What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-04-27 compared with 2025-10-31 · 514 added, 707 removed, 602 unchanged (67% of the section changed)

2 unchanged sentences

Dollars in millions except per share amounts

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Operating Revenues

7 unchanged sentences

amortization shown separately below)

6,351 6,697 19,102 20,135

Selling, general and administrative 7,316 7,145

Asset impairments and abandonments and restructuring

— 4,422 504 5,061

Depreciation and amortization 4,966 5,190

4 unchanged sentences

Equity in net income (loss) of affiliates

( 20 ) 272 1,905 915

Other income (expense) — net

6,254 717 7,476 1,850

Total other income (expense) ( 1,260 ) 237

Income Before Income Taxes 10,653 1,430 22,742 11,390

Income tax expense 976 1,285 3,512 3,545

Income from Continuing Operations Before Income Taxes 5,398 5,991

Income tax expense on continuing operations 1,179 1,299

Income from Continuing Operations 4,219 4,692

Loss from discontinued operations, net of tax

Net Income 4,181 4,692

1 unchanged sentence

( 352 ) ( 341 )

Net Income (Loss) Attributable to AT&T $ 9,314 $ ( 174 ) $ 18,165 $ 6,868

Net Income Attributable to AT&T $ 3,829 $ 4,351

Preferred Stock Dividends and Redemption Gain

( 36 ) ( 52 ) ( 28 ) ( 153 )

Net Income (Loss) Attributable to Common Stock $ 9,278 $ ( 226 ) $ 18,137 $ 6,715

Basic Earnings (Loss) Per Share Attributable to

$ 1.29 $ ( 0.03 ) $ 2.51 $ 0.93

Diluted Earnings (Loss) Per Share Attributable to

$ 1.29 $ ( 0.03 ) $ 2.51 $ 0.93

Net Income Attributable to Common Stock $ 3,793 $ 4,395

Basic Earnings Per Share from continuing operations $ 0.54 $ 0.61

Basic Loss Per Share from discontinued operations

Basic Earnings Per Share Attributable to Common Stock $ 0.54 $ 0.61

Diluted Earnings Per Share from continuing operations $ 0.54 $ 0.61

Diluted Loss Per Share from discontinued operations

Diluted Earnings Per Share Attributable to Common Stock $ 0.54 $ 0.61

Weighted Average Number of Common Shares

Outstanding — Basic (in millions)

7,156 7,202 7,193 7,197

Weighted Average Number of Common Shares

Outstanding — with Dilution (in millions)

7,169 7,208 7,203 7,200

See Notes to Consolidated Financial Statements.

1 unchanged sentence

Dollars in millions

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Net income $ 4,181 $ 4,692

2 unchanged sentences

Translation adjustment, net of taxes of $ 10 and $ 10

78 ( 137 ) 287 ( 329 )

Reclassification adjustment included in net income, net of

taxes of $ 0 , $ 0 , $ 0 and $( 14 )

Net unrealized gains (losses), net of taxes of $ 2 , $ 6 , $ 6

Reclassification adjustment included in net income, net of

taxes of $ 0 , $ 0 , $ 1 and $ 3

Net unrealized gains (losses), net of taxes of $ 0 and $ 3

Reclassification adjustment included in net income, net of taxes of $ 0 and $ 0

Derivative instruments:

Net unrealized gains (losses), net of taxes of $( 62 ), $( 102 ),

$( 233 ) and $( 118 )

Net unrealized gains (losses), net of taxes of $( 93 ) and $( 203 )

( 270 ) ( 624 )

Reclassification adjustment included in net income, net of

taxes of $ 4 , $ 4 , $ 11 and $ 11

Reclassification adjustment included in net income, net of taxes of $ 4 and $ 4

Defined benefit postretirement plans:

Amortization of net prior service credit included in net

income, net of taxes of $( 114 ), $( 123 ), $( 343 ) and $( 369 )

Amortization of net prior service credit included in net income, net of taxes of

$( 98 ) and $( 115 )

( 306 ) ( 356 )

Reclassification adjustment realized in net income, net of

taxes of $( 4 ), $ 0 , $( 4 ) and $ 0

Other comprehensive income (loss) ( 532 ) ( 937 )

Total comprehensive income (loss)

9,229 ( 647 ) 17,787 6,193

Total comprehensive income 3,649 3,755

Total comprehensive income attributable to

1 unchanged sentence

( 352 ) ( 341 )

Total Comprehensive Income (Loss) Attributable to AT&T

$ 8,866 $ ( 966 ) $ 16,722 $ 5,216

Total Comprehensive Income Attributable to AT&T $ 3,297 $ 3,414

See Notes to Consolidated Financial Statements.

1 unchanged sentence

Dollars in millions except per share amounts

September 30, December 31,

March 31, December 31,

Assets (Unaudited)

31 unchanged sentences

Stockholders’ Equity

Preferred stock ($ 1 par value, 10,000,000 authorized at September 30, 2025 and December 31, 2024):

Series A ( 48,000 issued and outstanding at September 30, 2025 and December 31, 2024)

Series B ( 20,000 issued and 0 outstanding at September 30, 2025 and 20,000 issued and outstanding

at December 31, 2024)

Series C ( 70,000 issued and outstanding at September 30, 2025 and December 31, 2024)

Common stock ($ 1 par value, 14,000,000,000 authorized at September 30, 2025 and

Preferred stock ($ 1 par value, 10,000,000 authorized at March 31, 2026 and December 31, 2025):

Series A ( 48,000 issued and outstanding at March 31, 2026 and December 31, 2025)

Series B ( 20,000 issued and 0 outstanding at March 31, 2026 and December 31, 2025)

Series C ( 70,000 issued and outstanding at March 31, 2026 and December 31, 2025)

Common stock ($ 1 par value, 14,000,000,000 authorized at March 31, 2026 and

December 31, 2025:

issued 7,620,748,598 at September 30, 2025 and December 31, 2024)

issued 7,620,748,598 at March 31, 2026 and December 31, 2025)

Additional paid-in capital 106,084 106,533

Retained earnings 17,620 15,768

Treasury stock ( 511,590,791 at September 30, 2025 and 444,853,148 at December 31, 2024, at cost)

Treasury stock ( 655,850,883 at March 31, 2026 and 583,246,242 at December 31, 2025, at cost)

( 20,273 ) ( 18,529 )

6 unchanged sentences

Dollars in millions

Nine months ended

September 30,

Three months ended

Operating Activities

Net Income $ 19,230 $ 7,845

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Income from continuing operations

$ 4,219 $ 4,692

Adjustments to reconcile income from continuing operations to net cash provided by

operating activities from continuing operations:

Depreciation and amortization

Provision for uncollectible accounts

6 unchanged sentences

Contract asset and cost deferral

( 327 ) ( 147 )

Inventories, prepaid and other current assets

6 unchanged sentences

Total adjustments 3,376 4,357

Net Cash Provided by Operating Activities 28,964 26,875

Net Cash Provided by Operating Activities from Continuing Operations

Investing Activities

2 unchanged sentences

Dispositions 628 11

Distributions from DIRECTV in excess of cumulative equity in earnings — 928

(Purchases), sales and settlements of securities - net

Other - net ( 547 ) ( 717 )

Net Cash Used in Investing Activities ( 14,433 ) ( 12,127 )

Net Cash Used in Investing Activities from Continuing Operations

( 7,484 ) ( 4,958 )

Financing Activities

Issuance of other short-term borrowings — 491

Repayment of other short-term borrowings — ( 2,487 )

Issuance of long-term debt 8,098 2,956

7 unchanged sentences

Other - net ( 265 ) 366

Net Cash Provided by (Used in) Financing Activities

Net Cash Used in Financing Activities from Continuing Operations

( 2,097 ) ( 553 )

Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations ( 1,986 ) 3,538

Cash Flows from Discontinued Operations:

Cash used in operating activities ( 38 ) —

Cash used in investing activities ( 4,171 ) —

Cash used in financing activities — —

Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued

operations ( 4,209 ) —

Net increase (decrease) in cash and cash equivalents and restricted cash $ ( 6,195 ) $ 3,538

4 unchanged sentences

Dollars and shares in millions except per share amounts

Three months ended Nine months ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Shares Amount Shares Amount Shares Amount Shares Amount

Three months ended

March 31, 2026 March 31, 2025

Shares Amount Shares Amount

Preferred Stock - Series A

12 unchanged sentences

Redemption of preferred stock

— — ( 2,165 ) —

Preferred stock dividends — ( 36 ) — ( 134 )

Common stock dividends

($ 0.2775 , $ 0.2775 , $ 0.8325 and $ 0.8325 per share)

— ( 1,992 ) — ( 4,007 )

Issuance of treasury stock ( 287 ) ( 452 )

Share-based payments 85 ( 49 ) ( 21 ) ( 232 )

Redemption or reclassification of

interest held by noncontrolling owners

— — — ( 292 )

Share-based compensation ( 162 ) ( 189 )

Balance at end of period $ 106,084 $ 106,302

Retained Earnings (Deficit)

Retained Earnings

Balance at beginning of period $ 15,768 $ 1,871

Net income (loss) attributable to AT&T

9,314 ( 174 ) 18,165 6,868

Net income attributable to AT&T 3,829 4,351

Preferred stock redemption gain

Preferred stock dividends ( 35 ) ( 86 )

Common stock dividends

($ 0.2775 , $ 0.2775 , $ 0.8325 and $ 0.8325 per share)

Common stock dividends ($ 0.2775 and $ 0.2775 per share)

( 1,942 ) ( 2,011 )

3 unchanged sentences

Dollars and shares in millions except per share amounts

Three months ended Nine months ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Shares Amount Shares Amount Shares Amount Shares Amount

Three months ended

March 31, 2026 March 31, 2025

Shares Amount Shares Amount

Treasury Stock

Balance at beginning of period ( 583 ) $ ( 18,529 ) ( 445 ) $ ( 15,023 )

Repurchase and acquisition of

( 53 ) ( 1,504 ) ( 2 ) ( 43 ) ( 96 ) ( 2,690 ) ( 11 ) ( 202 )

Repurchase and acquisition of common stock ( 95 ) ( 2,495 ) ( 9 ) ( 218 )

Reissuance of treasury stock 22 751 29 989

2 unchanged sentences

Balance at beginning of period $ ( 860 ) $ 795

Other comprehensive income

(loss) attributable to AT&T

( 448 ) ( 792 ) ( 1,443 ) ( 1,652 )

Other comprehensive income (loss) attributable to AT&T ( 532 ) ( 937 )

Balance at end of period $ ( 1,392 ) $ ( 142 )

1 unchanged sentence

Balance at beginning of period $ 15,958 $ 13,873

Net income attributable to

noncontrolling interest

327 283 958 870

Issuance and acquisition by

noncontrolling owners

Redemption of noncontrolling

( 79 ) — ( 79 ) ( 58 )

Net income attributable to noncontrolling interest 316 305

Issuance and acquisition by noncontrolling owners — 2,221

Distributions ( 315 ) ( 285 )

Balance at end of period $ 15,959 $ 16,114

Total Stockholders’ Equity at

beginning of period

$ 121,394 $ 119,347 $ 118,245 $ 117,442

Total Stockholders’ Equity at end

$ 126,755 $ 116,282 $ 126,755 $ 116,282

Total Stockholders’ Equity at beginning of period $ 126,491 $ 118,245

Total Stockholders’ Equity at end of period $ 125,619 $ 119,858

1 Excludes redeemable noncontrolling interest

See Notes to Consolidated Financial Statements.

