AT&T : Slide Presentation (1Q26 ATT Earnings Slides)

Published: 2026-04-22 06:46:18 ET T

Published on 04/22/2026 at 06:46 am EDT

2026 1st Quarter Earnings

April 22, 2026

Accelerating grow th

Revenue, up 2.9% YOY

Advanced Connectivity EBITDA*, up 5.6% YOY

Free cash flow*, at the high-end of 1Q26 guidance range of

$2.0B-$2.5B

Total fiber locations reached * - the most in America

Adjusted EPS*, Up 11.8% YOY

Advanced home internet convergence rate*

3 * See end of presentation for non-GAAP reconciliations & other definitions

Consolidated Results

Revenue ($B) Adjusted EBITDA* ($B)

+1.4%

Equipment Service

Service Revenue

Growth YoY

+2.3%

Adj. EBITDA*

Growth YoY

+11.8%

Adjusted EPS*

Growth YoY

Free Cash Flow* ($B) Adjusted EPS*

Adj. EBITDA

Margin*

4 * See end of presentation for non-GAAP reconciliations

Advanced Connectivity | Financials

Revenue ($B) EBITDA* ($B)

+3.6%

Service Revenue

Growth YoY

+5.6%

EBITDA*

Growth YoY

+30bps

EBITDA Margin* Expansion YoY

Equipment Service

Consumer Service Revenue ($B) Business Service Revenue ($B)

Other

Advanced Home

Internet

Wireless

EBITDA

Margin*

Transitional & Other

Fiber & Advanced Connectivity

Wireless

5 * See end of presentation for non-GAAP reconciliations

Advanced Connectivity | Metrics

Total Fiber Locations Reached* (M) Internet Connections (M)

37M+

Organic

Fixed Wireless

Total Fiber Locations Reached*

584K

Internet Connections Added;

6 Consecutive Quarters over 500K

42.0%

Advanced Home Internet

Convergence Rate*

Converged Customers* (M)

Consumer Fiber

Penetration*

Reported Consumer Fiber Penetration*

Postpaid Phone Net Adds (K)

Organic Rate* Reported Rate*

Fiber

Churn

6 * See end of presentation for non-GAAP reconciliations & other definitions

Legacy

Revenue ($B) EBITDA* ($B)

EBITDA

Margin*

85%

Wire Centers Approved to Stop Offering Legacy Services

30%+

Wire Centers Approved to Discontinue Providing Legacy Services by late 2026

7 * See end of presentation for non-GAAP reconciliations

Capital Allocation

Capital Investment* ($B)

$12B

Cash and Cash Equivalents

at End of 1Q26

Vendor Financing Payments

Capital Expenditures

Net Debt* increased $9B sequentially partially driven by mass markets fiber business acquisition in 1Q26

FX impacts decreased debt balance by $0.6B in 1Q26

$4.3B

Returned to Shareholders

in 1Q26

Net Debt* & Leverage ($B) Shareholder Returns ($B)

Net Debt-to-Adj. EBITDA*

Share Repurchases Under 2024 Authorization

Dividends Paid

8 * See end of presentation for non-GAAP reconciliations

Long-Term Outlook | 2026 - 2028

Continuing Operations

Advanced Connectivity Growth in mid-single-digit range annually, including expected growth of 5%+ in 2026

Advanced Connectivity Growth in mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026

9 * See end of presentation for non-GAAP reconciliations

Footnotes

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Dollars in millions

Income from Continuing Operations

1Q24

$ 3,751

2Q24

$ 3,949

3Q24

$ 145

4Q24

$ 4,408

1Q25

$ 4,692

2Q25 3Q25

$ 4,861 $ 9,677

4Q25

$ 4,156

1Q26

$ 4,219

Additions:

Income Tax Expense

1,118

1,142

1,285

900

1,299

1,237 976

109

1,179

Interest Expense

1,724

1,699

1,675

1,661

1,658

1,655 1,700

1,791

1,813

Equity in Net (Income) Loss of Affiliates

(295)

(348)

(272)

(1,074)

(1,440)

(485) 20

Other (Income) Expense - Net

(451)

(682)

(717)

