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What changed in AT&T's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of AT&T's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+296 added−315 removedSource: 10-K (2026-02-09) vs 10-K (2025-02-12)

Top changes in AT&T's 2025 10-K

296 paragraphs added · 315 removed · 247 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

54 edited+9 added−14 removed34 unchanged
Biggest changeAfter 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 contract set to expire in 2025 covers approximately 9,000 employees in Arkansas, Kansas, Missouri, Oklahoma and Texas and is set to expire in April.
Biggest changeDollars 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.
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 broad authority to regulate the U.S. operations of our interstate telecommunications services.
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.
Legacy Voice and Data We continue to lose legacy voice and data subscribers 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.
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.
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 2025, we are focused on the core capabilities of our products, our infrastructure and our network.
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.
Our Communications services and products are marketed under the AT&T, AT&T Business, Cricket, AT&T PREPAID SM , AT&T Fiber and AT&T Internet Air brand names. The Communications segment provided approximately 97% of 2024 segment operating revenues and accounted for substantially all of our 2024 total segment operating income. This segment contains the Mobility, Business Wireline and Consumer Wireline business units.
Our Communications services and products are marketed under the AT&T, AT&T Business, Cricket, AT&T PREPAID SM , 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.
MAJOR CUSTOMERS No customer accounted for 10% or more of our consolidated revenues in 2024, 2023 or 2022. 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.
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.
Consumers continue to require increasing availability of data-centric services and a network to connect and control those 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).
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 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. 3 AT&T Inc.
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.
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. 5 AT&T Inc.
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.
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) auction acquisitions and 5G deployment.
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.
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.
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.
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 and take advantage of our 5G wireless network.
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.
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 U.S. and businesses globally.
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.
These subsidiaries are also subject to the jurisdiction of the FCC with respect to intercarrier compensation, interconnection, and interstate and international rates and 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.
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.
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. 6 AT&T Inc.
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.
Additional information relating to regulations affecting those rights is contained under the heading “Operating Environment and Trends of the Business” 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.
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.
Dollars in millions except per share amounts 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.
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.
The increased speeds and network operating efficiency expected with 5G technology should enable massive deployment of devices connected to the internet as well as faster delivery of data services.
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.
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 more and more equipment and facilities to the internet.
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.
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.
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.
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.
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.
Dollars in millions except per share amounts 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.
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.
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 $955 in 2024, $954 in 2023, and $1,236 in 2022. HUMAN CAPITAL Number of Employees As of December 31, 2024, we employed approximately 140,990 persons.
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.
Dollars in millions except per share amounts 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.
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.
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 Video business) and Latin America (referred to as Vrio). • From 2018 through April 2022, we acquired and held various investments in entertainment businesses, namely Time Warner Inc., which comprised a substantial portion of our previous WarnerMedia segment. • In July 2021, we closed our transaction with TPG Capital (TPG) to form a new company named DIRECTV Entertainment Holdings, LLC (DIRECTV).
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).
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: service and equipment.
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.
In addition, our ILEC subsidiaries are subject to regulation by state governments, which have the power to regulate intrastate rates and services, including local, long-distance and network access services, provided such state regulation is consistent with federal law. Some states have eliminated or reduced regulations on our retail offerings.
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.
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.
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.
As of December 31, 2024, we served 118 million Mobility subscribers, including 89 million postpaid (73 million phone), 19 million prepaid and 10 million through resellers. Our Mobility business unit revenue includes the following categories: service and equipment.
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.
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 equipment. Additional information on our Communications segment is contained in the “Overview” section of Item 7.
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.
Broadband The desire for high-speed data on demand, including video, is continuing to lead customers to terminate their traditional wired or copper-based services and use our fiber or fixed wireless services or competitors’ 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.
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.
Consumer Wireline also provides legacy telephony voice communication services. The Latin America segment provides wireless service and equipment in Mexico.
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.
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 geogra phic basis as possible. We expect to continue to invest significant capital in expanding our network capacity, as well as obtaining additional spectrum, when available, that meets our long-term needs.
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 geogra phic basis as possible.
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.
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.
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.
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.
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.
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.
We have prioritized self-care and emphasized a focus on wellness and providing flexible scheduling or time-off options.
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.
In addition to our active employee base, at December 31, 2024, we had approximately 496,000 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.
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 believe that our flexible platform, with a broadband and wireless connection, is the most efficient way to transport direct-to-consumer video and data experiences both at home and on mobile devices.
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.
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. 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.
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.
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 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.
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 2024 segment operating revenues and less than 1% of our 2024 total segment operating income.
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.
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 2024 2023 2022 Communications Segment Wireless service 53 % 52 % 50 % Business service 15 17 18 Equipment 17 17 18 Latin America Segment Wireless service 2 2 2 Equipment 1 1 1 Additional information on our geographical distribution of revenues is contained in Note 4 of Item 8.
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 connectivity 1 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.
We divide our revenue into the following categories: service and equipment. 4 AT&T Inc. Dollars in millions except per share amounts Service We provide postpaid and prepaid wireless services in Mexico to approximately 24 million subscribers under the AT&T and Unefon brands.
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.
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, 2024, we had 15.3 million broadband connections, compared to 15.1 million broadband connections in the prior year.
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.
Service 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, as well as legacy voice and other transitional services comprised of copper-based voice and data, Virtual Private Networks (VPN), wholesale, outsourcing and IP sales.
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 have also entered into licenses that permit other companies to utilize certain of our patents, trademarks, 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 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.
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.
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.
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).
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.
At December 31, 2024, we had 3.3 million network access lines in service and 127,000 DSL subscribers compared, to 4.2 million network access lines in service and 210,000 DSL subscribers in the prior year.
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.
In North America, our network covers over 440 million people with 4G LTE and over 314 million with 5G technology. In the United States, our network covers all major metropolitan areas and more than 336 million people with our LTE technology and more than 314 million people with our 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.
