including $1,181 cash paid for
vendor financing, capital investment was $22,023 ($32 lower than the prior
year).
The vast majority of our capital expenditures are spent on our networks,
including product development and related support systems. In 2025, we placed
$1,594 of productive assets in service under vendor financing arrangements
(compared to $700 in 2024).
In November 2024, we agreed to purchase select spectrum licenses from United
States Cellular Corporation (UScellular) for approximately $1,000, subject to
closing conditions, including the consummation of UScellular's sale of its
wireless operations and select spectrum assets to T-Mobile US, Inc. We
completed our acquisition of these licenses on January 13, 2026, with a cash
payment of $1,018.
On May 21, 2025, we agreed to acquire substantially all of Lumen's Mass
Markets fiber business for $5,750 in cash, subject to purchase price
adjustments. At the time of signing, the pending acquisition covered
approximately one million fiber customers, and also included fiber network
assets that reached more than four million fiber locations. On February 2,
2026, we completed the transaction and expect to manage the customer
relationships in our Consumer Wireline business and place the fiber network
assets in a new, wholly owned subsidiary. We plan to sell a controlling
interest in the subsidiary to an equity partner that will co-invest in the
ongoing business, and, as such, it is expected to meet the criteria for
discontinued operations.
On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45
GHz bands from EchoStar for approximately $23,000, subject to certain
adjustments. The transaction is expected to close in early 2026 and is subject
to regulatory approval and other closing conditions. The FCC licenses will be
used to expand our 5G network, meet future capacity demands and support future
wireless communications services. We signed a short-term spectrum manager
lease on the 3.45 GHz spectrum, which was deployed in cell sites covering
nearly two-thirds of the U.S. population.
The amount of capital expenditures is influenced by demand for services and
products, capacity needs and network enhancements. In 2026, we expect that our
capital investment, which includes capital expenditures and cash paid for
vendor financing, will be in the $23,000 to $24,000 range.
32
AT&T Inc.
Dollars in millions except per share amounts
Cash Provided by or Used in Financing Activities
In 2025, cash used in financing activities totaled $6,386 and was comprised of
dividend payments, common and preferred stock repurchases, debt repayments and
vendor financing payments, partially offset by issuances of long-term debt and
issuances of preferred interests in a subsidiary.
A tabular summary of our debt activity during 2025 is as follows:
First Second Third Fourth Full Year 2025
Quarter
Quarter
Quarter
Quarter
Issuance of notes and debentures:
USD notes $ - $ 3,473 $ 4,959 $ - $ 8,432
EUR notes 2,956 - 2,639 - 5,595
Debt issuances $ 2,956 $ 3,473 $ 7,598 $ - $ 14,027
Repayments:
USD notes $ - $ - $ - $ (145) $ (145)
EUR notes (1,321) (32) - (2,441) (3,794)
CAD notes - - - (960) (960)
Other (205) (62) (229) (133) (629)
Repayments of long-term debt $ (1,526) $ (94) $ (229) $ (3,679) $ (5,528)
The weighted average interest rate of our long-term debt portfolio, including
credit agreement borrowings and the impact of derivatives, was approximately
4.2% as of December 31, 2025 and 2024. We had $134,718 of total notes and
debentures outstanding at December 31, 2025. This also included Euro, British
pound sterling, Canadian dollar, Australian dollar and Swiss franc denominated
debt that totaled approximately $35,307.
At December 31, 2025, we had $9,011 of long-term debt maturing within one
year. We had no outstanding commercial paper borrowings or other short-term
borrowings on December 31, 2025.
During 2025, we paid $1,181 of cash under our vendor financing program,
compared to $1,792 in 2024. Total vendor financing payables included in our
December 31, 2025 consolidated balance sheet were $1,892, with $956 due
within one year (in "Accounts payable and accrued liabilities") and the
remainder predominantly due within five years (in "Other noncurrent
liabilities").
During 2025, we repurchased approximately 159 million shares totaling $4,269
under our $10,000 common stock repurchase authorization approved by the Board
of Directors in December 2024, excluding brokerage fees and the one percent
excise tax imposed by the Inflation Reduction Act of 2022. At December 31,
2025, we had approximately $5,731 remaining under this 2024 repurchase
authorization. On January 27, 2026, the Board approved an authorization to
repurchase an additional $10,000 of common stock.
We paid dividends on common and preferred shares of $8,180 in 2025, compared
with $8,208 in 2024. Dividends on common stock declared by our Board of
Directors totaled $1.11 per share in 2025 and in 2024. Our dividend policy
considers the expectations and requirements of stockholders, capital funding
requirements of AT&T and long-term growth opportunities.
Financing activities in 2025 also included the issuance of $2,250 of
nonconvertible cumulative preferred interests in Telco LLC, with the funds
used to redeem all outstanding Series B preferred stock for $2,075 (see Note
16). We also received approximately $850 in upfront cash proceeds from a
structured sale-leaseback of real estate.
On February 5, 2026, we issued $6,500 principal amount of global notes due
2031 to 2056 with a weighted average coupon of 5.2%. We intend to use the net
proceeds from this issuance for general corporate purposes, which may include
debt repayments and pending acquisitions.
Our 2026 financing activities will focus on managing our debt level, funding
pending acquisitions, paying dividends, subject to approval by our Board of
Directors, and repurchasing common stock when deemed appropriate. We plan to
fund our financing
33
AT&T Inc.
Dollars in millions except per share amounts
uses of cash through a combination of cash from operations, issuance of debt
and asset sales. The timing and mix of any debt issuance and/or refinancing
will be guided by credit market conditions and interest rate trends.
Credit Facilities
The following summary of our various credit and loan agreements does not
purport to be complete and is qualified in its entirety by reference to each
agreement filed as exhibits to our Annual Report on Form 10-K.
We use credit facilities as a tool in managing our liquidity status. On
November 3, 2025, we entered into (i) a $12,000 Second Amended and Restated
Credit Agreement (Revolving Credit Agreement), with Citibank, N.A., as agent,
amending and restating our existing $12,000 Amended and Restated Credit
Agreement, dated as of November 18, 2022, and (ii) a $17,500 Delayed Draw Term
Loan Credit Agreement (Term Loan), with Bank of America, N.A., as agent. No
amount was outstanding under the Revolving Credit Agreement or the Term Loan
as of December 31, 2025. (See Note 11)
We also utilize other external financing sources, which include various credit
arrangements supported by government agencies to support network equipment
purchases as well as a commercial paper program.
The Revolving Credit Agreement and the Term Loan contain covenants that are
customary for an issuer with investment grade senior debt credit ratings,
including a net debt-to-EBITDA financial ratio covenant requiring us to
maintain, as of the last day of each fiscal quarter, a ratio of not more than
3.75-to-1. As of December 31, 2025, we were in compliance with the covenants
for our credit facilities.
Collateral Arrangements
Most of our counterparty collateral arrangements require cash collateral
posting by AT&T only when derivative market values exceed certain
thresholds. Under these arrangements, which cover the majority of our $35,741
derivative portfolio, counterparties are still required to post collateral.
During 2025, we posted $11 of cash collateral, on a net basis. Cash postings
under these arrangements vary with changes in credit ratings and netting
agreements. (See Note 12)
Other
Our total capital consists of debt (long-term debt and debt maturing within
one year), redeemable noncontrolling interest and stockholders' equity. Our
capital structure does not include debt issued by our equity method
investments. At December 31, 2025, our debt ratio was 51.4%, compared to
50.7% at December 31, 2024 and 53.5% at December 31, 2023. The debt ratio is
affected by the same factors that affect total capital, and reflects our
recent debt issuances, repayments and reclassifications related to redemption
of noncontrolling interests.
A significant amount of our cash outflows is related to tax items, acquisition
of spectrum and benefits paid for current and former employees:
•Total taxes incurred, collected and remitted by AT&T during 2025 and
2024 were $16,326 and $16,968. These taxes include income, franchise,
property, sales, excise, payroll, gross receipts and various other taxes and
fees.
•Total domestic spectrum acquired primarily through FCC auctions, including
cash, exchanged spectrum, auction deposits and spectrum relocation and
clearing costs, was approximately $379 in 2025, $380 in 2024 and $2,940 in
2023.
•Total health and welfare benefits provided to certain active and retired
employees and their dependents totaled approximately $2,490 in 2025 and $2,550
in 2024, with $483 paid from plan assets in 2025, compared to $736 in 2024. Of
those benefits, approximately $2,220 related to medical and prescription drug
benefits in 2025, compared to $2,290 in 2024. We paid $2,957 of pension
benefits out of plan assets in 2025, compared to $2,447 in 2024.
34
AT&T Inc.
Dollars in millions except per share amounts
Contractual Obligations
Our contractual obligations as of December 31, 2025, and the estimated timing
of payment, are in the following table:
Payments Due By Period
Total Less than 1-3 3-5 More than
5 Years
1 Year Years Years
Long-term debt obligations1 $ 144,664 $ 8,652 $ 15,858 $ 13,938 $ 106,216
Interest payments on long-term debt2 94,373 6,067 11,059 9,992 67,255
Purchase obligations3 24,638 8,545 10,698 2,505 2,890
Operating lease obligations4 27,556 4,956 8,360 5,432 8,808
FirstNet sustainability payments5 16,029 896 3,224 2,589 9,320
Unrecognized tax benefits (UTB)6 10,282 45 - - 10,237
Other finance obligations7 11,626 1,843 2,699 1,928 5,156
Total Contractual Obligations8 $ 329,168 $ 31,004 $ 51,898 $ 36,384 $ 209,882
1Represents principal or payoff amounts of notes, debentures and credit
agreement borrowings at maturity (see Note 11). Foreign debt includes the
impact from hedges, when applicable.
2Includes credit agreement borrowings.
3We expect to fund the purchase obligations with cash on hand, which may
include cash provided by operations or through incremental borrowings. The
minimum commitment for certain obligations is based on termination penalties
that could be paid to exit the contracts. (See Note 21)
4Represents operating lease payments (see Note 8).
5Represents contractual commitment to make sustainability payments over the
25-year contract. These sustainability payments represent our commitment to
fund FirstNet's operating expenses and future reinvestment in the network,
which we own and operate. FirstNet has a statutory requirement to reinvest
funds that exceed the agency's operating expenses, which we anticipate to be
$15,000. (See Note 20)
6The noncurrent portion of the UTBs is included in the "More than 5 Years"
column, as we cannot reasonably estimate the timing or amounts of additional
cash payments, if any, at this time (see Note 13).
7Represents future minimum payments under the Crown Castle and other
arrangements (see Note 18), payables subject to extended payment terms (see
Note 22) and finance lease payments (see Note 8).
8Excludes debt transactions, pending acquisitions and other investment funding
completed after December 31, 2025 (see Note 6).
Certain items were excluded from this table because the year of payment is
unknown and could not be reliably estimated, we believe the obligations are
immaterial, or the settlement of the obligation will not require the use of
cash. These items include: deferred income tax liability of $58,312 (see Note
13); net postemployment benefit obligations of $9,113 (including current
portion); and other noncurrent liabilities of $7,155.
35
AT&T Inc.
Dollars in millions except per share amounts
DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES
We also evaluate segment and business unit performance based on EBITDA, which
is defined as operating income excluding depreciation and amortization, and/or
EBITDA margin, which is defined as EBITDA divided by total revenue. EBITDA is
used as part of our management reporting, and we believe EBITDA to be a
relevant and useful measurement to our investors as it measures the cash
generation potential of our business units. EBITDA does not give effect to
depreciation and amortization expenses incurred in operating income nor is it
burdened by cash used for debt service requirements and thus does not reflect
available funds for distributions, reinvestment or other discretionary uses.
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.
2025 2024 2023
Communications Segment
Operating income $ 27,927 $ 27,095 $ 27,801
Add: Depreciation and amortization 19,959 19,433 17,363
EBITDA $ 47,886 $ 46,528 $ 45,164
Operating income margin 23.1 % 23.0 % 23.6 %
EBITDA margin 39.6 % 39.5 % 38.3 %
Mobility
Operating income $ 27,196 $ 26,314 $ 25,861
Add: Depreciation and amortization 10,422 10,217 8,517
EBITDA $ 37,618 $ 36,531 $ 34,378
Operating income margin 30.4 % 30.9 % 30.8 %
EBITDA margin 42.0 % 42.8 % 40.9 %
Business Wireline
Operating income (loss) $ (816) $ (88) $ 1,289
Add: Depreciation and amortization 5,834 5,555 5,377
EBITDA $ 5,018 $ 5,467 $ 6,666
Operating income margin (4.7) % (0.5) % 6.2 %
EBITDA margin 29.1 % 29.1 % 31.9 %
Consumer Wireline
Operating income $ 1,547 $ 869 $ 651
Add: Depreciation and amortization 3,703 3,661 3,469
EBITDA $ 5,250 $ 4,530 $ 4,120
Operating income margin 10.9 % 6.4 % 4.9 %
EBITDA margin 37.0 % 33.4 % 31.3 %
Latin America Segment
Operating income (loss) $ 145 $ 40 $ (141)
Add: Depreciation and amortization 671 657 724
EBITDA $ 816 $ 697 $ 583
Operating income margin 3.3 % 0.9 % (3.6) %
EBITDA margin 18.6 % 16.5 % 14.8 %
36
AT&T Inc.
Dollars in millions except per share amounts
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks primarily from changes in interest rates and
foreign currency exchange rates. These risks, along with other business risks,
impact our cost of capital. It is our policy to manage our debt structure and
foreign exchange exposure in order to manage capital costs, control financial
risks and maintain financial flexibility over the long term. In managing
market risks, we employ derivatives according to documented policies and
procedures, including interest rate swaps, interest rate locks, foreign
currency exchange contracts and combined interest rate foreign currency
contracts (cross-currency swaps). We do not use derivatives for trading or
speculative purposes. We do not foresee significant changes in the strategies
we use to manage market risk in the near future.
One of the most significant assumptions used in estimating our postretirement
benefit obligations is the assumed weighted-average discount rate, which is
the hypothetical rate at which the projected benefit obligations could be
effectively settled or paid out to participants. We determined our discount
rate based on a range of factors, including a yield curve composed of the
rates of return on several hundred high-quality, fixed income corporate bonds
available at the measurement date and corresponding to the related expected
durations of future cash outflows for the obligations. In recent years, the
discount rates have been increasingly volatile, and on average have been lower
than in historical periods. Lower discount rates used to measure our pension
and postretirement plans result in higher obligations. Future increases in
these rates could result in lower obligations, improved funded status and
actuarial gains.
Interest Rate Risk
The majority of our financial instruments are medium- and long-term fixed-rate
notes and debentures. Changes in interest rates can lead to significant
fluctuations in the fair value of these instruments. The principal amounts by
expected maturity, average interest rate and fair value of our liabilities
that are exposed to interest rate risk are described in Notes 11 and 12. In
managing interest expense, we control our mix of fixed- and floating-rate debt
through term loans, floating-rate notes, and interest rate swaps. We have
established interest rate risk limits that we closely monitor by measuring
interest rate sensitivities in our debt and interest rate derivatives
portfolios.
Our foreign-denominated long-term debt has been swapped from fixed-rate or
floating-rate foreign currencies to fixed-rate U.S. dollars at issuance
through cross-currency swaps, removing interest rate risk and foreign currency
exchange risk associated with the underlying interest and principal payments.
Likewise, periodically we enter into interest rate locks to partially hedge
the risk of increases in the benchmark interest rate during the period leading
up to the probable issuance of fixed-rate debt. We expect gains or losses on
our cross-currency swaps and interest rate locks to offset the losses and
gains in the financial instruments they hedge.
We had no interest rate swaps and no interest rate locks at December 31,
2025.
Foreign Exchange Risk
We principally use foreign exchange contracts to hedge costs and debt
denominated in foreign currencies. We are also exposed to foreign currency
exchange risk through our foreign affiliates and equity investments in foreign
companies.
Through cross-currency swaps, our foreign-denominated debt has been swapped
from fixed-rate or floating-rate foreign currencies to fixed-rate U.S. dollars
at issuance, removing interest rate and foreign currency exchange risk
associated with the underlying interest and principal payments. We expect
gains or losses in our cross-currency swaps to offset the gains and losses in
the financial instruments they hedge. We had cross-currency swaps with a
notional value of $35,741 and a fair value of $(1,174) outstanding at
December 31, 2025.
For the purpose of assessing specific risks, we use a sensitivity analysis to
determine the effects that market risk exposures may have on the fair value of
our financial instruments and results of operations. We had no foreign
exchange forward contracts at December 31, 2025.
37
AT&T Inc.
REPORT OF MANAGEMENT
The consolidated financial statements have been prepared in conformity with
U.S. generally accepted accounting principles. The integrity and objectivity
of the data in these financial statements, including estimates and judgments
relating to matters not concluded by year end, are the responsibility of
management, as is all other information included in the Annual Report, unless
otherwise indicated.
The financial statements of AT&T Inc. (AT&T) have been audited by
Ernst & Young LLP, Independent Registered Public Accounting Firm.
Management has made available to Ernst & Young LLP all of AT&T's
financial records and related data, as well as the minutes of stockholders'
and directors' meetings. Furthermore, management believes that all
representations made to Ernst & Young LLP during its audit were valid and
appropriate.
Management maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed by AT&T is recorded,
processed, summarized, accumulated and communicated to its management,
including its principal executive and principal financial officers, to allow
timely decisions regarding required disclosure, and reported within the time
periods specified by the Securities and Exchange Commission's rules and forms.
Management also seeks to ensure the objectivity and integrity of its financial
data by the careful selection of its managers, by organizational arrangements
that provide an appropriate division of responsibility and by communication
programs aimed at ensuring that its policies, standards and managerial
authorities are understood throughout the organization.
The Audit Committee of the Board of Directors meets periodically with
management, the internal auditors and the independent auditors to review the
manner in which they are performing their respective responsibilities and to
discuss auditing, internal accounting controls and financial reporting
matters. Both the internal auditors and the independent auditors periodically
meet alone with the Audit Committee and have access to the Audit Committee at
any time.
Assessment of Internal Control
The management of AT&T is responsible for establishing and maintaining
adequate internal control over financial reporting, as defined in Rule
13a-15(f) or 15d-15(f) under the Securities Exchange Act of 1934. AT&T's
internal control system was designed to provide reasonable assurance to the
company's management and Board of Directors regarding the preparation and fair
presentation of published financial statements.
AT&T management assessed the effectiveness of the company's internal
control over financial reporting as of December 31, 2025. In making this
assessment, it used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control -
Integrated Framework (2013 framework). Based on its assessment, AT&T
management believes that, as of December 31, 2025, the company's internal
control over financial reporting is effective based on those criteria.
Ernst & Young LLP, the independent registered public accounting firm that
audited the financial statements included in this Annual Report, has issued an
attestation report on the company's internal control over financial reporting.
/s/John T. Stankey /s/Pascal Desroches .
John T. Stankey Pascal Desroches
Chairman of the Board, Senior Executive Vice President
Chief Executive Officer and President and Chief Financial Officer
38
AT&T Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of AT&T Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of AT&T Inc.
(the Company) as of December 31, 2025 and 2024, the related consolidated
statements of income, comprehensive income, cash flows and changes in
stockholders' equity for each of the three years in the period ended
December 31, 2025, and the related notes and financial statement schedule
listed in the Index at Item 15(a) (collectively referred to as the
"consolidated financial statements"). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial
position of the Company at December 31, 2025 and 2024, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2025, in conformity with U.S. generally accepted accounting
principles.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), the Company's internal
control over financial reporting as of December 31, 2025, based on criteria
established in Internal Control-Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (2013 framework) and
our report dated February 9, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on the Company's financial
statements based on our audits. We are a public accounting firm registered
with the PCAOB and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing
procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the
current period audit of the financial statements that were communicated or
required to be communicated to the audit committee and that: (1) relate to
accounts or disclosures that are material to the financial statements and (2)
involved our especially challenging, subjective or complex judgments. The
communication of critical audit matters does not alter in any way our opinion
on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on
the critical audit matters or on the accounts or disclosures to which they
relate.
Discount rates used in determining pension and postretirement benefit
obligations
Description of the Matter At December 31, 2025, the Company's defined benefit pension obligation was
$30,627 million and exceeded the fair value of pension plan assets of $28,677
million, resulting in an unfunded benefit obligation of $1,950 million.
Additionally, at December 31, 2025, the Company's postretirement benefit
obligation was $6,477 million and exceeded the fair value of postretirement
plan assets of $722 million, resulting in an unfunded benefit obligation of
$5,755 million. As explained in Note 14 to the consolidated financial
statements, the Company updates the assumptions used to measure the defined
benefit pension and postretirement benefit obligations, including discount
rates, at December 31 or upon a remeasurement event. The Company determines
the discount rates used to measure the obligations based on the development of
a yield curve using high-quality corporate bonds selected to yield cash flows
that correspond to the expected timing and amount of the expected future
benefit payments.
39
AT&T Inc.
Auditing the defined benefit pension and postretirement benefit obligations
was complex due to the judgmental nature of the actuarial assumptions made by
management, primarily the discount rates, used in the Company's measurement
process. The discount rates have a significant effect on the measurement of
the defined benefit pension and postretirement benefit obligations, and
auditing the discount rates was complex because it required an evaluation of
the credit quality of the corporate bonds used to develop the discount rates
and the correlation of those bonds' cash inflows to the timing and amount of
future expected benefit payments.
