A provider of wireless phone and internet service, AT&T runs one of the largest mobile networks in the US, selling broadband under brands like Cricket, AT&T PREPAID, and AT&T Internet Air, plus a dedicated network for first responders called FirstNet. It traces its roots to Alexander Graham Bell's Bell Telephone Company, founded in 1877, and was incorporated in 1885 as the American Telephone and Telegraph Company to build the nation's first long-distance network — its name is simply an abbreviation of that original title.
Q2 2026 revenue rose 2.3% to $31.6B as Advanced Connectivity fiber and wireless growth offset Legacy declines
Advanced Connectivity carried AT&T's quarter as Legacy kept shrinking. rose 2.3% to $31.6B and expanded to 22.3% as Advanced Connectivity rose 20.3% to $7.3B, while the Legacy 's revenue fell 25.9% to $1.6B. The business is growing where it has invested and contracting where it has not, with a $23B spectrum deal pending.
Key takeaways
Advanced Connectivity rose 20.3% to $7.3B with margin expanding from 22.2% to 25.7%, driven by growth and lower partly offset by higher acquired fiber customer and bad debt costs.
Consolidated rose 2.3% to $31.6B, with service revenue up 2.7% to $26.0B from Advanced Connectivity fiber and wireless growth including the Lumen mass markets fiber acquisition and favorable Mexico FX, offset by lower Legacy revenues.
Section summaries
Management's Discussion and Analysis
AT&T's Q2 2026 revenue rose 2.3% to $31.6B, driven by Advanced Connectivity fiber and wireless growth, while operating income margin expanded to 22.3%.
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Consolidated operating revenues increased 2.3% to $31.6B in Q2 2026, with service up 2.7% to $26.0B, reflecting higher Advanced Connectivity fiber and wireless revenues, including the Lumen mass markets fiber acquisition, and favorable FX in Mexico, partially offset by lower Legacy revenues.
Legacy fell 25.9% to $1.6B on declining copper-based service demand, and its dropped 45.5% to $523M as decommissioning savings were partly offset by vendor settlements.
service grew 17.8% to $780M on favorable FX and postpaid gains, but declined 17.4% to $38M on higher FX and bad debt expenses.
H1 2026 was $18.4B, down slightly from $18.8B a year earlier, with lower cash taxes offset by a $100M voluntary pension contribution; was $11.2B including vendor financing, up $1.6B.
The $23B EchoStar spectrum acquisition is expected to close by end of July 2026 funded by cash and term loans, with $17.6B cash and equivalents at June 30 and $11.3B remaining under authorizations.
What changed
Q1 2026 flagged the Legacy 's 25.3% decline; Q2 2026 Legacy revenue fell 25.9% to $1.6B, showing copper erosion holding at that pace rather than accelerating.
Q1 2026 flagged total debt at $131.6B and near-term maturity funding; Q2 2026 cash and equivalents were $17.6B at June 30 with the EchoStar deal pending, and was $131.6B in Q1 2026 per the table (Q2 2026 debt not in table).
Q1 2026 flagged closing the Lumen mass markets fiber acquisition and sale of Forged Fiber held for sale; Q2 2026 narrative confirms the Lumen acquisition is included in Advanced Connectivity revenues, with Forged Fiber not addressed this quarter.
FY 2025 flagged 2026 of $23-24B; H1 2026 capital investment was $11.2B including vendor financing, up $1.6B , tracking toward that range.
The Q1 2026 risk of postpaid was not carried as a Q2 2026 watch item in the provided narrative; Q2 2026 MD&A does not report churn, and the 10-Q risk factor section notes no material developments from the 2025 annual report.
What to watch
Close of the $23B EchoStar spectrum acquisition by end of July 2026 and its effect on cash, debt, and term loan balances.
Q3 2026 Legacy and after the 25.9% Q2 decline to see if copper erosion stabilizes or accelerates.
Q3 2026 against H1 2026 of $11.2B and the ~$2.0B quarterly run-rate.
Disposition of Forged Fiber held for sale, noted in Q1 2026 and not updated in this filing.
Advanced Connectivity rose 20.3% to $7.3B in Q2 2026, with expanding from 22.2% to 25.7%, driven by growth and lower , partially offset by higher operations and support costs from advertising, acquired fiber customer costs, and bad debt.
Legacy revenues fell 25.9% to $1.6B in Q2 2026 due to declining demand for copper-based services, while dropped 45.5% to $523M as cost reductions from decommissioning were partly offset by vendor settlements.
service revenues grew 17.8% to $780M in Q2 2026, benefiting from favorable FX and postpaid subscriber growth, but declined 17.4% to $38M due to higher expenses from FX and bad debt.
was $18.4B for H1 2026, down slightly from $18.8B in H1 2025, with lower cash tax payments offset by a $100M voluntary pension contribution; capital investment was $11.2B including , up $1.6B .
AT&T expects to close the $23B EchoStar spectrum acquisition by end of July 2026, funded by cash and term loans, and has $17.6B in cash and equivalents as of June 30, 2026, with $11.3B remaining under authorizations.
Quantitative and Qualitative Disclosures About Market Risk
At June 30, 2026, we had no interest rate swaps. We have fixed-to-fixed and floating-to-fixed cross-currency swaps on foreign currency-denominated debt instruments with a U.S. dollar notional value of $36,037 to hedge our exposure to changes in foreign currency exchange rates an…
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At June 30, 2026, we had no interest rate swaps.
We have fixed-to-fixed and floating-to-fixed cross-currency swaps on foreign currency-denominated debt instruments with a U.S. dollar notional value of $36,037 to hedge our exposure to changes in foreign currency exchange rates and interest rates. These derivatives have been designated as fair value or cash flow hedges with a net fair value of $(1,827) at June 30, 2026.
We discuss in our Annual Report on Form 10-K for the year ended December 31, 2025 various risks that may materially affect our business. We use this section to update this discussion to reflect material developments. For the second quarter of 2026, there were no such material de…
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We discuss in our Annual Report on Form 10-K for the year ended December 31, 2025 various risks that may materially affect our business. We use this section to update this discussion to reflect material developments. For the second quarter of 2026, there were no such material developments.