Some of the services we have offered historically are in secular decline and, going forward, we will 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. Equipment Equipment revenues include customer premises equipment.
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.
Broadband Service We provide broadband and internet services to approximately 14.1 million customers, including 9.3 million fiber broadband subscribers at December 31, 2024. With changes in video viewing preferences and the impacts of remote learning trends, we are experiencing increasing demand for high-speed broadband services.
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.
Historically, a majority of our Business Wireline service revenues came from legacy copper-based voice and data and traditional products; however, over recent years those services have been declining due to secular pressures.
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.
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In September 2024, we agreed to sell our remaining interest in DIRECTV to TPG, which we expect to close in mid-2025. • In April 2022, we completed the separation of our WarnerMedia business in a Reverse Morris Trust transaction (WarnerMedia/Discovery Transaction).
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Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets.
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Upon its separation and distribution, the WarnerMedia business met the criteria for discontinued operations, as did other dispositions that were part of a single plan, including Vrio, Xandr and Playdemic Ltd. (Playdemic). These businesses are reflected in our historical financial statements as discontinued operations, including for periods prior to the consummation of the WarnerMedia separation. 1 AT&T Inc.
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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.
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Dollars in millions except per share amounts 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.
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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.
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During 2024, we collaborated with Ericsson to lead the U.S. in commercial scale open radio access network (Open RAN) deployment 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.
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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.
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We plan for about 70% of our wireless network traffic to flow across open-capable platforms by late 2026. Beginning in 2025, we expect to scale this Open RAN environment throughout our wireless network in coordination with multiple suppliers.
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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.
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We believe the move to an open, agile, programmable wireless network positions us to quickly capitalize on the next generation of wireless technology and spectrum when it becomes available. These innovative technologies are expected to enable lower-power, sustainable networks with higher performance to deliver enhanced user experiences.
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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.
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We participate in FCC spectrum auctions and have been redeploying spectrum previously used for more basic services to support 2 AT&T Inc. Dollars in millions except per share amounts more advanced mobile internet services.
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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.
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Additionally, 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 proposed sale of its wireless operations and select spectrum assets to T-Mobile US, Inc.
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In most U.S. markets, we compete for customers with large cable companies and wireless broadband providers for high-speed internet and voice services.
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Broadband Technology In 2020, we identified fiber as a core priority for our business and enhanced our focus to expand our fiber footprint and grow customers. At December 31, 2024, we had more than 9.3 million fiber consumer wireline broadband customers, adding 1.0 million during the year.
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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.
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We believe our investment in expanding our industry-leading fiber network positions us to be a leader in wired connectivity. Our focus on fiber brings owners economics and expected efficiencies while we continue to evaluate opportunities where we can turn down existing copper infrastructure.
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Inclusion We believe that championing inclusion does more than just make us a better company, it contributes to a world where people are empowered to be their very best and it leads to a workforce that is representative of, and responsive to, the broad customer base that we serve.
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That is why we are committed to inclusion and one of the reasons why our company purpose is “to connect people to greater possibilities.” This emanates from our unwavering pledge to ensure that employees feel included when they join AT&T, and are provided with opportunities for advancement, training and development to realize their full potential while working for the company.
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We believe in attracting and hiring talented people who represent a mix of backgrounds and experiences. At AT&T, we have employee groups that reflect our large and varied workforce. These affinity groups provide opportunities for professional enrichment, leadership, community engagement, market development and networking.
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It is important that our employees feel they are included, valued, and are fully engaged in our success.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe 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, pending Notices of Apparent Liability; 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, pertaining to our subsidiaries and foreign investments. • U.S. and foreign laws and regulations regarding intellectual property rights protection and privacy, personal data protection and user consent, which are rapidly evolving. • Our ability to compete in an increasingly 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. • 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 from suppliers; 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 uncertainty surrounding further congressional action regarding spending and taxation, which may result in changes in government spending and affect the ability and willingness of businesses and consumers to spend in general. • 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 divestitures, as well as achieve our expectations regarding the financial impact of completed and/or pending transactions.
Biggest changeThe 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.
The models used in those products, 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.
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.
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 have incurred debt to fund significant acquisitions, as well as spectrum purchases needed to compete in our industry.
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.
If we cannot acquire needed spectrum, if our 5G and fiber 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.
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.
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 climate change’s impacts on the environment.
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.
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.
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.
Additionally, our capital allocation plan is focused on, among other things, managing our debt level going forward. Any failure to successfully execute this plan could adversely affect our cost of funds, liquidity, competitive position and access to capital markets.
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.
We may incur significant expenses defending such suits or government charges and may be required to pay amounts or otherwise change our operations in ways that could materially adversely affect our operations or financial results.
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.
Our reputation and brand image could be negatively affected by a number of factors, including quality or reliability issues related to 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 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.
The communications industry has experienced rapid changes in the past several years. An increasing number of our customers are using mobile devices 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.
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 been and will be undertaking certain transformation initiatives, which are designed to reduce costs, enable legacy rationalization, streamline and modernize distribution and customer service, remove redundancies and simplify and improve processes and support functions. Our focus is on supporting added customer value with an improved customer experience.
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.
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.
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.
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. 11 AT&T Inc.
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.
While the Company may have contractual rights to assess the effectiveness of many of its suppliers’ and vendors’ systems and protocols, the Company cannot know or assess the effectiveness of all of our providers’ systems and controls at all times.
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.
Cyberattacks against the Company and its 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.
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.
Cyberattacks can 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 could result in significant expenses, potential investigations and legal liability, a loss of current or future customers and reputational damage.
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.
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.
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 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 8 AT&T Inc.
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.
Macro-Economic Factors: Adverse changes in the U.S. securities markets, increasing interest rates, rising inflation and medical costs could materially increase our benefit plan costs and future funding requirements.
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.
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.
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.