How We We obtained an understanding, evaluated the design and tested the operating
Addressed the Matter in Our effectiveness of certain controls over management's review of the
Audit determination of the discount rates used in the defined benefit pension and
postretirement benefit obligations calculations.
To test the determination of the discount rates used in the calculation of the
defined benefit pension and postretirement benefit obligations, we performed
audit procedures that focused on evaluating, with the assistance of our
actuarial specialists, the determination of the discount rates, among other
procedures. For example, we evaluated the selected yield curve used to
determine the discount rates applied in measuring the defined benefit pension
and postretirement benefit obligations. As part of this assessment, we
considered the credit quality of the corporate bonds that comprised the yield
curve and compared the timing and amount of cash flows at maturity with the
expected amounts and duration of the related benefit payments.
Evaluation of goodwill for impairment
Description of the Matter At December 31, 2025, the Company's goodwill balance was $63,425 million. As
discussed in Note 1 to the consolidated financial statements, reporting unit
goodwill is tested at least annually for impairment. Estimating fair value in
connection with the impairment evaluation involves the utilization of
discounted cash flow and market multiple approaches.
Auditing management's annual goodwill impairment test for the Consumer
Wireline reporting unit was complex because the estimation of fair value
involves subjective management assumptions, such as the projected long-term
EBITDA margin and weighted average cost of capital, and complex valuation
methodologies, such as the discounted cash flow and market multiple
approaches. Assumptions used in these valuation models are forward-looking,
and changes in these assumptions can have a material effect on the
determination of fair value.
How We Addressed the We obtained an understanding, evaluated the design and tested the operating
Matter in Our effectiveness of certain controls over the Company's impairment evaluation
Audit processes. Our procedures included testing controls over management's review
of the valuation models and its determination of the significant assumptions
described above.
Our audit procedures to test management's impairment evaluation included,
among others, assessing the valuation methodologies and significant
assumptions discussed above and the underlying data used to develop such
assumptions. For example, we compared the significant assumptions to current
industry, market and economic trends, and other guideline companies in the
same industry. Where appropriate, we evaluated whether changes to the
Company's business and other factors would affect the significant assumptions.
We also assessed the historical accuracy of management's estimates and
performed independent sensitivity analyses. We involved our valuation
specialists to assist us in evaluating the methodologies and auditing the
assumptions used to calculate the estimated fair value of the Consumer
Wireline reporting unit.
/s/ Ernst & Young LLP
We have served as the Company's auditor since 1999.
Dallas, Texas
February 9, 2026
40
AT&T Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of AT&T Inc.
Opinion on Internal Control Over Financial Reporting
We have audited AT&T Inc.'s internal control over financial reporting as
of December 31, 2025, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
In our opinion, AT&T Inc. (the Company) maintained, in all material
respects, effective internal control over financial reporting as of
December 31, 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), the 2025 consolidated
financial statements of the Company and our report dated February 9, 2026
expressed an unqualified opinion thereon.
Basis for Opinion
The Company's management is responsible for maintaining effective internal
control over financial reporting and for its assessment of the effectiveness
of internal control over financial reporting included in the accompanying
Report of Management. Our responsibility is to express an opinion on the
Company's internal control over financial reporting based on our audit. We are
a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting
was maintained in all material respects.
Our audit included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists,
testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk, and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides
a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company's internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company's internal
control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Dallas, Texas
February 9, 2026
41
AT&T Inc.
Dollars in millions except per share amounts
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Statements of Income
2025 2024 2023
Operating Revenues
Service $ 101,158 $ 100,135 $ 99,649
Equipment 24,490 22,201 22,779
Total operating revenues 125,648 122,336 122,428
Operating Expenses
Cost of revenues
Equipment 25,396 22,249 23,136
Other cost of revenues (exclusive of depreciation 25,424 26,972 26,987
and amortization shown separately below)
Selling, general and administrative 28,942 28,411 28,874
Asset impairments and abandonments and restructuring 838 5,075 1,193
Depreciation and amortization 20,886 20,580 18,777
Total operating expenses 101,486 103,287 98,967
Operating Income 24,162 19,049 23,461
Other Income (Expense)
Interest expense (6,804) (6,759) (6,704)
Equity in net income of affiliates 1,895 1,989 1,675
Other income (expense) - net 7,754 2,419 1,416
Total other income (expense) 2,845 (2,351) (3,613)
Income Before Income Taxes 27,007 16,698 19,848
Income tax expense 3,621 4,445 4,225
Net Income 23,386 12,253 15,623
Less: Net Income Attributable to Noncontrolling Interest (1,433) (1,305) (1,223)
Net Income Attributable to AT&T $ 21,953 $ 10,948 $ 14,400
Less: Preferred Stock Dividends and Redemption Gain (64) (202) (208)
Net Income Attributable to Common Stock $ 21,889 $ 10,746 $ 14,192
Basic Earnings Per Share Attributable to Common Stock $ 3.04 $ 1.49 $ 1.97
Diluted Earnings Per Share Attributable to Common Stock $ 3.04 $ 1.49 $ 1.97
The accompanying notes are an integral part of the consolidated financial
statements.
42
AT&T Inc.
Dollars in millions except per share amounts
Consolidated Statements of Comprehensive Income
2025 2024 2023
Net income $ 23,386 $ 12,253 $ 15,623
Other comprehensive income (loss), net of tax:
Foreign Currency:
Translation adjustment, net of taxes of $117, $(175) and $143 354 (545) 463
Reclassification adjustment included in net income, net of taxes of - 127 -
$0, $(14) and $0
Securities:
Net unrealized gains (losses), net of taxes of $5, $(5) and $8 15 (19) 22
Reclassification adjustment included in net income, net of taxes of $1, $10 3 30 11
and $4
Derivative Instruments:
Net unrealized gains (losses), net of taxes of $(216), $121 and $228 (650) 380 922
Reclassification adjustment included in net income, net of taxes of $14, $14 45 45 47
and $12
Defined benefit postretirement plans:
Net prior service (cost) credit arising during period, net of taxes of $0, $0 - - 32
and $10
Amortization of net prior service credit included in net income, net of taxes (1,427) (1,523) (1,963)
of
$(457), $(492) and $(642)
Reclassification adjustment realized in net income, net of taxes of $(4), $0 5 - -
and $0
Other comprehensive income (loss) (1,655) (1,505) (466)
Total comprehensive income 21,731 10,748 15,157
Less: Total comprehensive income attributable to noncontrolling interest (1,433) (1,305) (1,223)
Total Comprehensive Income Attributable to AT&T $ 20,298 $ 9,443 $ 13,934
The accompanying notes are an integral part of the consolidated financial
statements.
43
AT&T Inc.
Dollars in millions except per share amounts
Consolidated Balance Sheets
December 31,
2025 2024
Assets
Current Assets
Cash and cash equivalents $ 18,234 $ 3,298
Accounts receivable - net of related allowance for credit loss of $429 and 8,843 9,638
$375
Inventories 2,420 2,270
Prepaid and other current assets 19,235 15,962
Total current assets 48,732 31,168
Property, Plant and Equipment - Net 131,559 128,871
Goodwill - Net 63,425 63,432
Licenses - Net 128,148 127,035
Other Intangible Assets - Net 5,254 5,255
Investments in and Advances to Equity Affiliates 1,106 295
Operating Lease Right-Of-Use Assets 22,642 20,909
Other Assets 19,332 17,830
Total Assets $ 420,198 $ 394,795
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year $ 9,011 $ 5,089
Accounts payable and accrued liabilities 38,514 35,657
Advanced billings and customer deposits 4,266 4,099
Dividends payable 1,989 2,027
Total current liabilities 53,780 46,872
Long-Term Debt 127,089 118,443
Deferred Credits and Other Noncurrent Liabilities
Noncurrent deferred tax liabilities 58,312 58,939
Postemployment benefit obligation 8,478 9,025
Operating lease liabilities 18,943 17,391
Other noncurrent liabilities 25,104 23,900
Total deferred credits and other noncurrent liabilities 110,837 109,255
Redeemable Noncontrolling Interest 2,001 1,980
Stockholders' Equity
Preferred stock ($1 par value, 10,000,000 authorized at December 31, 2025
and December 31, 2024):
Series A (48,000 issued and outstanding at December 31, 2025 and - -
December 31, 2024)
Series B (20,000 issued and 0 outstanding at December 31, 2025 and - -
20,000 issued and outstanding at December 31, 2024)
Series C (70,000 issued and outstanding at December 31, 2025 and - -
December 31, 2024)
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2025 7,621 7,621
and
December 31, 2024: issued 7,620,748,598 at December 31, 2025 and
December 31, 2024)
Additional paid-in capital 106,533 109,108
Retained earnings 15,768 1,871
Treasury stock (583,246,242 at December 31, 2025 and 444,853,148 at (18,529) (15,023)
December 31, 2024, at cost)
Accumulated other comprehensive income (loss) (860) 795
Noncontrolling interest 15,958 13,873
Total stockholders' equity 126,491 118,245
Total Liabilities and Stockholders' Equity $ 420,198 $ 394,795
The accompanying notes are an integral part of the consolidated financial
statements.
44
AT&T Inc.
Dollars in millions except per share amounts
Consolidated Statements of Cash Flows
2025 2024 2023
Operating Activities
Net Income $ 23,386 $ 12,253 $ 15,623
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 20,886 20,580 18,777
Provision for uncollectible accounts 2,271 1,969 1,969
Asset impairments and abandonments and restructuring 838 5,075 1,193
Pension and postretirement benefit expense (credit) (1,588) (1,883) (2,552)
Actuarial and settlement (gain) loss on pension and postretirement benefits - 519 56 1,594
net
Net (gain) loss on investments (5,889) 80 441
Changes in operating assets and liabilities:
Receivables (1,526) 123 82
Equipment installment receivables and related sales 324 (1,846) (133)
Contract asset and cost deferral (1,208) 160 (1,006)
Inventories, prepaid and other current assets (460) 70 747
Accounts payable and other accrued liabilities 884 (1,104) (1,574)
Changes in income taxes 2,226 1,978 2,618
Postretirement claims and contributions (1,436) (166) (735)
Other - net 1,057 1,426 1,270
Total adjustments 16,898 26,518 22,691
Net Cash Provided by Operating Activities 40,284 38,771 38,314
Investing Activities
Capital expenditures (20,842) (20,263) (17,853)
Acquisitions, net of cash acquired (379) (380) (2,942)
Dispositions 3,218 75 72
Distributions from DIRECTV in excess of cumulative equity in earnings - 928 2,049
(Purchases), sales and settlements of securities - net 181 2,575 (902)
Other - net (955) (425) (84)
Net Cash Used in Investing Activities (18,777) (17,490) (19,660)
Financing Activities
Net change in short-term borrowings with original maturities of three months - - (914)
or less
Issuance of other short-term borrowings - 491 5,406
Repayment of other short-term borrowings - (2,487) (3,415)
Issuance of long-term debt 14,027 19 10,004
Repayment of long-term debt (5,528) (10,297) (12,044)
Note payable to DIRECTV, net of payments - - (130)
Payment of vendor financing (1,181) (1,792) (5,742)
Redemption of preferred stock (2,075) - -
Purchase of treasury stock (4,500) (215) (194)
Issuance of treasury stock 21 15 3
Issuance of preferred interests in subsidiary 2,221 - 7,151
Redemption of preferred interests in subsidiary (65) - (5,333)
Dividends paid (8,180) (8,208) (8,136)
Other - net (1,126) (2,234) (2,270)
Net Cash Used in Financing Activities (6,386) (24,708) (15,614)
Net increase (decrease) in cash and cash equivalents and restricted cash 15,121 (3,427) 3,040
Cash and cash equivalents and restricted cash beginning of year 3,406 6,833 3,793
Cash and Cash Equivalents and Restricted Cash End of Year $ 18,527 $ 3,406 $ 6,833
The accompanying notes are an integral part of the consolidated financial
statements.
45
AT&T Inc.
Dollars and shares in millions except per share amounts
Consolidated Statements of Changes in Stockholders' Equity
2025 2024 2023
Shares Amount Shares Amount Shares Amount
Preferred Stock - Series A
Balance at beginning of year - $ - - $ - - $ -
Balance at end of year - $ - - $ - - $ -
Preferred Stock - Series B
Balance at beginning of year - $ - - $ - - $ -
Balance at end of year - $ - - $ - - $ -
Preferred Stock - Series C
Balance at beginning of year - $ - - $ - - $ -
Balance at end of year - $ - - $ - - $ -
Common Stock
Balance at beginning of year 7,621 $ 7,621 7,621 $ 7,621 7,621 $ 7,621
Balance at end of year 7,621 $ 7,621 7,621 $ 7,621 7,621 $ 7,621
Additional Paid-In Capital
Balance at beginning of year $ 109,108 $ 114,519 $ 123,610
Redemption of preferred stock (2,165) - -
Preferred stock dividends - (134) (205)
Common stock dividends ($1.11, $1.11 - (4,020) (7,991)
and $1.11 per share in 2025, 2024 and 2023)
Issuance of treasury stock (469) (516) (379)
Share-based compensation 59 (184) (109)
Redemption or reclassification of - (557) (407)
interests held by noncontrolling owners
Balance at end of year $ 106,533 $ 109,108 $ 114,519
Retained Earnings (Deficit)
Balance at beginning of year $ 1,871 $ (5,015) $ (19,415)
Net income attributable to AT&T 21,953 10,948 14,400
Preferred stock redemption gain 90 - -
Preferred stock dividends (194) (71) -
Common stock dividends ($1.11, $1.11 (7,952) (3,991) -
and $1.11 per share in 2025, 2024 and 2023)
Balance at end of year $ 15,768 $ 1,871 $ (5,015)
The accompanying notes are an integral part of the consolidated financial
statements.
46
AT&T Inc.
Dollars and shares in millions except per share amounts
Consolidated Statements of Changes in Stockholders' Equity - continued
2025 2024 2023
Shares Amount Shares Amount Shares Amount
Treasury Stock
Balance at beginning of year (445) $ (15,023) (471) $ (16,128) (493) $ (17,082)
Repurchase and acquisition of (168) (4,539) (12) (215) (10) (194)
common stock
Reissuance of treasury stock 30 1,033 38 1,320 32 1,148
Balance at end of year (583) $ (18,529) (445) $ (15,023) (471) $ (16,128)
Accumulated Other Comprehensive Income (Loss)
Attributable to AT&T, net of tax
Balance at beginning of year $ 795 $ 2,300 $ 2,766
Other comprehensive income (loss) (1,655) (1,505) (466)
attributable to AT&T
Balance at end of year $ (860) $ 795 $ 2,300
Noncontrolling Interest1
Balance at beginning of year $ 13,873 $ 14,145 $ 8,957
Net income attributable to 1,276 1,163 1,146
noncontrolling interest
Issuance and acquisition (disposition) of 2,221 (29) 5,180
noncontrolling owners
Redemption of noncontrolling interest (144) (76) (53)
Distributions (1,268) (1,330) (1,085)
Balance at end of year $ 15,958 $ 13,873 $ 14,145
Total Stockholders' Equity at $ 118,245 $ 117,442 $ 106,457
beginning of year
Total Stockholders' Equity at $ 126,491 $ 118,245 $ 117,442
end of year
1 Excludes redeemable noncontrolling interest.
The accompanying notes are an integral part of the consolidated financial
statements.
47
AT&T Inc.
Dollars in millions except per share amounts
Notes to Consolidated Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation Throughout this document, AT&T Inc. is referred to
as "AT&T," "we" or the "Company." The consolidated financial statements
include the accounts of the Company and subsidiaries and affiliates which we
control. AT&T is a holding company whose subsidiaries and affiliates
operate worldwide in the telecommunications and technology industries.
The consolidated financial statements include our controlled subsidiaries, as
well as variable interest entities (VIE) where we are deemed to be the primary
beneficiary. All significant intercompany transactions are eliminated in
consolidation. Investments in entities that we do not control but have
significant influence are accounted for under the equity method. We also
record our proportionate share of our equity method investees' other
comprehensive income (OCI) items, including translation adjustments. We treat
distributions received from equity method investees as returns on investment
and classify them as cash flows from operating activities until those
distributions exceed our cumulative equity in the earnings of that investment.
We treat the excess amount as a return of investment and classify it as cash
flows from investing activities. In the event we receive dividends in excess
of the carrying amount of the investment, and we have no obligation to provide
financial support to the equity method investee, we treat those dividends as
returns on investment and classify them as cash flows from operating
activities.
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles (GAAP) requires management to make estimates
and assumptions, including other estimates of fair value, probable losses and
expenses, that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Moreover, unfavorable changes in market conditions, including interest rates,
could adversely impact those estimates and result in asset impairments.
Certain prior-period amounts have been conformed to the current period's
presentation, providing further disaggregation of activities within Cash from
Operations in our consolidated statements of cash flows and additional revenue
categories for our Business Wireline and Consumer Wireline business units.
Adopted and New Accounting Standards
Income Taxes In December 2023, the Financial Accounting Standards Board (FASB)
issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax
Disclosures" (ASU 2023-09). Beginning with our 2025 annual reporting, we
adopted, through retrospective application, ASU 2023-09, which requires that a
public entity disclose specific categories in its annual income tax rate
reconciliation table and provide additional qualitative information for
reconciling items representing at least 5% of pre-tax income or loss from
continuing operations, using the federal statutory tax rate. The standard also
requires an annual breakdown of income taxes paid by jurisdiction (i.e.,
federal, state and foreign), with further disaggregation by jurisdictions
representing at least 5% of total income taxes paid.
Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, "Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures" (ASU
2023-07). Beginning with our 2024 annual reporting, we adopted, through
retrospective application, ASU 2023-07, which requires that a public entity
disclose, on an interim and annual basis, significant segment expense
categories and amounts that are regularly provided to its chief operating
decision maker (CODM) and included in each reported measure of segment profit
or loss. An entity must also disclose, by reportable segment, the amount and
composition of other expenses. The standard requires an entity disclose the
title and position of its CODM and explain how the CODM uses these reported
measures in assessing segment performance and determining how to allocate
resources.
Convertible Instruments Beginning with 2022 interim reporting, we adopted,
through retrospective application, ASU No. 2020-06, "Debt - Debt with
Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging -
Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible
Instruments and Contracts in an Entity's Own Equity" (ASU 2020-06). ASU
2020-06 requires that instruments which may be settled in cash or stock are
presumed settled in stock in calculating diluted earnings per share. Prior to
the April 2023 repurchase, settlement of our Series A Cumulative Perpetual
Membership Interests in AT&T Mobility II LLC (Mobility preferred
interests) could have resulted in additional dilutive impact, the magnitude of
which was influenced by the fair value of the Mobility preferred interests and
the average AT&T common stock price during the reporting period, which
varied from period-to-period (see Note 16).
Disaggregation of Income Statement Expenses In November 2024, the FASB issued
ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses" (ASU 2024-03), which requires that a public entity
disclose the amounts of (a) purchases of inventory, (b) employee compensation,
(c) depreciation and (d) intangible asset amortization included in each
relevant expense caption presented on the face of the income statement. The
standard also requires an entity to disclose a qualitative description of the
amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively as well as disclose the total
48
AT&T Inc.
Dollars in millions except per share amounts
amount of selling expenses and, annually, the entity's definition of selling
expenses. ASU 2024-03 will be effective for annual periods beginning after
December 15, 2026, with either retrospective or prospective application. The
standard allows for early adoption of these requirements; we are currently
evaluating the disclosure impacts of our adoption.
Internal-Use Software In September 2025, the FASB issued ASU No. 2025-06,
Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):
Targeted Improvements to the Accounting for Internal-Use Software (ASU
2025-06). ASU 2025-06 removes references to prescriptive and sequential
software development stages and requires software cost capitalization when
management has authorized and committed to funding, and it is probable that
the project will be completed, and the software used for its intended
function. ASU 2025-06 will be effective for annual reporting periods beginning
after December 15, 2027. We are evaluating the impacts of our adoption of ASU
2025-06 and currently do not expect that it will have a material impact on our
financial statements.
Accounting Policies
Income Taxes We record deferred income taxes for temporary differences between
the carrying amounts of assets and liabilities for financial reporting
purposes and the computed tax basis of those assets and liabilities. We record
valuation allowances against the deferred tax assets (included, together with
our deferred income tax assets, as part of our reportable net deferred income
tax liabilities on our consolidated balance sheets), for which the realization
is uncertain. We review these items regularly in light of changes in federal,
state and foreign tax laws and changes in our business.
On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or
makes permanent certain expiring business tax provisions from the Tax Cuts and
Jobs Act of 2017. As a result of the legislation, we reduced our taxable
income position in 2025. The legislation did not materially impact our income
tax expense, but we expect it will result in a material decrease to cash taxes
paid relative to our expectations. (See Note 13)
Cash and Cash Equivalents Cash and cash equivalents include all highly liquid
investments with original maturities of three months or less. The carrying
amounts approximate fair value. At December 31, 2025, we held $3,521 in cash
and $14,713 in money market funds and other cash equivalents. Of our total
cash and cash equivalents, $1,330 resided in foreign jurisdictions, some of
which is subject to restrictions on repatriation.
