AT&T (T) investor relations material

Executive summary

• Consolidated revenue grew 2.3% year-over-year to $31.6B, driven by Advanced Connectivity fiber and wireless growth, with over 1 million Advanced Connectivity net adds and record fiber and fixed wireless subscriber gains.

• Adjusted EBITDA increased 5.2% year-over-year to $12.3B, with the highest margin since the business refocus; adjusted EPS rose 20.4% to $0.65.

• Free cash flow reached $4.7B, up 6.3% year-over-year, exceeding guidance.

• Integration of Lumen's Mass Markets fiber business closed in Q1 2026, with assets classified as held-for-sale and discontinued operations.

• Accelerated share repurchases to $10B in 2026, reflecting confidence in market position.

Financial highlights

• Consolidated revenues: $31.6B (+2.3% YoY); service revenue: $26.0B (+2.7% YoY); equipment revenue: $5.6B (+3.5% YoY).

• Adjusted EBITDA: $12.3B (+5.2% YoY); margin: 39.1%; Advanced Connectivity EBITDA margin: 42.0%, up 150 bps YoY.

• Adjusted EPS: $0.65 (+20.4% YoY); diluted EPS: $0.66.

• Free cash flow: $4.7B (+6.3% YoY); capital investment: $6.1B, up from $5.1B YoY.

• Operating income: $7.0B (+8.3% YoY); operating margin: 22.3%.

Outlook and guidance

• Full-year 2026 and multi-year guidance maintained: service revenue to grow low single digits annually, Advanced Connectivity revenue mid-single digits, and legacy revenue to decline over 20% in 2026.

• Adjusted EBITDA to grow 3%-4% in 2026; Advanced Connectivity EBITDA growth 6%+ for the year.

• Adjusted EPS guidance: $2.25–$2.35 in 2026, with double-digit CAGR through 2028.

• Free cash flow expected to exceed $18B in 2026, rising to $21B+ in 2028; capital investment $23–$24B annually.

• Over $45B in shareholder returns planned from 2026–2028.