Dollars in millions except per share amounts RESULTS OF OPERATIONS AT&T Inc. is referred to as “we,” “AT&T” or the “Company” throughout this document. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc., and the names of the particular subsidiaries and affiliates providing the services generally have been omitted. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this discussion in conjunction with the consolidated financial statements and accompanying notes (Notes). Percentage increases and decreases that are not considered meaningful are denoted with a dash. 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. Second Quarter Six-Month Period Percent Percent 2026 2025 Change 2026 2025 Change Operating Revenues Service $ 25,977 $ 25,292 2.7 % $ 51,455 $ 50,430 2.0 % Equipment 5,581 5,555 0.5 11,609 11,043 5.1 Total Operating Revenues 31,558 30,847 2.3 63,064 61,473 2.6 Operating Expenses Operations and support 19,554 19,095 2.4 39,436 38,777 1.7 Depreciation and amortization 4,966 5,251 (5.4) 9,932 10,441 (4.9) Total Operating Expenses 24,520 24,346 0.7 49,368 49,218 0.3 Operating Income 7,038 6,501 8.3 13,696 12,255 11.8 Interest expense 1,883 1,655 13.8 3,696 3,313 11.6 Equity in net income (loss) of affiliates (29) 485 — (70) 1,925 — Other income (expense) — net 696 767 (9.3) 1,290 1,222 5.6 Income from Continuing Operations Before Income Taxes 5,822 6,098 (4.5) 11,220 12,089 (7.2) Income from Continuing Operations 5,038 4,861 3.6 % 9,257 9,553 (3.1) % Operating revenues increased in the second quarter and for the first six months of 2026, reflecting higher Advanced Connectivity fiber and wireless revenues, with fiber revenues including the impact of acquiring Lumen’s mass markets fiber business. Operating revenues in Mexico were also higher due to favorable foreign exchange impacts. 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 second quarter and for the first six months of 2026. The increase in the second quarter was primarily due to an asset abandonment charge associated with the reprioritization of our spectrum strategy, higher advertising expense, incremental customer costs related to our acquired mass markets fiber business and higher bad debt expenses driven by subscriber growth. These increases were partially offset by cost reductions from transformation initiatives, lower content licensing fees and gains on tower transactions. The increase for the first six months was 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 25 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions except per share amounts incremental customer costs related to our acquired mass markets fiber business, which were partially offset by cost reductions from transformation initiatives, higher restructuring charges in the prior year and lower content licensing fees. Depreciation and amortization expense decreased in the second quarter and for the first six months 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. Operating income increased in the second quarter and for the first six months of 2026. Our operating income margin in the second quarter increased from 21.1% in 2025 to 22.3% in 2026 and for the first six months increased from 19.9% in 2025 to 21.7% in 2026. Interest expense increased in the second quarter and for the first six months 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 second quarter and for the first six months 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 decreased in the second quarter and increased for the first six months of 2026. The decrease in the second quarter was primarily due to a gain recognized in the second quarter of 2025 associated with a prior disposition, partially offset by higher returns on benefit-related investments and interest income from higher average cash balances. The increase for the first six months was primarily due to interest income from higher average cash balances. Income tax expense decreased in the second quarter and for the first six months of 2026. The decrease was primarily due to lower income from continuing operations before income tax and the resolution of certain Internal Revenue Service (IRS) examinations. Our effective tax rate was 13.5% in the second quarter and 17.5% for the first six months of 2026, versus 20.3% and 21.0% in the comparable periods in the prior year, reflecting the resolution of certain IRS examinations. 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. 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. 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. See “Discussion and Reconciliation of Non-GAAP Measures” for a reconciliation of EBITDA and EBITDA margin to the most comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP). 