Allowance for Credit Losses We record expense to maintain an allowance for
credit losses for estimated losses that result from the failure or inability
of our customers to make required payments deemed collectible from the
customer when the service was provided or product was delivered. When
determining the allowances for trade receivables and loans, we consider the
probability of recoverability of accounts receivable based on past experience,
taking into account current collection trends and general economic factors,
including bankruptcy rates. We also consider future economic trends to
estimate expected credit losses over the lifetime of the asset. Credit risks
are assessed based on historical write-offs, net of recoveries, as well as an
analysis of the aged accounts receivable balances with allowances generally
increasing as the receivable ages. Accounts receivable may be fully reserved
for when specific collection issues are known to exist, such as catastrophes
or pending bankruptcies.
Inventories Inventories primarily consist of wireless devices and accessories
and are valued at the lower of cost or net realizable value.
Property, Plant and Equipment Property, plant and equipment is stated at cost,
except for assets acquired through business combinations, which are initially
recorded at fair value. The cost of additions and substantial improvements to
property, plant and equipment is capitalized, and includes internal
compensation costs for these projects. The cost of maintenance and repairs of
property, plant and equipment is charged to operating expenses. Property,
plant and equipment costs are depreciated using straight-line methods over
their estimated economic lives. Certain subsidiaries follow composite group
depreciation methodology. Accordingly, when a portion of their depreciable
property, plant and equipment is retired in the ordinary course of business,
the gross book value is reclassified to accumulated depreciation, and no gain
or loss is recognized on the disposition of these assets.
Property, plant and equipment is reviewed for recoverability whenever events
or changes in circumstances indicate that the carrying amount of an asset
group may not be recoverable. We recognize an impairment loss when the
carrying amount of a long-lived asset is not recoverable. The carrying amount
of a long-lived asset is not recoverable if it exceeds the sum of the
undiscounted cash flows expected to result from the use and eventual
disposition of the asset. (See Note 7)
The liability for the fair value of an asset retirement obligation is recorded
in the period in which it is incurred if a reasonable estimate of fair value
can be made. In periods subsequent to initial measurement, we recognize
period-to-period changes in the
49
AT&T Inc.
Dollars in millions except per share amounts
liability resulting from the passage of time and revisions to either the
timing or the amount of the original estimate. The increase in the carrying
value of the associated long-lived asset is depreciated over the corresponding
estimated economic life.
Software Costs We capitalize certain costs incurred in connection with
developing or obtaining internal-use software. Capitalized software costs are
included in "Property, Plant and Equipment - Net" on our consolidated balance
sheets.
We amortize our capitalized software costs over a three-year to seven-year
period, reflecting the estimated period during which these assets will remain
in service.
Goodwill and Other Intangible Assets We have the following major classes of
intangible assets: goodwill; licenses, which include Federal Communications
Commission (FCC) and other wireless licenses; customer lists and
relationships; and trademarks, trade names and various other finite-lived
intangible assets (see Note 9).
Goodwill represents the excess of consideration paid over the fair value of
identifiable net assets acquired in business combinations.
Wireless licenses provide us with the exclusive right to utilize certain radio
frequency spectrum to provide wireless communications services. While wireless
licenses are issued for a fixed period of time (generally 10 years), renewals
of domestic wireless licenses have occurred routinely and at nominal cost. We
have determined that there are currently no legal, regulatory, contractual,
competitive, economic or other factors that limit the useful lives of our FCC
wireless licenses. Cash paid, including spectrum deposits (net of refunds),
capitalized interest, and any payments for incentive and relocation costs are
included in "Acquisitions, net of cash acquired" in our consolidated
statements of cash flows. Interest is capitalized until the spectrum is ready
for its intended use.
We amortize our wireless licenses in Mexico over their average remaining
economic life of 25 years.
We acquired the rights to the AT&T and other trade names in previous
acquisitions, classifying certain of those trade names as indefinite-lived. We
have the effective ability to retain these exclusive rights permanently at a
nominal cost.
Goodwill, FCC wireless licenses and other indefinite-lived intangible assets
are not amortized but are tested at least annually for impairment (see Note
9). The testing for Goodwill and other indefinite-lived intangible assets is
performed on the value as of October 1 each year and compares the book values
of the assets to their fair values. Goodwill is tested by comparing the
carrying amount of each reporting unit, deemed to be our principal operating
segments or one level below them, to the fair value using both discounted cash
flow as well as market multiple approaches. Trade names are tested by
comparing their book values to their fair values calculated using a discounted
cash flow approach on a presumed royalty rate derived from the revenues
related to each brand name.
For FCC wireless licenses, we have the option to first perform a qualitative
assessment to determine whether it is more likely than not that the book value
exceeds their fair value. We consider several factors under the qualitative
assessment, including macroeconomic conditions, industry and regulatory
considerations, recent and projected performance of the business and the prior
quantitative impairment testing results. On a periodic basis, or if the
qualitative assessment indicates potential impairment, we perform a
quantitative impairment test on the value as of October 1. FCC wireless
licenses are tested on an aggregate basis, consistent with our use of the
licenses on a national scope, using a discounted cash flow approach. We last
performed a quantitative test in 2024.
Intangible assets that have finite useful lives are amortized over their
estimated economic lives (see Note 9). Customer lists and relationships are
amortized using primarily the sum-of-the-months-digits method of amortization
over the period in which those relationships are expected to contribute to our
future cash flows. Finite-lived trademarks and trade names are amortized using
the straight-line method over the estimated useful life of the assets. The
remaining finite-lived intangible assets are generally amortized using the
straight-line method. These assets, along with other long-lived assets, are
reviewed for recoverability whenever events or changes in circumstances
indicate that the carrying amount of an asset group may not be recoverable.
Advertising Costs We expense advertising costs for products and services or
for promoting our corporate image as incurred (see Note 23).
Foreign Currency Translation Our foreign subsidiaries and foreign investments
generally report their earnings in their local currencies. We translate their
foreign assets and liabilities at exchange rates in effect at the balance
sheet dates. We translate their revenues and expenses using average rates
during the year. The resulting foreign currency translation adjustments are
recorded as a separate component of accumulated OCI on our consolidated
balance sheets (see Note 3).
50
AT&T Inc.
Dollars in millions except per share amounts
Pension and Other Postretirement Benefits See Note 14 for a comprehensive
discussion of our pension and postretirement benefits, including a discussion
of the actuarial assumptions, our policy for recognizing the associated gains
and losses and our method used to estimate service and interest cost
components.
NOTE 2. EARNINGS PER SHARE
A reconciliation of the numerators and denominators of basic and diluted
earnings per share is shown in the table below:
Year Ended December 31, 2025 2024 2023
Numerators
Numerator for basic earnings per share:
Net Income Attributable to Common Stock $ 21,889 $ 10,746 $ 14,192
Dilutive potential common shares:
Mobility preferred interests - - 72
Share-based compensation 12 - 13
Numerator for diluted earnings per share $ 21,901 $ 10,746 $ 14,277
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding 7,169 7,199 7,181
Dilutive potential common shares:
Mobility preferred interests (in shares) - - 71
Share-based compensation (in shares) 10 5 6
Denominator for diluted earnings per share 7,179 7,204 7,258
On April 5, 2023, we repurchased all of our Mobility preferred interests (see
Note 16). For periods prior to repurchase, under ASU 2020-06, the ability to
settle the Mobility preferred interests in stock was reflected in our diluted
earnings per share calculation (see Note 1).
51
AT&T Inc.
Dollars in millions except per share amounts
NOTE 3. OTHER COMPREHENSIVE INCOME
Changes in the balances of each component included in accumulated OCI are
presented below. All amounts are net of tax and exclude noncontrolling
interest.
Foreign Net Unrealized Net Unrealized Defined Benefit Accumulated Other
Currency
Postretirement
Comprehensive
Translation Gains (Losses) on Securities Gains (Losses) on Derivative Instruments
Plans
Income
Adjustment
Balance as of December 31, 2022 $ (1,800) $ (90) $ (1,998) $ 6,654 $ 2,766
Other comprehensive income 463 22 922 32 1,439
(loss) before reclassifications
Amounts reclassified from - 1 11 1 47 2 (1,963) 3 (1,905)
accumulated OCI
Net other comprehensive 463 33 969 (1,931) (466)
income (loss)
Balance as of December 31, 2023 (1,337) (57) (1,029) 4,723 2,300
Other comprehensive income (545) (19) 380 - (184)
(loss) before reclassifications
Amounts reclassified from 127 1 30 1 45 2 (1,523) 3 (1,321)
accumulated OCI
Net other comprehensive (418) 11 425 (1,523) (1,505)
income (loss)
Balance as of December 31, 2024 (1,755) (46) (604) 3,200 795
Other comprehensive income 354 15 (650) - (281)
(loss) before reclassifications
Amounts reclassified from - 1 3 1 45 2 (1,422) 3 (1,374)
accumulated OCI
Net other comprehensive 354 18 (605) (1,422) (1,655)
income (loss)
Balance as of December 31, 2025 $ (1,401) $ (28) $ (1,209) $ 1,778 $ (860)
1(Gains) losses are included in "Other income (expense) - net" in the
consolidated statements of income.
2(Gains) losses are primarily included in "Interest expense" in the
consolidated statements of income (see Note 12).
3The amortization of prior service credits associated with postretirement
benefits is included in "Other income (expense) - net" in the consolidated
statements of income (see Note 14).
NOTE 4. SEGMENT INFORMATION
Our segments are comprised of strategic business units or other operations
that offer products and services to different customer segments over various
technology platforms and/or in different geographies that are managed
accordingly. We have two reportable segments: Communications and Latin
America.
Our chief operating decision maker (CODM) is our Chief Executive Officer and
President. Our CODM uses operating income to evaluate performance and allocate
resources, including capital allocations, when managing the business. Our CODM
manages operations through the review of actual and forecasted "Operations and
Support Expenses" information at a segment and business unit level, with
Communications and Latin America segments primarily evaluated on a direct cost
basis and comprised of equipment, compensation, network and technology, sales,
advertising and other costs.
Additionally, business unit expenses within the Communications segment include
direct and shared costs. Direct costs are incurred in support of products and
services offered by the business units, such as equipment costs (predominantly
wireless devices), network access, rents, leases, sales support, customer
provisioning and commission expenses. Shared costs amongst the business units
generally include information technology, network engineering and construction
costs, advertising and other general and administrative expense.
52
AT&T Inc.
Dollars in millions except per share amounts
The Communications segment provides wireless and wireline telecom and
broadband services to consumers located in the United States and businesses
globally. Our business strategies reflect integrated product offerings that
cut across product lines and utilize shared assets. This segment contains the
following business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, fixed
wireless services, IP Voice and managed professional services, as well as
legacy voice and data services and related equipment, to business customers.
•Consumer Wireline provides broadband services, including fiber connections
that provide multi-gig services, and our fixed wireless access product
(AT&T Internet Air or "AIA") that provides internet services delivered
over our 5G wireless network, to residential customers in select locations.
Consumer Wireline also provides legacy telephony voice communication services.
The Latin America segment provides wireless service and equipment in Mexico.
Corporate and Other reconciles our segment results to consolidated operating
income and income before income taxes.
Corporate includes:
•DTV-related retained costs, which are costs previously allocated to the
Video business that were retained after the transaction, net of reimbursements
from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service
agreements. With the sale of our remaining interest in DIRECTV, we will no
longer report these costs in 2026 (see Note 10).
•Parent administration support, which includes costs borne by AT&T where
the business units do not influence decision making.
•Securitization fees associated with our sales of receivables (see Note 17).
•Value portfolio, which are businesses no longer integral to our operations
or which we no longer actively market.
Other items consist of:
•Certain significant items, which includes items associated with the merger
and integration of acquired or divested businesses, including amortization of
intangible assets, employee separation charges associated with voluntary
and/or strategic offers, asset impairments and abandonments and restructuring,
and other items for which the segments are not being evaluated.
"Interest expense" and "Other income (expense) - net" are managed only on a
total company basis and are, accordingly, reflected only in consolidated
results.
For the year ended December 31, 2025
Revenues Operations Depreciation Operating
and Support
Income
Expenses and
(Loss)
Amortization
Communications
Mobility $ 89,482 $ 51,864 $ 10,422 $ 27,196
Business Wireline 17,231 12,213 5,834 (816)
Consumer Wireline 14,183 8,933 3,703 1,547
Total Communications 120,896 73,010 19,959 27,927
Latin America 4,379 3,563 671 145
Segment Total 125,275 76,573 20,630 28,072
Corporate and Other
Corporate:
DTV-related retained costs - 225 200 (425)
Parent administration support (1) 1,737 18 (1,756)
Securitization fees 115 702 - (587)
Value portfolio 259 50 - 209
Total Corporate 373 2,714 218 (2,559)
Certain significant items - 1,313 38 (1,351)
Total Corporate and Other 373 4,027 256 (3,910)
AT&T Inc. $ 125,648 $ 80,600 $ 20,886 $ 24,162
53
AT&T Inc.
Dollars in millions except per share amounts
For the year ended December 31, 2024
Revenues Operations Depreciation Operating
and Support
and
Income
Expenses
Amortization
(Loss)
Communications
Mobility $ 85,255 $ 48,724 $ 10,217 $ 26,314
Business Wireline 18,819 13,352 5,555 (88)
Consumer Wireline 13,578 9,048 3,661 869
Total Communications 117,652 71,124 19,433 27,095
Latin America 4,232 3,535 657 40
Segment Total 121,884 74,659 20,090 27,135
Corporate and Other
Corporate:
DTV-related retained costs - 465 414 (879)
Parent administration support (2) 1,722 6 (1,730)
Securitization fees 116 628 - (512)
Value portfolio 338 102 17 219
Total Corporate 452 2,917 437 (2,902)
Certain significant items - 5,131 53 (5,184)
Total Corporate and Other 452 8,048 490 (8,086)
AT&T Inc. $ 122,336 $ 82,707 $ 20,580 $ 19,049
For the year ended December 31, 2023
Revenues Operations Depreciation Operating
and Support
and
Income
Expenses
Amortization
(Loss)
Communications
Mobility $ 83,982 $ 49,604 $ 8,517 $ 25,861
Business Wireline 20,883 14,217 5,377 1,289
Consumer Wireline 13,173 9,053 3,469 651
Total Communications 118,038 72,874 17,363 27,801
Latin America 3,932 3,349 724 (141)
Segment Total 121,970 76,223 18,087 27,660
Corporate and Other
Corporate:
DTV-related retained costs - 686 586 (1,272)
Parent administration support (7) 1,416 6 (1,429)
Securitization fees 85 604 - (519)
Value portfolio 380 99 22 259
Total Corporate 458 2,805 614 (2,961)
Certain significant items - 1,162 76 (1,238)
Total Corporate and Other 458 3,967 690 (4,199)
AT&T Inc. $ 122,428 $ 80,190 $ 18,777 $ 23,461
54
AT&T Inc.
Dollars in millions except per share amounts
The following table is a reconciliation of Segment Operating Income to "Income
Before Income Taxes" reported in our consolidated statements of income:
For the years ended December 31, 2025 2024 2023
Communications $ 27,927 $ 27,095 $ 27,801
Latin America 145 40 (141)
Segment Operating Income 28,072 27,135 27,660
Reconciling Items:
Corporate (2,559) (2,902) (2,961)
Transaction, legal and other costs (627) (123) (98)
Amortization of intangibles acquired (38) (53) (76)
Asset impairments and abandonments and restructuring (838) (5,075) (1,193)
Benefit-related gains (losses) 152 67 129
AT&T Operating Income 24,162 19,049 23,461
Interest expense 6,804 6,759 6,704
Equity in net income of affiliates 1,895 1,989 1,675
Other income (expense) - net 7,754 2,419 1,416
Income Before Income Taxes $ 27,007 $ 16,698 $ 19,848
The following table sets forth revenues earned from customers, and property,
plant and equipment located in different geographic areas:
At or for the years ended December 31, 2025 2024 2023
Revenues Net Property, Revenues Net Property, Revenues Net Property,
Plant &
Plant & Plant &
Equipment
Equipment Equipment
United States $ 120,219 $ 128,181 $ 116,882 $ 125,573 $ 117,097 $ 124,387
Mexico 4,428 3,097 4,286 2,981 3,993 3,750
Asia/Pacific Rim 395 68 462 82 521 99
Europe 382 126 441 139 504 166
Latin America 110 54 149 60 194 67
Other 114 33 116 36 119 20
Total $ 125,648 $ 131,559 $ 122,336 $ 128,871 $ 122,428 $ 128,489
The following table presents assets, investments in equity affiliates and
capital expenditures by segment:
At or for the years ended December 31, 2025 2024
Assets Investments in Capital Assets Investments in Capital
Equity Method
Expenditures
Equity Method
Expenditures
Investees
Investees
Communications $ 500,244 $ - $ 19,588 $ 481,757 $ - $ 19,335
Latin America 9,460 - 276 7,808 - 269
Corporate and eliminations (89,506) 1,106 978 (94,770) 295 659
Total $ 420,198 $ 1,106 $ 20,842 $ 394,795 $ 295 $ 20,263
55
AT&T Inc.
Dollars in millions except per share amounts
NOTE 5. REVENUE RECOGNITION
We report our revenues net of sales taxes and record certain regulatory fees,
primarily Universal Service Fund (USF) fees, on a net basis. No customer
accounted for more than 10% of consolidated revenues in 2025, 2024 or 2023.
We offer service-only contracts and contracts that bundle equipment used to
access the services and/or with other service offerings. Some contracts have
fixed terms and others are cancelable on a short-term basis (i.e.,
month-to-month arrangements).
Examples of service revenues include wireless, fiber and other advanced
connectivity, transitional and legacy voice and data. These services represent
a series of distinct services that is considered a separate performance
obligation. Service revenue is recognized when services are provided, based
upon either period of time (e.g., monthly service fees) or usage (e.g., bytes
of data processed).
Some of our services require customer premises equipment that, when combined
and integrated with AT&T's specific network infrastructure, facilitates
the delivery of service to the customer. In evaluating whether the equipment
is a separate performance obligation, we consider the customer's ability to
benefit from the equipment on its own or together with other readily available
resources and if so, whether the service and equipment are separately
identifiable (i.e., is the service highly dependent on, or highly interrelated
with the equipment). When equipment is a separate performance obligation, we
record the sale of equipment when title has passed and the products are
accepted by the customer. For devices sold through indirect channels (e.g.,
national retailers), revenue is recognized when the retailer accepts the
device, not upon activation.
Our equipment and service revenues are predominantly recognized on a gross
basis, as most of our services do not involve a third party and we typically
control the equipment that is sold to our customers.
Revenue recognized from fixed-term contracts that bundle services and/or
equipment is allocated based on the standalone selling price of all required
performance obligations of the contract (i.e., each item included in the
bundle). Promotional discounts are attributed to each required component of
the arrangement, resulting in recognition over the contract term. Standalone
selling prices are determined by assessing prices paid for service-only
contracts (e.g., arrangements where customers bring their own devices) and
standalone device pricing.
We offer the majority of our customers the option to purchase certain wireless
devices in installments over a specified period of time, and, in many cases,
they may be eligible to trade in the original equipment for a new device and
have the remaining unpaid balance paid or settled. For customers that elect
these equipment installment payment programs, at the point of sale, we
recognize revenue for the entire amount of revenue allocated to the customer
receivable net of fair value of the trade-in right guarantee, when applicable.
The difference between the revenue recognized and the consideration received
is recorded as a note receivable when the devices are not discounted and our
right to consideration is unconditional. When installment sales include
promotional discounts that are earned by customers over the contract term
(e.g., "buy one get one free" or equipment discounts with trade-in of a
device), notes receivable are recognized net of discounts and the difference
between revenue recognized and consideration received is recorded as a
contract asset to be amortized over the contract term.
Less commonly, we offer certain customers highly discounted devices when they
enter into a minimum service agreement term. For these contracts, we recognize
equipment revenue at the point of sale based on a standalone selling price
allocation. The difference between the revenue recognized and the cash
received is recorded as a contract asset that will amortize over the contract
term.
Our contracts allow for customers to frequently modify their arrangement,
without incurring penalties in many cases. When a contract is modified, we
evaluate the change in scope or price of the contract to determine if the
modification should be treated as a new contract or if it should be considered
a change of the existing contract. We generally do not have significant
impacts from contract modifications.
Revenues from transactions between us and our customers are recorded net of
revenue-based regulatory fees and taxes. Cash incentives given to customers
are recorded as a reduction of revenue. Nonrefundable, upfront service
activation and setup fees associated with service arrangements are deferred
and recognized over the associated service contract period or customer
relationship life.
56
AT&T Inc.