SEPTEMBER 30, 2025

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

7 unchanged sentences

These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items.

On February 2, 2026, we closed our transaction with Lumen Technologies, Inc.

(Lumen) and acquired substantially all of Lumen’s Mass Markets fiber business for $ 5,756 cash, including purchase price adjustments.

The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber).

We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business.

As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements.

(See Notes 8 and 12)

The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary.

4 unchanged sentences

Actual results could differ from those estimates.

Certain prior period amounts have been conformed to the current period’s presentation providing further disaggregation of activities within Cash from Operations in our consolidated statements of cash flows and additional revenue categories for our Business Wireline and Consumer Wireline business units (see Note 5).

Unless otherwise noted, the information in Notes 1 through 11 refer only to our continued operations and do not include discussion of balances or activity of our discontinued operations.

Effective with our first-quarter 2026 reporting, we realigned our internal management and reporting structure to reflect the evolution of our business model to focus on delivering converged advanced connectivity services across 5G and fiber to consumer and business customers.

This new segment reporting structure also provides better visibility into the progress of exiting our copper-based Legacy operations.

(See Notes 4 and 5)

As a result of our change to this new segment reporting structure, we were required to reassess the assignment of goodwill and perform impairment testing of the previous and updated reporting units as of January 1, 2026;

no impairment was recorded.

The assignment of goodwill was based on the relative fair value of the reporting unit, which is deemed to be our principal operating segments or one level below.

The goodwill from our previous Consumer Wireline and Mobility reporting units within the Communications segment was fully assigned to the reporting units comprising the Advanced Connectivity segment.

No goodwill was assigned to the reporting unit comprising the Legacy segment as we expect sustained declines in Legacy service revenues driven by progress on our copper-based network decommissioning.

Stock Repurchase Program In December 2024, the Board of Directors authorized the repurchase of up to $ 10,000 of AT&T common stock.

We began buying back stock under this program in the second quarter of 2025.

For the nine months ended September 30, 2025, we had repurchased approximately 87 million shares totaling $ 2,444 under this authorization, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022.

On January 27, 2026, the Board approved an authorization to repurchase an additional $ 10,000 of common stock.

For the three months ended March 31, 2026, we repurchased approximately 88 million shares totaling $ 2,279 under the December 2024 authorization, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022.

To implement repurchase authorizations, we use open market repurchase programs, relying on Rule 10b5-1 of the Securities Exchange Act of 1934 where feasible.

Tax Legislation On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017.

As a result of the legislation, we reduced our taxable income position and, at September 30, 2025, “Prepaid and other current assets” on our consolidated balance sheet included $ 3,467 of current tax assets, compared to $ 2,236 at December 31, 2024.

The legislation did not materially impact our income tax expense, but we expect it will result in a material decrease to cash taxes paid relative to our expectations.

New Accounting Standards

Internal-Use Software In September 2025, the Financial Accounting Standards Board issued ASU No.

2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06).

ASU 2025-06 removes references to prescriptive and sequential software development stages and requires software cost capitalization when management has authorized and committed to funding, and it is probable that the project will be completed, and the software used for its intended function.

ASU 2025-06 will be effective for annual reporting periods beginning after December 15, 2027.

We are evaluating the impacts of our adoption of ASU 2025-06 and currently do not expect that it will have a material impact on our financial statements.

SEPTEMBER 30, 2025

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

2 unchanged sentences

A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Numerator for basic earnings per share:

Net Income (Loss) Attributable to Common Stock $ 9,278 $ ( 226 ) $ 18,137 $ 6,715

Dilutive impact of share-based payment 3 — 9 —

Income from Continuing Operations $ 4,219 $ 4,692

Net Income Attributable to Noncontrolling Interest

( 352 ) ( 341 )

Preferred Stock Dividends and Redemption Gain

Income from continuing operations attributable to common stock 3,831 4,395

Loss from discontinued operations, net of tax

Net Income Attributable to Common Stock $ 3,793 $ 4,395

Dilutive impact of share-based compensation 3 4

Numerator for diluted earnings per share $ 3,796 $ 4,399

2 unchanged sentences

Weighted average number of common shares outstanding 7,017 7,213

Dilutive impact of share-based payment (in shares) 13 6 10 3

Dilutive impact of share-based compensation (in shares) 10 10

Denominator for diluted earnings per share 7,027 7,223

13 unchanged sentences

34 ( 1 ) ( 259 ) ( 306 ) ( 532 )

Balance as of September 30, 2025 $ ( 1,468 ) $ ( 22 ) $ ( 1,293 ) $ 2,135 $ ( 648 )

Balance as of March 31, 2026 $ ( 1,367 ) $ ( 29 ) $ ( 1,468 ) $ 1,472 $ ( 1,392 )

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Foreign Currency Translation Adjustment Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivative Instruments Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss)

9 unchanged sentences

21 11 ( 613 ) ( 356 ) ( 937 )

Balance as of September 30, 2024 $ ( 1,539 ) $ ( 34 ) $ ( 1,360 ) $ 3,581 $ 648

Balance as of March 31, 2025 $ ( 1,734 ) $ ( 35 ) $ ( 1,217 ) $ 2,844 $ ( 142 )

1 (Gains) losses are included in “Other income (expense) - net” in the consolidated statements of income.

1 unchanged sentence

3 The amortization of prior service credit associated with postretirement benefits are included in “Other income (expense) - net” in the consolidated statements of income (see Note 6).

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

SEGMENT INFORMATION

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 have two reportable segments:

Communications and Latin America.

We have three reportable segments:

Advanced Connectivity, Legacy and Latin America.

Our chief operating decision maker (CODM) is our Chairman of the Board, Chief Executive Officer and President.

Our CODM uses operating income to evaluate performance and allocate resources, including capital allocations, when managing the business.

Our CODM manages operations through the review of actual and forecasted “Operations and Support Expenses” information at a segment and business unit level, with Communications and Latin America segments primarily evaluated on a direct cost basis and comprised of equipment, compensation, network and technology, sales, advertising and other costs.

Additionally, business unit expenses within the Communications segment include direct and shared costs.

Direct costs are incurred in support of products and services offered by the business units, such as equipment costs (predominantly wireless devices), network access, rents, leases, sales support, customer provisioning and commission expenses.

Shared costs amongst the business units generally include information technology, network engineering and construction costs, advertising and other general and administrative expenses.

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

and businesses globally.

Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets.

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 our fixed wireless access product (AT&T Internet Air or “AIA”) that provides internet services delivered over our 5G wireless network, to residential customers in select locations.

Consumer Wireline also provides legacy telephony voice communication services.

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

Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.

Corporate includes :

• DTV-related retained costs , which are costs previously allocated to the Video business that were retained, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements.

With the sale of our remaining interest in DIRECTV, we will no longer report these costs in 2026.

• Parent administration support , which includes costs borne by AT&T where the business units do not influence decision making.

• Securitization fees associated with our sales of receivables (see Note 8).

• Value portfolio , which are businesses no longer integral to our operations or which we no longer actively market.

Other items consist of :

• Certain significant items , which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated.

“Interest expense,” “Other income (expense) – net” and “Equity in net income (loss) of affiliates” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

For the three months ended September 30, 2025

Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss)

Communications

Mobility $ 21,713 $ 12,011 $ 2,577 $ 7,125

Business Wireline 4,248 3,067 1,535 ( 354 )

Consumer Wireline 3,555 2,266 964 325

Total Communications 29,516 17,344 5,076 7,096

Latin America

1,095 896 177 22

Segment Total 30,611 18,240 5,253 7,118

Corporate and Other

DTV-related retained costs — 56 50 ( 106 )

Parent administration support 3 386 4 ( 387 )

Securitization fees

29 150 — ( 121 )

Value portfolio 66 16 — 50

Total Corporate 98 608 54 ( 564 )

Certain significant items — 425 10 ( 435 )

Total Corporate and Other 98 1,033 64 ( 999 )

$ 30,709 $ 19,273 $ 5,317 $ 6,119

For the three months ended September 30, 2024

Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss)

Communications

Mobility $ 21,052 $ 11,559 $ 2,490 $ 7,003

Business Wireline 4,606 3,250 1,399 ( 43 )

Consumer Wireline 3,416 2,296 924 196

Total Communications 29,074 17,105 4,813 7,156

Latin America

1,022 854 158 10

Segment Total 30,096 17,959 4,971 7,166

Corporate and Other

DTV-related retained costs — 107 95 ( 202 )

Parent administration support — 401 2 ( 403 )

Securitization fees

31 134 — ( 103 )

Value portfolio 86 26 6 54

Total Corporate 117 668 103 ( 654 )

Certain significant items — 4,383 13 ( 4,396 )

Total Corporate and Other 117 5,051 116 ( 5,050 )

$ 30,213 $ 23,010 $ 5,087 $ 2,116

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

For the nine months ended September 30, 2025

Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss)

Communications

Mobility $ 65,128 $ 36,673 $ 7,659 $ 20,796

Business Wireline 13,029 9,128 4,554 ( 653 )

Consumer Wireline 10,618 6,738 2,871 1,009

Total Communications 88,775 52,539 15,084 21,152

Latin America

3,120 2,527 482 111

Segment Total 91,895 55,066 15,566 21,263

Corporate and Other

DTV-related retained costs — 169 150 ( 319 )

Parent administration support 2 1,247 14 ( 1,259 )

Securitization fees 87 538 — ( 451 )

Value portfolio 198 37 — 161

Total Corporate 287 1,991 164 ( 1,868 )

Certain significant items — 993 28 ( 1,021 )

Total Corporate and Other 287 2,984 192 ( 2,889 )