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. 26 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions except per share amounts ADVANCED CONNECTIVITY SEGMENT Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Segment Operating Revenues Wireless service $ 17,413 $ 16,853 3.3 % $ 34,354 $ 33,504 2.5 % Advanced home internet 2,926 2,299 27.3 5,725 4,497 27.3 Business fiber and advanced connectivity 1,946 1,769 10.0 3,828 3,524 8.6 Business transitional and other 1,042 1,249 (16.6) 2,125 2,543 (16.4) Other service 151 164 (7.9) 309 326 (5.2) Total Service Revenues 23,478 22,334 5.1 46,341 44,394 4.4 Equipment 5,137 5,163 (0.5) 10,745 10,295 4.4 Total Segment Operating Revenues 28,615 27,497 4.1 57,086 54,689 4.4 Segment Operating Expenses Operations and support 16,583 16,356 1.4 33,496 32,603 2.7 Depreciation and amortization 4,687 5,035 (6.9) 9,392 10,008 (6.2) Total Segment Operating Expenses 21,270 21,391 (0.6) 42,888 42,611 0.7 Operating Income $ 7,345 $ 6,106 20.3 % $ 14,198 $ 12,078 17.6 % The following tables highlight other key measures of performance for Advanced Connectivity: Wireless June 30, (in 000s) 2026 2025 Percent Change Retail Wireless Subscribers1 109,800 108,696 1.0 % Phone 91,439 90,501 1.0 Postpaid phone 74,921 73,408 2.1 Prepaid phone 16,518 17,093 (3.4) Other 18,361 18,195 0.9 % Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Retail Wireless Net Adds1, 2 549 327 67.9 % 707 583 21.3 % Phone 436 367 18.8 658 671 (1.9) Postpaid phone 432 401 7.7 726 725 0.1 Prepaid phone 4 (34) — (68) (54) (25.9) Other 113 (40) — % 49 (88) — % Phone churn3 1.12 % 1.17 % (5) BP 1.16 % 1.15 % 1 BP Postpaid phone churn3 0.86 % 0.87 % (1) BP 0.87 % 0.85 % 2 BP Prepaid phone churn3 2.30 % 2.43 % (13) BP 2.46 % 2.49 % (3) BP 1Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. 2Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity. 3Calculated 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. 27 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions except per share amounts Internet June 30, (in 000s) 2026 2025 Percent Change Internet Connections 15,479 11,952 29.5 % Fiber 12,868 10,480 22.8 AT&T Fiber 12,144 9,835 23.5 AT&T Business Fiber1 724 645 12.2 Fixed Wireless 2,611 1,472 77.4 AT&T Internet Air (AIA) 1,951 1,006 93.9 Business Fixed Wireless2 660 466 41.6 % Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Internet Net Adds3 646 509 26.9 % 1,230 1,025 20.0 % Fiber 367 269 36.4 659 552 19.4 AT&T Fiber 344 243 41.6 617 504 22.4 AT&T Business Fiber1 23 26 (11.5) 42 48 (12.5) Fixed Wireless 279 240 16.3 571 473 20.7 AT&T Internet Air (AIA) 215 203 5.9 454 384 18.2 Business Fixed Wireless2 64 37 73.0 % 117 89 31.5 % 1Includes fiber broadband internet for businesses and excludes dedicated and ethernet fiber. 2Includes AT&T Internet Air for Business and historical fixed wireless services. Excludes integrated gateway wireless connections used for secondary or back-up connectivity. 3Excludes 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 second quarter and for the first six months of 2026 driven by growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts on wireless subscriber additions. The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins. Phone churn was lower in the second quarter and slightly higher for the first six months of 2026, reflecting the competitive dynamics of the industry. Advanced home internet revenue increased in the second quarter and for the first six months of 2026 driven by an increase in fiber and AIA revenues. Fiber revenues increased 21.4% and 21.3% in the second quarter of 2026 and for the first six months, 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 and ramp marketing and promotion activities. Business fiber and advanced connectivity revenues increased in the second quarter and for the first six months of 2026 driven by higher fiber and fixed wireless revenues. Business transitional and other revenues decreased in the second quarter and for the first six months 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 second quarter and for the first six months of 2026, reflecting the continued decline in the number of consumer VoIP customers. Equipment revenue decreased in the second quarter and increased for the first six months of 2026, with lower hardware sales to business customers in the second quarter offset by higher wireless device sales volumes. The increase for the first six months was primarily driven by higher wireless device sales volumes. 