For example, in July 2024, the Company disclosed a cybersecurity incident on Item 1.05 of Form 8-K relating to the copying of mobile customer call data. 12 AT&T Inc.
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.
Dollars in millions except per share amounts 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.
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.
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.
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.
As a critical infrastructure service provider, the Company believes that it is a particularly attractive target for such cyberattacks, including from nation states and highly sophisticated, state-sponsored, or otherwise well-funded actors, and the Company experiences heightened risk from time to time as a result of geopolitical events.
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.
In many cases, the application of existing, newly enacted or amended tax laws (such as the U.S. Tax Cuts and Jobs Act of 2017 and the Inflation Reduction Act of 2022) 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 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.
Dollars in millions except per share amounts 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.
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.
Dollars in millions except per share amounts 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.
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.
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. 10 AT&T Inc.
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.
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.
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.
Our system redundancy and other measures we take to 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.
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.
We may not realize or sustain the expected benefits from our business transformation initiatives, and these efforts could have a materially adverse effect on our business, operations, financial condition, results of operations and competitive position.
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.
If we do not successfully manage and timely execute these initiatives, 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.
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.
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 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.
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, or may forego some purchases altogether, during a period of inflationary pressure or an economic downturn.
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.
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, and concerns about global climate change, have led to proposals or new 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.
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.
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.
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.
Dollars in millions except per share amounts 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.
Public health crises and resulting mitigation measures have in the past, and may in the future, cause a negative effect on our operating results.
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 subscriber losses to cable competitors in our non-fiber wireline areas, we have been expanding our all-fiber wireline network.
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.
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.
We claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.
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.
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.
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 the ordinary course of our business based on alleged acts of misconduct by employees.
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.
Further, we are using and intend to further use artificial intelligence (AI)-driven efficiencies in our network design and operations, software development, sales, marketing, customer support services and general and administrative costs.
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.
In calculating the recognized benefit costs, we have made certain assumptions regarding future investment returns, interest rates and medical costs. These 7 AT&T Inc. Dollars in millions except per share amounts assumptions could change significantly over time and could be materially different than originally projected.
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.
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.
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.
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 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.
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.
As of December 31, 2024, approximately 43% of our workforce was represented by the Communications Workers of America (CWA), the International Brotherhood of Electrical Workers (IBEW) or other unions.
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.
These efforts will involve significant expenses and require strategic management decisions on, and timely implementation of, equipment choices, network deployment and service offerings.
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.
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 9 AT&T Inc.
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.
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 pressures, such as through increases in the selling prices of some of our products and services, may not be successful.
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.
In addition, a sustained decline in a reporting unit’s revenues and earnings has resulted in the past, and may 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.
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.
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 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.
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.
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.
If the IRS or another tax authority were to so conclude, there could be a material adverse impact on our business, financial condition, results of operations and cash flows. 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.
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.
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Lower than assumed investment returns, an increase in our benefit obligations, and higher than assumed medical and prescription drug costs will increase expenses.
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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.
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A company’s cost of borrowing is affected by evaluations given by various credit rating agencies, and these agencies have been applying tighter credit standards when evaluating debt levels and future growth prospects.
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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.
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In addition, in response to the Federal Aviation Administration (FAA) questioning whether cell sites transmitting C-Band spectrum could impact radio altimeter equipment on airplanes, we voluntarily committed to temporary, precautionary measures near certain airports through January 1, 2028, which may have limited impacts to deployments and services.
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Our ability to attract and retain employees is highly dependent upon our commitment to an inclusive workplace, ethical business practices and other qualities.
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The COVID-19 pandemic accelerated these changes and also resulted in higher network utilization, as more customers consumed bandwidth from changes in work and learn from home trends. Streaming, augmented reality, “smart” technologies, user generated content and artificial intelligence (AI) are expected to continue to drive greater demand for broadband.
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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.
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In 2023, the FCC’s statutory authority to conduct spectrum auctions lapsed and it is uncertain when Congress will act to reauthorize it.
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Unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures.
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Also in 2023, the federal government released a national spectrum strategy that focused on spectrum sharing but did not include terms of future spectrum sharing model(s) or specific timelines to make additional spectrum bands available for 5G and future generations of service.
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As a result, the federal government’s ability and intent to make sufficient spectrum available to the industry in needed timeframes and on terms suitable for mobile broadband network deployments remains uncertain. Increasing competition could materially adversely affect our operating results.
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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.
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Dollars in millions except per share amounts 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.
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If the distribution of WarnerMedia, together with certain related transactions, were to fail to qualify for non-recognition treatment for U.S. federal income tax purposes under audit, then we could be subject to significant tax liability. In connection with the WarnerMedia/Discovery Transaction, AT&T received a favorable Private Letter Ruling from the Internal Revenue Service (IRS).
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Nonetheless, the IRS or another applicable tax authority could determine on audit that the distribution by us of WarnerMedia to our stockholders and certain related transactions should be treated as taxable transactions 13 AT&T Inc.
Removed
Dollars in millions except per share amounts if it determines that any of the facts, representations or undertakings made in connection with the request for the ruling were incorrect or are violated. We may be entitled to indemnification from Warner Bros.
Removed
Discovery (Warner Bros.) in the case of certain breaches of representations or undertakings by Warner Bros. under the tax matters agreement related to the WarnerMedia/Discovery Transaction. However, we could potentially be required to pay such tax prior to reimbursement from Warner Bros., and such indemnification is subject to Warner Bros.’ credit risk.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−0 removed22 unchanged
Biggest changeImpact of Cybersecurity Risk In 2024, 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.
Biggest changeImpact 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.
The CISO has extensive technical leadership experience and cybersecurity expertise, gained from approximately 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.
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.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAt December 31, 2024, of our total property, plant and equipment, central office equipment represented 29%; outside plant (including cable, wiring and other non-central office network equipment) represented 27%; other equipment, comprised principally of wireless network equipment attached to towers, furniture and office equipment and vehicles and other work equipment, represented 25%; land, building and wireless communications towers represented 12%; and other miscellaneous property represented 7%.
