What changed in this filing

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Item 1. Business

2026-02-09 compared with 2025-02-12 · 54 added, 56 removed, 189 unchanged (37% of the section changed)

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• 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 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).

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video operations, and began accounting for our investment in DIRECTV under the equity method.

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).

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.

These businesses are reflected in our historical financial statements as discontinued operations, including for periods prior to the consummation of the WarnerMedia separation.

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In July 2025, we sold our remaining interest in DIRECTV to TPG.

We are a leading provider of telecommunications and technology services globally.

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Consumer Wireline also provides legacy telephony voice communication services.

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The Latin America segment provides wireless service and equipment in Mexico.

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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.

Building on that fiber foundation is our solid spectrum portfolio, strengthened through Federal Communications Commission (FCC) auctions, other spectrum acquisitions and 5G deployment.

We believe our fixed wireline and mobile approach will differentiate our services and provide us with additional convergence growth opportunities in the future as bandwidth demands continue to grow.

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During 2026, we are focused on the core capabilities of our products, our infrastructure and our network.

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.

Our concentration is to aggregate the most traffic on the largest, lowest marginal cost, converged network through efficient spectrum deployment and construction of the largest high-capacity broadband solutions in the United States, while also working with regulators and customers to decommission high-cost legacy technologies over the next several years.

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.

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.

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.

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.

The deployment of 5G, which allows for faster connectivity, lower latency and greater bandwidth, requires modifications of existing cell sites to add equipment supporting new frequencies, like the C-Band and the 3.45 GHz band.

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.

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.

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.

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.

We participate in FCC spectrum auctions and have been redeploying spectrum previously used for more basic services to support

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more advanced mobile internet services.

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.

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.

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.

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 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.

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.

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.

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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.

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.

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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.

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.

BUSINESS OPERATIONS

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COMMUNICATIONS

Our Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S.

and businesses globally.

Our Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally.

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.

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Through FirstNet ® services, we also provide a nationwide wireless broadband network dedicated to public safety.

Consumers continue to require increasing availability of data-centric services and a network to connect and control those devices.

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).

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These services are offered under the Cricket and AT&T PREPAID brands and are typically monthly prepaid services.

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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.

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Our Business Wireline business unit revenue includes the following categories:

service and equipment.

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.

Historically, a majority of our Business Wireline service revenues came from legacy copper-based voice and data and traditional products;

legacy and other transitional services, fiber and advanced connectivity services, and equipment.

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

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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.

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 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.

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 revenues include customer premises equipment.

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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.

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.

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.

Our focus on fiber brings owners 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 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.

Through this integrated approach, we can optimize the use of storage in the home as well as in the cloud, while also providing a seamless service for consumers across screens and locations.

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Other Service and Equipment

Other service revenues include VoIP services, customer fees and equipment.

Other service revenues include VoIP services, customer fees and limited equipment.

Additional information on our Communications segment is contained in the “Overview” section of Item 7.

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service and equipment.

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We provide postpaid and prepaid wireless services in Mexico to approximately 24.7 million subscribers under the AT&T and Unefon brands.

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Additional information on our Latin America segment is contained in the “Overview” section of Item 7.

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MAJOR CLASSES OF SERVICE

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54 % 53 % 52 %

Business service

Fiber and advanced connectivity 1

Legacy and other transitional

Equipment 18 17 17

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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.

Additional information on our geographical distribution of revenues is contained in Note 4 of Item 8.

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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.

The Communications Act of 1934 and other related laws give the FCC authority to regulate the U.S.

operations of our interstate telecommunications services.

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.

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.

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.

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.

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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.

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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.

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Many of our subsidiaries also hold government-issued licenses or franchises to provide wireline or wireless services.

Additional information relating to regulations affecting those rights is contained under the heading “Operating Environment and Trends of the Business” of Item 7.

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.

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.

We have also entered into licenses that permit other companies to utilize certain of our patents, trademarks,

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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.

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We compete for customers based principally on service/device offerings, price, network quality, coverage area and customer service.

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.

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.

markets, we compete for customers with large cable companies and wireless broadband providers for high-speed internet and voice 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.

markets, we compete for customers with large cable companies and other smaller telecommunications companies.

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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.

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RESEARCH AND DEVELOPMENT

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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.

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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.

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.

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.

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.

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We have prioritized self-care and emphasized a focus on wellness and providing flexible scheduling or time-off options.

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.

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.

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.

It is important that our employees feel they are included, valued, and are fully engaged in our success.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business