28 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions except per share amounts Operations and support expenses increased in the second quarter and for the first six months of 2026. The increase in the second quarter was primarily due to higher advertising expense, incremental customer costs related to our acquired mass markets fiber business and higher bad debt expenses driven by subscriber growth. These increases were partially offset by cost reductions from transformation initiatives, lower content licensing fees and gains on tower transactions. The increase for the first six months was 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, which were partially offset by cost reductions from transformation initiatives and lower content licensing fees. Depreciation expense decreased in the second quarter and for the first six months 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 second quarter and for the first six months of 2026. Our Advanced Connectivity operating income margin in the second quarter increased from 22.2% in 2025 to 25.7% in 2026 and for the first six months increased from 22.1% in 2025 to 24.9% in 2026. Our Advanced Connectivity EBITDA margin in the second quarter increased from 40.5% in 2025 to 42.0% in 2026 and for the first six months increased from 40.4% in 2025 to 41.3% in 2026. LEGACY SEGMENT Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Segment Operating Revenues $ 1,632 $ 2,202 (25.9) % $ 3,400 $ 4,570 (25.6) % Segment Operating Expenses Operations and support 1,109 1,243 (10.8) 2,265 2,592 (12.6) Depreciation and amortization — — — — — — Total Segment Operating Expenses 1,109 1,243 (10.8) 2,265 2,592 (12.6) Operating Income $ 523 $ 959 (45.5) % $ 1,135 $ 1,978 (42.6) % Operating revenues decreased in the second quarter and for the first six months 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 second quarter and for the first six months 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 settlements. Operating income decreased in the second quarter and for the first six months of 2026. Our Legacy operating income and EBITDA margins in the second quarter decreased from 43.6% in 2025 to 32.0% in 2026 and for the first six months decreased from 43.3% in 2025 to 33.4% in 2026. 29 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions except per share amounts LATIN AMERICA SEGMENT Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Segment Operating Revenues Service $ 780 $ 662 17.8 % $ 1,533 $ 1,277 20.0 % Equipment 444 392 13.3 864 748 15.5 Total Segment Operating Revenues 1,224 1,054 16.1 2,397 2,025 18.4 Segment Operating Expenses Operations and support 997 853 16.9 1,950 1,631 19.6 Depreciation and amortization 189 155 21.9 389 305 27.5 Total Segment Operating Expenses 1,186 1,008 17.7 2,339 1,936 20.8 Operating Income $ 38 $ 46 (17.4) % $ 58 $ 89 (34.8) % The following tables highlight other key measures of performance for Mexico: Subscribers June 30, (in 000s) 2026 2025 Percent Change Postpaid 7,457 6,180 20.7 % Prepaid 15,829 17,440 (9.2) Reseller 149 223 (33.2) Total Mexico Wireless Subscribers 23,435 23,843 (1.7) % Mexico Wireless Net Additions Second Quarter Six-Month Period (in 000s) 2026 2025 Change 2026 2025 Percent Change Postpaid 369 183 — % 706 343 — % Prepaid (1,006) 64 — (1,901) (46) — Reseller (31) (12) — (50) (30) (66.7) Total Mexico Wireless Net Additions (668) 235 — % (1,245) 267 — % Service revenues increased in the second quarter and for the first six months of 2026, primarily due to favorable foreign exchange impacts and growth in postpaid subscribers and ARPU. Equipment revenues increased in the second quarter and for the first six months of 2026, substantially due to favorable foreign exchange impacts. Operations and support expenses increased in the second quarter and for the first six months of 2026, driven by unfavorable foreign exchange rates and higher bad debt expenses. Depreciation and amortization expense increased in the second quarter and for the first six months of 2026, driven by unfavorable foreign exchange rates and spectrum renewal fees, with accelerated depreciation impacting the first three months of the year. Operating income decreased in the second quarter and for the first six months of 2026. Our Mexico operating income margin in the second quarter decreased from 4.4% in 2025 to 3.1% in 2026 and for the first six months decreased from 4.4% in 2025 to 2.4% in 2026. Our Mexico EBITDA margin in the second quarter decreased from 19.1% in 2025 to 18.5% in 2026 and for the first six months decreased from 19.5% in 2025 to 18.6% in 2026. 30 AT&T INC. JUNE 30, 2026 Item 2. 