$ 92,182 $ 58,050 $ 15,758 $ 18,374

For the nine months ended September 30, 2024

Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss)

Communications

Mobility $ 62,126 $ 34,483 $ 7,453 $ 20,190

Business Wireline 14,274 10,004 4,147 123

Consumer Wireline 10,113 6,801 2,719 593

Total Communications 86,513 51,288 14,319 20,906

Latin America

3,188 2,662 507 19

Segment Total 89,701 53,950 14,826 20,925

Corporate and Other

DTV-related retained costs — 357 317 ( 674 )

Parent administration support — 1,236 5 ( 1,241 )

Securitization fees 86 449 — ( 363 )

Value portfolio 251 77 15 159

Total Corporate 337 2,119 337 ( 2,119 )

Certain significant items — 5,040 43 ( 5,083 )

Total Corporate and Other 337 7,159 380 ( 7,202 )

$ 90,038 $ 61,109 $ 15,206 $ 13,723

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table is a reconciliation of Segment Operating Income to “Income Before Income Taxes” reported in our consolidated statements of income:

Three months ended

September 30,

Nine months ended

September 30,

2025 2024 2025 2024

Communications $ 7,096 $ 7,156 $ 21,152 $ 20,906

Latin America 22 10 111 19

Segment Operating Income 7,118 7,166 21,263 20,925

Reconciling Items:

Corporate ( 564 ) ( 654 ) ( 1,868 ) ( 2,119 )

Transaction, legal and other costs

( 487 ) ( 34 ) ( 615 ) ( 101 )

Amortization of intangibles acquired ( 10 ) ( 13 ) ( 28 ) ( 43 )

Asset impairments and abandonments and restructuring — ( 4,422 ) ( 504 ) ( 5,061 )

Benefit-related gains (losses) 62 73 126 122

AT&T Operating Income 6,119 2,116 18,374 13,723

Interest expense 1,700 1,675 5,013 5,098

Equity in net income (loss) of affiliates

( 20 ) 272 1,905 915

Other income (expense) — net

6,254 717 7,476 1,850

Income Before Income Taxes $ 10,653 $ 1,430 $ 22,742 $ 11,390

The following tables present assets, investments in equity affiliates and capital expenditures by segment:

September 30, December 31,

Assets Investments in Equity Method Investees Assets

Investments in Equity Method Investees

Communications

$ 493,410 $ — $ 481,757 $ —

Latin America 9,153 — 7,808 —

Corporate and eliminations

( 79,350 ) 1,056 ( 94,770 ) 295

Total $ 423,213 $ 1,056 $ 394,795 $ 295

Nine months ended

September 30,

Capital Expenditures

Communications $ 13,231 $ 12,946

Latin America 188 157

Corporate and eliminations

Total $ 14,061 $ 13,420

SEPTEMBER 30, 2025

Our CODM manages operations through the review of actual and forecasted “Operations and Support Expenses” information, which are primarily comprised of costs for wireless devices, network access, rents, leases, sales support, customer provisioning and commissions.

Operating costs and depreciation of our shared network, including copper-based assets prior to decommissioning, are managed in our Advanced Connectivity segment.

Our Legacy and Latin America segments are primarily evaluated on a direct cost basis.

Our CODM does not review disaggregated assets on a segment basis, therefore, that information is not presented.

The Advanced Connectivity segment provides domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers.

The Legacy segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network.

Legacy segment results include revenues derived from copper-based services and direct operating costs.

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

Corporate and Other reconciles our segment results to consolidated operating income and income from continuing operations before income taxes and includes parent support costs, securitization fees, operations from business no longer integral to operations and significant items for which the segments are not being evaluated.

Significant items typically include costs associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, legal and other items that cover historical periods, novel theories of liability and are separate and distinct from normal recurring costs, benefit-related gains and losses, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring.

“Total other income (expense)” consists of “Interest expense,” “Other income (expense) – net” and “Equity in net income (loss) of affiliates” and is managed only on a total company basis and are, accordingly, reflected only in consolidated results.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

REVENUE RECOGNITION

Revenue Categories

The following tables set forth reported revenue by category and by business unit:

For the three months ended September 30, 2025

Communications

Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total

Wireless $ 16,926 $ — $ — $ 696 $ — $ 17,622

Fiber and advanced connectivity 1

— 1,853 2,198 — — 4,051

Non-fiber consumer broadband — — 872 — — 872

Legacy and other transitional — 2,208 243 — 46 2,497

Other — — 242 — 52 294

For the three months ended March 31, 2026

Advanced Connectivity Legacy Latin America Total Segment Corporate & Other AT&T Inc.

Operating Revenues

Wireless service $ 16,941 $ — $ 753 $ 17,694 $ — $ 17,694

Advanced home internet 2,799 — — 2,799 — 2,799

Business fiber and advanced connectivity 1,882 — — 1,882 — 1,882

Business transitional and other 1,083 — — 1,083 — 1,083

Other service 158 1,768 — 1,926 94 2,020

Total Service 22,863 1,768 753 25,384 94 25,478

Equipment 5,608 — 420 6,028 — 6,028

Total $ 21,713 $ 4,248 $ 3,555 $ 1,095 $ 98 $ 30,709

1 Advanced connectivity services reported in Business Wireline.

For the three months ended September 30, 2024

Communications

Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total

Wireless $ 16,539 $ — $ — $ 645 $ — $ 17,184

Fiber and advanced connectivity 1

Operating Revenues 28,471 1,768 1,173 31,412 94 31,506

Operating Expenses

Operations and support expenses

16,913 1,156 953 19,022 714 19,736

Non-fiber consumer broadband — — 956 — — 956

Legacy and other transitional — 2,669 307 — 66 3,042

Other — — 271 — 51 322

Asset impairment and abandonment and restructuring

Transaction, legal and other costs — — — — 146 146

Depreciation and amortization 4,705 — 200 4,905 61 4,966

Operating Expenses 21,618 1,156 1,153 23,927 921 24,848

Operating Income (Loss) $ 6,853 $ 612 $ 20 $ 7,485 $ ( 827 ) $ 6,658

Total other income (expense) ( 1,260 )

Income from continuing operations before income tax $ 5,398

For the three months ended March 31, 2025

Advanced Connectivity Legacy Latin America Total Segment Corporate & Other AT&T Inc.

Operating Revenues

Wireless service $ 16,651 $ — $ 615 $ 17,266 $ — $ 17,266

Advanced home internet 2,198 — — 2,198 — 2,198

Business fiber and advanced connectivity 1,755 — — 1,755 — 1,755

Business transitional and other 1,294 — — 1,294 — 1,294

Other service 162 2,368 — 2,530 95 2,625

Total Service 22,060 2,368 615 25,043 95 25,138

Equipment 5,132 — 356 5,488 — 5,488

Total $ 21,052 $ 4,606 $ 3,416 $ 1,022 $ 117 $ 30,213

1 Advanced connectivity services reported in Business Wireline.

For the nine months ended September 30, 2025

Communications

Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total

Wireless $ 50,430 $ — $ — $ 1,973 $ — $ 52,403

Fiber and advanced connectivity 1

Operating Revenues 27,192 2,368 971 30,531 95 30,626

Operating Expenses

Operations and support expenses

16,247 1,349 778 18,374 725 19,099

Non-fiber consumer broadband — — 2,682 — — 2,682

Legacy and other transitional — 7,032 794 — 137 7,963

Other — — 742 — 150 892

Total Service 50,430 12,458 10,618 1,973 287 75,766

Equipment 14,698 571 — 1,147 — 16,416

Total $ 65,128 $ 13,029 $ 10,618 $ 3,120 $ 287 $ 92,182

1 Advanced connectivity services reported in Business Wireline.

SEPTEMBER 30, 2025

Asset impairment and abandonment and restructuring

— — — — 504 504

Transaction, legal and other costs — — — — 79 79

Depreciation and amortization 4,973 — 150 5,123 67 5,190

Operating Expenses 21,220 1,349 928 23,497 1,375 24,872

Operating Income (Loss) $ 5,972 $ 1,019 $ 43 $ 7,034 $ ( 1,280 ) $ 5,754

Total other income (expense) 237

Income from continuing operations before income tax $ 5,991

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

For the nine months ended September 30, 2024

Communications

Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total

Wireless $ 48,810 $ — $ — $ 2,034 $ — $ 50,844

Fiber and advanced connectivity 1

— 5,183 5,414 — — 10,597

Non-fiber consumer broadband — — 2,887 — — 2,887

Legacy and other transitional — 8,505 972 — 190 9,667

Other — — 840 — 147 987

Total Service 48,810 13,688 10,113 2,034 337 74,982

Equipment 13,316 586 — 1,154 — 15,056

Total $ 62,126 $ 14,274 $ 10,113 $ 3,188 $ 337 $ 90,038

1 Advanced connectivity services reported in Business Wireline.

REVENUE RECOGNITION

We report our revenues net of sales taxes and record certain regulatory fees, primarily Universal Service Fund (USF) fees, on a net basis.

Revenue is disaggregated by services provided by segment, with additional details provided for our Advanced Connectivity consumer and business relationships (see Note 4).

Deferred Customer Contract Acquisition and Fulfillment Costs

Costs to acquire and fulfill customer contracts, including commissions on service activations for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to five years .

Costs to acquire and fulfill customer contracts, including commissions on service activations are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to seven years .

The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets:

September 30, December 31,

March 31, December 31,

Consolidated Balance Sheets 2026 2025

7 unchanged sentences

Total deferred customer contract fulfillment costs $ 4,592 $ 4,726

The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in “Selling, general and administrative” and “Other cost of revenues,” respectively, for the nine months ended:

September 30, September 30,

March 31, March 31,

Consolidated Statements of Income 2026 2025

6 unchanged sentences

Our contract assets primarily relate to our wireless businesses.

Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

specified service period result in additional contract assets recognized.

Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a specified service period result in additional contract assets recognized.

These contract assets will amortize over the service contract period, resulting in lower future service revenue.

2 unchanged sentences

The following table presents contract assets and liabilities on our consolidated balance sheets:

September 30, December 31,

March 31, December 31,

Consolidated Balance Sheets 2026 2025

3 unchanged sentences

Current portion in “Advanced billings and customer deposits”

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Our beginning of period contract liability recorded as customer contract revenue during 2026 was $ 3,287 .

4 unchanged sentences

Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevant promotional activities, calculating the remaining performance obligation using the average service component for the portfolio and the average device price.

As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 42,017 , of which we expect to recognize approximately 65 % by the end of 2026, with the balance recognized thereafter.

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 44,392 , of which we expect to recognize approximately 82 % by the end of 2027, with the balance recognized thereafter.