Biggest changeAt 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%.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

4 edited+2 added−4 removed0 unchanged
Biggest changeThaddeus Arroyo 61 Chief Strategy and Development Officer 5/2022 Pascal Desroches 60 Senior Executive Vice President and Chief Financial Officer 4/2021 Edward W. Gillespie 63 Senior Executive Vice President - External and Legislative Affairs, AT&T Services, Inc. 4/2020 Kellyn S. Kenny 47 Chief Marketing and Growth Officer 5/2022 Lori M.
Biggest changeStankey 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 Services, Inc. 4/2020 Kellyn S.
McElfresh 54 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 Mr. Desroches, Mr. Gillespie, Ms. Kenny and Mr. Legg. Executive officers are not appointed to a fixed term of office. Mr.
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.
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, 2025 Name Age Position Held Since John T. Stankey 62 Chief Executive Officer and President 7/2020 F.
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.
Lee 59 Global Marketing Officer and Senior Executive Vice President - Human Resources and International 8/2023 Jeremy Legg 55 Chief Technology Officer, AT&T Services, Inc. 5/2022 David R. McAtee II 56 Senior Executive Vice President and General Counsel 10/2015 Jeffery 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.
Removed
Desroches was previously Executive Vice President - Finance of AT&T from November 2020 to March 2021, Executive Vice President and Chief Financial Officer of WarnerMedia from June 2018 to November 2020, and Executive Vice President and Chief Financial Officer of Turner from January 2015 to June 2018. Mr.
Added
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.
Removed
Gillespie was previously Managing Director of Sard Verbinnen & Co. from June 2018 to April 2020, Founder and Principal of Ed Gillespie Strategies from February 2009 to December 2016, and Counselor to the President for George W. Bush, Executive Office of the President at The White House, from July 2007 to January 2009. Ms.
Added
Dollars in millions except per share amounts PART II
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Kenny was previously Chief Marketing and Growth Officer, AT&T Communications, LLC from November 2020 to May 2022. Prior to that she was Global Chief Marketing Officer of Hilton Worldwide Holdings from January 2018 to June 2020 and Vice President of Marketing for Uber Technologies from April 2016 to January 2018. Mr.
Removed
Legg was previously Chief Technology Officer - AT&T Technology Services of AT&T from June 2020 to April 2022, Chief Technology Officer of WarnerMedia from December 2018 to June 2020, and Chief Technology Officer of Turner from June 2015 to December 2018. 17 AT&T Inc. Dollars in millions except per share amounts PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe authorization had no expiration date. In December 2024, our Board of Directors approved an authorization to repurchase up to $10,000 of common stock and terminated the March 2014 authorization. No repurchases were made in December 2024 under the March 2014 authorization.
Biggest changeAmounts 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.
STOCK PERFORMANCE GRAPH The comparison above assumes $100 invested on December 31, 2019, in AT&T common stock and the following Standard & Poor’s (S&P) Indices: S&P 500 Index and S&P 500 Communication Services Index. Total return equals stock price appreciation plus reinvestment of dividends. 18 AT&T Inc.
STOCK PERFORMANCE GRAPH The comparison above assumes $100 invested on December 31, 2020, in AT&T common stock and the following Standard & Poor’s (S&P) Indices: S&P 500 Index and S&P 500 Communication Services Index. Total return equals stock price appreciation plus reinvestment of dividends. 18 AT&T Inc.
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 under the ticker symbol “T”. The number of stockholders of record as of December 31, 2024 and 2023 was 712,700 and 749,207.
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 31, 2025, was 710,181. We declared dividends on common stock, on a quarterly basis, totaling $1.11 per share in 2024 and 2023.
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.
The December 2024 authorization has no expiration date. 2 Of the shares purchased, 517,927 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.
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.
Dollars in millions except per share amounts A summary of our repurchases of common stock during the fourth quarter of 2024 is as follows: ISSUER PURCHASES OF EQUITY SECURITIES (a) (b) (c) (d) Period Total Number of Shares (or Units) Purchased 1,2 Average Price Paid Per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs 1 Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs 1 October 1, 2024 – October 31, 2024 424,825 $ 22.12 36,300 143,695,672 November 1, 2024 – November 30, 2024 504 $ 22.54 — 143,695,672 December 1, 2024 – December 31, 2024 128,898 $ 22.57 — $ 10,000 Total 554,227 $ 22.22 36,300 1 In March 2014, our Board of Directors approved an authorization to repurchase up to 300 million shares of our common stock.
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 Shares (or Units) Purchased 1,2 Average Price Paid Per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs 1 Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs 1 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”).

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

106 edited+33 added−37 removed44 unchanged
Biggest changeDollars in millions except per share amounts Consumer Wireline Results Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Operating revenues Broadband $ 11,212 $ 10,455 $ 9,669 7.2 % 8.1 % Legacy voice and data services 1,265 1,508 1,746 (16.1) (13.6) Other service and equipment 1,101 1,210 1,334 (9.0) (9.3) Total Operating Revenues 13,578 13,173 12,749 3.1 3.3 Operating expenses Operations and support 9,048 9,053 8,946 (0.1) 1.2 Depreciation and amortization 3,661 3,469 3,169 5.5 9.5 Total Operating Expenses 12,709 12,522 12,115 1.5 3.4 Operating Income $ 869 $ 651 $ 634 33.5 % 2.7 % The following tables highlight other key measures of performance for Consumer Wireline: Connections Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Broadband Connections Total Broadband and DSL Connections 14,079 13,890 13,991 1.4 % (0.7) % Broadband 1 13,987 13,729 13,753 1.9 (0.2) Fiber Broadband Connections 9,331 8,307 7,215 12.3 15.1 Voice Connections Retail Consumer Switched Access Lines 1,310 1,651 2,028 (20.7) (18.6) Consumer VoIP Connections 1,653 1,953 2,311 (15.4) (15.5) Total Retail Consumer Voice Connections 2,963 3,604 4,339 (17.8) % (16.9) % 1 Includes AIA.