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 Consumer Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Operating revenues Wireless service $ 14,992 $ 14,559 3.0 % $ 29,576 $ 28,929 2.2 % Advanced home internet 2,926 2,299 27.3 5,725 4,497 27.3 Other service 151 164 (7.9) 309 326 (5.2) Total Service Revenues 18,069 17,022 6.2 35,610 33,752 5.5 Equipment 4,260 4,273 (0.3) 8,871 8,519 4.1 Total Operating Revenues 22,329 21,295 4.9 44,481 42,271 5.2 Operating expenses Operations and support 12,234 11,866 3.1 24,823 23,667 4.9 Depreciation and amortization 2,976 3,056 (2.6) 5,998 6,067 (1.1) Total Operating Expenses 15,210 14,922 1.9 30,821 29,734 3.7 Operating Income $ 7,119 $ 6,373 11.7 % $ 13,660 $ 12,537 9.0 % Advanced Connectivity Business Second Quarter Six-Month Period 2026 2025 Percent Change 2026 2025 Percent Change Operating revenues Wireless service $ 2,421 $ 2,294 5.5 % $ 4,778 $ 4,575 4.4 % Fiber and advanced connectivity 1,946 1,769 10.0 3,828 3,524 8.6 Transitional and other service 1,042 1,249 (16.6) 2,125 2,543 (16.4) Total Service Revenues 5,409 5,312 1.8 10,731 10,642 0.8 Equipment 877 890 (1.5) 1,874 1,776 5.5 Total Operating Revenues 6,286 6,202 1.4 12,605 12,418 1.5 Operating expenses Operations and support 4,349 4,490 (3.1) 8,673 8,936 (2.9) Depreciation and amortization 1,711 1,979 (13.5) 3,394 3,941 (13.9) Total Operating Expenses 6,060 6,469 (6.3) 12,067 12,877 (6.3) Operating Income (Loss) $ 226 $ (267) — % $ 538 $ (459) — % 31 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued Dollars in millions except per share amounts COMPETITIVE AND REGULATORY ENVIRONMENT Overview AT&T subsidiaries operating within the United States are subject to federal and state regulations. AT&T subsidiaries operating outside the United States are subject to the jurisdiction of national and supranational regulations in the markets where service is provided. Complying with these regulations may affect our results of operations and cash flow, and compliance may be very costly. On November 15, 2023, pursuant to a congressional directive, the FCC adopted rules to “facilitate” equal access to broadband and prevent digital discrimination in broadband access. The rules prohibited covered entities from implementing policies or practices not justified by genuine issues of technical or economic feasibility, that differentially impact consumers’ access to broadband internet access service based on prohibited characteristics (including income level, race and ethnicity) or that have such differential impact, whether intentional or not. The rules broadly applied prospectively to all aspects of an ISP’s service that could impact a consumer’s ability to access broadband. Several business associations filed appeals challenging the rules and several of those appeals were consolidated in the Eighth Circuit. On May 6, 2026, the Eighth Circuit vacated the FCC’s digital discrimination rules, holding that under the plain language of the implementing law, the FCC could not adopt rules imposing “disparate impact” liability. The FCC will need to adopt new rules consistent with the statute. For a 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, 2025. LIQUIDITY AND CAPITAL RESOURCES Continuing operations for the six months ended June 30, 2026 2025 Cash provided by operating activities $ 18,396 $ 18,812 Cash used in investing activities (13,233) (11,044) Cash used in financing activities (1,417) (598) June 30, December 31, 2026 2025 Cash and cash equivalents $ 17,570 $ 18,234 Total debt 143,954 136,100 Our cash balance at June 30, 2026 remained elevated as we anticipate the completion of our pending transaction with EchoStar Corporation (EchoStar). We had $17,570 in cash and cash equivalents available at June 30, 2026, decreasing $664 since December 31, 2025. Cash and cash equivalents included cash of $5,744 and money market funds and other cash equivalents of $11,826. Approximately $1,251 of our cash and cash equivalents were held in accounts outside of the U.S. and may be subject to restrictions on repatriation. For the first six 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 exceeded cash used to meet the needs of the business, including, but not limited to, payment of operating expenses. The cash generated from operating activities was primarily used to fund capital improvements and business acquisitions, repay long-term debt, 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. Cash Provided by Operating Activities from Continuing Operations During the first six months of 2026, cash provided by operating activities was $18,396, compared to $18,812 for the first six months of 2025, with the prior year benefiting from $1,675 of cash received from DIRECTV, net of related tax payments. Cash from operations in 2026 includes increases resulting from lower cash tax payments and the timing of working capital payments, which were partially offset by $100 of voluntarily contribution to our pension plans. 