PENSION AND POSTRETIREMENT BENEFITS

3 unchanged sentences

We do not have significant funding requirements in 2026.

We intend to voluntarily contribute approximately $ 1,500 to our pension plan by the end of 2026, with more than half of that in 2025, including $ 400 contributed during the third quarter of 2025.

We plan to voluntarily contribute $ 350 to our pension plans during 2026.

We recognize actuarial gains and losses on pension and postretirement plan assets in our consolidated results as a component of “Other income (expense) – net” at our annual measurement date of December 31, unless earlier remeasurements are required.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table details qualified pension and postretirement benefit costs included in the accompanying consolidated statements of income.

The service cost component of net periodic pension (credit) cost is recorded in operating expenses in the consolidated statements of income while the remaining components are recorded in “Other income (expense) – net.”

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Pension cost:

6 unchanged sentences

Service cost – benefits earned during the period $ 4 $ 4

Interest cost on accumulated postretirement benefit

80 77 239 232

Interest cost on accumulated postretirement benefit obligation 73 80

Expected return on assets ( 6 ) ( 10 )

2 unchanged sentences

Combined net pension and postretirement (credit) cost $ ( 396 ) $ ( 397 )

We also provide senior- and middle-management employees with nonqualified, unfunded supplemental retirement and savings plans.

Net supplemental pension benefits costs not included in the table above were $ 16 and $ 17 in the third quarter and $ 48 and $ 50 for the first nine months of 2025 and 2024, respectively.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

FAIR VALUE MEASUREMENTS AND DISCLOSURE

8 unchanged sentences

There have been no changes in the methodologies used since December 31, 2025.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Long-Term Debt and Other Financial Instruments

The carrying amounts and estimated fair values of our long-term debt, including current maturities, and other financial instruments are summarized as follows:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Carrying Fair Carrying Fair

8 unchanged sentences

The fair value measurements used for notes and debentures are considered Level 2 and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets.

Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of September 30, 2025 and December 31, 2024.

Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of March 31, 2026 and December 31, 2025.

Derivatives designated as hedging instruments are reflected as “Prepaid and other current assets,” “Other Assets,” “Accounts payable and accrued liabilities,” and “Other noncurrent liabilities” on our consolidated balance sheets.

September 30, 2025

March 31, 2026

Level 1 Level 2 Level 3 Total

8 unchanged sentences

Cross-currency swaps — ( 2,626 ) — ( 2,626 )

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

December 31, 2025

13 unchanged sentences

Investments in equity securities not traded on a national securities exchange are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Investments in debt securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.

The components comprising total gains and losses in the period on equity securities are as follows:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Total gains (losses) recognized on equity securities $ ( 32 ) $ ( 27 )

1 unchanged sentence

Unrealized gains (losses) recognized on equity securities held at end of period $ ( 32 ) $ ( 27 )

At September 30, 2025, available-for-sale debt securities totaling $ 661 have maturities as follows - less than one year:

At March 31, 2026, available-for-sale debt securities totaling $ 583 have maturities as follows - less than one year:

one to three years:

14 unchanged sentences

The purpose of these contracts is to hedge foreign currency risk associated with changes in spot rates on foreign denominated debt.

For cross-currency hedges, we have elected to exclude the change in fair value of the swap related to both time value and cross-currency basis spread from the assessment of hedge effectiveness.

For cross-currency hedges, we have elected to exclude the change in fair value of the swap related to both time value and cross-currency

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

basis spread from the assessment of hedge effectiveness.

For foreign exchange contracts, we have elected to exclude the change in fair value of forward points from the assessment of hedge effectiveness.

3 unchanged sentences

Except for excluded components, changes in the fair value of derivative instruments designated as fair value hedges are offset against the change in fair value of the hedged assets or liabilities through earnings.

In the nine months ended September 30, 2025 and 2024, no ineffectiveness was measured on fair value hedges.

In the three months ended March 31, 2026 and 2025, no ineffectiveness was measured on fair value hedges.

Cash Flow Hedging We designate some of our cross-currency swaps as cash flow hedges to hedge our exposure to variability in expected future cash flows that are attributable to foreign currency risk and interest rate risk generated from our foreign-denominated debt.

3 unchanged sentences

dollar denominated interest rate.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Unrealized gains on derivatives designated as cash flow hedges are recorded at fair value as assets and unrealized losses are recorded at fair value as liabilities.

5 unchanged sentences

Collateral and Credit-Risk Contingency We have entered into agreements with our derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements.

At September 30, 2025, we had posted collateral of $ 375 (a deposit asset) and held collateral of $ 405 (a receipt liability).

Under the agreements, if AT&T’s credit rating had been downgraded two ratings levels by Fitch Ratings, one level by S&P and one level by Moody’s before the final collateral exchange in September, we would have been required to post additional collateral of $ 54 .

At March 31, 2026, we had posted collateral of $ 28 (a deposit asset) and held collateral of $ 183 (a receipt liability).

Under the agreements, if AT&T’s credit rating had been downgraded two ratings levels by Fitch Ratings, one level by S&P and one level by Moody’s before the final collateral exchange in March, we would have been required to post additional collateral of $ 60 .

If AT&T’s credit rating had been downgraded three ratings levels by Fitch Ratings, two levels by S&P and two levels by Moody’s, we would have been required to post additional collateral of $ 2,219 .

2 unchanged sentences

Following are the notional amounts of our outstanding derivative positions:

September 30, December 31,

March 31, December 31,

Cross-currency swaps $ 36,069 $ 35,741

Total $ 36,069 $ 35,741

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Following are the related hedged items affecting our financial position and performance:

Effect of Derivatives on the Consolidated Statements of Income

Three months ended Nine months ended

September 30, September 30,

Three months ended

Fair Value Hedging Relationships 2026 2025

7 unchanged sentences

In addition, the net swap settlements that accrued and settled in the periods above were offset against “Interest expense.”

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table presents information for our cash flow hedging relationships:

Three months ended Nine months ended

September 30, September 30,

Three months ended

Cash Flow Hedging Relationships 2026 2025

5 unchanged sentences

( 15 ) ( 15 )

ACQUISITIONS, DISPOSITIONS AND OTHER ADJUSTMENTS

Fiber On February 2, 2026, we acquired substantially all of Lumen’s Mass Markets fiber business for $ 5,756 , including purchase price adjustments.

The preliminary values of assets acquired were approximately $ 900 in customer relationships, $ 3,400 in property, plant and equipment, and $ 800 of goodwill.

The customer relationships are managed in our Advanced Connectivity segment and will be amortized using the sum-of-the-months method over six years.

Property, plant and equipment primarily represent the acquired fiber network, which we placed in Forged Fiber, a wholly owned subsidiary.

In connection with this transaction, we plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business.

As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations.

These discontinued operations include the fiber network assets, which support the acquired customer relationships through intercompany transactions.

The discontinued operations were also assigned a proportionate share of goodwill and acquisition costs and related cash flows.

(See Note 12)

SALES OF RECEIVABLES

2 unchanged sentences

Under the terms of our agreements for these programs, we continue to service the transferred receivables on behalf of the financial institutions.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table sets forth a summary of cash proceeds received, net of remittances paid, from sales of receivables:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Net cash received (paid) from equipment installment

receivables program 1

$ ( 250 ) $ ( 568 ) $ 474 $ ( 1,121 )

Three months ended

Net cash received (paid) from equipment installment receivables program 1

Net cash received (paid) from revolving receivables program

( 38 ) 938 53 1,185

Total net cash impact to cash flows from operating activities 2

$ ( 288 ) $ 370 $ 527 $ 64

1 Cash from initial sales of $ 2,451 and $ 2,442 for the three months and $ 9,028 and $ 7,848 for the nine months ended September 30, 2025 and 2024, respectively.

1 Cash from initial sales of $ 3,483 and $ 3,798 for the three months ended March 31, 2026 and 2025, respectively.

2 Net of facility fees.

2 unchanged sentences

In the event cash is received on the beneficial interests, those receipts are classified as cash flows from investing activities, when applicable.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Our equipment installment and revolving receivables programs are discussed in detail below.

The following table sets forth a summary of the receivables and accounts being serviced:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Equipment Equipment

21 unchanged sentences

Accordingly, we record a guarantee obligation for this estimated amount at the time the receivables are transferred.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table sets forth a summary of equipment installment receivables sold under this program:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Gross receivables sold 1

1 unchanged sentence

Net receivables sold 2

2,370 2,340 8,745 7,535

Cash proceeds received 3,483 3,798

6 unchanged sentences

The fair value measurements used for the beneficial interests and the guarantee obligation are considered Level 3 under the Fair Value Measurement and Disclosure framework (see Note 7).

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Fair value of repurchased receivables $ 725 $ 1,937

1 unchanged sentence

Gain (loss) on repurchases 1

$ 7 $ ( 5 ) $ 11 $ ( 27 )

1 These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income.

At September 30, 2025 and December 31, 2024, our beneficial interests were $ 1,993 and $ 3,185 , respectively, of which $ 1,284 and $ 1,906 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at September 30, 2025 and December 31, 2024 was $ 222 and $ 301 , respectively, of which $ 114 and $ 150 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation.

At March 31, 2026 and December 31, 2025, our beneficial interests were $ 2,463 and $ 2,067 , respectively, of which $ 1,737 and $ 1,338 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at March 31, 2026 and December 31, 2025 was $ 447 and $ 410 , respectively, of which $ 227 and $ 216 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation.

Revolving Receivables Program

5 unchanged sentences

Our maximum exposure to loss related to these receivables transferred is limited to the derecognized amount outstanding.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table sets forth a summary of the revolving receivables sold:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

Three months ended

Gross receivables sold/cash proceeds received 1

1 unchanged sentence

Total collections under revolving agreement

7,656 4,650 22,502 13,196

Net cash proceeds received

$ — $ 970 $ 170 $ 1,270

Net receivables sold 2

$ 7,294 $ 7,142

1 Includes initial sales of receivables of $ 0 and $ 970 for the three months and $ 170 and $ 1,270 for the nine months ended September 30, 2025 and 2024, respectively.

1 Includes initial sales of receivables of $ 0 and $ 170 for the three months ended March 31, 2026 and 2025, respectively.

2 Receivables net of allowance and other reserves.

TRANSACTIONS WITH DIRECTV

Prior to its sale, we accounted for our investment in DIRECTV under the equity method and recorded our share of DIRECTV earnings as equity in net income of affiliates, with DIRECTV considered a related party.

