AT&T Revenue Rises 2.9% to $31.5 Billion in Q1 2026 as Net Income Slides

AT&T Inc. (NYSE: T), a telecommunications and media company, posted total operating revenues of $31.51 billion for the three months ended March 31, 2026, a 2.9% increase from $30.63 billion in the first quarter of 2025. Service revenue climbed to $25.48 billion from $25.14 billion, while equipment revenue jumped to $6.03 billion from $5.49 billion. Read more earnings reports.

Net income attributable to common stock came in at $3.79 billion, or $0.54 per diluted share, down from $4.40 billion, or $0.61 per diluted share, in the prior-year quarter. The decline reflects a sharp swing in equity affiliate performance and higher interest expense, despite improved top-line results.

Operating income strengthened to $6.66 billion from $5.75 billion a year earlier. Total operating expenses declined slightly to $24.85 billion from $24.87 billion, driven by lower depreciation and amortization costs of $4.97 billion versus $5.19 billion in the prior period. Selling, general and administrative expenses rose to $7.32 billion from $7.15 billion.

The company recorded a $504 million charge for asset impairments, abandonments and restructuring in the current quarter. No such charge appeared in the year-ago period.

Interest expense increased to $1.81 billion from $1.66 billion. Equity in net income of affiliates swung to a loss of $41 million from a $1.44 billion gain in the first quarter of 2025, a $1.48 billion reversal that pressured overall earnings.

AT&T's cash position weakened during the quarter. Cash and cash equivalents fell to $11.96 billion at March 31, 2026, from $18.23 billion at year-end 2025. Operating activities from continuing operations generated $7.60 billion in cash, down from $9.05 billion in the same quarter of 2025.

The company spent $4.88 billion on capital expenditures, up from $4.28 billion a year earlier. Acquisitions consumed $2.67 billion in cash, compared to just $20 million in the prior-year period. AT&T repurchased $2.50 billion of common stock during the quarter, compared to $218 million a year ago, and paid $1.99 billion in dividends.

Long-term debt stood at $131.59 billion at quarter-end, up from $127.09 billion at December 31, 2025. The company issued $8.10 billion in long-term debt and repaid $5.25 billion during the three-month period.

Total stockholders' equity declined to $125.62 billion from $126.49 billion at the end of 2025. The weighted average number of common shares outstanding on a diluted basis fell to 7.03 billion from 7.22 billion in the year-ago quarter, reflecting the impact of share repurchases.

Key Financial Data