32 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued Dollars in millions except per share amounts 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 $272 and $2,146 for the six months ended June 30, 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 six months of 2026, cash used in investing activities totaled $13,233 and consisted primarily of $10,577 (including interest during construction) for capital expenditures. During the first six months of 2026, investing activities also included $360 of FirstNet sustainability payments, net of reinvestment, and approximately $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 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 six months of 2026, vendor financing payments were $643, compared to $423 for the first six months of 2025. Capital expenditures for the first six months of 2026 were $10,577, and when including $643 cash paid for vendor financing, capital investment was $11,220 ($1,623 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 six months of 2026, we placed $1,603 of productive assets in service under vendor financing arrangements (compared to $831 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 certain 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. population. We expect to close this transaction by the end of July 2026 and will fund the acquisition using a combination of cash on hand and term loan borrowings. Cash Provided by or Used in Financing Activities from Continuing Operations For the first six months of 2026, cash used in financing activities totaled $1,417 and was comprised of debt repayments, common stock repurchases, dividend payments, and vendor financing payments, partially offset by issuances of long-term debt. 33 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued Dollars in millions except per share amounts A tabular summary of our debt activities for the six months ended June 30, 2026 is as follows: First Quarter Second Quarter Six months ended June 30, 2026 Issuance of Notes and Debentures: USD notes $ 6,465 $ 5,939 $ 12,404 CAD notes 1,633 — 1,633 Debt Issuances $ 8,098 $ 5,939 $ 14,037 Repayments USD notes $ (3,741) $ — $ (3,741) EUR notes (1,103) (32) (1,135) AUD notes (216) — (216) Other (187) (119) (306) Repayments of long-term debt $ (5,247) $ (151) $ (5,398) The weighted average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.4% as of June 30, 2026 and 4.2% as of December 31, 2025. We had $142,578 of total notes and debentures outstanding at June 30, 2026. This also included Euro, British pound sterling, Canadian dollar, Australian dollar, and Swiss franc denominated debt that totaled approximately $34,652. At June 30, 2026, we had $9,323 of long-term debt maturing within one year. We had no outstanding commercial paper or other short-term borrowings on June 30, 2026. For the first six months of 2026, we paid $643 of cash under our vendor financing program, compared to $423 in the prior-year comparable period. Total vendor financing payables included in our June 30, 2026 consolidated balance sheet were $2,868, with $1,875 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”). During the first six months of 2026, we repurchased approximately 174 million shares totaling $4,435 under our $10,000 common stock repurchase authorization approved by the Board of Directors in December 2024 (the “2024 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 (the “2026 Authorization”). At June 30, 2026, we had approximately $1,296 remaining under the 2024 Authorization, and $10,000 remaining under the 2026 Authorization. We paid dividends on common and preferred shares of $3,973 during the first six months of 2026, compared with $4,135 for the first six months of 2025. Dividends on common stock declared by our Board of Directors totaled $0.5550 per share in the first six months of 2026 and 2025. Our dividend policy considers the expectations and requirements of stockholders, capital funding requirements of AT&T and long-term growth opportunities. Credit Facilities The following summary of our various credit and loan agreements does not purport to be complete. The summaries of the Revolving Credit Agreement and Term Loan (each as defined below) are qualified in their entirety by reference to each agreement filed as exhibits to our Annual Report on Form 10-K. We use credit facilities as a tool in managing our liquidity status. We currently have one $12,000 revolving credit agreement that terminates on November 3, 2030 (Revolving Credit Agreement). No amount was outstanding under