On July 2, 2025, we sold our interest in DIRECTV to TPG Capital (TPG) and recorded a current note receivable of approximately $ 3,600 , which we expect to receive the majority of by the end of 2025, and a long-term receivable of $ 500 .

The disposition of DIRECTV also resulted in the release of approximately $ 2,900 of historical deferred tax liabilities.

We recorded a gain on the sale of DIRECTV of approximately $ 5,500 , which includes the impact of the transfer of deferred tax liabilities, indemnification liabilities and unfavorable contracts, in “Other income (expense) – net” in the consolidated statements of income in the third quarter of 2025.

SEPTEMBER 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

At September 30, 2025, the current note receivable balance included in “Prepaid and other current assets” on our consolidated balance sheet was $ 3,291 , reflecting approximately $ 320 collected during the third quarter.

Prior to disposition, in the third quarter of 2024 our investment in DIRECTV was reduced to zero on our consolidated balance sheet, as a result of aggregate cash receipts exceeding our initial investment balance plus our cumulative equity in DIRECTV earnings.

As we were not committed, implicitly or explicitly, to provide financial or other support to DIRECTV, we recorded cash distributions received in excess of our share of DIRECTV’s earnings in “Equity in net income of affiliates” in the consolidated statements of income and as cash provided by operations in the consolidated statements of cash flows.

The following table sets forth our share of DIRECTV’s earnings included in “Equity in net income of affiliates” and cash distributions received from DIRECTV prior to disposition:

Three months ended Nine months ended

September 30, September 30,

2025 2024 2025 2024

DIRECTV’s earnings included in Equity in net income

of affiliates

$ — $ 281 $ 1,926 $ 955

Distributions classified as operating activities

$ — $ 281 $ 1,926 $ 955

Distributions classified as investing activities

Cash distributions received from DIRECTV

$ — $ 623 $ 1,926 $ 1,883

Prior to disposition, we billed DIRECTV approximately $ 240 under commercial arrangements and transition service agreements, which were recorded as a reduction to the operations and support expenses incurred through June 30, 2025.

SUPPLIER AND VENDOR FINANCING PROGRAMS

6 unchanged sentences

We do not have pledged assets or other guarantees under our supplier financing program.

Suppliers had elected to sell to the third-party financial institutions $ 4,455 and $ 2,498 of our outstanding payment obligations as of September 30, 2025 and December 31, 2024, respectively.

Suppliers had elected to sell to the third-party financial institutions $ 4,082 and $ 3,090 of our outstanding payment obligations as of March 31, 2026 and December 31, 2025, respectively.

These amounts are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets.

1 unchanged sentence

Direct Supplier Financing

We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (variable rate extension fee).

We had $ 3,992 of direct supplier financing outstanding as of September 30, 2025 and $ 6,272 as of December 31, 2024, which are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets.

We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to approximately 120 days, with an average of 85 days outstanding, at an additional cost to us (variable rate extension fee).

We had $ 5,820 of direct supplier financing outstanding as of March 31, 2026 and $ 6,901 as of December 31, 2025, which are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets.

Our direct supplier financing is reported as operating activities in our statements of cash flows when paid.

3 unchanged sentences

We refer to these arrangements as vendor financing, with the balances and activities including equipment and software arrangements.

Vendor financing payments are reported as financing

SEPTEMBER 30, 2025

Vendor financing payments are reported as financing activities in our statements of cash flows when paid.

For the three months ended March 31, 2026 and 2025, we recorded vendor financing commitments of $ 732 and $ 378 , respectively.

We had $ 2,437 of vendor financing payables at March 31, 2026, with $ 1,474 included in “Accounts payable and accrued liabilities” and $ 1,892 of vendor financing payables at December 31, 2025, with $ 956 included in “Accounts payable and accrued liabilities.”

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

activities in our statements of cash flows when paid.

For the nine months ended September 30, 2025 and 2024, we recorded vendor financing commitments of $ 1,014 and $ 581 , respectively.

We had $ 1,674 of vendor financing payables at September 30, 2025, with $ 908 included in “Accounts payable and accrued liabilities” and $ 1,448 of vendor financing payables at December 31, 2024, with $ 749 included in “Accounts payable and accrued liabilities.”

ADDITIONAL FINANCIAL INFORMATION

2 unchanged sentences

The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets:

September 30, December 31,

March 31, December 31,

2026 2025 2025 2024

5 unchanged sentences

The following table summarizes cash paid during the periods for interest and income taxes:

Nine months ended

September 30,

Three months ended

Cash paid (received) during the period for:

2 unchanged sentences

The following table summarizes capital expenditures:

Nine months ended

September 30,

Three months ended

Purchase of property and equipment $ 4,835 $ 4,240

2 unchanged sentences

The following table summarizes acquisitions, net of cash acquired:

Nine months ended

September 30,

Three months ended

Business acquisitions 1

2 unchanged sentences

Total Acquisitions 1

1 Total capitalized interest was $ 167 and $ 288 for the nine months ended September 30, 2025 and 2024, respectively.

Preferred Equity Transactions

On March 3, 2025, we issued $ 2,250 of nonconvertible cumulative preferred interests in Telco LLC (Telco Class A-4).

The Telco Class A-4 interests pay an initial preferred distribution of 5.94 % annually, subject to declaration, and subject to reset on November 1, 2028, and every four years thereafter.

The Telco Class A-4 interests can be called at issue price beginning

SEPTEMBER 30, 2025

1 Approximately $ 4,100 of cash paid for acquisitions was reported as investing activities from discontinued operations.

2 Total capitalized interest was $ 42 and $ 56 for the three months ended March 31, 2026 and 2025, respectively.

MARCH 31, 2026

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

November 1, 2028, and are subject to the same redemption and liquidation rights as the Telco Class A-1, A-2 and A-3 interests.

On March 3, 2025, we also redeemed all outstanding Series B cumulative perpetual preferred shares.

The shares had a total liquidation preference of € 2.0 billion and were redeemed for $ 2,075 .

Pending Acquisitions

On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45 GHz bands from EchoStar Corporation for approximately $ 23,000 , subject to certain adjustments.

The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other closing conditions.

The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services.

We signed a short-term spectrum manager lease on the 3.45 GHz spectrum.

We expect these licenses will be deployed in cell sites covering nearly two-thirds of the U.S.

population by mid-November 2025.

On May 21, 2025, we agreed to acquire substantially all of Lumen’s mass markets fiber business for $ 5,750 cash, subject to purchase price adjustments.

At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations.

The transaction is expected to close in early 2026, pending regulatory approval and other customary closing conditions.

SEPTEMBER 30, 2025

DISCONTINUED OPERATIONS

As discussed in Notes 1 and 8, on February 2, 2026, we acquired substantially all of Lumen’s Mass Markets fiber business, including fiber network assets that are held in a new, wholly owned subsidiary, Forged Fiber, which is reflected as discontinued operations.

Forged Fiber will continue to support the accompanying acquired fiber customers retained by our Advanced Connectivity segment.

To reflect ongoing commercial arrangements following the disposal, results have been presented on a gross basis, with approximately $ 95 of operating expenses reported in continuing operations and the corresponding revenues reported in discontinued operations.

Discontinued operations were also allocated a proportionate share of goodwill, acquisition-related costs and related cash flows.

The following is a summary of operating results included in income (loss) from discontinued operations for the three months ended March 31:

Revenues $ 99

Operating Expenses

Cost of revenues 51

Selling, general and administrative 1

Total operating expenses 132

Other income (expense) – net ( 17 )

Net income (loss) before income taxes ( 50 )

Income tax (benefit) expense

Loss from discontinued operations, net of tax $ ( 38 )

1 Includes proportionate transaction costs.

The following are the preliminary values for the major classes of assets and liabilities associated with our discontinued operations and classified as held-for-sale on our consolidated balance sheet at March 31:

Current Assets $ 132

Property, Plant and Equipment 1

Other Assets 204

Total Assets, discontinued operations 2

Current liabilities $ 185

Other liabilities 1

Total Liabilities, discontinued operations 2

1 Includes $ 71 of capital additions after acquisition.

2 Held-for-sale assets are reported in “Other current assets” and held-for-sale liabilities are reported in “Accounts payable and accrued liabilities.”

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

RESULTS OF OPERATIONS

is referred to as “we,” “AT&T” or the “Company” throughout this document.

3 unchanged sentences

You should read this discussion in conjunction with the consolidated financial statements and accompanying notes (Notes).

We have two reportable segments:

Communications and Latin America.

Our segment results presented in Note 4 and discussed below follow our internal management reporting.

Percentage increases and decreases that are not considered meaningful are denoted with a dash.

Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

Operating Revenues

Communications $ 29,516 $ 29,074 1.5 % $ 88,775 $ 86,513 2.6 %

Latin America

1,095 1,022 7.1 3,120 3,188 (2.1)

Corporate 98 117 (16.2) 287 337 (14.8)

AT&T Operating Revenues $ 30,709 $ 30,213 1.6 % $ 92,182 $ 90,038 2.4 %

Operating Income (Loss)

Communications $ 7,096 $ 7,156 (0.8) % $ 21,152 $ 20,906 1.2 %

Latin America

22 10 — 111 19 —

Segment Operating Income 7,118 7,166 (0.7) 21,263 20,925 1.6

Corporate (564) (654) 13.8 (1,868) (2,119) 11.8

Certain significant items (435) (4,396) 90.1 (1,021) (5,083) 79.9

AT&T Operating Income $ 6,119 $ 2,116 — % $ 18,374 $ 13,723 33.9 %

The Communications segment provides services to businesses and consumers located in the U.S.

and businesses globally.

Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets.

This segment contains the following business units:

• Mobility provides nationwide wireless service and equipment.

• 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.

Consumer Wireline also provides legacy telephony voice communication services.

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

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

RESULTS OF OPERATIONS

Consolidated Results Our financial results are summarized in the discussions that follow.

On February 2, 2026, we closed our transaction with Lumen Technologies, Inc.

(Lumen) and acquired substantially all of Lumen’s Mass Markets fiber business.

The acquisition included customer relationships, which we include with our advanced home internet services and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber).

We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business.

As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements and are not included in our discussion of continuing operations.

(See Notes 8 and 12)

Consolidated Results Our financial results from continuing operations are summarized in the discussions that follow.

Additional analysis is discussed in our “Segment Results” section.

Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

First Quarter

2026 2025 Change

Operating Revenues

4 unchanged sentences

Operations and support

19,882 19,682 1.0

Depreciation and amortization 4,966 5,190 (4.3)

3 unchanged sentences

Equity in net income (loss) of affiliates

(20) 272 — 1,905 915 —

Other income (expense) — net

6,254 717 — 7,476 1,850 —

Income Before Income Taxes 10,653 1,430 — 22,742 11,390 99.7

Net Income 9,677 145 — 19,230 7,845 —

Net Income (Loss) Attributable

9,314 (174) — 18,165 6,868 —

Net Income (Loss) Attributable to

$ 9,278 $ (226) — % $ 18,137 $ 6,715 — %

Operating revenues increased in the third quarter and for the first nine months of 2025, reflecting higher Mobility and Consumer Wireline revenues, partially offset by declines in Business Wireline.

Operating revenues in Mexico were higher in the third quarter but lower for the first nine months, reflecting unfavorable foreign exchange impacts during the first half of 2025 .

Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily due to a $4,422 noncash goodwill impairment recorded in 2024.

Also contributing to lower operating expenses were expense declines from our continued transformation efforts, lower content licensing fees and lower year-to-date restructuring costs.

Partially offsetting these declines were higher Mobility equipment costs resulting from increased wireless equipment sales volumes, higher network-related costs and approximately $440 of apportioned legal settlements during the third quarter of 2025.

Depreciation and amortization expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades, partially offset by lower depreciation impacts from our Open RAN network modernization efforts.

We expect fourth-quarter 2025 depreciation expense to be lower than the comparable prior-year quarter, and full-year expense to be consistent with the prior year as certain legacy assets become fully depreciated.

Operating income increased in the third quarter and for the first nine months of 2025.

Our operating income margin in the third quarter increased from 7.0% in 2024 to 19.9% in 2025 and for the first nine months increased from 15.2% in 2024 to 19.9% in 2025.

Interest expense increased in the third quarter and decreased for the first nine months of 2025.

The increase in the third quarter was primarily due to lower capitalized interest associated with spectrum acquisitions.

The decrease for the first nine months was

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Income from Continuing Operations Before Income Taxes 5,398 5,991 (9.9)

Income from Continuing Operations 4,219 4,692 (10.1) %

Operating revenues increased in the first quarter of 2026, reflecting higher Advanced Connectivity wireless and fiber revenues, including revenues from customers of our acquired mass markets fiber business.

Operating revenues in Mexico were also higher due to favorable foreign exchange impacts during the first quarter of 2026 .

Offsetting the increases were lower Legacy revenues as we continue to work towards the decommissioning of our copper-based legacy network.

Operations and support expenses increased in the first quarter of 2026, primarily due to higher wireless sales volumes, which drove higher equipment, selling and bad debt expenses.

T he increase was also due to higher network costs that included vendor credits in the prior year, and incremental customer costs related to our acquired mass markets fiber business .

The increase was partially offset by higher restructuring charges in the prior year, cost reductions from transformation initiatives and lower content licensing fees.

Depreciation and amortization expense decreased in the first quarter of 2026, primarily due to lower depreciation from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives such as fiber and network upgrades.

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

primarily due to lower average debt balances, partially offset by lower capitalized interest associated with spectrum acquisitions.

Equity in net income (loss) of affiliates decreased in the third quarter and increased for the first nine months of 2025.

The decrease for the quarter is primarily due to the sale of our interest in DIRECTV to TPG Capital on July 2, 2025.

The increase for the first nine months is attributable to the cash distributions received by AT&T in excess of the carrying amount of our investment in DIRECTV prior to disposition (see Note 9).

Other income (expense) – net increased in the third quarter and for the first nine months of 2025.

The increase in the quarter was primarily due to a gain of approximately $5,500 recognized on the sale of our interest in DIRECTV (see Note 9).

For the first nine months, the increase was also driven by a second-quarter 2025 gain on a prior disposition and first-quarter 2024 noncash impairment charges for a held-for-sale business and our SKY Mexico equity investment.

Partially offsetting the increases in the quarter and for the first nine months were lower pension and postretirement benefit credits and lower returns on other benefit-related investments.

Income tax expense decreased in the third quarter and for the first nine months of 2025, primarily due to a lower effective tax rate driven by a tax-free gain on sale of DIRECTV in 2025 and a goodwill impairment in 2024, which is not deductible for tax purposes.

Our effective tax rate was 9.2% in the third quarter and 15.4% for the first nine months of 2025, versus 89.9% and 31.1% in the comparable periods in the prior year, reflecting the nonrecognition of income taxes on the DIRECTV gain and larger discrete state tax benefits in 2025, and the goodwill impairment in 2024, which was not deductible for tax purposes.

Operating income increased in the first quarter of 2026.

Our operating income margin in the first quarter increased from 18.8% in 2025 to 21.1% in 2026.

Interest expense increased in the first quarter of 2026, primarily due to higher debt balances and interest rates on long-term borrowings.

Equity in net income (loss) of affiliates decreased in the first quarter of 2026, primarily due to the sale of our interest in DIRECTV Entertainment Holdings, LLC to TPG Capital on July 2, 2025.

Other income (expense) – net increased in the first quarter of 2026, primarily due to higher interest income from higher average cash balances and noncash losses on sales of nonstrategic assets in the prior year.

These increases were partially offset by lower returns on benefit-related investments.

Income tax expense decreased in the first quarter of 2026.

The decrease was primarily due to lower income from continuing operations before income tax.

Our effective tax rate was 21.8% in the first quarter of 2026, versus 21.7% in the comparable period in the prior year, reflecting larger discrete state tax benefits in 2025.

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.

This new segment reporting structure also provides better visibility into the progress of exiting our copper-based legacy operations.

Our segment results presented in Note 4 and discussed below follow our internal management reporting.

We evaluate segment performance based on operating income as well as EBITDA and/or EBITDA margin.

1 unchanged sentence

generally accepted accounting principles (GAAP).

COMMUNICATIONS SEGMENT Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

Segment Operating Revenues

Mobility $ 21,713 $ 21,052 3.1 % $ 65,128 $ 62,126 4.8 %

Business Wireline 4,248 4,606 (7.8) 13,029 14,274 (8.7)

Consumer Wireline 3,555 3,416 4.1 10,618 10,113 5.0

Total Segment Operating Revenues $ 29,516 $ 29,074 1.5 % $ 88,775 $ 86,513 2.6 %

Segment Operating Income (Loss)

Mobility $ 7,125 $ 7,003 1.7 % $ 20,796 $ 20,190 3.0 %

Business Wireline (354) (43) — (653) 123 —

Consumer Wireline 325 196 65.8 1,009 593 70.2

Total Segment Operating Income $ 7,096 $ 7,156 (0.8) % $ 21,152 $ 20,906 1.2 %

Operating revenues increased in the third quarter and for the first nine months of 2025, primarily driven by increases in our Mobility and Consumer Wireline business units, partially offset by declines in our Business Wireline business unit, which reflects lower demand for legacy services.

Operating income decreased in the third quarter and increased for the first nine months of 2025.

Our Communications segment operating income margin in the third quarter decreased from 24.6% in 2024 to 24.0% in 2025 and for the first nine months decreased from 24.2% in 2024 to 23.8% in 2025.

Our Communications EBITDA margin in the third quarter remained consistent at 41.2% in 2024 and 2025 and for the first nine months increased from 40.7% in 2024 to 40.8% in 2025.

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

We have three reportable segments:

Advanced Connectivity, Legacy and Latin America.

The Advanced Connectivity segment provides domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers.

We also provide supplemental information on our advanced consumer and business customer relationships as the product lifecycles in these customer categories influence the growth trajectories of Advanced Connectivity segment results.

The Legacy segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network.

Legacy segment results include revenues derived from copper-based services and direct operating costs.

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

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

Communications Business Unit Discussion

Mobility Results

Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

Operating revenues

Service $ 16,926 $ 16,539 2.3 % $ 50,430 $ 48,810 3.3 %

ADVANCED CONNECTIVITY SEGMENT

First Quarter

2026 2025 Percent Change

Segment Operating Revenues

Wireless service

$ 16,941 $ 16,651 1.7 %

Advanced home internet

2,799 2,198 27.3

Business fiber and advanced connectivity

1,882 1,755 7.2

Business transitional and other

1,083 1,294 (16.3)

Other service

158 162 (2.5)

Total Service Revenues

22,863 22,060 3.6

Equipment 5,608 5,132 9.3

Total Operating Revenues 21,713 21,052 3.1 65,128 62,126 4.8

Operating expenses

Total Segment Operating Revenues 28,471 27,192 4.7

Segment Operating Expenses

Operations and support

16,913 16,247 4.1

Depreciation and amortization 4,705 4,973 (5.4)

Total Operating Expenses 14,588 14,049 3.8 44,332 41,936 5.7

Total Segment Operating Expenses 21,618 21,220 1.9

Operating Income $ 6,853 $ 5,972 14.8 %

The following tables highlight other key measures of performance for Mobility:

September 30, Percent

(in 000s) 2025 2024 Change

Postpaid 90,255 88,384 2.1 %

The following tables highlight other key measures of performance for Advanced Connectivity:

(in 000s) 2026 2025 Percent Change

Retail Wireless Subscribers 1

109,292 108,418 0.8 %

91,057 90,193 1.0

Postpaid phone

74,503 73,031 2.0

Reseller 10,183 8,482 20.1

Total Mobility Subscribers 1

Prepaid phone

16,554 17,162 (3.5)

1 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines.

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Mobility Net Additions

Third Quarter Nine-Month Period

Percent Percent

(in 000s) 2025 2024 Change 2025 2024 Change

Postpaid Phone Net Additions 405 403 0.5 % 1,130 1,171 (3.5) %

Total Phone Net Additions 322 358 (10.1) 993 1,162 (14.5)

18,235 18,225 0.1

Prepaid (167) (49) — (353) 34 —

Reseller 587 237 — 413 910 (54.6)

Mobility Net Subscriber Additions 2, 3

First Quarter

2026 2025 Percent Change

Retail Wireless Net Adds 1, 2

158 256 (38.3)

Postpaid Churn 4

1.07 % 0.93 % 14 BP 1.03 % 0.89 % 14 BP

Postpaid Phone-Only Churn 4

0.92 % 0.78 % 14 BP 0.87 % 0.73 % 14 BP

1 In addition to postpaid phones, includes tablets and wearables and other.

Tablet net adds (losses) were (45) and (21) for the quarters ended September 30, 2025 and 2024 and 14 and 31 for the nine months ended September 30, 2025 and 2024.

Wearables and other net adds (losses) were (32) and 47 for the quarters ended September 30, 2025 and 2024 and (47) and 209 for the nine months ended September 30, 2025 and 2024.