Biggest changeConsumer Wireline Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 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 2024 vs. 2023 Broadband 1 14,704 13,987 13,729 5.1 % 1.9 % Fiber Broadband Connections 10,406 9,331 8,307 11.5 % 12.3 % 1 Includes AIA.
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 implement and enforce these new rules.
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.
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 2025 (see “Critical Accounting Policies and Estimates”).
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”).
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 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, 2023.
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.
Consumer Wireline also provides legacy telephony voice communication services. The Latin America segment accounted for approximately 3% of our 2024 and 2023 total segment operating revenues and less than 1% of segment operating income in 2024. This segment provides wireless service and equipment in Mexico. 20 AT&T Inc.
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.
We expect ongoing pressure on pricing during 2025 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.
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.
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 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
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.
Legacy voice and data service revenues decreased in 2024, reflecting the continued decline in demand for these services in favor of other technologies, such as wireless and fiber. Other service and equipment revenues decreased in 2024, reflecting the continued decline in the number of VoIP customers.
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.
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 new technologies, such as AT&T Internet Air. 2025 Expense Trends During 2025, we expect expense trends consistent with the prior year, and that we will continue to focus on efficiency, led by our cost transformation initiative.
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.
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 2025 combined pension and postretirement cost to increase $136, which under our accounting policy would be adjusted to actual returns in the current year upon remeasurement of our retiree benefit plans.
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.
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 AIA services, to residential customers in select locations.
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.
Foreign debt includes the impact from hedges, when applicable. 2 Includes credit agreement borrowings. 3 We expect to fund the purchase obligations with 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.
Foreign debt includes the impact from hedges, when applicable. 2 Includes credit agreement borrowings. 3 We 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.
Dollars in millions except per share amounts 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 combine technologies and services.
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.
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 U.S. on a converged telecommunications network utilizing different technological platforms.
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.
We also expect cost savings through AI-driven efficiencies in our 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, inflation and an increasing interest rate environment continued to produce volatility in the credit, currency and equity markets.
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.
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 5.70% and 5.60%, respectively, at December 31, 2024, reflect the hypothetical rate at which the projected benefit obligations could be effectively settled or paid out to participants.
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.
As of December 31, 2024, 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 $34,884 derivative portfolio, counterparties are still required to post collateral.
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 2024, we received $477 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.
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.
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 $380 in 2024, $2,940 in 2023 and $10,200 in 2022. • Total health and welfare benefits provided to certain active and retired employees and their dependents totaled approximately $2,550 in 2024 and $2,990 in 2023, with $736 paid from plan assets in 2024, compared to $624 in 2023.
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.
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. 33 AT&T Inc.
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.
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.
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.
Wireless Licenses The fair value of U.S. wireless licenses is assessed 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.
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.
We expect the spending required to support growth and efficiency initiatives, primarily our continued deployment of fiber and 5G, to pressure expense trends in 2025. These investments will help prepare us to meet increased customer demand for enhanced wireless and broadband services, including video streaming, augmented reality, “smart” technologies, user generated content and artificial intelligence (AI).
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.
The net impact of direct supplier financing, including principal and interest payments, was to improve cash from operating activities $661 in 2024 and decrease cash from operating activities $299 in 2023. All supplier financing payments are due within one year.
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.
Total vendor financing payables included in our December 31, 2024 consolidated balance sheet were $1,448, with $749 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”).
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”).
Dollars in millions except per share amounts 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.
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.
(See Note 20) 6 The 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). 7 Represents 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).
(See Note 20) 6 The 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). 7 Represents 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). 8 Excludes debt transactions, pending acquisitions and other investment funding completed after December 31, 2025 (see Note 6).
Our capital structure does not include debt issued by our equity method investments. At December 31, 2024, our debt ratio was 50.7%, compared to 53.5% at December 31, 2023 and 56.1% at December 31, 2022.
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.
Tablet net adds (losses) were 167, (68) and 203 for the years ended December 31, 2024, 2023 and 2022, respectively.
Tablet net adds (losses) were 143, 167 and (68) for the years ended December 31, 2025, 2024 and 2023, respectively.
In 2025, our key initiatives include: • Continuing our wireless subscriber momentum and 5G deployment, with expansion of wireless subscribers in underpenetrated markets and converged customers. • Continuing our fiber deployment, improving fiber penetration, growing AT&T Internet Air services, accelerating subscriber growth and increasing broadband revenues. • Deploying 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 and product simplification. 27 AT&T Inc.
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.
Our Revolving Credit Agreement contains covenants that are customary for an issuer with an investment grade senior debt credit rating as well as a net debt-to-EBITDA financial ratio covenant requiring AT&T to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75-to-1.
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.
Our expected long-term rate of return is 7.75% on pension plan assets and 4.00% on postretirement plan assets for 2024 and 2025. Our expected return on plan assets is calculated using the actual fair value of plan assets.
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.
As of December 31, 2024, we served 141 million wireless subscribers in North America, with 118 million in the United States. Our LTE technology covers over 440 million people in North America, and in the United States, we cover all major metropolitan areas and over 336 million people.
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.
These items include: deferred income tax liability of $58,939 (see Note 13); net postemployment benefit obligations of $9,595 (including current portion); and other noncurrent liabilities of $8,292. 34 AT&T Inc.
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.
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.
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).
EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. 2024 2023 2022 Communications Segment Operating income $ 27,095 $ 27,801 $ 26,736 Add: Depreciation and amortization expense 19,433 17,363 16,681 EBITDA $ 46,528 $ 45,164 $ 43,417 Operating income margin 23.0 % 23.6 % 22.8 % EBITDA margin 39.5 % 38.3 % 37.1 % Mobility Operating income $ 26,314 $ 25,861 $ 23,812 Add: Depreciation and amortization expense 10,217 8,517 8,198 EBITDA $ 36,531 $ 34,378 $ 32,010 Operating income margin 30.9 % 30.8 % 29.1 % EBITDA margin 42.8 % 40.9 % 39.1 % Business Wireline Operating income $ (88) $ 1,289 $ 2,290 Add: Depreciation and amortization expense 5,555 5,377 5,314 EBITDA $ 5,467 $ 6,666 $ 7,604 Operating income margin (0.5) % 6.2 % 10.2 % EBITDA margin 29.1 % 31.9 % 33.7 % Consumer Wireline Operating income $ 869 $ 651 $ 634 Add: Depreciation and amortization expense 3,661 3,469 3,169 EBITDA $ 4,530 $ 4,120 $ 3,803 Operating income margin 6.4 % 4.9 % 5.0 % EBITDA margin 33.4 % 31.3 % 29.8 % Latin America Segment Operating income $ 40 $ (141) $ (326) Add: Depreciation and amortization expense 657 724 658 EBITDA $ 697 $ 583 $ 332 Operating income margin 0.9 % (3.6) % (10.4) % EBITDA margin 16.5 % 14.8 % 10.6 % 35 AT&T Inc.
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.
Broadband revenues increased in 2024, driven by an increase in fiber customers, which we expect to continue as we invest further in building our fiber footprint, and higher ARPU, partially offset by declines in copper-based broadband services.
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.
Our pension plans are subject to funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). We expect only minimal ERISA contribution requirements to our pension plans for 2025.
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.
Dollars in millions except per share amounts RESULTS OF OPERATIONS Consolidated Results Our financial results from continuing operations are summarized in the following table. We then discuss factors affecting our overall results from continuing operations. Additional analysis is discussed in our “Segment Results” section.
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.
Our Communications segment EBITDA margin was 39.5% in 2024, 38.3% in 2023 and 37.1% in 2022. 22 AT&T Inc.
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.
Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Operating Revenues Communications $ 117,652 $ 118,038 $ 117,067 (0.3) % 0.8 % Latin America 4,232 3,932 3,144 7.6 25.1 Corporate 452 458 530 (1.3) (13.6) AT&T Operating Revenues $ 122,336 $ 122,428 $ 120,741 (0.1) % 1.4 % Operating Income Communications $ 27,095 $ 27,801 $ 26,736 (2.5) % 4.0 % Latin America 40 (141) (326) — 56.7 Segment Operating Income 27,135 27,660 26,410 (1.9) 4.7 Corporate (2,902) (2,961) (2,890) 2.0 (2.5) Certain significant items (5,184) (1,238) (28,107) — 95.6 AT&T Operating Income (Loss) $ 19,049 $ 23,461 $ (4,587) (18.8) % — % The Communications segment accounted for approximately 97% of our 2024 and 2023 total segment operating revenues and accounted for substantially all segment operating income in 2024 and 2023.
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.
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.
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.
LATIN AMERICA SEGMENT Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Segment Operating revenues Service $ 2,668 $ 2,569 $ 2,162 3.9 % 18.8 % Equipment 1,564 1,363 982 14.7 38.8 Total Segment Operating Revenues 4,232 3,932 3,144 7.6 25.1 Segment Operating expenses Operations and support 3,535 3,349 2,812 5.6 19.1 Depreciation and amortization 657 724 658 (9.3) 10.0 Total Segment Operating Expenses 4,192 4,073 3,470 2.9 17.4 Operating Income (Loss) $ 40 $ (141) $ (326) — % 56.7 % The following tables highlight other key measures of performance for Mexico: Subscribers Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Postpaid 5,837 5,236 4,925 11.5 % 6.3 % Prepaid 17,486 16,663 16,204 4.9 2.8 Reseller 253 417 474 (39.3) (12.0) Mexico Wireless Subscribers 23,576 22,316 21,603 5.6 % 3.3 % Mexico Wireless Net Additions Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Postpaid 601 311 118 93.2 % — % Prepaid 823 459 1,147 79.3 (60.0) Reseller (164) (57) (24) — — Mexico Wireless Net Additions 1,260 713 1,241 76.7 % (42.5) % Service revenues increased in 2024, reflecting growth in subscribers and ARPU, partially offset by unfavorable foreign exchange impacts.
Dollars in millions except per share amounts LATIN AMERICA SEGMENT Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 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 2024 vs. 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 2024 vs. 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.
Dollars in millions except per share amounts A significant amount of our cash outflows for continuing operations is related to tax items, acquisition of spectrum through FCC auctions and benefits paid for current and former employees: • Total taxes incurred, collected and remitted by AT&T during 2024 and 2023 were $16,968 and $16,877.
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.
Equipment revenues increased in 2024, driven by higher equipment sales, partially offset by unfavorable foreign exchange impacts. Operations and support expenses increased in 2024, driven by increased equipment and selling costs resulting from higher sales, partially offset by favorable impact of foreign exchange. Depreciation expense decreased in 2024, driven by lower in-service assets and favorable impact of foreign exchange.
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.
Dollars in millions except per share amounts 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.
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.
Of those benefits, approximately $2,290 related to medical and prescription drug benefits in 2024, compared to $2,730 in 2023. We paid $2,447 of pension benefits out of plan assets in 2024, compared to $4,863 in 2023.
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.
The software benefits of our 5G wireless technology should result in a more efficient use of capital and lower network-related expenses in the coming years. Furthermore, to the extent customers upgrade their handsets in 2025, the expenses associated with those device sales are expected to contribute to higher costs.
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.
Dollars in millions except per share amounts OPERATING ENVIRONMENT AND TRENDS OF THE BUSINESS 2025 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.
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.
These inflows were exceeded by cash used to meet the needs of the business, including, but not limited to, payment of operating expenses. The cash generated from operating activities was used to fund capital expenditures and vendor financing payments, repay short-term borrowings and long-term debt, and dividend payments to stockholders.