(569)

(455)

(767) (6,254)

(278)

(594)

Depreciation and amortization

5,047

5,072

5,087

5,374

5,190

5,251 5,317

5,128

4,966

EBITDA

10,894

10,832

7,203

10,700

10,944

11,752 11,436

10,916

11,624

Transaction, legal and other costs1

49 487

146

Benefit-related (gain) loss

(39)

(10)

(73)

(70) (62)

(26)

Asset impairments and abandonments and restructuring

159

480

4,422

504

- -

334

Adjusted EBITDA

$ 11,046

$ 11,337

$ 11,586

$ 10,791

$ 11,533

$ 11,731 $ 11,861

$ 11,236

$ 11,795

YoY Growth Rate

4.4%

3.5% 2.4%

4.1%

2.3%

Operating Income

YoY Growth Rate

$ 5,847

$ 5,760

$ 2,116

$ 5,326

$ 5,754

(1.6)%

$ 6,501 $ 6,119

12.9 % 189.2 %

$ 5,788

8.7 %

$ 6,658

15.7 %

Total Operating Revenues

30,626

30,847 30,709

33,466

31,506

Operating Income Margin

18.8%

21.1% 19.9%

17.3%

21.1%

Adjusted EBITDA Margin 37.7% 38.0% 38.6% 33.6% 37.4%

1 Includes 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 third quarter of 2025 also includes approximately $440M of apportioned property and casualty settlements.

EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information.

Adjusted EBITDA is calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses.

Adjusted EBITDA margin is adjusted EBITDA divided by total operating revenues.

Estimates for Adjusted EBITDA and EBITDA at the segment levels depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations for projected adjusted EBITDA or Advanced Connectivity EBITDA, and the most comparable GAAP metrics without unreasonable effort.

Footnotes

Segment EBITDA and EBITDA Margin

Dollars in millions

Advanced Connectivity

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25

3Q25

4Q25

1Q26

Operating Income

$ 5,641 $ 5,854 $ 6,073 $ 5,276 $ 5,972 $ 6,106

$ 6,417

$ 6,093

$ 6,853

YoY Growth Rate

5.9 % 4.3 %

5.7 %

15.5 %

14.8 %

Add: Depreciation and amortization

4,730 4,776 4,813 5,114 4,973 5,035

5,076

4,875

4,705

EBITDA

$ 10,371 $ 10,630 $ 10,886 $ 10,390 $ 10,945 $ 11,141

$ 11,493

$ 10,968

$ 11,558

YoY Growth Rate

5.5% 4.8%

5.6%

Total Operating Revenues

27,192 27,497

27,503

30,232

28,471

Operating Income Margin

22.0% 22.2%

23.3%

20.2%

24.1%

EBITDA Margin

Legacy

40.3 % 40.5 %

41.8 %

36.3 %

40.6 %

Operating Income

$ 1,104 $ 1,151 $ 1,083 $ 913 $ 1,019 $ 959

$ 679

$ 682

$ 612

YoY Growth Rate

(7.7)% (16.7)%

(37.3)%

(25.3)%

(39.9)%

Add: Depreciation and amortization

- - - - - -

EBITDA

$ 1,104 $ 1,151 $ 1,083 $ 913 $ 1,019 $ 959

$ 679

$ 682

$ 612

YoY Growth Rate

(7.7)% (16.7)%

(37.3)%

(25.3)%

(39.9)%

Total Operating Revenues

2,368 2,202

2,013

1,889

1,768

Operating Income Margin

43.0 % 43.6 %

33.7 %

36.1 %

34.6 %

EBITDA Margin

43.0 % 43.6 %

33.7 %

36.1 %

34.6 %

At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total operating revenues.

Total fiber locations reached: 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 Lumen Mass Markets fiber business, Gigapower, and other commercial open access providers.

Reported consumer fiber penetration is calculated as AT&T Fiber connections divided by consumer fiber locations served, which include AT&T Fiber Ventures locations. A fiber location served is defined as: (1) where fiber has been built to a specific customer location, (2) the customer can place an order for fiber, and (3) service can be provisioned. Organic consumer fiber penetration excludes customers and locations from the recently acquired mass markets fiber business.