2 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

Phone 222 304 (27.0)

Postpaid phone 294 324 (9.3)

Prepaid phone (72) (20) —

Other (64) (48) (33.3) %

Phone churn 3

1.20 % 1.16 % 4 BP

Postpaid phone churn 3

0.89 % 0.83 % 6 BP

Prepaid phone churn 3

2.62 % 2.55 % 7 BP

1 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines.

2 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity.

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.

The churn rate for the period is equal to the average of the churn rate for each month of that period.

Service revenue increased in the third quarter and for the first nine months of 2025, largely due to subscriber gains partially offset by promotional activity.

Revenue comparisons in the third quarter were also impacted by approximately $90 of one-time noncash revenues related to administrative fees in 2024.

Average revenue per subscriber (ARPU) decreased in the third quarter and increased for the first nine months of 2025.

The decrease in the quarter includes the impact of one-time revenues related to administrative fees in 2024, as well as promotional activity and our success in attracting customers in underpenetrated segments with lower ARPUs, but attractive lifetime values, such as age 55-plus in our “value customers.” The increase for the first nine months was pressured by growth in our base of converged customers, who are typically eligible for service discounts.

The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins.

Postpaid churn and postpaid phone-only churn were higher in the third quarter and for the first nine months of 2025, partially driven by an increase in our customer base that reached the end of device financing periods, which normalized as we exited the quarter.

The increase in churn in the quarter was primarily driven by increased competition.

Equipment revenue increased in the third quarter and for the first nine months of 2025, primarily driven by higher wireless device sales volumes.

Operations and support expenses increased in the third quarter and for the first nine months of 2025, primarily due to higher equipment costs driven by higher wireless sales volumes.

The increase also reflected higher advertising due to the launch of a new campaign in the first quarter, and higher network costs that were partially offset by lower content licensing fees and expense declines from transformation efforts.

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for network upgrades and expansion, partially offset by lower depreciation impacts from our network modernization efforts.

Operating income increased in the third quarter and for the first nine months of 2025.

Our Mobility operating income margin in the third quarter decreased from 33.3% in 2024 to 32.8% in 2025 and for the first nine months decreased from 32.5% in 2024 to 31.9% in 2025.

Our Mobility EBITDA margin in the third quarter decreased from 45.1% in 2024 to 44.7% in 2025 and for the first nine months decreased from 44.5% in 2024 to 43.7% in 2025, driven by the increase in low margin equipment revenues.

Business Wireline Results

Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

Operating revenues

Legacy and other transitional services $ 2,208 $ 2,669 (17.3) % $ 7,032 $ 8,505 (17.3) %

Fiber and advanced connectivity

(in 000s) 2026 2025 Percent Change

Internet Connections

14,833 11,443 29.6 %

Equipment 187 189 (1.1) 571 586 (2.6)

Total Operating Revenues 4,248 4,606 (7.8) 13,029 14,274 (8.7)

Operating expenses

Operations and support 3,067 3,250 (5.6) 9,128 10,004 (8.8)

Depreciation and amortization 1,535 1,399 9.7 4,554 4,147 9.8

Total Operating Expenses 4,602 4,649 (1.0) 13,682 14,151 (3.3)

Operating Income (Loss)

12,501 10,211 22.4

Legacy and other transitional services revenues decreased in the third quarter and for the first nine months of 2025, driven by lower demand for legacy and VPN services, which we expect to continue.

These revenue declines were partially offset by targeted pricing actions in the first quarter of 2025.

Fiber and advanced connectivity services revenues increased in the third quarter and for the first nine months of 2025, driven by higher fiber and fixed wireless revenues.

Equipment revenues decreased in the third quarter and for the first nine months of 2025.

Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily driven by lower personnel and customer support costs associated with ongoing transformation initiatives, which were partially offset by favorable vendor settlements in the prior-year third quarter.

As part of our transformation activities, we expect operations and support expense improvements through the remainder of 2025 as we further right size our operations in alignment with the strategic direction of the business.

Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital investment for strategic initiatives such as fiber, which we expect to continue through the remainder of 2025.

Operating income decreased in the third quarter and for the first nine months of 2025.

Our Business Wireline operating income margin in the third quarter decreased from (0.9)% in 2024 to (8.3)% in 2025 and for the first nine months decreased from 0.9% in 2024 to (5.0)% in 2025.

Our Business Wireline EBITDA margin in the third quarter decreased from 29.4% in 2024 to 27.8% in 2025 and for the first nine months remained consistent at 29.9% in 2024 and 2025.

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

11,800 9,592 23.0

AT&T Business Fiber 1

Fixed Wireless

2,332 1,232 89.3

AT&T Internet Air (AIA)

Business Fixed Wireless 2

First Quarter

2026 2025 Percent Change

Internet Net Adds 3

Fiber 292 283 3.2

AT&T Business Fiber 1

Fixed Wireless 292 233 25.3

AT&T Internet Air (AIA) 239 181 32.0

Business Fixed Wireless 2

1 Includes fiber broadband internet for businesses and excludes dedicated and ethernet fiber.

2 Includes AT&T Internet Air for Business and historical fixed wireless services.

Excludes integrated gateway wireless connections used for secondary or back-up connectivity.

3 Excludes acquisition-related activity and the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.

Wireless service revenue increased in the first quarter of 2026 driven by growth in retail wireless subscribers in underpenetrated categories and converged accounts, partially offset by promotional activity.

The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins.

Phone churn was slightly higher in the first quarter of 2026, driven by the competitive dynamics of the industry.

Advanced home internet revenue increased in the first quarter of 2026 driven by an increase in fiber and AIA revenues.

Fiber revenues increased 21.2% in the first quarter of 2026, due to growth in fiber customers, including customers of our acquired mass markets fiber business .

We expect revenue growth to continue as we invest further in building our fiber footprint.

AIA revenue increases exceeded 100% as we continue to make these services available in additional markets.

Business fiber and advanced connectivity revenues increased in the first quarter of 2026 driven by higher fiber and fixed wireless revenues.

Business transitional and other revenues decreased in the first quarter of 2026 driven by lower demand for Virtual Private Network (VPN) and wholesale services, both of which we expect to continue.

Other service revenues decreased in the first quarter of 2026, reflecting the continued decline in the number of consumer VoIP customers.

Equipment revenue increased in the first quarter of 2026, primarily due to higher wireless device sales volumes.

Operations and support expenses increased in the first quarter of 2026, primarily due to higher wireless sales volumes, which drove higher equipment, selling and bad debt expenses.

The increase was also due to higher network costs that included vendor credits in the prior year, and incremental customer costs related to our acquired mass markets fiber business.

These increases were partially offset by cost reductions from transformation initiatives and lower content licensing fees.

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

Consumer Wireline Results

Third Quarter Nine-Month Period

Percent Percent

2025 2024 Change 2025 2024 Change

Operating revenues

Broadband $ 3,070 $ 2,838 8.2 % $ 9,082 $ 8,301 9.4 %

Legacy voice and data services 243 307 (20.8) 794 972 (18.3)

Other service and equipment 242 271 (10.7) 742 840 (11.7)

Total Operating Revenues 3,555 3,416 4.1 10,618 10,113 5.0

Operating expenses

Depreciation expense decreased in the first quarter of 2026, primarily due to lower depreciation from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives such as fiber and network upgrades.

Depreciation of our shared network, including copper-based assets prior to decommissioning, is managed in our Advanced Connectivity segment, consistent with our composite group depreciation methodology.

Operating income increased in the first quarter of 2026.

Our Advanced Connectivity operating income margin in the first quarter increased from 22.0% in 2025 to 24.1% in 2026.

Our Advanced Connectivity EBITDA margin in the first quarter increased from 40.3% in 2025 to 40.6% in 2026.

LEGACY SEGMENT

First Quarter

2026 2025 Percent Change

Segment Operating Revenues $ 1,768 $ 2,368 (25.3) %

Segment Operating Expenses

Operations and support 1,156 1,349 (14.3)

Depreciation and amortization — — —

Total Operating Expenses 3,230 3,220 0.3 9,609 9,520 0.9

Operating Income $ 325 $ 196 65.8 % $ 1,009 $ 593 70.2 %

The following tables highlight other key measures of performance for Consumer Wireline:

Broadband Connections

September 30, Percent

(in 000s) 2025 2024 Change

Total Segment Operating Expenses

1,156 1,349 (14.3)

Fiber Broadband Connections 10,123 9,024 12.2 %

1 Includes AIA.

Broadband Net Additions

Third Quarter Nine-Month Period

Percent Percent

(in 000s) 2025 2024 Change 2025 2024 Change

Broadband Net Additions 1, 2

Operating Income

$ 612 $ 1,019 (39.9) %

Fiber Broadband Net Additions 288 226 27.4 % 792 717 10.5 %

1 Includes AIA.

2 Excludes the impact of subscriber disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.

Broadband revenues increased in the third quarter and for the first nine months of 2025, driven by increases in fiber revenues of 16.8% and 18.2%.

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.

Legacy voice and data services revenues decreased in the third quarter and for the first nine months of 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 the third quarter and for the first nine months of 2025, reflecting the continued decline in the number of VoIP customers.

Operations and support expenses decreased in the third quarter and for the first nine months of 2025, primarily driven by lower customer support costs and content licensing fees, largely offset by higher network-related costs and higher marketing costs.

SEPTEMBER 30, 2025

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Depreciation expense increased in the third quarter and for the first nine months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades and expansion, which we expect to continue through the remainder of 2025.

Operating income increased in the third quarter and for the first nine months of 2025.

Our Consumer Wireline operating income margin in the third quarter increased from 5.7% in 2024 to 9.1% in 2025 and for the first nine months increased from 5.9% in 2024 to 9.5% in 2025.

Our Consumer Wireline EBITDA margin in the third quarter increased from 32.8% in 2024 to 36.3% in 2025 and for the first nine months increased from 32.7% in 2024 to 36.5% in 2025.

LATIN AMERICA SEGMENT Third Quarter

Nine-Month Period

2025 2024 Percent Change 2025 2024 Percent Change

Operating revenues decreased in the first quarter of 2026, driven by lower demand for legacy services, which we expect to continue as we decommission our copper-based legacy network.

Operations and support represent direct operating costs and decreased in the first quarter of 2026.

Expense declines were primarily driven by lower personnel and other costs resulting from the decommissioning of our legacy network and lower fulfillment cost amortization, which we expect to continue.

These decreases were partially offset by vendor credits in the prior year.

Operating income decreased in the first quarter of 2026.

Our Legacy operating income and EBITDA margins in the first quarter decreased from 43.0% in 2025 to 34.6% in 2026.