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.
LIQUIDITY AND CAPITAL RESOURCES Continuing operations for the years ended December 31, 2024 2023 2022 Cash provided by operating activities $ 38,771 $ 38,314 $ 35,812 Cash used in investing activities (17,490) (19,660) (26,899) Cash used in financing activities (24,708) (15,614) (59,564) At December 31, 2024 2023 Cash and cash equivalents $ 3,298 $ 6,722 Total debt 123,532 137,331 We had $3,298 in cash and cash equivalents available at December 31, 2024, decreasing $3,424 since December 31, 2023.
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.
We will continue to rationalize our product portfolio with a longer-term shift of the business to fiber and mobile connectivity, and growth in value-added services.
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.
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.
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.
Our Consumer Wireline operating income margin was 6.4% in 2024, 4.9% in 2023 and 5.0% in 2022. Our Consumer Wireline EBITDA margin was 33.4% in 2024, 31.3% in 2023 and 29.8% in 2022.
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.
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 permit earlier payments at their cost (referred to as supplier financing program).
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).
Cash and cash equivalents included cash of $2,149 and money market funds and other cash equivalents of $1,149. Approximately $1,268 of our cash and cash equivalents were held in accounts outside of the U.S. and may be subject to restrictions on repatriation. 31 AT&T Inc.
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.
Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Operating revenues Service $ 100,135 $ 99,649 $ 97,831 0.5 % 1.9 % Equipment 22,201 22,779 22,910 (2.5) (0.6) Total Operating Revenues 122,336 122,428 120,741 (0.1) 1.4 Operating expenses Operations and support 77,632 78,997 79,809 (1.7) (1.0) Asset impairments and abandonments and restructuring 5,075 1,193 27,498 — (95.7) Depreciation and amortization 20,580 18,777 18,021 9.6 4.2 Total Operating Expenses 103,287 98,967 125,328 4.4 (21.0) Operating Income (Loss) 19,049 23,461 (4,587) (18.8) — Interest expense 6,759 6,704 6,108 0.8 9.8 Equity in net income of affiliates 1,989 1,675 1,791 18.7 (6.5) Other income (expense) – net 2,419 1,416 5,810 70.8 (75.6) Income (Loss) from Continuing Operations Before Income Taxes 16,698 19,848 (3,094) (15.9) — Income (Loss) from Continuing Operations $ 12,253 $ 15,623 $ (6,874) (21.6) % — % OVERVIEW Operating revenues decreased in 2024, reflecting declines in Business Wireline service, primarily due to continued declines in legacy services, and Mobility equipment revenues, offset by higher Mobility service, Consumer Wireline and Mexico revenues .
Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 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 and restructuring 838 5,075 1,193 (83.5) — 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.
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.
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.
Operating income decreased in 2024 and 2023. Our Business Wireline operating income margin was (0.5)% in 2024, 6.2% in 2023 and 10.2% in 2022. Our Business Wireline EBITDA margin was 29.1% in 2024, 31.9% in 2023 and 33.7% in 2022. 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.
We assume churn rates will initially exceed our current experience but decline to rates that are in line with industry-leading churn. 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.
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.
Our Mobility operating income margin was 30.9% in 2024, 30.8% in 2023 and 29.1% in 2022. Our Mobility EBITDA margin was 42.8% in 2024, 40.9% in 2023 and 39.1% in 2022.
Our Mobility EBITDA margin was 42.0% in 2025, 42.8% in 2024 and 40.9% in 2023.
We expect 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.
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.
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.
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.
This also included Euro, British pound sterling, Canadian dollar, Swiss franc and Australian dollar denominated debt that totaled approximately $30,685. At December 31, 2024, we had $5,089 of long-term debt maturing within one year. We had no outstanding commercial paper borrowings or other short-term borrowings on December 31, 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.
Mobility Net Additions Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Postpaid Phone Net Additions 1,653 1,744 2,868 (5.2) % (39.2) % Total Phone Net Additions 1,525 1,801 3,272 (15.3) (45.0) Postpaid 2 2,250 2,315 4,091 (2.8) (43.4) Prepaid (102) 128 479 — (73.3) Reseller 2,020 1,279 462 57.9 — Mobility Net Subscriber Additions 1 4,168 3,722 5,032 12.0 % (26.0) % Postpaid Churn 3 0.92 % 0.98 % 0.97 % (6) BP 1 BP Postpaid Phone-Only Churn 4 0.76 % 0.81 % 0.81 % (5) BP — BP 1 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. 2 In addition to postpaid phones, includes tablets and wearables and other.
Mobility Net Additions Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 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) Postpaid 1 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 Additions 2,3 2,314 4,168 3,722 (44.5) % 12.0 % Postpaid Churn 4 1.05 % 0.92 % 0.98 % 13 BP (6) BP Postpaid Phone Churn 4 0.90 % 0.76 % 0.81 % 14 BP (5) BP 1 In addition to postpaid phones, includes tablets and wearables and other.
Dollars in millions except per share amounts Communications Business Unit Discussion Mobility Results Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Operating revenues Service $ 65,373 $ 63,175 $ 60,499 3.5 % 4.4 % Equipment 19,882 20,807 21,281 (4.4) (2.2) Total Operating Revenues 85,255 83,982 81,780 1.5 2.7 Operating expenses Operations and support 48,724 49,604 49,770 (1.8) (0.3) Depreciation and amortization 10,217 8,517 8,198 20.0 3.9 Total Operating Expenses 58,941 58,121 57,968 1.4 0.3 Operating Income $ 26,314 $ 25,861 $ 23,812 1.8 % 8.6 % The following tables highlight other key measures of performance for Mobility: Subscribers Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Postpaid 89,200 87,104 84,700 2.4 % 2.8 % Postpaid phone 72,749 71,255 69,596 2.1 2.4 Prepaid 19,023 19,236 19,176 (1.1) 0.3 Reseller 9,628 7,468 6,043 28.9 23.6 Total Mobility Subscribers 1 117,851 113,808 109,919 3.6 % 3.5 % 1 Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics.