Dollars in millions except per share amounts
Revenue Categories
The following tables set forth reported revenue by category and by business
unit:
For the year ended December 31, 2025
Communications
Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total
Wireless service $ 67,384 $ - $ - $ 2,715 $ - $ 70,099
Fiber and advanced connectivity1 - 7,333 8,645 - - 15,978
Non-fiber consumer broadband - - 3,542 - - 3,542
Legacy and other transitional - 9,170 1,013 - 179 10,362
Other - - 983 - 194 1,177
Total Service 67,384 16,503 14,183 2,715 373 101,158
Equipment 22,098 728 - 1,664 - 24,490
Total $ 89,482 $ 17,231 $ 14,183 $ 4,379 $ 373 $ 125,648
1 Advanced connectivity services reported in Business Wireline.
For the year ended December 31, 2024
Communications
Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total
Wireless service $ 65,373 $ - $ - $ 2,668 $ - $ 68,041
Fiber and advanced connectivity1 - 6,969 7,391 - - 14,360
Non-fiber consumer broadband - - 3,821 - - 3,821
Legacy and other transitional - 11,095 1,265 - 253 12,613
Other - - 1,101 - 199 1,300
Total Service 65,373 18,064 13,578 2,668 452 100,135
Equipment 19,882 755 - 1,564 - 22,201
Total $ 85,255 $ 18,819 $ 13,578 $ 4,232 $ 452 $ 122,336
1 Advanced connectivity services reported in Business Wireline.
For the year ended December 31, 2023
Communications
Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total
Wireless service $ 63,175 $ - $ - $ 2,569 $ - $ 65,744
Fiber and advanced connectivity1 - 6,594 6,267 - - 12,861
Non-fiber consumer broadband - - 4,188 - - 4,188
Legacy and other transitional - 13,680 1,508 - 294 15,482
Other - - 1,210 - 164 1,374
Total Service 63,175 20,274 13,173 2,569 458 99,649
Equipment 20,807 609 - 1,363 - 22,779
Total $ 83,982 $ 20,883 $ 13,173 $ 3,932 $ 458 $ 122,428
1 Advanced connectivity services reported in Business Wireline.
Deferred Customer Contract Acquisition and Fulfillment Costs
Costs to acquire and fulfill customer contracts, including commissions on
service activations, for our Mobility, Business Wireline and Consumer Wireline
services, are deferred and amortized over the contract period or expected
customer relationship life, which typically ranges from three years to five
years.
57
AT&T Inc.
Dollars in millions except per share amounts
The following table presents the deferred customer contract acquisition and
fulfillment costs included on our consolidated balance sheets at December 31:
Consolidated Balance Sheets 2025 2024
Deferred Acquisition Costs
Prepaid and other current assets $ 3,550 $ 3,239
Other Assets 4,778 4,177
Total deferred customer contract acquisition costs $ 8,328 $ 7,416
Deferred Fulfillment Costs
Prepaid and other current assets $ 1,862 $ 2,101
Other Assets 2,864 3,289
Total deferred customer contract fulfillment costs $ 4,726 $ 5,390
The following table presents deferred customer contract acquisition and
fulfillment cost amortization, which are primarily included in "Selling,
general and administrative" and "Other cost of revenues," respectively, for
the years ended December 31:
Consolidated Statements of Income 2025 2024
Deferred acquisition cost amortization $ 3,837 $ 3,667
Deferred fulfillment cost amortization 2,279 2,525
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of our
right to bill and receive consideration. The contract asset will decrease as
services are provided and billed. For example, when installment sales include
promotional discounts (e.g., trade-in device credits) the difference between
revenue recognized and consideration received is recorded as a contract asset
to be amortized over the contract term.
Our contract assets primarily relate to our wireless businesses. Promotional
equipment sales where we offer handset credits, which are allocated between
equipment and service in proportion to their standalone selling prices, when
customers commit to a specified service period result in additional contract
assets recognized. These contract assets will amortize over the service
contract period, resulting in lower future service revenue.
When consideration is received in advance of the delivery of goods or
services, a contract liability is recorded. Reductions in the contract
liability will be recorded as we satisfy the performance obligations.
The following table presents contract assets and liabilities on our
consolidated balance sheets at December 31:
Consolidated Balance Sheets 2025 2024
Contract asset $ 7,816 $ 6,855
Current portion in "Prepaid and other current assets" 4,131 3,845
Contract liability 4,409 4,272
Current portion in "Advanced billings and customer deposits" 4,136 3,981
Our beginning of period contract liabilities recorded as customer contract
revenue during 2025 was $3,981.
Remaining Performance Obligations
Remaining performance obligations represent services we are required to
provide to customers under bundled or discounted arrangements, which are
satisfied as services are provided over the contract term. In determining the
transaction price allocated, we do not include non-recurring charges and
estimates for usage, nor do we consider arrangements with an original expected
duration of less than one year, which are primarily prepaid wireless and
residential internet agreements.
Remaining performance obligations associated with business contracts reflect
recurring charges billed, adjusted to reflect estimates for sales incentives
and revenue adjustments. Performance obligations associated with wireless
contracts are estimated using a portfolio approach in which we review all
relevant promotional activities, calculating the remaining performance
obligation using the average service component for the portfolio and the
average device price. As of December 31,
58
AT&T Inc.
Dollars in millions except per share amounts
2025, the aggregate amount of the transaction price allocated to remaining
performance obligations was $43,989, of which we expect to recognize
approximately 88% by the end of 2027, with the balance recognized thereafter.
NOTE 6. ACQUISITIONS, DISPOSITIONS AND OTHER ADJUSTMENTS
Spectrum Auctions In February 2021, the FCC announced that AT&T was the
winning bidder for 1,621 C-Band licenses, comprised of a total of 80 MHz
nationwide, including 40 MHz in Phase I. We received the licenses in July 2021
and classified the auction deposits, related capitalized interest and billed
relocation costs as "Licenses - Net" on our December 31, 2021 consolidated
balance sheet. In December 2021, we paid $955 of Incentive Payments upon
clearing of Phase I spectrum and paid $2,112 upon clearing of Phase II
spectrum in 2023.
Pending Acquisitions
Spectrum On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz
and 3.45 GHz bands from EchoStar Corporation for approximately $23,000,
subject to certain adjustments. The transaction is expected to close in early
2026 and is subject to regulatory approval and other closing conditions. The
FCC licenses will be used to expand our 5G network, meet future capacity
demands and support future wireless communications services. We signed a
short-term spectrum manager lease on the 3.45 GHz spectrum, which was deployed
in cell sites covering nearly two-thirds of the U.S. population.
Fiber On May 21, 2025, we agreed to acquire substantially all of Lumen's Mass
Markets fiber business for $5,750 cash, subject to purchase price adjustments.
At the time of signing, the pending acquisition covered approximately one
million fiber customers, and also included fiber network assets that reached
more than four million fiber locations. On February 2, 2026, we completed the
transaction and expect to manage the customer relationships in our Consumer
Wireline business and place the fiber network assets in a new, wholly owned
subsidiary. We plan to sell a controlling interest in the subsidiary to an
equity partner that will co-invest in the ongoing business, and, as such, it
is expected to meet the criteria for discontinued operations.
NOTE 7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows at December 31:
Lives (years) 2025 2024
Land - $ 1,370 $ 1,372
Buildings and improvements 2-44 40,674 39,947
Central office equipment1 3-10 87,496 101,607
Cable, wiring and conduit 15-50 101,530 95,217
Other equipment 3-20 90,853 87,656
Software 3-7 17,942 17,663
Under construction - 7,705 7,452
347,570 350,914
Accumulated depreciation and amortization 216,011 222,043
Property, plant and equipment - net $ 131,559 $ 128,871
1 Includes certain network software.
Our depreciation expense was $20,746 in 2025, $20,421 in 2024 and $18,593 in
2023. Depreciation expense included amortization of software totaling $3,209
in 2025, $3,076 in 2024 and $3,023 in 2023.
In conjunction with the decommissioning of our copper-based legacy network, we
retired approximately $16,600 of fully depreciated assets that were no longer
in use. These assets were primarily related to our network and central
offices.
NOTE 8. LEASES
We have operating and finance leases for certain facilities and equipment used
in our operations. Our leases generally have remaining lease terms of up to 15
years. Some of our operating leases (e.g., for towers and real estate) contain
renewal options that may be exercised, and some of our leases include options
to terminate the leases within one year.
We have recognized a right-of-use asset for both operating and finance leases,
and a corresponding lease liability that represents the present value of our
obligation to make payments over the lease term. The present value of the
lease payments is calculated using the incremental borrowing rate for
operating and finance leases, which was determined using a portfolio approach
based
59
AT&T Inc.
Dollars in millions except per share amounts
on the rate of interest that we would have to pay to borrow an amount equal to
the lease payments on a collateralized basis over a similar term. We use the
unsecured borrowing rate and risk-adjust that rate to approximate a
collateralized rate in the currency of the lease, which will be updated on a
quarterly basis for measurement of new lease liabilities.
The components of lease expense were as follows:
2025 2024 2023
Operating lease cost $ 5,927 $ 5,776 $ 5,577
Finance lease cost:
Amortization of leased assets in property, plant and equipment $ 182 $ 205 $ 232
Interest on lease obligation 142 171 184
Total finance lease cost $ 324 $ 376 $ 416
The following table provides supplemental cash flows information related to
leases:
2025 2024 2023
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases $ 4,830 $ 4,757 $ 4,588
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for 5,517 3,762 2,693
new operating lease obligations
The following tables set forth supplemental balance sheet information related
to leases at December 31:
2025 2024
Operating Leases
Operating lease right-of-use assets $ 22,642 $ 20,909
Accounts payable and accrued liabilities $ 3,581 $ 3,533
Operating lease obligation 18,943 17,391
Total operating lease obligation $ 22,524 $ 20,924
Finance Leases
Property, plant and equipment, at cost $ 2,476 $ 2,449
Accumulated depreciation and amortization (1,484) (1,378)
Property, plant and equipment - net $ 992 $ 1,071
Current portion of long-term debt $ 190 $ 179
Long-term debt 1,192 1,237
Total finance lease obligation $ 1,382 $ 1,416
2025 2024
Weighted-Average Remaining Lease Term (years)
Operating leases 7.6 7.6
Finance leases 5.3 6.7
Weighted-Average Discount Rate
Operating leases 4.6 % 4.5 %
Finance leases 8.7 % 8.5 %
60
AT&T Inc.
Dollars in millions except per share amounts
The following table provides the expected future minimum maturities of lease
obligations:
At December 31, 2025 Operating Leases Finance
Leases
2026 $ 4,956 $ 309
2027 4,489 316
2028 3,871 324
2029 3,141 333
2030 2,291 275
Thereafter 8,808 204
Total lease payments 27,556 1,761
Less: Imputed interest (5,032) (379)
Total $ 22,524 $ 1,382
NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS
We test goodwill for impairment at a reporting unit level, which is deemed to
be our principal operating segments or one level below, using the methodology
described in Note 1. With our annual impairment testing as of October 1, the
calculated fair value of each reporting unit exceeded its book value.
Changes to our goodwill in 2024 resulted from a third-quarter noncash goodwill
impairment charge of $4,422 in our consolidated statements of income, which
represented the entirety of our Business Wireline reporting unit goodwill. The
decline in fair value was primarily due to the change in the long-term
strategic plan of our Business Wireline reporting unit, which reflected lower
long-term projected future cash flows associated with the industry-wide
secular decline, including a faster-than-previously anticipated decline of
legacy services.
Our Communications segment has three reporting units: Mobility, Consumer
Wireline and Business Wireline. Business Wireline goodwill was fully impaired
in 2024. The reporting unit is deemed to be the operating segment for Latin
America and its goodwill was fully impaired in 2022. At December 31, 2025,
accumulated goodwill impairments totaled $29,234.
The following table sets forth the changes in the carrying amounts of goodwill
for the Communications segment:
2025 2024
Balance at Dispositions Balance at Balance at Impairment Balance at
Jan. 1
and other
Dec. 31
Jan. 1
Dec. 31
Communications
Goodwill $ 91,840 $ (7) $ 91,833 $ 91,840 $ - $ 91,840
Accumulated Impairments (28,408) - (28,408) (23,986) (4,422) (28,408)
Total $ 63,432 $ (7) $ 63,425 $ 67,854 $ (4,422) $ 63,432
We review amortizing intangible assets for impairment whenever events or
circumstances indicate that the carrying amount may not be recoverable over
the remaining life of the asset or asset group.
In 2025, we performed a qualitative impairment assessment, which indicated it
was more likely than not that the fair value of our FCC wireless licenses
exceeded the book value and did not result in an impairment. In 2024, we
performed a quantitative impairment assessment, which reflected the fair value
of our FCC wireless licenses exceeded their book value.
FCC wireless licenses increased in 2025 primarily due to spectrum acquisitions
and capitalized interest. FCC wireless licenses increased in 2024 primarily
due to compensable relocation and incentive payments and $199 of capitalized
interest. (See Notes 6 and 23)
61
AT&T Inc.
Dollars in millions except per share amounts
Our other intangible assets at December 31 are summarized as follows:
2025 2024
Other Intangible Assets Weighted-Average Gross Accumulated Currency Gross Accumulated Currency
Amortization
Translation
Amortization
Translation
Life Carrying
Adjustment Carrying
Adjustment
Amount Amount
Amortized intangible
assets:
Wireless licenses 21.3 years $ 3,582 $ 831 $ (73) $ 2,999 $ 696 $ (343)
Customer lists and N/A - - - 349 275 (74)
relationships
Trademarks, trade names 13.2 years 42 23 (6) 43 23 (6)
and other
Total 21.2 years $ 3,624 $ 854 $ (79) $ 3,391 $ 994 $ (423)
Indefinite-lived intangible assets not subject to amortization:
Wireless licenses $ 125,470 $ 125,075
Trade names 5,241 5,241
Total $ 130,711 $ 130,316
Amortized intangible assets are definite-life assets, and, as such, we record
amortization expense based on a method that most appropriately reflects our
expected cash flows from these assets. Amortization expense for definite-life
intangible assets was $140 for the year ended December 31, 2025, $159 for the
year ended December 31, 2024 and $184 for the year ended December 31, 2023.
Estimated amortization expense for the next five years is: $178 for 2026, $178
for 2027, $178 for 2028, $178 for 2029 and $176 for 2030.
NOTE 10. EQUITY METHOD INVESTMENTS
Investments in partnerships, joint ventures and less than majority-owned
subsidiaries in which we have significant influence are accounted for under
the equity method.
Our investments in equity affiliates at December 31, 2025, primarily included
our interests in DriveNets and Gigapower. On July 2, 2025, we sold our
interest in DIRECTV to TPG Capital (TPG).
DIRECTV Prior to its sale, we accounted for our investment in DIRECTV under
the equity method of accounting. DIRECTV was considered a VIE for accounting
purposes. As DIRECTV was jointly governed by a board with representation from
both AT&T and TPG, with TPG having tie-breaking authority on certain key
decisions, most significantly the appointment and removal of the CEO, we
concluded that we were not the primary beneficiary of DIRECTV.
Our ownership interest in DIRECTV included $4,250 of junior preferred
interests, an additional distribution preference of $4,200 and a 70% economic
interest in common units.
In third-quarter 2024, our investment in DIRECTV was reduced to zero on our
consolidated balance sheet, as a result of aggregate cash receipts exceeding
our initial investment balance plus our cumulative equity in DIRECTV earnings.
As we were not committed, implicitly or explicitly, to provide financial or
other support to DIRECTV, we recorded cash distributions received in excess of
our share of DIRECTV's earnings in "Equity in net income of affiliates" in the
consolidated statements of income and as cash provided by operations in the
consolidated statements of cash flows.
Prior to sale, during 2025, 2024 and 2023, we recognized $1,926, $2,027 and
$1,666 of equity in net income of affiliates and received total distributions
of $1,926, $2,955 and $3,715, respectively, from DIRECTV. The book value of
our investment in DIRECTV was $0 at December 31, 2025 and 2024.
Upon the sale of our interests in DIRECTV in July 2025, we recorded a current
note receivable of approximately $3,600 and a long-term receivable of $500.
The disposition of DIRECTV also resulted in the release of approximately
$2,900 of historical deferred tax liabilities. We recorded a gain on the sale
of DIRECTV of approximately $5,600, which includes the impact of the transfer
of deferred tax liabilities, indemnification liabilities and unfavorable
contracts, in "Other income (expense) - net" in the
62
AT&T Inc.
Dollars in millions except per share amounts
consolidated statements of income in 2025. As of December 31, 2025, we have
received $3,100 of cash on the current note receivable, which was included in
"Dispositions" in the consolidated statements of cash flows.
DriveNets We hold a 16.6% interest in DriveNets, which designs and builds
high-scale networking solutions for service providers and AI infrastructures.
Gigapower We hold a 50% interest in our joint venture Gigapower, LLC
(Gigapower), which provides a fiber network in select areas to internet
service providers and other businesses across the United States.
SKY Mexico In June 2024, we sold our 41.3% interest in SKY Mexico, a leading
pay-TV provider in Mexico.
The following table is a reconciliation of our investments in equity
affiliates as presented on our consolidated balance sheets:
2025 2024
Beginning of year $ 295 $ 1,251
Additional investments 819 117
Distributions from DIRECTV in excess of cumulative equity in earnings - (928)
Dividends and distributions of cumulative earnings received (1,937) (2,033)
Equity in net income of affiliates 1,895 1,989
Impairments - (155)
Other adjustments 34 54
End of year $ 1,106 $ 295
NOTE 11. DEBT
Long-term debt of AT&T and its subsidiaries, including interest rates and
maturities, is summarized as follows at December 31:
2025 2024
Notes and debentures
Interest Rates1 Maturities
0.00% - 2.99% 2025 - 2033 $ 22,240 $ 21,860
3.00% - 4.99% 2025 - 2061 89,379 83,725
5.00% - 6.99% 2025 - 2095 29,165 22,679
7.00% - 8.75% 2025 - 2097 3,524 3,565
Fair value of interest rate swaps recorded in debt 3 6
144,311 131,835
Unamortized (discount) premium - net (9,193) (9,340)
Unamortized issuance costs (400) (379)
Total notes and debentures 134,718 122,116
Finance lease obligations 1,382 1,416
Total long-term debt, including current maturities 136,100 123,532
Current maturities of long-term debt (9,011) (5,089)
Total long-term debt $ 127,089 $ 118,443
1Foreign debt includes the impact from hedges, when applicable.
We had outstanding Euro, British pound sterling, Canadian dollar, Australian
dollar and Swiss franc denominated debt of approximately $35,307 and $30,685
at December 31, 2025 and 2024, respectively.
The weighted-average interest rate of our long-term debt portfolio, including
credit agreement borrowings and the impact of derivatives, was approximately
4.2% as of December 31, 2025 and 2024.
Our long-term debt maturing within one year was $9,011 and $5,089 at
December 31, 2025 and 2024, respectively. We had no outstanding commercial
paper or other short-term borrowings as of December 31, 2025 and 2024.
63
AT&T Inc.
Dollars in millions except per share amounts
Financing Activities
During 2025, we received net proceeds of $14,027 on the issuance of $14,111 in
long-term debt, with an average weighted maturity of approximately 12.3 years
and a weighted average interest rate of 5.0%. We repaid $5,399 of long-term
debt with a weighted average interest rate of 4.7%. Our debt activity during
2025 primarily consisted of the following:
First Second Third Fourth Full Year 2025
Quarter
Quarter
Quarter
Quarter
Issuance of notes and debentures:
USD notes $ - $ 3,473 $ 4,959 $ - $ 8,432
EUR notes 2,956 - 2,639 - 5,595
Debt issuances $ 2,956 $ 3,473 $ 7,598 $ - $ 14,027
Repayments:
USD notes $ - $ - $ - $ (145) $ (145)
EUR notes (1,321) (32) - (2,441) (3,794)
CAD notes - - - (960) (960)
Other (205) (62) (229) (133) (629)
Repayments of long-term debt $ (1,526) $ (94) $ (229) $ (3,679) $ (5,528)
As of December 31, 2025 and 2024, we were in compliance with all covenants
and conditions of instruments governing our debt. Substantially all of our
outstanding long-term debt is unsecured. Maturities of outstanding long-term
notes and debentures, as of December 31, 2025, and the corresponding
weighted-average interest rate scheduled for repayment are as follows:
2026 2027 2028 2029 2030 Thereafter
Debt repayments1,2 $ 8,652 $ 8,953 $ 6,905 $ 6,918 $ 7,020 $ 106,216
Weighted-average interest rate 2 3.1 % 3.8 % 3.2 % 4.6 % 4.3 % 4.3 %
1Debt repayments represent maturity value. Foreign debt includes the impact
from hedges, when applicable.
2Includes credit agreement borrowings.
On February 5, 2026, we issued $6,500 principal amount of global notes due
2031 to 2056 with a weighted average coupon of 5.2%. We intend to use the net
proceeds from this issuance for general corporate purposes, which may include
debt repayments and pending acquisitions.
Credit Facilities
General
On November 3, 2025, we entered into (i) a $12,000 Second Amended and Restated
Credit Agreement (Revolving Credit Agreement), with Citibank, N.A., as agent,
amending and restating our existing $12,000 Amended and Restated Credit
Agreement, dated as of November 18, 2022, and (ii) a $17,500 Delayed Draw Term
Loan Credit Agreement (Term Loan), with Bank of America, N.A., as agent. No
amount was outstanding under either the Revolving Credit Agreement or the Term
Loan as of December 31, 2025.
The Revolving Credit Agreement and the Term Loan contain covenants that are
customary for an issuer with investment grade senior debt credit ratings,
including a net debt-to-EBITDA financial ratio covenant requiring us to
maintain, as of the last day of each fiscal quarter, a ratio of not more than
3.75 to 1.
The events of default under the Revolving Credit Agreement and the Term Loan
are customary for agreements of this type and such events would result in the
acceleration of, or permit the requisite lenders to accelerate, as applicable,
required payments under the relevant agreement and could increase the
applicable margin under the relevant agreement by 2.00% per annum.
Revolving Credit Agreement
Advances under the Revolving Credit Agreement denominated in U.S. dollars will
bear interest, at our option, either:
•at a variable annual rate equal to: (1) the highest of (but not less than
zero) (a) the rate of interest announced publicly by Citibank in New York, New
York, from time to time, as Citibank's base rate, (b) 0.5% per annum above the
federal funds rate, and (c) the forward-looking term rate based on the secured
overnight financing rate (Term SOFR) for a period of one
64
AT&T Inc.