LATIN AMERICA SEGMENT First Quarter

2026 2025 Percent Change

Segment Operating Revenues

8 unchanged sentences

$ 20 $ 43 (53.5) %

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

The following tables highlight other key measures of performance for Mexico:

September 30, Percent

(in 000s) 2025 2024 Change

(in 000s) 2026 2025 Percent Change

Postpaid 7,088 5,997 18.2 %

3 unchanged sentences

Mexico Wireless Net Additions

Third Quarter

Nine-Month Period

Percent Percent

(in 000s) 2025 2024 Change 2025 2024 Change

First Quarter

(in 000s) 2026 2025 Percent Change

Postpaid 337 160 — %

2 unchanged sentences

Total Mexico Wireless Net Additions (577) 32 — %

Service revenues increased in the third quarter and decreased for the first nine months of 2025.

The increase in the quarter was primarily due to growth in subscribers and favorable foreign exchange impacts.

The decrease for the first nine months reflects unfavorable foreign exchange impacts in the first half of 2025, partially offset by growth in subscribers and ARPU.

Equipment revenues increased in the third quarter and decreased for the first nine months of 2025.

The increase in the quarter was primarily due to higher equipment sales and favorable foreign exchange impacts.

The decrease for the first nine months reflects unfavorable foreign exchange impacts in the first half of 2025, partially offset by higher equipment sales.

SEPTEMBER 30, 2025

Service revenues increased in the first quarter of 2026, primarily due to favorable foreign exchange impacts and growth in subscribers.

Equipment revenues increased in the first quarter of 2026, primarily due to favorable foreign exchange impacts and higher equipment sales.

Operations and support expenses increased in the first quarter of 2026, driven by unfavorable foreign exchange rates and increased sales volume, resulting in higher equipment costs and bad debt expenses.

Depreciation and amortization expense increased in the first quarter of 2026, driven by unfavorable foreign exchange rates, accelerated depreciation on certain assets and higher in-service assets.

Operating income decreased in the first quarter of 2026.

Our Mexico operating income margin in the first quarter decreased from 4.4% in 2025 to 1.7% in 2026.

Our Mexico EBITDA margin in the first quarter decreased from 19.9% in 2025 to 18.8% in 2026.

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

SUPPLEMENTAL INFORMATION

The following tables present supplemental information on the consumer and business relationships within our Advanced Connectivity segment.

Advanced Connectivity

First Quarter

2026 2025 Percent Change

Operating revenues

Wireless service

$ 14,584 $ 14,370 1.5 %

Advanced home internet

2,799 2,198 27.3

Other service

158 162 (2.5)

Total Service Revenues

17,541 16,730 4.8

4,611 4,246 8.6

Total Operating Revenues 22,152 20,976 5.6

Operating expenses

Operations and support

12,589 11,801 6.7

Depreciation and amortization 3,022 3,011 0.4

Total Operating Expenses 15,611 14,812 5.4

Operating Income $ 6,541 $ 6,164 6.1 %

Advanced Connectivity

First Quarter

2026 2025 Percent Change

Operating revenues

Wireless service

$ 2,357 $ 2,281 3.3 %

Fiber and advanced connectivity

1,882 1,755 7.2

Transitional and other service

1,083 1,294 (16.3)

Total Service Revenues

5,322 5,330 (0.2)

Equipment 997 886 12.5

Total Operating Revenues 6,319 6,216 1.7

Operating expenses

Operations and support

4,324 4,446 (2.7)

Depreciation and amortization 1,683 1,962 (14.2)

Total Operating Expenses 6,007 6,408 (6.3)

Operating Income (Loss)

$ 312 $ (192) — %

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Operations and support expenses increased in the third quarter and decreased for the first nine months of 2025.

The increase in the quarter was primarily due to higher equipment costs, bad debt expense from higher sales and unfavorable exchange rates.

The decrease for the first nine months was primarily due to favorable foreign exchange impacts, partially offset by increased equipment and selling costs.

Depreciation and amortization expense increased in the third quarter and decreased for the first nine months of 2025.

The increase in the quarter was primarily due to accelerated depreciation on certain network assets.

The decrease for the first nine months was primarily due to foreign exchange impacts.

Operating income increased in the third quarter and for the first nine months of 2025.

Our Mexico operating income margin in the third quarter increased from 1.0% in 2024 to 2.0% in 2025 and for the first nine months increased from 0.6% in 2024 to 3.6% in 2025.

Our Mexico EBITDA margin in the third quarter increased from 16.4% in 2024 to 18.2% in 2025 and for the first nine months increased from 16.5% in 2024 to 19.0% in 2025.

COMPETITIVE AND REGULATORY ENVIRONMENT

2 unchanged sentences

Complying with these regulations may affect our results of operations and cash flow, and compliance may be very costly.

On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017.

The legislation did not materially impact our income tax expense, but we expect that it will result in a material decrease to cash taxes paid relative to our expectations.

For further discussion of regulations impacting AT&T and its subsidiaries, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Regulatory Landscape” in our Annual Report on Form 10-K for the year-ended December 31, 2024.

For a discussion of these regulations, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Regulatory Landscape” in our Annual Report on Form 10-K for the year-ended December 31, 2025.

LIQUIDITY AND CAPITAL RESOURCES

For nine months ended September 30,

Continuing operations for three months ended March 31,

Cash provided by operating activities

2 unchanged sentences

(7,484) (4,958)

Cash provided by (used in) financing activities

Cash used in financing activities

(2,097) (553)

September 30, December 31,

March 31, December 31,

Cash and cash equivalents

1 unchanged sentence

138,407 136,100

We had $20,272 in cash and cash equivalents available at September 30, 2025, increasing $16,974 since December 31, 2024.

We had $11,964 in cash and cash equivalents available at March 31, 2026, decreasing $6,270 since December 31, 2025.

Cash and cash equivalents included cash of $3,490 and money market funds and other cash equivalents of $8,474.

1 unchanged sentence

and may be subject to restrictions on repatriation.

Our cash and cash equivalents at September 30, 2025 was elevated in anticipation of the consummation of announced transactions (see Note 11).

For the first nine months of 2025, cash inflows were primarily provided by cash receipts from operations, including cash from our sale and transfer of our receivables to third parties, and distributions from DIRECTV.

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.

For the first three months of 2026, cash inflows were primarily provided by cash receipts from operations, including cash from our sale and transfer of our receivables to third parties.

These inflows were exceeded by 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 repay long-term debt, fund capital improvements and business acquisitions, repurchase common stock, and make dividend payments to stockholders.

We maintain availability under our credit facilities and our commercial paper program to meet our short-term liquidity requirements.

SEPTEMBER 30, 2025

Cash Provided by Operating Activities from Continuing Operations

During the first three months of 2026, cash provided by operating activities was $7,595, compared to $9,049 for the first three months of 2025, with prior-year operating cash flows including $1,423 of distributions from DIRECTV.

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).

In addition, for payments to suppliers of handset inventory, as part of our working capital initiatives, we have arrangements that allow us to extend the stated payment terms by up to approximately 120 days, with an average of 85 days outstanding, at an additional cost to us (referred to as direct supplier financing).

The net impact of direct supplier financing, including principal and interest payments, was to decrease cash from operating activities approximately $1,136 and $2,042 for the three months ended March 31, 2026 and 2025, respectively.

All supplier financing payments are due within one year.

(See Note 10)

Cash Used in Investing Activities from Continuing Operations

For the first three months of 2026, cash used in investing activities totaled $7,484 and consisted primarily of $4,877 (including interest during construction) for capital expenditures.

During the first three months of 2026, investing activities also included $413 of FirstNet sustainability payments, net of reinvestment, and $574 related to the note receivable payment from DIRECTV.

In addition, we paid $1,018 in connection with our January 2026 acquisition of select spectrum licenses from United States Cellular Corporation (UScellular) and $5,756 in connection with our February 2026 acquisition of Lumen’s Mass Markets fiber

MARCH 31, 2026

Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

business, of which $1,656 was included in investing activities from continuing operations and $4,100 was included as investing activities from discontinued operations (see Notes 1, 8 and 12).

We enter into multi-year software licensing arrangements, which are typically paid over the license terms of two to five years and referred to as vendor financing.

Additionally, for capital improvements, we have negotiated favorable vendor payment terms of 120 days or more with some of our vendors, which are also referred to as vendor financing.

Vendor financing is excluded from capital expenditures and reported as financing activities.

For the first three months of 2026, vendor financing payments were $212, compared to $203 for the first three months of 2025.

Capital expenditures for the first three months of 2026 were $4,877, and when including $212 cash paid for vendor financing, capital investment was $5,089 ($609 higher than the prior-year comparable period).

The vast majority of our capital expenditures are spent on our networks, including product development and related support systems.

During the first three months of 2026, we placed $732 of productive assets in service under vendor financing arrangements (compared to $378 in the prior-year comparable period).

The amount of capital expenditures is influenced by demand for services and products, capacity needs and network enhancements.

On August 25, 2025, we agreed to purchase Federal Communications Commission (FCC) licenses in the 600 MHz and 3.45 GHz bands from EchoStar Corporation for approximately $23,000, subject to certain adjustments.

The transaction is subject to regulatory approval and other closing conditions.

The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services.

We signed a short-term spectrum manager lease on the 3.45 GHz spectrum, which was deployed in cell sites covering nearly two-thirds of the U.S.

Cash Provided by or Used in Financing Activities from Continuing Operations

For the first three months of 2026, cash used in financing activities totaled $2,097 and was comprised of debt repayments, common stock repurchases, dividend payments, and vendor financing payments, partially offset by issuances of long-term debt.

A tabular summary of our debt activities for the three months ended March 31, 2026 is as follows:

Three months ended March 31, 2026

Issuance of Notes and Debentures:

USD notes $ 6,465

Debt Issuances $ 8,098

USD notes $ (3,741)

EUR notes (1,103)

Repayments of long-term debt $ (5,247)

The weighted average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.3% as of March 31, 2026 and 4.2% as of December 31, 2025.

We had $137,017 of total notes and debentures outstanding at March 31, 2026.

This also included Euro, British pound sterling, Canadian dollar, Australian dollar, and Swiss franc denominated debt that totaled approximately $34,994.

At March 31, 2026, we had $6,818 of long-term debt maturing within one year.

We had no outstanding commercial paper or other short-term borrowings on March 31, 2026.

For the first three months of 2026, we paid $212 of cash under our vendor financing program, compared to $203 in the prior-year comparable period.

Total vendor financing payables included in our March 31, 2026 consolidated balance sheet were $2,437, with $1,474 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”).

MARCH 31, 2026

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-Q

Item 1. Financial Statements