AT&T (T) investor relations material

Executive summary

• Consolidated revenue rose 5.3% to $32.322B; service revenue grew 3.8%, its strongest growth in more than four years.

• Adjusted EBITDA increased 5.4% to $12.5B; adjusted EPS rose 20.4% to $0.65.

• More than 1M Advanced Connectivity customer additions marked a second consecutive quarter, including a record 769K internet net adds.

Financial highlights

• Q3 service revenue increased 3.8% to $26.301B; equipment revenue rose 12.1% to $6.021B.

• Adjusted EBITDA margin was 38.7%; free cash flow was $5.0B.

• Operating income fell 33.1% to $4.095B and income from continuing operations declined to $1.269B from $9.677B.

• Diluted EPS from continuing operations was $0.13 versus $1.29; adjusted EPS was $0.65 versus $0.54.

Outlook and guidance

• FY26 adjusted EPS outlook increased to the $2.40 range; adjusted EBITDA growth is expected in the upper portion of the 3%-4% range.

• FY26 service revenue growth is expected in the low-single-digit range; Advanced Connectivity service revenue growth is expected at 5%+.

• Free cash flow targets are $18B+ in 2026, $19B+ in 2027 and $21B+ in 2028; capital investment is $23B-$24B in 2026 and $22B-$23B annually in 2027-2028.

• Adjusted EBITDA growth is expected to reach 5% or better in 2028; long-term adjusted EPS CAGR target is double-digit through 2028.

• Fiber reach targets exceed 40M locations by end-2026 and 60M by end-2030; net debt-to-adjusted EBITDA is expected to return to 2.5x during 2029.