AT&T (T) investor relations material

Executive summary

• Revenues grew 2.9% year-over-year to $31.5B, driven by advanced connectivity wireless and fiber, including contributions from the Lumen Mass Markets fiber acquisition.

• Achieved best-ever first quarter for advanced connectivity internet customer net additions, with 584,000 total fiber and fixed wireless adds and a convergence rate nearing 45%.

• Closed the Lumen transaction ahead of schedule, adding over 4 million fiber locations and placing acquired assets in a subsidiary classified as held-for-sale.

• Adjusted EBITDA rose 5.6% year-over-year to $11.6B, and adjusted EPS increased 11.8% to $0.57.

• Expanded digital-first offerings and realigned segment structure to focus on Advanced Connectivity, Legacy, and Latin America.

Financial highlights

• Consolidated revenue was $31.5B, up 2.9% year-over-year; service revenue up 1.4%, equipment revenue up 9.8%.

• Adjusted EBITDA was $11.6B, up 5.6% year-over-year; margin at 37.4%.

• Adjusted EPS was $0.57, up 11.8% year-over-year; diluted EPS from continuing operations was $0.54.

• Free cash flow was $2.5B, at the high end of guidance, but down year-over-year due to higher capital investment.

• Operating income was $6.7B, up 15.7% year-over-year; margin improved to 21.1%.

Outlook and guidance

• Expects low single-digit consolidated service revenue growth annually through 2028.

• Advanced Connectivity service revenues expected to grow 5%+ and EBITDA 6%+ in 2026.

• Adjusted EPS guidance reiterated at $2.25–$2.35 for 2026, with double-digit CAGR through 2028.

• Free cash flow expected to exceed $18B in 2026, rising to $21B+ by 2028.

• Capital investment projected at $23–24B annually, focused on network upgrades and spectrum.