Dollars in millions except per share amounts
month plus 1.00%, plus (2) an applicable margin, as set forth in the Revolving
Credit Agreement (Applicable Margin for Base Advances); or
•at a rate equal to: (i) Term SOFR for a period of one, three or six months,
as applicable, plus (ii) an applicable margin, as set forth in the Revolving
Credit Agreement (Applicable Margin for Benchmark Rate Revolving Advances).
Advances under the Revolving Credit Agreement denominated in Euro will bear
interest at the Euro Interbank Offered Rate (EURIBOR) plus the Applicable
Margin for Benchmark Rate Revolving Advances.
Advances under the Revolving Credit Agreement denominated in Sterling will
bear interest at the Sterling Overnight Index Average (SONIA) plus the
Applicable Margin for Benchmark Rate Revolving Advances.
The Applicable Margin for Benchmark Rate Revolving Advances will be equal to
0.690%, 0.805%, 0.920% or 1.045% per annum depending on our senior unsecured
long-term debt ratings. The Applicable Margin for Base Rate Revolving Advances
will be equal to the greater of (x) 0.00% and (y) the relevant Applicable
Margin for Benchmark Rate Revolving Advances minus 1.00% per annum, depending
on our senior unsecured long-term debt ratings.
We will also pay a facility fee of 0.06%, 0.07% or 0.08% per annum of the
amount of the lender commitments, depending on AT&T's credit rating under
the Revolving Credit Agreement.
The obligations of the lenders under the Revolving Credit Agreement to provide
advances to us will terminate on November 3, 2030, unless the commitments are
terminated in whole prior to that date. All advances must be repaid no later
than the date on which lenders are no longer obligated to make any advances
under the Revolving Credit Agreement.
The Revolving Credit Agreement provides that we and the lenders representing
more than 50% of the facility amount may agree to extend their commitments
under the Revolving Credit Agreement for two one-year periods beyond the
initial termination date. We have the right to terminate, in whole or in part,
amounts committed by the lenders under the Revolving Credit Agreement in
excess of any outstanding advances; however, any such terminated commitments
may not be reinstated.
The proceeds of the advances shall be solely for general corporate purposes.
Delayed Draw Term Loan Credit Agreement
The Term Loan is comprised of (i) a $6,000 364-day delayed draw term loan
facility (364-Day Term Loan Facility) and (ii) a $11,500 two-year delayed draw
term loan facility (Two-Year Term Loan Facility). Each of the 364-Day Term
Loan Facility and Two-Year Term Loan Facility is available for a single draw
at any time before November 3, 2026. The proceeds of the Term Loan will be
used for general corporate purposes, which may include financing acquisitions
of additional spectrum.
Advances will bear interest, at our option, either:
•at a variable annual rate (Base Rate) equal to: (1) the highest of (but not
less than zero) (a) the prime rate quoted by Bank of America, N.A., (b) 0.5%
per annum above the federal funds rate, and (c) the forward-looking SOFR term
rate administered by the Chicago Mercantile Exchange (or any successor
administrator) and published on the applicable Reuters screen page (or such
other commercially available source providing such quotations) (Term SOFR
Screen Rate) for a period of one month plus 1.00%, plus (2) an applicable
margin, as set forth in the Term Loan (Applicable Margin for Base Rate Term
Advances); or
•at a variable annual rate based upon Term SOFR (SOFR Rate) equal to: (1)
the Term SOFR Screen Rate with a term equivalent to the applicable interest
period of the advance plus (2) an applicable margin, as set forth in the Term
Loan (Applicable Margin for SOFR Rate Term Advances).
The Applicable Margin for SOFR Rate Term Advances will be equal to 0.450%,
0.575%, 0.825%, 0.950% and 1.075% per annum for the 364-Day Term Loan Facility
and 0.550%, 0.675%, 0.925%, 1.050% and 1.175% per annum for the Two-Year Term
Loan Facility, in each case, depending on our senior unsecured long-term debt
ratings. The Applicable Margin for Base Rate Term Advances under the Term Loan
will be equal to the greater of (x) 0.00% and (y) the relevant Applicable
Margin for SOFR Rate Term Advances minus 1.00% per annum, depending on our
unsecured long-term debt ratings.
Commencing March 3, 2026, we will also pay a fee of 0.05%, 0.06%, 0.07%, 0.08%
or 0.10% per annum of the amount of unused lender commitments, depending on
our senior unsecured long-term debt ratings.
The Term Loan is not subject to amortization, and the entire principal amount
of (i) the 364-Day Term Loan Facility will be due and payable 364 days after
the date on which the borrowing is made and (ii) the Two-Year Term Loan
Facility will be due and payable two years after the date on which the
borrowing is made.
65
AT&T Inc.
Dollars in millions except per share amounts
NOTE 12. FAIR VALUE MEASUREMENTS AND DISCLOSURE
The Fair Value Measurement and Disclosure framework in ASC 820, "Fair Value
Measurement," provides a three-tiered fair value hierarchy based on the
reliability of the inputs used to determine fair value. Level 1 refers to fair
values determined based on quoted prices in active markets for identical
assets. Level 2 refers to fair values estimated using significant other
observable inputs, and Level 3 includes fair values estimated using
significant unobservable inputs.
The level of an asset or liability within the fair value hierarchy is based on
the lowest level of any input that is significant to the fair value
measurement. Our valuation techniques maximize the use of observable inputs
and minimize the use of unobservable inputs.
The valuation methodologies described above may produce a fair value
calculation that may not be indicative of future net realizable value or
reflective of future fair values. We believe our valuation methods are
appropriate and consistent with other market participants. The use of
different methodologies or assumptions to determine the fair value of certain
financial instruments could result in a different fair value measurement at
the reporting date. There have been no changes in the methodologies used since
December 31, 2024.
Long-Term Debt and Other Financial Instruments
The carrying amounts and estimated fair values of our long-term debt,
including current maturities, and other financial instruments are summarized
as follows:
December 31, 2025 December 31, 2024
Carrying Fair Carrying Fair
Amount
Value
Amount
Value
Notes and debentures1 $ 134,718 $ 127,852 $ 122,116 $ 114,167
Investment securities2 1,609 1,609 1,603 1,603
1Includes credit agreement borrowings.
2Excludes investments accounted for under the equity method.
The carrying amount of debt with an original maturity of less than one year
approximates fair value. The fair value measurements used for notes and
debentures are considered Level 2 and are determined using various methods,
including quoted prices for identical or similar securities in both active and
inactive markets.
Following is the fair value leveling for investment securities that are
measured at fair value and derivatives as of December 31, 2025 and
December 31, 2024. Derivatives designated as hedging instruments are
reflected as "Prepaid and other current assets,"
66
AT&T Inc.
Dollars in millions except per share amounts
"Other Assets," "Accounts payable and accrued liabilities," and "Other
noncurrent liabilities" on our consolidated balance sheets.
December 31, 2025
Level 1 Level 2 Level 3 Total
Equity Securities
Domestic equities $ 566 $ - $ - $ 566
International equities 8 - - 8
Fixed income equities 217 - - 217
Available-for-Sale Debt Securities - 587 - 587
Asset Derivatives
Cross-currency swaps - 876 - 876
Liability Derivatives
Cross-currency swaps - (2,050) - (2,050)
December 31, 2024
Level 1 Level 2 Level 3 Total
Equity Securities
Domestic equities $ 484 $ - $ - $ 484
International equities 8 - - 8
Fixed income equities 178 - - 178
Available-for-Sale Debt Securities - 689 - 689
Asset Derivatives
Cross-currency swaps - 87 - 87
Liability Derivatives
Cross-currency swaps - (4,163) - (4,163)
Investment Securities
Our investment securities include both equity and debt securities that are
measured at fair value, as well as equity securities without readily
determinable fair values. A substantial portion of the fair values of our
investment securities is estimated based on quoted market prices. Investments
in equity securities not traded on a national securities exchange are valued
at cost, less any impairment, and adjusted for changes resulting from
observable, orderly transactions for identical or similar securities.
Investments in debt securities not traded on a national securities exchange
are valued using pricing models, quoted prices of securities with similar
characteristics or discounted cash flows.
The components comprising total gains and losses in the period on equity
securities are as follows:
For the years ended December 31, 2025 2024 2023
Total gains (losses) recognized on equity securities $ 85 $ 209 $ 257
Gains (losses) recognized on equity securities sold 1 (52) 89
Unrealized gains (losses) recognized on equity securities held at end of $ 84 $ 261 $ 168
period
At December 31, 2025, available-for-sale debt securities totaling $587 have
maturities as follows - less than one year: $13; one to three years: $125;
three to five years: $183; five or more years: $266.
Our cash equivalents (money market securities) and short-term investments
(certificate and time deposits) are recorded at amortized cost, and the
respective carrying amounts approximate fair values. Short-term investments
are recorded in "Prepaid and other current assets," and our investment
securities are recorded in "Other Assets" on the consolidated balance sheets.
Derivative Financial Instruments
We enter into derivative transactions to manage certain market risks,
primarily interest rate risk and foreign currency exchange risk. This includes
the use of interest rate swaps, interest rate locks, foreign exchange forward
contracts and combined interest rate foreign exchange contracts
(cross-currency swaps). We do not use derivatives for trading or speculative
purposes. We
67
AT&T Inc.
Dollars in millions except per share amounts
record derivatives on our consolidated balance sheets at fair value that is
derived from observable market data, including yield curves and foreign
exchange rates (all of our derivatives are Level 2). Cash flows associated
with derivative instruments are presented in the same category in the
consolidated statements of cash flows as the item being hedged.
Fair Value Hedging Periodically, we enter into and designate fixed-to-floating
interest rate swaps as fair value hedges. The purpose of these swaps is to
manage interest rate risk by managing our mix of fixed-rate and floating-rate
debt. These swaps involve the receipt of fixed-rate amounts for floating
interest rate payments over the life of the swaps without exchange of the
underlying principal amount.
We also designate most of our cross-currency swaps and foreign exchange
contracts as fair value hedges. The purpose of these contracts is to hedge
foreign currency risk associated with changes in spot rates on
foreign-denominated debt. For cross-currency hedges, we have elected to
exclude the change in fair value of the swap related to both time value and
cross-currency basis spread from the assessment of hedge effectiveness. For
foreign exchange contracts, we have elected to exclude the change in fair
value of forward points from the assessment of hedge effectiveness.
Unrealized and realized gains or losses from fair value hedges impact the same
category on the consolidated statements of income as the item being hedged,
including the earnings impact of excluded components. In instances where we
have elected to exclude components from the assessment of hedge effectiveness
related to fair value hedges, unrealized gains or losses on such excluded
components are recorded as a component of accumulated OCI and recognized into
earnings over the life of the hedging instrument. Unrealized gains on
derivatives designated as fair value hedges are recorded at fair value as
assets, and unrealized losses are recorded at fair market value as
liabilities. Except for excluded components, changes in the fair value of
derivative instruments designated as fair value hedges are offset against the
change in fair value of the hedged assets or liabilities through earnings. In
the years ended December 31, 2025 and 2024, no ineffectiveness was measured
on fair value hedges.
Cash Flow Hedging We designate some of our cross-currency swaps as cash flow
hedges to hedge our exposure to variability in expected future cash flows that
are attributable to foreign currency risk and interest rate risk generated
from our foreign-denominated debt. These agreements include initial and final
exchanges of principal from fixed foreign denominated amounts to fixed U.S.
dollar denominated amounts, to be exchanged at a specified rate that is
usually determined by the market spot rate upon issuance. They also include an
interest rate swap of a fixed or floating foreign denominated interest rate to
a fixed U.S. dollar denominated interest rate.
On September 30, 2022, we de-designated most of our cross-currency swaps from
cash flow hedges and re-designated these swaps as fair value hedges. The
amount remaining in accumulated other comprehensive loss related to cash flow
hedges on the de-designation date was $1,857. The amount will be reclassified
to earnings when the hedged item is recognized in earnings or when it becomes
probable that the forecasted transactions will not occur. The election of fair
value hedge designation for cross-currency swaps does not have an impact on
our financial results.
Unrealized gains on derivatives designated as cash flow hedges are recorded at
fair value as assets, and unrealized losses are recorded at fair value as
liabilities. For derivative instruments designated as cash flow hedges,
changes in fair value are reported as a component of accumulated OCI and are
reclassified into the consolidated statements of income in the same period the
hedged transaction affects earnings.
Periodically, we enter into and designate interest rate locks to partially
hedge the risk of changes in interest payments attributable to increases in
the benchmark interest rate during the period leading up to the probable
issuance of fixed-rate debt. We designate our interest rate locks as cash flow
hedges. Gains and losses when we settle our interest rate locks are amortized
into income over the life of the related debt. Over the next 12 months, we
expect to reclassify $59 from accumulated OCI to "Interest expense" due to the
amortization of net losses on historical interest rate locks.
Collateral and Credit-Risk Contingency We have entered into agreements with
our derivative counterparties establishing collateral thresholds based on
respective credit ratings and netting agreements. At December 31, 2025, we
had posted collateral of $513 (a deposit asset) and held collateral of $314 (a
receipt liability). Under the agreements, if AT&T's credit rating had been
downgraded two ratings levels by Fitch Ratings, one level by S&P and one
level by Moody's, before the final collateral exchange in December, we would
have been required to post additional collateral of $49. If AT&T's credit
rating had been downgraded three ratings levels by Fitch Ratings, two levels
by S&P and two levels by Moody's, we would have been required to post
additional collateral of $1,405. At December 31, 2024, we had posted
collateral of $188 (a deposit asset) and held collateral of $0 (a receipt
liability). We do not offset the fair value of collateral, whether the right
to reclaim cash collateral (a receivable) or the obligation to return cash
collateral (a payable) exists, against the fair value of the derivative
instruments.
68
AT&T Inc.
Dollars in millions except per share amounts
Following are the notional amounts of our outstanding derivative positions at
December 31:
2025 2024
Cross-currency swaps $ 35,741 $ 34,884
Total $ 35,741 $ 34,884
Following are the related hedged items affecting our financial position and
performance:
Effect of Derivatives in the Consolidated Statements of Income
Fair Value Hedging Relationships
For the years ended December 31, 2025 2024 2023
Interest rate swaps ("Interest expense"):
Gain (loss) on interest rate swaps $ (3) $ (1) $ (6)
Gain (loss) on long-term debt 3 1 6
Cross-currency swaps:
Gain (loss) on cross-currency swaps 3,741 (1,347) 1,121
Gain (loss) on long-term debt (3,741) 1,347 (1,121)
Gain (loss) recognized in accumulated OCI (866) 501 1,126
Foreign exchange contracts:
Gain (loss) on foreign exchange contracts - - 12
Gain (loss) on long-term debt - - (12)
Gain (loss) recognized in accumulated OCI - - 12
In addition, the net swap settlements that accrued and settled in the periods
above were offset against "Interest expense."
Cash Flow Hedging Relationships
For the years ended December 31, 2025 2024 2023
Cross-currency swaps:
Gain (loss) recognized in accumulated OCI $ - $ - $ 12
Interest rate locks:
Interest income (expense) reclassified from (59) (59) (59)
accumulated OCI into income
Nonrecurring Fair Value Measurements
In addition to assets and liabilities that are recorded at fair value on a
recurring basis, impairment indicators may subject goodwill and long-lived
assets to nonrecurring fair value measurements. The implied fair values of the
Business Wireline, Consumer Wireline and Mexico reporting units were estimated
using both the discounted cash flow as well as market multiple approaches (see
Note 9). The inputs to these models are considered Level 3.
69
AT&T Inc.
Dollars in millions except per share amounts
NOTE 13. INCOME TAXES
Significant components of our deferred tax liabilities (assets) are as follows
at December 31:
2025 2024
Depreciation and amortization $ 37,570 $ 36,531
Licenses and nonamortizable intangibles 21,742 20,660
Lease right-of-use assets 5,494 5,103
Lease liabilities (5,464) (5,107)
Employee benefits (2,585) (3,017)
Deferred fulfillment costs 1,657 1,788
Equity in partnership 14 2,716
Net operating loss and other carryforwards (5,567) (5,619)
Other - net 1,401 1,466
Subtotal 54,262 54,521
Deferred tax assets valuation allowance 3,978 4,338
Net deferred tax liabilities $ 58,240 $ 58,859
Noncurrent deferred tax liabilities $ 58,312 $ 58,939
Less: Noncurrent deferred tax assets (72) (80)
Net deferred tax liabilities $ 58,240 $ 58,859
At December 31, 2025, we had combined net operating and capital loss
carryforwards (tax effected) for federal income tax purposes of $695, state of
$545 and foreign of $2,227, expiring through 2045. Additionally, we had
federal credit carryforwards of $645 and state credit carryforwards of $1,454,
expiring primarily through 2045.
We recognize a valuation allowance if, based on the weight of available
evidence, it is more likely than not that some portion, or all, of a deferred
tax asset will not be realized. Our valuation allowances at December 31, 2025
and 2024 related primarily to state and foreign net operating losses and state
credit carryforwards.
We consider post-1986 unremitted foreign earnings subjected to the one-time
transition tax not to be indefinitely reinvested as such earnings can be
repatriated without any significant incremental tax costs. We consider other
types of unremitted foreign earnings to be indefinitely reinvested. U.S.
income and foreign withholding taxes have not been recorded on temporary
differences related to investments in certain foreign subsidiaries as such
differences are considered indefinitely reinvested. The amount of unrecognized
deferred tax liability does not have a material impact on the financial
statements.
We recognize the financial statement effects of a tax return position when it
is more likely than not, based on the technical merits, that the position will
ultimately be sustained. For tax positions that meet this recognition
threshold, we apply our judgment, taking into account applicable tax laws, our
experience in managing tax audits and relevant GAAP, to determine the amount
of tax benefits to recognize in our financial statements. For each position,
the difference between the benefit realized on our tax return and the benefit
reflected in our financial statements is recorded on our consolidated balance
sheets as an unrecognized tax benefit (UTB). We update our UTBs at each
financial statement date to reflect the impacts of audit settlements and other
resolutions of audit issues, the expiration of statutes of limitation,
developments in tax law and ongoing discussions with taxing authorities.
70
AT&T Inc.
Dollars in millions except per share amounts
A reconciliation of the change in our UTB balance from January 1 to December
31 for 2025, 2024 and 2023 is as follows:
Federal, State and Foreign Tax 2025 2024 2023
Balance at beginning of year $ 12,533 $ 11,924 $ 9,657
Increases for tax positions related to the current year 521 369 1,026
Increases for tax positions related to prior years 294 1,017 448
Decreases for tax positions related to prior years (124) (772) (212)
Lapse of statute of limitations (13) (8) (16)
Settlements 96 3 1,021
Balance at end of year 13,307 12,533 11,924
Accrued interest and penalties 2,604 2,223 1,785
Gross unrecognized income tax benefits 15,911 14,756 13,709
Less: Deferred federal and state income tax benefits (966) (849) (687)
Less: Tax attributable to timing items included above (7,401) (6,964) (6,438)
Total UTB that, if recognized, would impact the $ 7,544 $ 6,943 $ 6,584
effective income tax rate as of the end of the year
Periodically we make deposits to taxing jurisdictions which reduce our UTB
balance but are not included in the reconciliation above. The amount of
deposits that reduced our UTB balance was $2,894 at December 31, 2025, $2,282
at December 31, 2024 and $2,361 at December 31, 2023. Current tax assets on
our consolidated balance sheets were $2,772 at December 31, 2025, $2,236 at
December 31, 2024 and $2,079 at December 31, 2023.
Accrued interest and penalties included in UTBs were $2,604 as of
December 31, 2025, $2,223 as of December 31, 2024 and $1,785 as of
December 31, 2023. We record interest and penalties related to federal, state
and foreign UTBs in income tax expense. The net interest and penalty expense
included in income tax expense was $476 for 2025, $474 for 2024 and $324 for
2023.
We file income tax returns in the U.S. federal jurisdiction and various state,
local and foreign jurisdictions. As a large taxpayer, our income tax returns
are regularly audited by the Internal Revenue Service (IRS) and other taxing
authorities.
The IRS has completed field examinations of our tax returns through 2015. All
audit periods prior to 2006 are closed for federal examination purposes, and
we have effectively resolved all outstanding audit issues for years through
2010 with the IRS Appeals Division.
The components of income tax expense (benefit) are as follows:
2025 2024 2023
Federal:
Current $ 970 $ 2,769 $ 2,280
Deferred 2,524 1,289 2,250
3,494 4,058 4,530
State and local:
Current (269) 859 423
Deferred 331 (512) (832)
62 347 (409)
Foreign:
Current 44 68 66
Deferred 21 (28) 38
65 40 104
Total $ 3,621 $ 4,445 $ 4,225
71
AT&T Inc.
