AT&T : News Release (ATT 1Q26 Earnings Release)
T
Published on 04/22/2026 at 06:46 am EDT
AT&T Reports Strong First-Quarter 2026 Financial Results
Results reflect consistent execution of the Company's investment-led customer-centric strategy
The Company reiterates all full-year 2026 and multi-year financial guidance and capital return plans
DALLAS, April 22, 2026 - AT&T Inc. (NYSE: T) reported first-quarter results, achieving its fastest-ever year-over-year organic growth in its advanced connectivity convergence rate, with nearly 45%1 of advanced home internet subscribers also choosing AT&T wireless. Customers are increasingly purchasing their internet and wireless together from AT&T, highlighting the strength of the Company's differentiated, investment-led strategy to drive converged advanced connectivity at scale.
"We saw our best first quarter ever for Advanced Connectivity internet customer net additions, demonstrating the solid foundation of assets we have built," said John Stankey, AT&T Chairman and CEO. "We're uniquely positioned to deliver more of what customers want - fiber and 5G all from one provider on the nation's largest advanced converged network, backed by the AT&T Guarantee. The actions we've taken this quarter are evidence of how we are improving the customer value proposition, scaling faster, and accelerating growth."
Note: With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's first-quarter results, unless otherwise indicated. The acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, of which AT&T plans to sell a controlling interest to an equity partner that will co-invest in the ongoing business. As such, the subsidiary is classified as held-for-sale and reflected as discontinued operations.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
of $11.6 billion, up 5.6%
292,000 fiber and 292,000 fixed wireless
512,000 consumer advanced home internet net adds, including 273,000 AT&T Fiber2 and 239,000 AT&T Internet Air
Over 37 million total consumer and business locations reached with fiber3, including more than 4 million acquired from Lumen during the first quarter; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million by the end of 2030
AT&T maintains the long-term outlook and capital allocation plans provided with its fourth-quarter 2025 results. This includes the Company's outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio* will return to a level consistent with its target in the 2.5x range within approximately three years following the closing of its transaction with EchoStar.
For 2026, AT&T continues to expect4:
growth of 6%+
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
$0.54, versus $0.61 in the year-ago quarter. Adjusting for $0.03, which includes acquisition-related amortization and other items, adjusted earnings per diluted common share* was $0.57, versus
$0.51 in the year-ago quarter.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
Effective with the Company's first-quarter 2026 reporting, AT&T has revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.
Advanced Connectivity service revenues grew 3.6% year over year, driving growth in operating income of 14.8% and EBITDA* of 5.6%. Internet net adds were 584,000 - comprised of 292,000 fiber and 292,000 fixed wireless - and postpaid phone net adds were 294,000.
Advanced Connectivity
Dollars in millions
Unaudited
First Quarter
2026 2025
Percent Change
Operating Revenues
$ 28,471
$ 27,192
4.7 %
Service
22,863
22,060
3.6 %
Wireless Service
16,941
16,651
1.7 %
Advanced Home Internet
2,799
2,198
27.3 %
Business Fiber and Advanced Connectivity
1,882
1,755
7.2 %
Business Transitional and Other
1,083
1,294
(16.3) %
Other Service
158
162
(2.5) %
Equipment
5,608
5,132
9.3 %
Operating Expenses
21,618
21,220
1.9 %
Operating Income
6,853
5,972
14.8 %
Operating Income Margin
24.1 %
22.0 %
210 BP
EBITDA*
$ 11,558
$ 10,945
5.6 %
EBITDA Margin*
40.6 %
40.3 %
30 BP
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
Legacy revenues continued to decline year over year in line with AT&T's goal to power down and stop providing service over the large majority of its domestic copper-based network by the end of 2029.
Legacy
Dollars in millions
Unaudited
First Quarter
2026 2025
Percent
Change
Operating Revenues
$ 1,768
$ 2,368
(25.3) %
Operating Expenses
1,156
1,349
(14.3) %
Operating Income
612
1,019
(39.9) %
Operating Income Margin
34.6 %
43.0 %
(840) BP
EBITDA*
$ 612
$ 1,019
(39.9) %
EBITDA Margin*
34.6 %
43.0 %
(840) BP
Latin America
Dollars in millions
Unaudited
First Quarter
2026 2025
Percent
Change
Operating Revenues
$ 1,173
$ 971
20.8 %
Service
753
615
22.4 %
Equipment
420
356
18.0 %
Operating Expenses
1,153
928
24.2 %
Operating Income
20
43
(53.5)%
EBITDA*
220
193
14.0 %
$20 million, down $23 million year over year. EBITDA* was $220 million, up $27 million year over year.
Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. 1Q26 convergence metrics are presented based on available information and are subject to revision. Organic convergence rate excludes customers from the recently acquired Mass Markets fiber business.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
Includes net adds from the recently acquired Mass Markets fiber business after the close of the acquisition.
Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) Fiber Ventures locations, which represent locations served from the acquired Mass Markets fiber business, Gigapower, and other commercial open access providers.
The Company's 2026 outlook is presented on a continuing operations basis and excludes discontinued operations.
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated April 22, 2026. Adjusted diluted EPS, adjusted operating income, EBITDA, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T's continuing operations and does not include discussion of balances or activity related to discontinued operations.
For 1Q26, adjusted EPS of $0.57 is diluted EPS from continuing operations of $0.54 adjusted for $0.01 acquisition-related amortization and $0.02 benefit-related, transaction, legal and other items. For 1Q25, adjusted EPS of $0.51 is diluted EPS of
$0.61, adjusted for $0.05 restructuring, and a net $0.00 benefit-related, transaction, legal and other items, minus $0.15 equity in net income of DIRECTV. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods, novel theories of liability, and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries and are primarily associated with legacy legal matters and cybersecurity events.
The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion, a non-cash mark-to-market benefit plan gain/loss and other items. The Company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. AT&T's projected adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, the Company cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
billion is calculated as operating income of $5.8 billion plus $0.6 billion of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated April 22, 2026, and include transaction, legal, and other costs as discussed above.
For 1Q26, adjusted EBITDA of $11.8 billion is calculated as income from continuing operations of $4.2 billion, plus income tax expense of $1.2 billion, plus interest expense of $1.8 billion, plus equity in net income (loss) of affiliates of $(41) million, minus other income (expense) - net of $0.6 billion, plus depreciation and amortization of $5.0 billion, plus $171 million of adjustments. For 1Q25, adjusted EBITDA of $11.5 billion is calculated as income from continuing operations of $4.7 billion, plus income tax expense of $1.3 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $1.4 billion, minus other income (expense) - net of $0.5 billion, plus depreciation and amortization of $5.2 billion, plus adjustments of $0.6 billion.
Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated April 22, 2026.
At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 1Q26, Advanced Connectivity EBITDA of $11.6 billion is operating income of $6.9 billion plus depreciation and amortization of $4.7 billion. For 1Q25, Advanced Connectivity EBITDA of $10.9 billion is operating income of $6.0 billion plus depreciation and amortization of $5.0 billion.
Adjusted EBITDA, Advanced Connectivity EBITDA and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.
Ashley Hoptay AT&T Inc.
Phone: (469) 203-2327
Email: [email protected]
* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be
found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.
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AT&T Inc. published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 10:45 UTC.