the Revolving Credit Agreement as of June 30, 2026. In November 2025, we entered into a $17,500 Delayed Draw Term Loan Credit Agreement (Term Loan), with Bank of America, N.A., as agent. The Term Loan is comprised of (i) a $6,000 364-day delayed draw term loan facility (364-Day Term 34 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued Dollars in millions except per share amounts Loan Facility) and (ii) a $11,500 two-year delayed draw term loan facility (Two-Year Term Loan Facility). Each of the 364-Day Term Loan Facility and Two-Year Term Loan Facility is available for a single draw at any time before November 3, 2026. No amount was outstanding under the Term Loan as of June 30, 2026. In March 2026, we entered into two bilateral term loan facilities totaling $1,500, that will allow us to borrow funds during the year. When drawn, $500 will be due in 2031 and $1,000 will be due in 2033. Advances will bear interest at a variable rate based on the secured overnight financing rate (SOFR) plus a margin. No amounts were outstanding under these facilities as of June 30, 2026. In May 2026, we entered into a $1,000 bilateral term loan facility, that will allow us to borrow funds during the year. When drawn, $1,000 will be due in 2029. Advances will bear interest at a variable rate based on SOFR plus a margin. No amount was outstanding under this facility as of June 30, 2026. We also utilize other external financing sources, which include various credit arrangements supported by government agencies to support network equipment purchases as well as a commercial paper program. The Revolving Credit Agreement and the Term Loan contain covenants that are customary for an issuer with investment grade senior debt credit ratings, including a net debt-to-EBITDA financial ratio covenant requiring us to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75-to-1. As of June 30, 2026, we were in compliance with the covenants for our credit facilities. Collateral Arrangements Most of our counterparty collateral arrangements require cash collateral posting by AT&T only when derivative market values exceed certain thresholds. Under these arrangements, which cover the majority of our approximate $36,037 derivative portfolio, counterparties are still required to post collateral. During the first six months of 2026, we received $351 of cash collateral, on a net basis. Cash postings under these arrangements vary with changes in credit ratings and netting agreements. (See Note 7) Other Our total capital consists of debt (long-term debt and debt maturing within one year), redeemable noncontrolling interest and stockholders’ equity. Our capital structure does not include debt issued by our equity method investments. At June 30, 2026, our debt ratio was 52.8%, compared to 51.7% at June 30, 2025 and 51.4% at December 31, 2025. The debt ratio is affected by the same factors that affect total capital, and reflects our recent debt issuances, repayments and reclassifications related to redemption of noncontrolling interests. 35 AT&T INC. JUNE 30, 2026 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued Dollars in millions except per share amounts DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES We also evaluate segment performance based on EBITDA, which is defined as operating income excluding depreciation and amortization, and/or EBITDA margin, which is defined as EBITDA divided by total revenue. EBITDA is used as part of our management reporting, and we believe EBITDA to be a relevant and useful measurement to our investors as it measures the cash generation potential of our operations. EBITDA does not give effect to depreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Second Quarter Six-Month Period Percent Percent 2026 2025 Change 2026 2025 Change Advanced Connectivity Segment Operating income $ 7,345 $ 6,106 20.3 % $ 14,198 $ 12,078 17.6 % Add: Depreciation and amortization 4,687 5,035 (6.9) 9,392 10,008 (6.2) EBITDA $ 12,032 $ 11,141 8.0 % $ 23,590 $ 22,086 6.8 % Operating income margin 25.7 % 22.2 % 24.9 % 22.1 % EBITDA margin 42.0 % 40.5 % 41.3 % 40.4 % Legacy Segment Operating income $ 523 $ 959 (45.5) % $ 1,135 $ 1,978 (42.6) % Add: Depreciation and amortization — — — — — — EBITDA $ 523 $ 959 (45.5) % $ 1,135 $ 1,978 (42.6) % Operating income margin 32.0 % 43.6 % 33.4 % 43.3 % EBITDA margin 32.0 % 43.6 % 33.4 % 43.3 % Latin America Segment Operating income $ 38 $ 46 (17.4) % $ 58 $ 89 (34.8) % Add: Depreciation and amortization 189 155 21.9 389 305 27.5 EBITDA $ 227 $ 201 12.9 % $ 447 $ 394 13.5 % Operating income margin 3.1 % 4.4 % 2.4 % 4.4 % EBITDA margin 18.5 % 19.1 % 18.6 % 19.5 % 36 AT&T INC. JUNE 30, 2026