Dollars in millions except per share amounts
"Income Before Income Taxes" in the consolidated statements of income included
the following components for the years ended December 31:
2025 2024 2023
U.S. income before income taxes $ 26,993 $ 16,674 $ 20,506
Foreign income (loss) before income taxes 14 24 (658)
Total $ 27,007 $ 16,698 $ 19,848
A reconciliation of income tax expense (benefit) and the amount computed by
applying the statutory federal income tax rate of 21% to income before income
taxes is as follows:
2025 2024 2023
Amount Percent Amount Percent Amount Percent
U.S. federal statutory tax rate $ 5,671 21.0 % $ 3,507 21.0 % $ 4,168 21.0 %
State and local income taxes - net of federal tax effect1,2 (155) (0.6) 276 1.6 262 1.3
Foreign tax effects 40 0.2 22 0.1 98 0.5
Effect of change in tax laws or rates enacted current period - - - - - -
Effect of cross-border tax laws - - (19) (0.1) (1) -
Tax credits
Research and development credit (139) (0.5) (183) (1.1) (180) (0.9)
Other (5) - (7) - (5) -
Changes in valuation allowance 53 0.2 2 - 53 0.3
Nontaxable or nondeductible items:
Goodwill impairment - - 929 5.6 9 -
Noncontrolling interest (301) (1.1) (274) (1.6) (259) (1.3)
Divestiture of DIRECTV (1,311) (4.9) - - - -
Other (124) (0.5) (43) (0.3) (157) (0.8)
Changes in unrecognized tax benefits2 578 2.1 388 2.3 467 2.4
Other adjustments
Tax basis adjustments (592) (2.2) - - - -
Other (94) (0.3) (153) (0.9) (230) (1.2)
Effective income tax rate $ 3,621 13.4 % $ 4,445 26.6 % $ 4,225 21.3 %
1The states that contribute to the majority (greater than 50%) of the tax
effect in this category include California for 2025; Florida, Illinois,
Michigan, New York and Texas for 2024; and California and Illinois for 2023.
State taxes are impacted by current year earnings, book-tax differences,
apportionment methodologies, legislative changes, divestitures, return to
accrual adjustments and other permanent book-tax differences.
2Effective January 1, 2025, we adopted ASU 2023-09, which requires the
effective tax rate reconciliation to include a distinct category for changes
in UTBs. This category must include the tax effects of changes in judgment
related to prior-period tax positions, settlements and statute of limitations
expirations, aggregated across all tax jurisdictions. Furthermore, in
accordance with ASU 2023-09, we have elected to present tax positions taken in
the current annual reporting period, aggregated across all tax jurisdictions,
within "Changes in unrecognized tax benefits."
The amounts of cash income taxes paid, net of amounts refunded, are as follows
at December 31:
2025 2024 2023
Federal $ 1,219 $ 2,452 $ 1,319
State 91 (49) 193
Foreign 43 53 87
Total $ 1,353 $ 2,456 $ 1,599
72
AT&T Inc.
Dollars in millions except per share amounts
NOTE 14. PENSION AND POSTRETIREMENT BENEFITS
We offer noncontributory pension programs covering the majority of domestic
nonmanagement employees in our Communications business. Nonmanagement
employees' pension benefits are generally calculated using one of two
formulas: a flat dollar amount applied to years of service according to job
classification, or a cash balance plan with negotiated annual pension band
credits as well as interest credits. Most employees can elect to receive their
pension benefits in either a lump sum payment or an annuity.
Pension programs covering U.S. management employees are closed to new
entrants. These programs continue to provide benefits to participants that
were generally hired before January 1, 2015, who receive benefits under either
cash balance pension programs that include annual or monthly credits based on
salary as well as interest credits, or a traditional pension formula (i.e., a
stated percentage of employees' adjusted career income).
We also provide a variety of medical, dental and life insurance benefits to
certain retired employees under various plans and accrue actuarially
determined postretirement benefit costs as active employees earn these
benefits.
In 2023, AT&T and State Street Global Advisors Trust Company, as
independent fiduciary of the AT&T Pension Benefit Plan (Plan), entered
into a commitment agreement with subsidiaries of Athene Holding Ltd. (Athene)
under which AT&T agreed to purchase nonparticipating single premium group
annuity contracts that would transfer to Athene $8,067 of the Plan's defined
benefit pension obligations related to certain retirees, participants and
beneficiaries under the Plan. This transaction with Athene was considered a
settlement for accounting purposes and required us to remeasure our pension
plan assets and obligations at quarter-end for the second and third quarters
of 2023.
Obligations and Funded Status
For defined benefit pension plans, the benefit obligation is the projected
benefit obligation, the actuarial present value, as of our December 31
measurement date, of all benefits attributed by the pension benefit formula to
employee service rendered to that date. The amount of benefit to be paid
depends on a number of future events incorporated into the pension benefit
formula, including estimates of the average life of employees and their
beneficiaries and average years of service rendered. It is measured based on
assumptions concerning future interest rates and future employee compensation
levels as applicable.
For postretirement benefit plans, the benefit obligation is the accumulated
postretirement benefit obligation, the actuarial present value as of the
measurement date of all future benefits attributed under the terms of the
postretirement benefit plans to employee service.
The following table presents the change in the projected benefit obligation
for the years ended December 31:
Pension Benefits Postretirement Benefits
2025 2024 2025 2024
Benefit obligation at beginning of year $ 30,944 $ 33,227 $ 6,339 $ 6,693
Service cost - benefits earned during the period 427 487 18 22
Interest cost on projected benefit obligation 1,601 1,586 318 310
Actuarial (gain) loss 629 (1,909) 394 84
Benefits paid, including settlements (2,957) (2,447) (609) (770)
Plan transfers (17) - 17 -
Benefit obligation at end of year $ 30,627 $ 30,944 $ 6,477 $ 6,339
73
AT&T Inc.
Dollars in millions except per share amounts
The following table presents the change in the fair value of plan assets for
the years ended December 31 and the plans' funded status at December 31:
Pension Benefits Postretirement Benefits
2025 2024 2025 2024
Fair value of plan assets at beginning of year $ 27,919 $ 30,098 $ 1,144 $ 1,763
Actual return on plan assets 2,562 265 61 117
Benefits paid, including settlements1 (2,957) (2,447) (483) (736)
Contributions 1,153 3 - -
Fair value of plan assets at end of year 28,677 27,919 722 1,144
Unfunded status at end of year2 $ (1,950) $ (3,025) $ (5,755) $ (5,195)
1At our discretion, certain postretirement benefits may be paid from our cash
accounts, which does not reduce Voluntary Employee Benefit Association (VEBA)
assets. Future benefit payments may be made from VEBA trusts and thus reduce
those asset balances.
2Funded status is not indicative of our ability to pay ongoing pension
benefits or of our obligation to fund retirement trusts. Required pension
funding is determined in accordance with the Employee Retirement Income
Security Act of 1974, as amended (ERISA), and applicable regulations.
Amounts recognized on our consolidated balance sheets at December 31 are
listed below:
Pension Benefits Postretirement Benefits
2025 2024 2025 2024
Current portion of employee benefit obligation1 $ - $ - $ (499) $ (455)
Employee benefit obligation2 (1,950) (3,025) (5,256) (4,740)
Net amount recognized $ (1,950) $ (3,025) $ (5,755) $ (5,195)
1Included in "Accounts payable and accrued liabilities."
2Included in "Postemployment benefit obligation," combined with international
pension obligations and other postemployment obligations of $212 and $1,060 at
December 31, 2025, and $157 and $1,103 at December 31, 2024, respectively.
The accumulated benefit obligation for our pension plans represents the
actuarial present value of benefits based on employee service and compensation
as of a certain date and does not include an assumption about future
compensation levels. The accumulated benefit obligation for our pension plans
was $30,069 at December 31, 2025, and $30,322 at December 31, 2024.
Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive
Income
Periodic Benefit Costs
The service cost component of net periodic pension cost (credit) is recorded
in operating expenses in the consolidated statements of income while the
remaining components are recorded in "Other income (expense) - net." Our
combined net pension and postretirement cost (credit) recognized in our
consolidated statements of income was $(1,121), $(1,817) and $(1,017) for the
years ended December 31, 2025, 2024 and 2023.
The following table presents the components of net periodic benefit cost
(credit):
Pension Benefits Postretirement Benefits
2025 2024 2023 2025 2024 2023
Service cost - benefits earned $ 427 $ 487 $ 477 $ 18 $ 22 $ 23
during the period
Interest cost on projected benefit 1,601 1,586 1,876 318 310 340
obligation
Expected return on assets (2,029) (2,212) (2,533) (38) (61) (130)
Amortization of prior service credit (48) (87) (133) (1,837) (1,928) (2,472)
Net periodic benefit cost (credit) before (49) (226) (313) (1,539) (1,657) (2,239)
remeasurement
Actuarial (gain) loss 96 38 1,717 371 28 181
Settlement (gain) loss - - (363) - - -
Net pension and postretirement $ 47 $ (188) $ 1,041 $ (1,168) $ (1,629) $ (2,058)
cost (credit)
74
AT&T Inc.
Dollars in millions except per share amounts
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income
The following table presents the after-tax changes in benefit obligations
recognized in OCI and the after-tax prior service credits that were amortized
from OCI into net periodic benefit costs:
Pension Benefits Postretirement Benefits
2025 2024 2023 2025 2024 2023
Balance at beginning of year $ 150 $ 216 $ 316 $ 3,066 $ 4,523 $ 6,354
Prior service (cost) credit - - - - - 32
Amortization of prior service credit (36) (66) (100) (1,392) (1,457) (1,863)
Total recognized in other (36) (66) (100) (1,392) (1,457) (1,831)
comprehensive (income) loss
Balance at end of year $ 114 $ 150 $ 216 $ 1,674 $ 3,066 $ 4,523
Assumptions
In determining the projected benefit obligation and the net pension and
postretirement benefit cost, we used the following significant
weighted-average assumptions:
Pension Benefits Postretirement Benefits
2025 2024 2023 2025 2024 2023
Weighted-average discount rate for determining benefit obligation at December 5.50 % 5.70 % 5.00 % 5.30 % 5.60 % 5.00 %
31
Discount rate in effect for determining 5.80 % 5.10 % 5.40 % 5.80 % 5.10 % 5.20 %
service cost1
Discount rate in effect for determining interest cost1 5.40 % 4.90 % 5.30 % 5.30 % 4.90 % 5.10 %
Weighted-average interest credit rate for cash balance pension programs2 4.60 % 4.60 % 4.20 % - % - % - %
Long-term rate of return on plan assets 7.75 % 7.75 % 7.50 % 4.00 % 4.00 % 6.50 %
Composite rate of compensation 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 %
increase for determining benefit
obligation
Composite rate of compensation 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 %
increase for determining net cost
(credit)
1Weighted-average discount rates shown for years with interim remeasurements:
2023 for pension benefits.
2Weighted-average interest crediting rates for cash balance pension programs
relate only to the cash balance portion of total pension benefits. A 0.50%
increase in the weighted-average interest crediting rate would increase the
pension benefit obligation by $140.
We recognize gains and losses on pension and postretirement plan assets and
obligations immediately in "Other income (expense) - net" in our consolidated
statements of income. These gains and losses are generally measured annually
as of December 31 and accordingly, will normally be recorded during the
fourth quarter, unless an earlier remeasurement is required. Should actual
experience differ from actuarial assumptions, the projected pension benefit
obligation and net pension cost and accumulated postretirement benefit
obligation and postretirement benefit cost would be affected in future years.
Discount Rate Our assumed weighted-average discount rates for pension and
postretirement benefits of 5.50% and 5.30% respectively, at December 31,
2025, reflect the hypothetical rate at which the projected benefit obligation
could be effectively settled or paid out to participants. We determined our
discount rates based on a range of factors, including a yield curve composed
of the rates of return on several hundred high-quality, fixed income corporate
bonds available at the measurement date and corresponding to the related
expected durations of future cash outflows. These bonds had an average rating
of at least Aa3 or AA- by the nationally recognized statistical rating
organizations, denominated in U.S. dollars, and generally not callable,
convertible or index linked. For the year ended December 31, 2025, when
compared to the year ended December 31, 2024, we decreased our pension
discount rate by 0.20%, resulting in an increase in our pension plan benefit
obligation of $680, and decreased our postretirement discount rate by 0.30%,
resulting in an increase in our postretirement benefit obligation of $167. For
the year ended December 31, 2024, when compared to the year ended
December 31, 2023, we increased our pension
75
AT&T Inc.
Dollars in millions except per share amounts
discount rate by 0.70%, resulting in a decrease in our pension plan benefit
obligation of $1,994, and increased our postretirement discount rate by 0.60%,
resulting in a decrease in our postretirement benefit obligation of $317.
We utilize a full yield curve approach in the estimation of the service and
interest components of net periodic benefit costs for pension and other
postretirement benefits. Under this approach, we apply discounting using
individual spot rates from a yield curve composed of the rates of return on
several hundred high-quality, fixed income corporate bonds available at the
measurement date. These spot rates align to each of the projected benefit
obligations and service cost cash flows. The service cost component relates to
the active participants in the plan, so the relevant cash flows on which to
apply the yield curve are considerably longer in duration on average than the
total projected benefit obligation cash flows, which also include benefit
payments to retirees. Interest cost is computed by multiplying each spot rate
by the corresponding discounted projected benefit obligation cash flows. The
full yield curve approach reduces any actuarial gains and losses based upon
interest rate expectations (e.g., built-in gains in interest cost in an
upward-sloping yield curve scenario), or gains and losses merely resulting
from the timing and magnitude of cash outflows associated with our benefit
obligations. Neither the annual measurement of our total benefit obligations
nor annual net benefit cost is affected by the full yield curve approach.
Expected Long-Term Rate of Return In 2026, our expected long-term rate of
return is 7.75% on pension plan assets and 4.00% on postretirement plan
assets. Our long-term rates of return reflect the average rate of earnings
expected on the funds invested, or to be invested, to provide for the benefits
included in the projected benefit obligations. In setting the long-term
assumed rate of return, management considers capital markets' future
expectations, the asset mix of the plans' investment and average historical
asset return. Actual long-term returns can, in relatively stable markets, also
serve as a factor in determining future expectations. We consider many factors
that include, but are not limited to, historical returns on plan assets,
current market information on long-term returns (e.g., long-term bond rates)
and current and target asset allocations between asset categories. The target
asset allocation is determined based on consultations with external investment
advisers. If all other factors were to remain unchanged, we expect that a
0.50% decrease in the expected long-term rate of return would cause 2026
combined pension and postretirement cost to increase $139. However, any
differences in the rate and actual returns will be included with the actuarial
gain or loss recorded in the fourth quarter when our plans are remeasured.
Composite Rate of Compensation Increase Our expected composite rate of
compensation increase cost of 3.00% in 2025 and 2024 reflects the long-term
average rate of salary increases.
Healthcare Cost Trend Our healthcare cost trend assumptions are developed
based on historical cost data, the near-term outlook and an assessment of
likely long-term trends. Based on our assessment of expectations of healthcare
industry inflation, our 2026 assumed annual healthcare prescription drug cost
trend and medical cost trend for eligible participants is 8.25%, grading down
to an ultimate trend rate of 4.25% in 2035. For 2025, our assumed annual
healthcare prescription drug cost trend and medical cost trend for eligible
participants was 8.25%, grading down to an ultimate trend rate of 4.25% in
2032.
Plan Assets
Plan assets consist primarily of private and public equity, government and
corporate bonds, and real assets (real estate and natural resources). The
asset allocations of the pension plans are maintained to meet ERISA
requirements. Any plan contributions, as determined by ERISA regulations, are
made to a pension trust for the benefit of plan participants. We do not have
significant ERISA required contributions to our pension plans for 2026. We
voluntarily contributed $1,150 to our pension plans during 2025, and intend to
voluntarily contribute $350 during 2026.
We maintain VEBA trusts to partially fund postretirement benefits; however,
there are no ERISA or regulatory requirements that these postretirement
benefit plans be funded annually.
The principal investment objectives are to ensure the availability of funds to
pay pension and postretirement benefits as they become due under a broad range
of future economic scenarios, maximize long-term investment return with an
acceptable level of risk based on our pension and postretirement obligations,
and diversify broadly across and within the capital markets to insulate asset
values against adverse experience in any one market. Each asset class has
broadly diversified characteristics. Substantial biases toward any particular
investing style or type of security are sought to be avoided by managing the
aggregation of all accounts with portfolio benchmarks. Asset and benefit
obligation forecasting studies are conducted periodically, generally every two
to three years, or when significant changes have occurred in market
conditions, benefits, participant demographics or funded status. Decisions
regarding investment policy are made with an understanding of the effect of
asset allocation on funded status, future contributions and projected
expenses. During 2025, the pension trust entered into a series of derivative
contracts as part of an additional interest rate hedging strategy. This
hedging strategy better aligns the pension asset duration with the liability
duration and improves the interest rate hedge ratio. The notional amount of
the contracts was approximately $7,300 as of December 31, 2025.
76
AT&T Inc.
Dollars in millions except per share amounts
The plans' weighted-average asset targets and actual allocations as a
percentage of plan assets, including the exposure of future contracts by asset
categories, at December 31 are as follows:
Pension Assets1 Postretirement (VEBA) Assets
Target 2025 2024 Target 2025 2024
Equity securities:
Domestic 8 % - 18 % 14 % 12 % 8 % - 18 % 13 % 10 %
International 5 % - 15 % 11 9 - % - 10 % 5 4
Fixed income securities 39 % - 49 % 43 44 - % - 14 % 9 12
Real assets 11 % - 21 % 13 15 - % - 6 % 1 1
Private equity 13 % - 23 % 17 19 - % - 6 % 1 1
Other - % - 3 % 2 1 66 % - 76 % 71 72
Total 100 % 100 % 100 % 100 %
1 Excludes interest rate hedging strategy notional value of $7,300.
At December 31, 2025, AT&T securities represented less than 1% of assets
held by our pension trust. The VEBA trusts do not hold AT&T securities.
Investment Valuation
Investments are stated at fair value. Fair value is the price that would be
received to sell an asset or paid to transfer a liability at the measurement
date.
Investments in securities traded on a national securities exchange are valued
at the last reported sales price on the final business day of the year. If no
sale was reported on that date, they are valued at the last reported bid
price. Investments in securities not traded on a national securities exchange
are valued using pricing models, quoted prices of securities with similar
characteristics or discounted cash flows. Shares of registered investment
companies are valued based on quoted market prices, which represent the net
asset value of shares held at year-end.
Other commingled investment entities are valued at quoted redemption values
that represent the net asset values of units held at year-end, which
management has determined approximates fair value.
Real estate and natural resource direct investments are valued at amounts
based upon appraisal reports. Fixed income securities valuation is based upon
observable prices for comparable assets, broker/dealer quotes (spreads or
prices), or a pricing matrix that derives spreads for each bond based on
external market data, including the current credit rating for the bonds,
credit spreads to Treasuries for each credit rating, sector add-ons or
credits, issue-specific add-ons or credits as well as call or other options.
Purchases and sales of securities are recorded as of the trade date. Realized
gains and losses on sales of securities are determined on the basis of average
cost. Interest income is recognized on the accrual basis. Dividend income is
recognized on the ex-dividend date.
Non-interest bearing cash and overdrafts are valued at cost, which
approximates fair value.
Fair Value Measurements
See Note 12 for a discussion of the fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value.
77
AT&T Inc.
Dollars in millions except per share amounts
The following tables set forth by level, within the fair value hierarchy, the
pension and postretirement assets and liabilities at fair value as of
December 31, 2025:
Pension Assets and Liabilities at Fair Value
Level 1 Level 2 Level 3 Total
Non-interest bearing cash $ 92 $ - $ - $ 92
Interest bearing cash 4 - - 4
Foreign currency contracts - 3 - 3
Equity securities:
Domestic equities 2,797 - 2 2,799
International equities 1,593 - - 1,593
Fixed income securities:
Corporate bonds and other investments - 7,007 14 7,021
Government and municipal bonds 26 3,675 - 3,701
Mortgage-backed securities - 198 - 198
Real estate and real assets - - 2,403 2,403
Securities lending collateral1 688 1,484 - 2,172
Receivable for variation margin 2 - - 2
Assets at fair value 5,202 12,367 2,419 19,988
Investments sold short and other liabilities at fair value (48) (3) - (51)
Total plan net assets at fair value $ 5,154 $ 12,364 $ 2,419 $ 19,937
Assets held at net asset value practical expedient
Private equity funds 5,029
Real estate funds 1,198
Commingled funds 5,076
Total assets held at net asset value practical expedient 11,303
Other assets (liabilities)2 (2,563)
Total Plan Net Assets $ 28,677
1Securities lending collateral primarily includes cash and government and
municipal bonds.
2Other assets (liabilities) include amounts receivable, accounts payable and
net adjustment for securities lending payable.
Postretirement Assets and Liabilities at Fair Value
Level 1 Level 2 Level 3 Total
Interest bearing cash $ 505 $ - $ - $ 505
Equity securities:
Domestic equities 3 - - 3
Total plan net assets at fair value $ 508 $ - $ - $ 508
Assets held at net asset value practical expedient
Private equity funds 6
Real estate funds 9
Commingled funds 197
Total assets held at net asset value practical expedient 212
Other assets (liabilities)1 2
Total Plan Net Assets $ 722
1Other assets (liabilities) include amounts receivable and accounts payable.
78
AT&T Inc.