Converged customers are defined as advanced home internet (AT&T Fiber or AT&T Internet Air) connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. Convergence metrics include customers from the recently acquired mass markets fiber business.

Convergence metrics for the most recent quarter are presented

based on available information and are subject to revision.

Reported convergence rate represents the ratio of converged customers to advanced home internet connections. Organic convergence rate represents the ratio of converged customers to advanced home internet connections, excluding customers from the recently acquired mass markets fiber business.

Footnotes

Adjusted Diluted EPS

1Q25

2Q25

3Q25

4Q25

1Q26

Diluted Earnings Per Share (EPS) from Continuing Operations

$ 0.61

$ 0.62

$ 1.29

$ 0.53

$ 0.54

Gain on sale of DIRECTV

(0.79)

(0.01)

Equity in net income of DIRECTV

(0.15)

(0.05)

Actuarial (gain) loss

0.06

Restructuring and impairments

0.05

0.04

Benefit-related, transaction, legal and other items

(0.03)

0.04

(0.02)

0.03

Tax-related items

(0.08)

Adjusted EPS

$ 0.51

$ 0.54

$ 0.52

$ 0.57

YoY Growth Rate

11.8%

Adjusted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses.

Reconciliations of adjusted EPS to the most comparable GAAP metric can be found at investors.att.com and in our Form 8-K dated April 22, 2026. The company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of $0.3 billion (based on preliminary information), 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.

Net Debt-to-Adjusted EBITDA

Dollars in millions

1Q25

2Q25

3Q25

4Q25

1Q26

Adjusted EBITDA

$ 11,533

$ 11,731

$ 11,861

$ 11,236

$ 11,795

Trailing Twelve Months Adjusted EBITDA

45,247

45,641

45,916

46,361

46,623

Total Debt

126,161

132,311

139,468

136,100

138,407

Less: Cash and Cash Equivalents

6,885

10,499

20,272

18,234

11,964

Less: Time Deposits

150

1,500

350

500

Net Debt

119,126

120,312

118,846

117,366

126,443

Annualized Net Debt-to-Adjusted EBITDA Ratio

2.63

2.64

2.59

2.53

2.71

Net debt-to-adjusted EBITDA ratios are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Our net debt-to-adjusted EBITDA ratio is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA (defined and calculated above).

Net debt is calculated by subtracting cash and cash equivalents and time deposits (deposits at financial institutions that are greater than 90 days, e.g., certificates of deposit and time deposits), from total debt.

Footnotes

Free Cash Flow

Dollars in millions 1Q25

2Q25

3Q25

4Q25

1Q26

Net cash provided by operating activities from continuing operations

$ 9,049

$ 9,763

$ 10,152

$ 11,320

$ 7,595

Less: Distributions from DIRECTV classified as operating activities

(1,423)

(503)

Less: Cash taxes paid on DIRECTV

251

Less: Capital expenditures

(4,277)

(4,897)

(4,887)

(6,781)

(4,877)

Less: Payment of vendor financing

(203)

(220)

(400)

(358)

(212)

Free Cash Flow

$ 3,146

$ 4,394

$ 4,865

$ 4,181

$ 2,506

Free cash flow is a non-GAAP financial measure that is frequently used by investors and credit rating agencies to provide relevant and useful information. Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity method investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Due to high variability and difficulty in predicting items that impact cash from operating activities, capital expenditures and vendor financing payments, the company is not able to provide reconciliations between projected free cash flow and the most comparable GAAP metrics without unreasonable effort.

Capital Investment

Dollars in millions

1Q25

2Q25

3Q25

4Q25

1Q26

Capital expenditures

$ 4,277

$ 4,897

$ 4,887

$ 6,781

$ 4,877

Payment of vendor financing

203

220

400

358

212

Capital Investment

$ 4,480

$ 5,117

$ 5,287

$ 7,139

$ 5,089

Capital investment includes capital expenditures and cash paid for vendor financing. Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the company is not able to provide reconciliations between projected capital investment and the most comparable GAAP metric without unreasonable effort.

Disclaimer

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.