Dollars in millions except per share amounts Communications Business Unit Discussion Mobility Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 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 2024 vs. 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 Subscribers 1 120,105 117,851 113,808 1.9 % 3.6 % 1 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines.
At December 31, 2024, 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.
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.
Noncash charges in 2024 also included restructuring charges, including termination fees associated with our network modernization program to deploy commercial scale open radio access network (Open RAN). Noncash charges in 2023 primarily relate to severance and restructuring charges, as well as the abandonment of non-deployed wireless equipment associated with our Open RAN network modernization program.
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.
If either the projected rate of long-term growth of cash flows or revenues 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. The fair value of these wireless licenses exceeded their book values by more than 10%.
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.
For the year ended December 31, 2024, when compared to the year ended December 31, 2023, we increased our pension 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.
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.
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 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.
(See Note 22) Cash Used in Investing Activities from Continuing Operations During 2024, cash used in investing activities totaled $17,490, consisting primarily of $20,263 (including interest during construction) for capital expenditures. During 2024, net FirstNet sustainability payments were $237.
(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.
Business Wireline Results Percent Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Operating revenues Service $ 18,064 $ 20,274 $ 21,891 (10.9) % (7.4) % Equipment 755 609 647 24.0 (5.9) Total Operating Revenues 18,819 20,883 22,538 (9.9) (7.3) Operating expenses Operations and support 13,352 14,217 14,934 (6.1) (4.8) Depreciation and amortization 5,555 5,377 5,314 3.3 1.2 Total Operating Expenses 18,907 19,594 20,248 (3.5) (3.2) Operating Income (Loss) $ (88) $ 1,289 $ 2,290 — % (43.7) % Service revenues decreased in 2024, driven by lower demand for legacy voice, data and network services along with product simplification, partially offset by growth in fiber and connectivity services.
Business Wireline Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating revenues Legacy and other transitional services $ 9,170 $ 11,095 $ 13,680 (17.4) % (18.9) % Fiber and advanced connectivity services 7,333 6,969 6,594 5.2 5.7 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.
We believe that our simplified go-to-market strategy for 5G in underpenetrated markets will continue to contribute to wireless subscriber and service revenue growth and that expansion of our fiber footprint and our multi-gig offerings will drive greater demand for broadband services on our fast-growing fiber network, as well as increasing our converged customers that have both wireless and fiber.
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.
The weighted average interest rate on our outstanding short-term borrowings was approximately 6.0% as of December 31, 2023. During 2024, we paid $1,792 of cash under our vendor financing program, compared to $5,742 in 2023.
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.
The effective tax rate in 2022 was also impacted by goodwill impairments, which are 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.
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.
Operating income decreased in 2024 and increased in 2023. Our operating margin was 15.6% in 2024, compared to 19.2% in 2023, and (3.8)% in 2022, which included noncash goodwill impairment charges of $24,812. Interest expense increased in 2024, primarily due to lower capitalized interest associated with spectrum acquisitions, mostly offset by lower debt balances.
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.
Wearables and other net adds were 430, 639 and 1,020 for the years ended December 31, 2024, 2023 and 2022, respectively. 3 Calculated 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.
Wearables and other net adds were 44, 430 and 639 for the years ended December 31, 2025, 2024 and 2023, respectively. 2 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. 3 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. 4 Calculated 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 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.
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.
Our 2025 financing activities will focus on managing our debt level and paying dividends, subject to approval by our Board of Directors, and repurchasing common stock when deemed appropriate. We plan to fund our financing uses of cash through a combination of cash from operations, issuance of debt and asset sales.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeREPORT 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.
Biggest changeStankey Pascal Desroches Chairman of the Board, Chief Executive Officer and President Senior Executive Vice 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.
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, 2024, the company’s internal control over financial reporting is effective based on those criteria.
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.
(the Company) as of December 31, 2024 and 2023, 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, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).
(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, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
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.
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. 38 AT&T Inc.
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.
Opinion on Internal Control Over Financial Reporting We have audited AT&T Inc.’s internal control over financial reporting as of December 31, 2024, 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.
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.
We had no interest rate swaps and no interest rate locks at December 31, 2024. 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.
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.
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, 2024.
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.
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 evaluations included, among others, assessing the valuation methodologies and significant assumptions discussed above and the underlying data used to develop such assumptions.
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.
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 terminal growth rate, 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.
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.
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, 2024, 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 12, 2025 expressed an unqualified opinion thereon.
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.
Evaluation of goodwill for impairment Description of the Matter At December 31, 2024, the Company’s goodwill balance was $63,432 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.
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.
(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.
(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 2024 consolidated financial statements of the Company and our report dated February 12, 2025 expressed an unqualified opinion thereon.
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.
We had no foreign exchange forward contracts at December 31, 2024. 36 AT&T Inc. REPORT OF MANAGEMENT The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles.
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.
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 12, 2025 40 AT&T Inc. Dollars in millions except per share amounts
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
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 12, 2025 39 AT&T Inc.
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.
We had cross-currency swaps with a notional value of $34,884 and a fair value of $(4,076) outstanding at December 31, 2024. 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 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.
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 Chief Executive Officer and President Senior Executive Vice President and Chief Financial Officer 37 AT&T Inc.
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.
Additionally, at December 31, 2024, the Company’s postretirement benefit obligation was $6,339 million and exceeded the fair value of postretirement plan assets of $1,144 million, resulting in an unfunded benefit obligation of $5,195 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.
Discount rates used in determining pension and postretirement benefit obligations Description of the Matter At December 31, 2024, the Company’s defined benefit pension obligation was $30,944 million and exceeded the fair value of pension plan assets of $27,919 million, resulting in an unfunded benefit obligation of $3,025 million.
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.

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