Dollars in millions except per share amounts
The following tables set forth by level, within the fair value hierarchy, the
pension and postretirement assets and liabilities at fair value as of
December 31, 2024:
Pension Assets and Liabilities at Fair Value
Level 1 Level 2 Level 3 Total
Non-interest bearing cash $ 146 $ - $ - $ 146
Interest bearing cash 23 - - 23
Foreign currency contracts - 2 - 2
Equity securities:
Domestic equities 2,608 - 2 2,610
International equities 1,145 - - 1,145
Fixed income securities:
Corporate bonds and other investments - 6,925 1 6,926
Government and municipal bonds - 4,274 - 4,274
Mortgage-backed securities - 267 - 267
Real estate and real assets - - 2,311 2,311
Securities lending collateral1 643 961 - 1,604
Receivable for variation margin 4 - - 4
Assets at fair value 4,569 12,429 2,314 19,312
Investments sold short and other liabilities at fair value (152) (12) - (164)
Total plan net assets at fair value $ 4,417 $ 12,417 $ 2,314 $ 19,148
Assets held at net asset value practical expedient
Private equity funds 5,138
Real estate funds 1,957
Commingled funds 3,895
Total assets held at net asset value practical expedient 10,990
Other assets (liabilities)2 (2,219)
Total Plan Net Assets $ 27,919
1Securities lending collateral primarily includes cash and government and
municipal bonds.
2Other assets (liabilities) include amounts receivable, accounts payable and
net adjustment for securities lending payable.
Postretirement Assets and Liabilities at Fair Value
Level 1 Level 2 Level 3 Total
Interest bearing cash $ 816 $ 6 $ - $ 822
Equity securities:
Domestic equities 1 - - 1
Total plan net assets at fair value $ 817 $ 6 $ - $ 823
Assets held at net asset value practical expedient
Private equity funds 9
Real estate funds 9
Commingled funds 299
Total assets held at net asset value practical expedient 317
Other assets (liabilities)1 4
Total Plan Net Assets $ 1,144
1Other assets (liabilities) include amounts receivable and accounts payable.
79
AT&T Inc.
Dollars in millions except per share amounts
For the years ended December 31, 2025 and 2024, our postretirement assets did
not include significant investments in Level 3 assets, nor were there
significant changes in fair value of those assets during the period. The
tables below set forth a summary of changes in the fair value of the Level 3
pension assets:
Equities Fixed Income Funds Real Estate and Real Assets Total
Balance as of December 31, 2024 $ 2 $ 1 $ 2,311 $ 2,314
Realized gains (losses) - - (315) (315)
Unrealized gains (losses) - - 325 325
Transfers in - - 319 319
Purchases - 13 102 115
Sales - - (339) (339)
Balance as of December 31, 2025 $ 2 $ 14 $ 2,403 $ 2,419
Equities Fixed Income Funds Real Estate and Real Assets Total
Balance as of December 31, 2023 $ 2 $ 1 $ 2,954 $ 2,957
Realized gains (losses) - - 159 159
Unrealized gains (losses) - - (510) (510)
Purchases - - 291 291
Sales - - (583) (583)
Balance as of December 31, 2024 $ 2 $ 1 $ 2,311 $ 2,314
Estimated Future Benefit Payments
Expected benefit payments are estimated using the same assumptions used in
determining our benefit obligation at December 31, 2025. Because benefit
payments will depend on future employment and compensation levels; average
years employed; average life spans; and payment elections, among other
factors, changes in any of these assumptions could significantly affect these
expected amounts. The following table provides expected benefit payments under
our pension and postretirement plans:
Pension Benefits Postretirement Benefits
2026 $ 3,460 $ 664
2027 2,955 641
2028 2,893 623
2029 2,830 520
2030 2,765 538
Years 2031 - 2035 12,516 2,536
Supplemental Retirement Plans
We also provide certain senior- and middle-management employees with
nonqualified, unfunded supplemental retirement and savings plans. While these
plans are unfunded, we have assets in a designated non-bankruptcy remote trust
that are independently managed and used to provide for certain of these
benefits. These plans include supplemental pension benefits as well as
compensation-deferral plans, some of which include a corresponding match by us
based on a percentage of the compensation deferral. For our supplemental
retirement plans, the projected benefit obligation was $1,199 and the net
supplemental retirement pension cost was $92 at and for the year ended
December 31, 2025. The projected benefit obligation was $1,305 and the net
supplemental retirement pension cost was $18 at and for the year ended
December 31, 2024.
We use the same significant assumptions for the composite rate of compensation
increase in determining our projected benefit obligation and the net pension
and postemployment benefit cost. Our discount rates of 5.10% at December 31,
2025 and 5.50% at December 31, 2024 were calculated using the same
methodologies used in calculating the discount rates for our qualified pension
and postretirement benefit plans.
Deferred compensation expense was $96 in 2025, $152 in 2024 and $101 in 2023.
80
AT&T Inc.
Dollars in millions except per share amounts
Contributory Savings Plans
We maintain contributory savings plans that cover substantially all employees.
Under the savings plans, we match in cash or company stock a stated percentage
of eligible employee contributions, subject to a specified ceiling. There are
no debt-financed shares held by the Employee Stock Ownership Plans, allocated
or unallocated.
Our match of employee contributions to the savings plans is fulfilled with
purchases of our stock on the open market or company cash. Benefit cost, which
is based on the cost of shares or units allocated to participating employees'
accounts or the cash contributed to participant accounts, was $546, $565 and
$570 for the years ended December 31, 2025, 2024 and 2023.
NOTE 15. SHARE-BASED COMPENSATION
Under our various share-based compensation plans, senior and other management
employees and nonemployee directors have received performance stock units and
other nonvested stock units.
As of December 31, 2025, we were authorized to issue up to approximately 41
million shares of common stock (including shares that may be issued upon
exercise of outstanding options or upon vesting of performance stock units or
other nonvested stock units) pursuant to these various plans:
•Performance stock units, which are nonvested stock units, which are valued
based upon the market price of our common stock at the date of grant and
performance expectations. These distribute in the form of AT&T common
stock and cash at the end of a three-year period, subject to the achievement
of certain performance goals. We treat the cash-settled portion of these
awards as a liability.
•Restricted stock and restricted stock units are valued at the market price
of our common stock at the date of grant and do not have any performance
conditions. Restricted stock predominantly vests over a three- to ten-year
period and restricted stock units predominantly vest over a three-year period.
We account for our share-based compensation arrangements based on the fair
value of the awards on their respective grant date, which may affect our
ability to fully realize the value shown on our consolidated balance sheets of
deferred tax assets associated with compensation expense. We record a
valuation allowance when our future taxable income is not expected to be
sufficient to recover the asset. Accordingly, there can be no assurance that
the current stock price of our common shares will rise to levels sufficient to
realize the entire tax benefit currently reflected on our consolidated balance
sheets. However, to the extent we generate excess tax benefits (i.e., those
additional tax benefits in excess of the deferred taxes associated with
compensation expense previously recognized) the potential future impact on
income would be reduced.
Our consolidated statements of income include the share-based compensation
cost recognized for the plans described above as "Selling, general and
administrative" expense. Those expenses, as well as the associated tax
benefits, are reflected in the table below:
2025 2024 2023
Performance stock units $ 152 $ 127 $ 79
Restricted stock and stock units 384 378 400
Total $ 536 $ 505 $ 479
Income tax benefit $ 130 $ 123 $ 118
A summary of the status of our nonvested stock units as of December 31, 2025,
and changes during the year then ended is presented as follows (shares in
millions):
Nonvested Stock Units Shares Weighted-Average Grant-
Date Fair Value
Nonvested at January 1, 2025 37 $ 19.88
Granted 18 26.04
Vested (22) 20.87
Forfeited (4) 21.13
Nonvested at December 31, 2025 29 $ 22.74
81
AT&T Inc.
Dollars in millions except per share amounts
As of December 31, 2025, there was $584 of total unrecognized compensation
cost related to nonvested share-based compensation arrangements outstanding.
That cost is expected to be recognized over a weighted-average period of 1.89
years. The total fair value of shares vested during the year was $464 for
2025, compared to $452 for 2024 and $592 for 2023.
NOTE 16. STOCKHOLDERS' AND MEZZANINE EQUITY
Authorized Shares We have authorized 14 billion common shares of AT&T
stock and 10 million preferred shares of AT&T stock, each with a par value
of $1.00 per share. Cumulative perpetual preferred shares consist of the
following:
•Series A: 48 thousand shares outstanding at December 31, 2025 and
December 31, 2024, with a $25,000 per share liquidation preference and a
dividend rate of 5.000%.
•Series B: no shares outstanding at December 31, 2025 and 20 thousand
shares outstanding at December 31, 2024, with a €100,000 per share
liquidation preference, and an initial rate of 2.875%. We redeemed all
outstanding Series B cumulative preferred shares on March 3, 2025. The shares
had a total liquidation preference of €2.0 billion and were redeemed for
$2,075.
•Series C: 70 thousand shares outstanding at December 31, 2025 and
December 31, 2024, with a $25,000 per share liquidation preference, and a
dividend rate of 4.75%.
So long as the quarterly preferred dividends are declared and paid on a timely
basis on each series of preferred shares, there are no limitations on our
ability to declare a dividend on or repurchase AT&T common shares. The
preferred shares are optionally redeemable by AT&T at the liquidation
price on or after five years from the issuance date, or upon certain other
contingent events.
Stock Repurchase Program From time to time, we repurchase shares of common
stock. Over the past few years, these repurchases have generally been for
distribution through our employee benefit plans or in connection with certain
acquisitions. In December 2024, the Board approved an authorization to
repurchase up to $10,000 of common stock (the "2024 Authorization") and
terminated the March 2014 authorization. During 2025, we repurchased
approximately 159 million shares totaling $4,269 under this authorization,
excluding brokerage fees and the one percent excise tax imposed by the
Inflation Reduction Act of 2022. On January 27, 2026, the Board approved an
authorization to repurchase an additional $10,000 of common stock (the "2026
Authorization").
To implement repurchase authorizations, we have used open market repurchases,
relying on Rule 10b5-1 of the Securities Exchange Act of 1934, where feasible.
We have also used accelerated share repurchase agreements with large financial
institutions to repurchase our stock. During 2024, we repurchased
approximately 36 thousand shares totaling $1 under the March 2014
authorization.
Dividend Declarations In December 2025 and December 2024, AT&T declared a
quarterly preferred dividend of $36. In December 2025 and December 2024,
AT&T declared a quarterly common dividend of $0.2775 per share of common
stock.
Preferred Interests Issued by Subsidiaries We have issued cumulative perpetual
preferred membership interests in certain subsidiaries. The preferred
interests are entitled to cash distributions, subject to declaration.
Mobility II Preferred Interests
In 2018, we issued 320 million Series A Cumulative Perpetual Preferred
Membership Interests in Mobility II (Mobility preferred interests), which paid
cash distributions of 7% per annum, subject to declaration. So long as the
distributions were declared and paid, the terms of the Mobility preferred
interests did not impose any limitations on cash movements between affiliates,
or our ability to declare a dividend on or repurchase AT&T shares. All
Mobility preferred interests were repurchased as of April 2023.
Prior to repurchase, a holder of the Mobility preferred interests could put
the interests to Mobility II, or Mobility II could have redeemed the interests
upon a change in control of Mobility II or on or after September 9, 2022, with
either option only allowed to be exercised during certain periods. The
redemption price was to be paid with cash, AT&T common stock, or a
combination of cash and AT&T common stock, at Mobility II's sole election.
Tower Holdings Preferred Interests
In 2019, we issued $6,000 nonconvertible cumulative preferred interests in a
wireless subsidiary (Tower Holdings) that holds interests in various tower
assets and has the right to receive approximately $6,000 if the purchase
options from the tower companies are exercised.
The membership interests in Tower Holdings consist of (1) common interests,
which are held by a consolidated subsidiary of AT&T, and (2) two series of
preferred interests (collectively the "2019 Tower preferred interests"). The
2019 Tower preferred
82
AT&T Inc.
Dollars in millions except per share amounts
interests were subject to reset in December 2024 and included a September
series (Tower Class A-1) totaling $1,500 that paid an initial preferred
distribution of 5.0%, and a December series (Tower Class A-2) totaling $4,500
that paid an initial preferred distribution of 4.75%.
In August 2024, we amended the 2019 Tower preferred interests, effective
November 2024, to reset the rate and restructure the membership interests
whereby all of the 2019 Tower preferred interests are now designated Fixed
Rate Class A Limited Membership Interests (Tower Fixed Rate Interests). A
portion of the Tower Fixed Rate Interests will move to Floating Rate Class A
Limited Membership Interests (Tower Floating Rate Interests) each year over a
five-year period. The Tower Fixed Rate Interests pay a preferred distribution
of 5.90%, and the Tower Floating Rate Interests pay a preferred distribution
equal to the Secured Overnight Financing Rate (SOFR) plus 250 basis points, as
defined in the agreement. Distributions are paid quarterly, subject to
declaration, and reset every five years. Any failure to declare or pay
distributions on the Tower Fixed Rate Interests or Tower Floating Rate
Interests (collectively, the "Tower preferred interests") would not impose any
limitation on cash movements between affiliates, or our ability to declare a
dividend on or repurchase AT&T shares. We can call the Tower preferred
interests at the issue price beginning in November 2029, and we can call the
Tower Floating Rate Interests at any time. We redeemed $65 of the Tower
Floating Rate Interests in November 2025. If not called, the remaining Tower
Floating Rate Interests could equal $460 by 2028. The Tower preferred
interests are included in "Noncontrolling interest" on the consolidated
balance sheets.
The holders of the Tower preferred interests have the option to require
redemption upon the occurrence of certain contingent events, such as the
failure of AT&T to pay the preferred distribution for two or more periods
or to meet certain other requirements, including a minimum credit rating. If
notice is given upon such an event, all other holders of equal or more
subordinate classes of membership interests in Tower Holdings are entitled to
receive the same form of consideration payable to the holders of the preferred
interests, resulting in a deemed liquidation for accounting purposes.
Telco LLC Preferred Interests
In September 2020, we issued $2,000 nonconvertible cumulative preferred
interests (Telco Class A-1) out of a newly created limited liability company
(Telco LLC) that was formed to hold telecommunications-related assets. In
April 2023, we expanded our September 2020 transaction and issued an
additional $5,250 of nonconvertible cumulative preferred interests (Telco
Class A-2 and A-3). In March 2025, we issued an additional $2,250 of
nonconvertible cumulative preferred interests in Telco LLC (Telco Class A-4).
The Telco Class A-4 interests will pay an initial preferred distribution of
5.94% annually, subject to declaration, and subject to reset on November 1,
2028, and every four years thereafter. The Telco Class A-4 interests can be
called at issue price beginning on November 1, 2028, and are subject to the
same redemption and liquidation rights as the Telco Class A-1, A-2 and A-3
interests. As of December 31, 2025 and 2024, cumulative preferred interests in
our Telco LLC totaled $9,500 and $7,250 (collectively the "Telco preferred
interests").
Members' equity in Telco LLC consists of (1) members' interests, which are
held by a consolidated subsidiary of AT&T, (2) Telco Class A-1 preferred
interests, which pay an initial preferred distribution of 4.25% annually,
subject to declaration, and subject to reset every seven years, and (3) Telco
Class A-2 and A-3 preferred interests, which pay an initial preferred
distribution of 6.85% annually, subject to declaration, and subject to reset
on November 1, 2027, and every seven years thereafter. Failure to pay
distributions on the Telco preferred interests would not limit cash movements
between affiliates, or our ability to declare a dividend on or repurchase
AT&T shares. We can call the Telco preferred interests at the issue price
beginning seven years from the issuance date. The Telco preferred interests
are included in "Noncontrolling interest" on the consolidated balance sheets.
The holders of the Telco preferred interests have the option to require
redemption upon the occurrence of certain contingent events, such as the
failure of Telco LLC to pay the preferred distribution for two or more periods
or to meet certain other requirements, including a minimum credit rating. If
notice is given, all other holders of equal or more subordinate classes of
members' equity are entitled to receive the same form of consideration payable
to the holders of the preferred interests, resulting in a deemed liquidation
for accounting purposes.
Mobility II Redeemable Noncontrolling Interests
In June 2023, we issued two million Series B Cumulative Perpetual Preferred
Membership Interests in Mobility II LLC (Mobility noncontrolling interests),
which pay cash distributions of 6.8% per annum, subject to declaration. So
long as the distributions are declared and paid, the terms of the Mobility
noncontrolling interests will not impose any limitations on cash movements
between affiliates, or our ability to declare a dividend on or repurchase
AT&T shares.
The Mobility noncontrolling interests are required to be initially recorded at
fair value less issuance costs and will accrete to redemption value of $2,000
through "Net Income Attributable to Noncontrolling Interest." The Mobility
noncontrolling interests are considered Level 3 under the Fair Value
Measurement and Disclosures framework (see Note 12) and included in
"Redeemable Noncontrolling Interest" on the consolidated balance sheets.
83
AT&T Inc.
Dollars in millions except per share amounts
A holder of the Mobility noncontrolling interests may put the interests to
Mobility II on or after the earliest of certain events or each June 15 and
December 15, beginning on June 15, 2028. Mobility II may redeem the interests
on each March 15 and September 15, beginning on March 15, 2028. The price at
which a put option or a redemption option can be exercised is the sum of (a)
$1,000 per Mobility noncontrolling interest plus (b) any accrued and unpaid
distributions. The redemption price must be paid in cash.
NOTE 17. SALES OF RECEIVABLES
We have agreements with various third-party financial institutions pertaining
to the sales of certain types of our accounts receivable. The most significant
of these programs are discussed in detail below and generally consist of (1)
receivables arising from equipment installment plans, which are sold for cash
and beneficial interests, such as deferred purchase price, when applicable,
and (2) revolving trade receivables, which are sold for cash. Under the terms
of our agreements for these programs, we continue to service the transferred
receivables on behalf of the financial institutions.
The following table sets forth a summary of cash proceeds received, net of
remittances paid, from sales of receivables for the years ended December 31:
2025 2024 2023
Net cash received (paid) from equipment installment receivables program1 $ 1,318 $ (1,358) $ 648
Net cash received (paid) from revolving receivables program 16 1,147 1,456
Net cash received (paid) from other programs - - (632)
Total net cash impact to cash flows from operating activities2 $ 1,334 $ (211) $ 1,472
1Cash from initial sales of $12,391, $10,587 and $10,980 for the years ended
December 31, 2025, 2024 and 2023, respectively.
2Net of facility fees.
The sales of receivables did not have a material impact on our consolidated
statements of income or to "Total Assets" reported on our consolidated balance
sheets. We reflect cash receipts on sold receivables as cash flows from
operations in our consolidated statements of cash flows. In the event cash is
received on the beneficial interests, those receipts are classified as cash
flows from investing activities, when applicable.
Our equipment installment and revolving receivables programs are discussed in
detail below. The following table sets forth a summary of the receivables and
accounts being serviced at December 31:
2025 2024
Equipment Installment Revolving Equipment Installment Revolving
Gross receivables: $ 3,725 $ 425 $ 3,504 $ 553
Balance sheet classification
Accounts receivable
Notes receivable 1,886 - 1,817 -
Trade receivables 304 425 237 553
Other Assets
Noncurrent notes and trade receivables 1,535 - 1,450 -
Outstanding portfolio of receivables derecognized from $ 11,987 $ 2,940 $ 11,909 $ 2,770
our consolidated balance sheets
Cash proceeds received, net of remittances1 9,617 2,940 8,243 2,770
1Represents amounts to which financial institutions remain entitled, excluding
the beneficial interests.
Equipment Installment Receivables Program
We offer our customers the option to purchase certain wireless devices in
installments over a specified period of time and, in many cases, once certain
conditions are met, they may be eligible to trade in the original equipment
for a new device and have the remaining unpaid balance paid or settled.
84
AT&T Inc.
Dollars in millions except per share amounts
We maintain a program under which we transfer a portion of these receivables
through our bankruptcy-remote subsidiary in exchange for cash and beneficial
interests. In the event a customer trades in a device prior to the end of the
installment contract period, we agree to make a payment to the financial
institutions equal to any outstanding remaining installment receivable
balance. Accordingly, we record a guarantee obligation for this estimated
amount at the time the receivables are transferred.
The following table sets forth a summary of equipment installment receivables
sold under this program:
2025 2024 2023
Gross receivables sold1 $ 12,513 $ 10,696 $ 11,104
Net receivables sold2 11,991 10,160 10,603
Cash proceeds received 12,391 10,587 10,980
Guarantee obligation recorded 925 930 932
1Receivables net of promotion credits.
2Receivables net of allowance and other reserves.
Beneficial interests, when applicable, and guarantee obligations are initially
recorded at estimated fair value and subsequently adjusted for changes in
present value of expected cash flows. The estimation of their fair values is
based on remaining installment payments expected to be collected and the
expected timing and value of device trade-ins. The estimated value of the
device trade-ins considers prices offered to us by independent third parties
and contemplates changes in value after the launch of a device model. The fair
value measurements used for the beneficial interests and the guarantee
obligation are considered Level 3 under the Fair Value Measurement and
Disclosure framework (see Note 12).
The following table presents the previously transferred equipment installment
receivables, which we repurchased in exchange for the associated beneficial
interests:
2025 2024 2023
Fair value of repurchased receivables $ 4,786 $ 3,185 $ 2,997
Carrying value of beneficial interests 4,774 3,199 3,013
Gain (loss) on repurchases1 $ 12 $ (14) $ (16)
1These gains (losses) are included in "Selling, general and administrative"
expense in the consolidated statements of income.
At December 31, 2025 and December 31, 2024, our beneficial interests were
$2,067 and $3,185, respectively, of which $1,338 and $1,906 are included in
"Prepaid and other current assets" on our consolidated balance sheets, with
the remainder in "Other Assets." The guarantee obligation at December 31,
2025 and December 31, 2024 was $410 and $301, respectively, of which $216 and
$150 are included in "Accounts payable and accrued liabilities" on our
consolidated balance sheets, with the remainder in "Other noncurrent
liabilities." Our maximum exposure to loss as a result of selling these
equipment installment receivables is limited to the total amount of our
beneficial interests and guarantee obligation.
