AT&T Inc. operates as a parent corporation, offering a diverse portfolio of telecommunications, media, and technology services. Its business is structured into ...
AT&T Inc. operates as a parent corporation providing a diverse portfolio of telecommunications, media, and technology services. The company is structured into two main divisions: Communications and Latin America. The Communications division serves both individual consumers and corporate clients across the U.S. and globally, offering wireless, wireline, and broadband services. ...AT&T Inc. operates as a parent corporation providing a diverse portfolio of telecommunications, media, and technology services. The company is structured into two main divisions: Communications and Latin America. The Communications division serves both individual consumers and corporate clients across the U.S. and globally, offering wireless, wireline, and broadband services. The Latin America division focuses on entertainment and wireless services outside the U.S. Founded in 1983 and headquartered in Dallas, Texas, AT&T has grown through significant acquisitions, including SBC Communications and BellSouth. The company is one of the largest telecommunications providers in the world, with a workforce of over 133,000 employees. Financially, AT&T generates substantial revenue, with a market capitalization exceeding $160 billion. The TBB bonds are part of its long-term debt structure, providing fixed-income investors with a 5.35% coupon rate. AT&T's business model involves heavy capital expenditure in network infrastructure, including 5G and fiber optics. The company competes with Verizon and T-Mobile in the U.S. market. Despite high debt levels, AT&T has maintained dividend payments, though they have been adjusted over time. Under CEO John Stankey, the company has focused on debt reduction and streamlining operations, divesting non-core assets like WarnerMedia. AT&T's services include direct-to-consumer entertainment (e.g., HBO Max, now merged with Discovery), business solutions, and IoT connectivity. The company also has a significant presence in advertising and cybersecurity. With a focus on innovation and customer experience, AT&T aims to lead in the converging worlds of entertainment, business, and technology.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$125.6B
+2.7%
+0.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$21.9B
+99.9%
+20.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+59.6%
+38.7%
+2.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+19.9%
+0.3%
+5.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+17.4%
+94.7%
+20.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$19.4B
+5.0%
+92.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+15.5%
+2.3%
+92.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
157.4%
+16.6%
-1.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.91x
+36.3%
+5.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning. Welcome to AT&T's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. Should you need assistance during the call, please press star then 0, and an operator will assist you offline. Following the presentation, the call will be open for questions. If you would like to ask a question, please press star then 1, and you will be placed in the question queue. If you are in the question queue and would like to withdraw your question, you can do so by pressing star then 2. As a reminder, this conference is being recorded. I would now like to turn the conference call over to our host, Brett Feldman, Treasurer and Head of Investor Relations. Please go ahead.
Brett Feldman : Thank you. Good morning. Welcome to our second quarter call. I'm Brett Feldman, Treasurer and Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our Chairman and CEO, and Pascal Desroches, our CFO. Before we begin, I need to call your attention to our safe harbor statement. It says that some of our comments today may be forward-looking. As such, they're subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information as well as our earnings materials are available on the Investor Relations website. With that, I'll turn things over to John.
John Stankey : Thanks, Brett. Good morning, everyone. I do appreciate you joining us today. Earlier this year, we provided an outlook for accelerated growth and execution of our strategy. That's exactly what we delivered in the second quarter. We gained more than 1 million Advanced Connectivity subscribers from fiber, fixed wireless, and postpaid phones, with all three product categories posting higher net additions year-over-year. This was our best ever second quarter for AT&T Fiber net adds and a record quarter for combined fiber and fixed wireless net adds. We also continued to grow our base of converged customers. At the end of the second quarter, 42.5% of our advanced home internet customers also have a postpaid wireless account with AT&T. This convergence rate reached 45% when excluding customers within our acquired footprint from Lumen. These are high lifetime value subscribers. Our strong customer growth is a key driver of our accelerated financial growth during the second quarter. At a consolidated level, we reported faster year-over-year growth in service revenue, adjusted EBITDA, and adjusted EPS compared to our growth in the first quarter. We also achieved our highest consolidated adjusted EBITDA margin since we refocused our business on Advanced Connectivity at the beginning of this decade. This was driven by our improved operating leverage as we gain scale in 5G and fiber, reduce legacy costs as we shrink our footprint, and through continued implementation of our cost transformation initiatives across the company. We're driving growth in our Advanced Connectivity segment across …