Revolving Receivables Program
During 2025, we expanded our revolving agreement to transfer up to $2,940 of
certain receivables through our bankruptcy-remote subsidiaries to various
financial institutions on a recurring basis in exchange for cash equal to the
gross receivables transferred. This agreement is subject to renewal on an
annual basis and the transfer limit may be expanded or reduced from time to
time. As customers pay their balances, we transfer additional receivables into
the program, resulting in our gross receivables sold exceeding net cash flow
impacts (e.g., collect and reinvest). The transferred receivables are fully
guaranteed by our bankruptcy-remote subsidiaries, which hold additional
receivables in the amount of $425 that are pledged as collateral under this
agreement. The transfers are recorded at fair value of the proceeds received
and obligations assumed less derecognized receivables. Our maximum exposure to
loss related to these receivables transferred is limited to the derecognized
amount outstanding.
85
AT&T Inc.
Dollars in millions except per share amounts
The following table sets forth a summary of the revolving receivables sold:
2025 2024 2023
Gross receivables sold/cash proceeds received1 $ 30,311 $ 21,632 $ 8,882
Total collections under revolving agreement 30,141 20,362 7,382
Net cash proceeds received $ 170 $ 1,270 $ 1,500
Net receivables sold2 $ 29,480 $ 21,039 $ 8,679
1Includes initial sales of receivables of $170, $1,270 and $1,500 for the
years ended December 31, 2025, 2024 and 2023, respectively.
2Receivables net of allowance and other reserves.
NOTE 18. TOWER TRANSACTION
In December 2013, we closed our transaction with Crown Castle International
Corp. (Crown Castle) in which Crown Castle gained the exclusive rights to
lease and operate 9,048 wireless towers and purchased 627 of our wireless
towers for $4,827 in cash. The leases have various terms with an average
length of approximately 28 years. As the leases expire, Crown Castle will have
fixed price purchase options for these towers totaling approximately $4,200,
based on their estimated fair market values at the end of the lease terms. We
are subleasing space on the towers from Crown Castle over an estimated
original term of 20 years, at current market rates, subject to further
optional renewals in the future.
We determined that we did not transfer control of the tower assets, which
prevented us from achieving sale-leaseback accounting for the transaction, and
we accounted for the cash proceeds from Crown Castle as a financing obligation
on our consolidated balance sheets. We record interest on the financing
obligation using the effective interest method at a rate of approximately
3.9%. The financing obligation is increased by interest expense and estimated
future net cash flows generated and retained by Crown Castle from operation of
the tower sites, and reduced by our contractual payments. We continue to
include the tower assets in "Property, Plant and Equipment - Net" on our
consolidated balance sheets and depreciate them accordingly. At December 31,
2025 and 2024, the tower assets had a balance of $569 and $608, respectively.
Our depreciation expense for these assets was $39 for each of 2025, 2024 and
2023.
Payments made to Crown Castle under this arrangement were $274 for 2025. At
December 31, 2025, the future minimum payments under the sublease arrangement
are $280 for 2026, $285 for 2027, $291 for 2028, $297 for 2029, $303 for 2030
and $1,086 thereafter.
NOTE 19. TRANSACTIONS WITH DIRECTV
Prior to its sale, we accounted for our investment in DIRECTV under the equity
method and recorded our share of DIRECTV earnings as equity in net income of
affiliates, with DIRECTV considered a related party. On July 2, 2025, we sold
our interest in DIRECTV to TPG. (See Note 10)
The following table sets forth our share of DIRECTV's earnings included in
"Equity in net income of affiliates" and cash distributions received from
DIRECTV:
2025 2024 2023
DIRECTV's earnings included in Equity in net income of affiliates $ 1,926 $ 2,027 $ 1,666
Distributions classified as operating activities $ 1,926 $ 2,027 $ 1,666
Distributions classified as investing activities - 928 2,049
Cash distributions received from DIRECTV $ 1,926 $ 2,955 $ 3,715
For the years ended December 31, 2025, 2024 and 2023, we billed DIRECTV
approximately $240, $536 and $730 under commercial arrangements and transition
service agreements, which were recorded as a reduction to the operations and
support expenses incurred.
86
AT&T Inc.
Dollars in millions except per share amounts
NOTE 20. FIRSTNET
In 2017, the First Responder Network Authority (FirstNet) selected AT&T to
build and manage the first nationwide broadband network dedicated to America's
first responders. Under the 25-year agreement, FirstNet provides 20 MHz of
valuable telecommunications spectrum and success-based payments of $6,500 to
support network buildout, which has been substantially completed. We are
required to construct a network that achieves coverage and nationwide
interoperability requirements and have a contractual commitment to make
sustainability payments of $18,000 over the 25-year contract. These
sustainability payments represent our commitment to fund FirstNet's operating
expenses and future reinvestments in the network which we own and operate,
which we estimate in the $3,000 or less range over the life of the 25-year
contract. After FirstNet's operating expenses are paid, we anticipate the
remaining amount, expected to be in the $15,000 range, will be reinvested into
the network. On January 30, 2024, FirstNet agreed to reinvest up to $6,300 in
the network over 10 years, subject to authorization.
During 2025, we submitted $420 in sustainability payments, with future
payments under the agreement of $896 for 2026, $1,566 for 2027, $1,658 for
2028, $1,474 for 2029, $1,115 for 2030, and $9,320 thereafter. Amounts paid to
FirstNet, which are not expected to be returned to AT&T to be reinvested
into our network, will be expensed in the period paid. In the event FirstNet
does not reinvest any funds to construct, operate, improve and maintain this
network, our maximum exposure to loss is the total amount of the
sustainability payments, which would be reflected in higher expense.
NOTE 21. CONTINGENT LIABILITIES
We are party to numerous lawsuits, regulatory proceedings and other matters
arising in the ordinary course of business. In evaluating these matters on an
ongoing basis, we take into account amounts already accrued on the balance
sheet. In our opinion, although the outcomes of these proceedings are
uncertain, they should not have a material adverse effect on our financial
position, results of operations or cash flows. See Note 12 for a discussion of
collateral and credit-risk contingencies.
We have contractual obligations to purchase certain goods or services from
various other parties. Our purchase obligations are expected to be
approximately $8,545 in 2026, $10,698 in total for 2027 and 2028, $2,505 in
total for 2029 and 2030 and $2,890 in total for years thereafter.
NOTE 22. SUPPLIER AND VENDOR FINANCING PROGRAMS
Supplier Financing Program
We actively manage the timing of our supplier payments for operating items to
optimize the use of our cash and seek to make payments on 90-day or greater
terms, while providing suppliers with access to bank facilities that permit
earlier payment at their cost. Our supplier financing program does not result
in changes to our normal, contracted payment cycles or cash from operations.
At the supplier's election, they can receive payment of AT&T obligations
prior to the scheduled due dates, at a discounted price from the third-party
financial institution. The discounted price paid to participating suppliers is
based on a variable rate that is indexed to the overnight borrowing rate. We
agree to pay the financial institution the stated amount generally within 90
days of receipt of the invoice. We do not have pledged assets or other
guarantees under our supplier financing program.
Our outstanding payment obligations are included in "Accounts payable and
accrued liabilities" on our consolidated balance sheets and are reported as
operating or investing (when capitalizable) activities in our statements of
cash flows when paid.
The following table presents the change in the supplier financing obligation
for the years ended December 31:
2025 2024
Confirmed obligations outstanding at the beginning of year $ 2,498 $ 2,844
Invoices received 17,939 15,510
Invoices paid (17,347) (15,856)
Confirmed obligations outstanding at the end of year $ 3,090 $ 2,498
87
AT&T Inc.
Dollars in millions except per share amounts
Direct Supplier Financing
We also have arrangements with suppliers of handset inventory that allow us to
extend the stated payment terms by generally 90 days at an additional cost to
us (variable rate extension fee). Direct supplier financing outstanding is
included in "Accounts payable and accrued liabilities" on our consolidated
balance sheets and is reported as operating activities in our statements of
cash flows when paid.
The following table presents the change in the direct supplier financing
obligation for the years ended December 31:
2025 2024
Obligations outstanding at the beginning of year $ 6,272 $ 5,442
Invoices extended 19,850 15,831
Invoices paid (19,221) (15,001)
Obligations outstanding at the end of year $ 6,901 $ 6,272
Vendor Financing
We enter into multi-year software licensing arrangements, which, consistent
with industry standards, are paid over the license terms of two to five years.
Additionally, in connection with capital improvements and the acquisition of
other productive assets, we negotiate favorable payment terms of 120 days or
more (referred to as vendor financing), which are reported as financing
activities in our statements of cash flows when paid.
The following table presents the change in the vendor financing obligation for
the years ended December 31:
2025 2024
Obligations outstanding at the beginning of year $ 1,424 $ 2,516
Commitments 1,594 700
Payments (1,181) (1,792)
Obligations outstanding at the end of year1,2 $ 1,837 $ 1,424
1Total vendor financing payables at December 31, 2025 and 2024 were $1,892 and
$1,448, respectively, of which $956 and $749 are included in "Accounts payable
and accrued liabilities."
2Includes software licensing arrangements of approximately $1,200 and $850 at
December 31, 2025 and 2024, respectively.
NOTE 23. ADDITIONAL FINANCIAL INFORMATION
December 31,
Consolidated Balance Sheets 2025 2024
Accounts payable and accrued liabilities:
Accounts payable $ 29,910 $ 27,433
Accrued payroll and commissions 2,002 2,015
Current portion of employee benefit obligation 635 570
Accrued interest 2,361 2,020
Accrued taxes 585 1,301
Other 3,021 2,318
Total accounts payable and accrued liabilities $ 38,514 $ 35,657
Consolidated Statements of Income 2025 2024 2023
Advertising expense $ 3,105 $ 2,505 $ 2,576
Interest income $ 403 $ 212 $ 303
Interest expense incurred $ 7,025 $ 7,120 $ 7,578
Capitalized interest - capital expenditures (165) (162) (179)
Capitalized interest - spectrum1 (56) (199) (695)
Total interest expense $ 6,804 $ 6,759 $ 6,704
1Included in "Acquisitions, net of cash acquired" in our consolidated
statements of cash flows.
88
AT&T Inc.
Dollars in millions except per share amounts
Cash and Cash Flows We typically maintain our restricted cash balances for
purchases and sales of certain investment securities and funding of certain
deferred compensation benefit payments.
The following table summarizes cash and cash equivalents and restricted cash
balances contained on our consolidated balance sheets:
December 31,
Cash and Cash Equivalents and Restricted Cash 2025 2024 2023 2022
Cash and cash equivalents $ 18,234 $ 3,298 $ 6,722 $ 3,701
Restricted cash in Prepaid and other current assets 157 1 2 1
Restricted cash in Other Assets 136 107 109 91
Cash and cash equivalents and restricted cash $ 18,527 $ 3,406 $ 6,833 $ 3,793
The following tables summarize certain cash flow activities during the
periods:
Consolidated Statements of Cash Flows 2025 2024 2023
Cash paid (received) during the year for:
Interest $ 6,625 $ 7,132 $ 7,370
Income taxes, net of refunds 1,353 2,456 1,599
Purchase of property and equipment $ 20,677 $ 20,101 $ 17,674
Interest during construction - capital expenditures1 165 162 179
Total Capital expenditures $ 20,842 $ 20,263 $ 17,853
Business acquisitions $ - $ - $ -
Spectrum acquisitions 323 181 2,247
Interest during construction - spectrum1 56 199 695
Total Acquisitions, net of cash acquired $ 379 $ 380 $ 2,942
1Total capitalized interest was $221, $361 and $874 for 2025, 2024 and 2023,
respectively.
Labor Contracts As of December 31, 2025, we employed approximately 133,030
persons. Approximately 43% of our employees are represented by the
Communications Workers of America (CWA), the International Brotherhood of
Electrical Workers (IBEW) or other unions. After expiration of collective
bargaining agreements, work stoppages or labor disruptions may occur in the
absence of new contracts or other agreements being reached. The main contracts
set to expire in 2026 include the following:
•A contract covering approximately 9,000 employees across 36 states and the
District of Columbia is set to expire in February.
•A contract covering approximately 4,300 employees across five states is set
to expire in April.
•Two wireline contracts covering approximately 1,800 employees across all 50
states as well as the U.S. Virgin Islands and Puerto Rico are set to expire in
April.
89
AT&T Inc.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
During our two most recent fiscal years, there has been no change in the
independent accountant engaged as the principal accountant to audit our
financial statements, and the independent accountant has not expressed
reliance on other independent accountants in its reports during such time
period.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The registrant maintains disclosure controls and procedures that are designed
to ensure that information required to be disclosed by the registrant is
recorded, processed, summarized, accumulated and communicated to its
management, including its principal executive and principal financial
officers, to allow timely decisions regarding required disclosure, and
reported within the time periods specified in the SEC's rules and forms. The
Chief Executive Officer and Chief Financial Officer have performed an
evaluation of the effectiveness of the design and operation of the
registrant's disclosure controls and procedures as of December 31, 2025.
Based on that evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that the registrant's disclosure controls and procedures
were effective as of December 31, 2025.
There have not been any changes in our internal control over financial
reporting during our most recent fiscal quarter that have materially affected,
or are reasonably likely to materially affect, our internal control over
financial reporting.
Internal Control Over Financial Reporting
a.Management's Annual Report on Internal Control over Financial Reporting
The management of AT&T is responsible for establishing and maintaining
adequate internal control over financial reporting. AT&T's internal
control system was designed to provide reasonable assurance as to the
integrity and reliability of the published financial statements. AT&T
management assessed the effectiveness of the company's internal control over
financial reporting as of December 31, 2025. In making this assessment, it
used the criteria set forth by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO) in Internal Control - Integrated Framework
(2013 framework). Based on its assessment, AT&T management believes that,
as of December 31, 2025, the Company's internal control over financial
reporting is effective based on those criteria.
b.Attestation Report of the Independent Registered Public Accounting Firm
The independent registered public accounting firm that audited the financial
statements included in the Annual Report containing the disclosure required by
this Item, Ernst & Young LLP, has issued an attestation report on the
Company's internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
a.There is no information that was required to be disclosed in a report on
Form 8-K during the fourth quarter of 2025 but was not reported.
b.In the quarter ended December 31, 2025, none of our directors or officers
(as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a plan
for the purchase or sale of our securities intended to satisfy the affirmative
defense conditions of Rule 10b5-1(c) or a non-Rule 10b5-1 trading arrangement
for the purchase or sale of our securities, within the meaning of Item 408 of
Regulation S-K.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
90
AT&T Inc.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information regarding executive officers required by Item 401 of Regulation
S-K is furnished in a separate disclosure at the end of Part I of this report
entitled "Information about our Executive Officers." Information regarding
directors required by Item 401 of Regulation S-K is incorporated herein by
reference pursuant to General Instruction G(3) from the registrant's 2026
definitive proxy statement (Proxy Statement) under the heading "Management
Proposal Item No. 1. Election of Directors."
Information required by Item 405 of Regulation S-K is incorporated herein by
reference pursuant to General Instruction G(3) from the registrant's Proxy
Statement under the heading "Delinquent Section 16(a) Reports."
The registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Securities Exchange
Act of 1934. The members of the committee are Messrs. Luczo and McCallister,
and Mses. Mayer and Taylor. The additional information required by Item
407(d)(5) of Regulation S-K is incorporated herein by reference pursuant to
General Instruction G(3) from the registrant's Proxy Statement under the
heading "Audit Committee."
The registrant has adopted a code of ethics entitled "Code of Ethics" that
applies to the registrant's principal executive officer, principal financial
officer, principal accounting officer, or controller or persons performing
similar functions. The additional information required by Item 406 of
Regulation S-K is provided in this report under the heading "General" under
Part I, Item 1. Business.
Information required by Item 408(b) of Regulation S-K is incorporated herein
by reference pursuant to General Instruction G(3) from the registrant's Proxy
Statement under the heading "Insider Trading Policy."
ITEM 11. EXECUTIVE COMPENSATION
Information required by this Item is incorporated herein by reference pursuant
to General Instruction G(3) from the registrant's Proxy Statement under the
headings "Director Compensation," "2025 Director Compensation Table," "CEO Pay
Ratio," "Pay Versus Performance," and the pages beginning with the heading
"Compensation Discussion and Analysis" and ending with, and including, the
pages under the heading "Potential Payments upon Change in Control."
Information required by Item 407(e)(5) of Regulation S-K is included in the
registrant's Proxy Statement under the heading "Compensation Committee Report"
and is incorporated herein by reference pursuant to General Instruction G(3)
and shall be deemed furnished in this Annual Report on Form 10-K and will not
be deemed incorporated by reference into any filing under the Securities Act
of 1933 or the Securities Exchange Act of 1934.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
Information required by Item 201(d) of Regulation S-K is included in the
registrant's Proxy Statement under the heading "Equity Compensation Plan
Information," which is incorporated herein by reference pursuant to General
Instruction G(3). Information required by Item 403 of Regulation S-K is
included in the registrant's Proxy Statement under the heading "Common Stock
Ownership," which is incorporated herein by reference pursuant to General
Instruction G(3).
91
AT&T Inc.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
Information required by Item 404 of Regulation S-K is included in the
registrant's Proxy Statement under the heading "Related Person Transactions,"
which is incorporated herein by reference pursuant to General Instruction
G(3). Information required by Item 407(a) of Regulation S-K is included in the
registrant's Proxy Statement under the heading "Director Independence," which
is incorporated herein by reference pursuant to General Instruction G(3).
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information required by this Item is included in the registrant's Proxy
Statement under the heading "Principal Accountant Fees and Services," which is
incorporated herein by reference pursuant to General Instruction G(3).
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)Documents filed as a part of the report:
Page
(1) Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 39 (#BKMK_143)
Financial Statements covered by Report of Independent Registered Public
Accounting Firm:
Consolidated Statements of Income 42 (#BKMK_153)
Consolidated Statements of Comprehensive Income 43 (#BKMK_155)
Consolidated Balance Sheets 44 (#BKMK_158)
Consolidated Statements of Cash Flows 45 (#BKMK_161)
Consolidated Statements of Changes in Stockholders' Equity 46 (#BKMK_164)
Notes to Consolidated Financial Statements 48 (#BKMK_172)
(2) Financial Statement Schedules:
II - Valuation and Qualifying Accounts 95 (#BKMK_329)
Financial statement schedules other than those listed above have been omitted
because the required information is contained in the financial statements and
notes thereto, or because such schedules are not required or applicable.
92
AT&T Inc.
93
AT&T Inc.
94
AT&T Inc.
ITEM 16. FORM 10-K SUMMARY
None.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
Allowance for Credit Losses
COL. A COL. B COL. C COL. D COL. E
Additions
(1) (2) (3)
Balance at Beginning of Period Charged to Charged to Other Acquisitions Deductions (b) Balance at End
Costs and Expenses (a)
Accounts of Period (c)
Year 2025 $ 553 2,271 - - 2,174 $ 650
Year 2024 $ 756 1,969 - - 2,172 $ 553
Year 2023 $ 1,011 1,969 - - 2,224 $ 756
(a)Includes amounts previously written off which were credited directly to
this account when recovered.
Excludes direct charges and credits to expense for nontrade receivables in the
consolidated statements of income.
(b)Amounts written off as uncollectible.
(c)Includes balances applicable to trade receivables, loans, contract assets
and other assets subject to credit loss measurement (see Note 1).
Allowance for Deferred Tax Assets
COL. A COL. B COL. C COL. D COL. E
Additions
(1) (2) (3)
Balance at Beginning of Period Charged to Charged to Other Acquisitions Deductions Balance at End
Costs and Expenses
Accounts
of Period
Year 2025 $ 4,338 (360) - - - $ 3,978
Year 2024 $ 4,656 (318) - - - $ 4,338
Year 2023 $ 4,175 481 - - - $ 4,656
95
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on the 9th day of
February, 2026.
AT&T INC.
/s/ Pascal Desroches
Pascal Desroches
Senior Executive Vice President
and Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
Principal Executive Officer:
John T. Stankey*
Chairman of the Board,
Chief Executive Officer and President
Principal Financial Officer:
Pascal Desroches
Senior Executive Vice President
and Chief Financial Officer
/s/ Pascal Desroches
Pascal Desroches, as attorney-in-fact
and on his own behalf as Principal
Financial Officer
Principal Accounting Officer:
Sabrina Sanders
Senior Vice President, Chief
Accounting Officer and Controller
/s/ Sabrina Sanders
February 9, 2026
Directors:
John T. Stankey* Beth E. Mooney*
William E. Kennard* Matthew K. Rose*
Kelly J. Grier* Cynthia B. Taylor*
Marissa A. Mayer* Luis A. Ubiñas*
Michael B. McCallister*
* by power of attorney
96
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR BFLLBQELEBBB
Copyright 2019 Regulatory News Service, all rights reservedRecent news on AT&T
See all newsREG - AT & T Inc. - Annual Financial Report
AnnouncementREG - AT & T Inc. - Annual Financial Report
AnnouncementREG - Societe Generale SA AT&T Inc. - Post-Stabilisation Notice - AT&T Inc
AnnouncementREG - Societe Generale SA - Stabilisation Notice - AT&T
AnnouncementREG - Societe Generale SA - Stabilisation Notice- AT&T Inc.
Announcement