Revenue Growth Driven by Core Operations
AT&T grew total revenue 2.9% YoY to $31.5B in Q1 FY2026, up from $30.6B in the prior-year period, reflecting steady demand across its wireless and broadband segments.
Source: 10-Q Income Statement Data
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AT&T reported Q1 FY2026 revenue of $31.5B (+2.9% YoY) with operating income surging 15.7% to $6.7B, though net income declined 12.0% to $3.8B, likely due to higher below-the-line costs, while the company aggressively ramped share buybacks to $2.5B.
Revenue
$31.51B
+2.87% YoY
EPS (Diluted)
$0.54
-11.48% YoY
Operating Income
$6.66B
+15.71% YoY
Source: SEC XBRL
AT&T (T) reported Q1 FY2026 revenue of $31.51B, up 2.9% year over year. Operating margin was 21.1%, up 2.3 points from 18.8% a year earlier. T's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.65 | 0.60 | Beat +8.4% |
| Mar 2026This filing | 0.57 | 0.56 | Beat +1.6% |
| Dec 2025 | 0.52 | 0.47 | Beat +10.2% |
| Sep 2025 | 0.54 | 0.55 | Miss -1.0% |
Adjusted (non-GAAP) EPS of $0.57 versus the $0.56 analyst consensus — a +1.6% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.54.
Compiled by AI from this SEC filing
AT&T grew total revenue 2.9% YoY to $31.5B in Q1 FY2026, up from $30.6B in the prior-year period, reflecting steady demand across its wireless and broadband segments.
Source: 10-Q Income Statement Data
Operating income jumped 15.7% YoY to $6.7B, pushing operating margin from 18.8% to 21.1%, a 230 basis point improvement, suggesting meaningful cost discipline and operating efficiency gains relative to revenue growth.
Source: 10-Q Income Statement & Key Ratios
Net income fell 12.0% YoY to $3.8B from $4.4B, and diluted EPS dropped from $0.61 to $0.54, indicating that below-the-line items such as interest expense, tax provisions, or non-operating charges weighed heavily on bottom-line results.
Source: 10-Q Income Statement Data
Cash and equivalents surged 73.8% YoY to $12.0B, and share buybacks increased dramatically by over 1,000% YoY to $2.5B from just $218M, signaling management's confidence in the balance sheet and commitment to returning capital to shareholders.
Source: 10-Q Balance Sheet & Cash Flow Data
SG&A expenses rose a modest 2.4% YoY to $7.3B, roughly in line with revenue growth, suggesting AT&T is managing its selling and administrative cost base effectively without sacrificing growth investments.
Source: 10-Q Income Statement Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Despite a 15.7% increase in operating income, net income declined 12.0% YoY, creating a significant gap between operating and bottom-line results. This divergence likely reflects elevated interest expense on AT&T's substantial debt load or other non-operating charges. Sustained pressure below the operating line could limit earnings growth and dividend sustainability.
Source: 10-Q Income Statement Data
AT&T's current ratio stands at approximately 0.92, meaning current liabilities of $50.4B exceed current assets of $46.3B. While this is common for large telecom operators with predictable cash flows, it leaves limited buffer against unexpected short-term obligations. Any disruption to operating cash generation could tighten near-term liquidity.
Source: 10-Q Balance Sheet Data
Return on assets (ROA) is only 0.91% on a total asset base of $421.2B, indicating that AT&T's massive asset base — largely driven by spectrum licenses, network infrastructure, and goodwill — generates relatively thin returns. This reflects the capital-intensive nature of the business and the drag from significant long-term debt obligations.
Source: 10-Q Balance Sheet & Key Ratios
Share buybacks surged over 1,000% YoY to $2.5B in Q1 FY2026, a significant acceleration at a time when net income is declining. Sustaining aggressive buybacks alongside dividend obligations and capital expenditure requirements could strain free cash flow if operating conditions deteriorate.
Source: 10-Q Cash Flow Data
Depreciation and amortization fell 4.3% YoY to $5.0B, which could reflect aging asset bases or prior-period asset disposals. If this signals underinvestment in network infrastructure relative to peers, AT&T may face competitive disadvantages in 5G and fiber buildout over the medium term.
Source: 10-Q Cash Flow Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 31.51 $B | 30.63 $B | +2.87% |
Operating Income $B | 6.66 $B | 5.75 $B | +15.71% |
Net Income $B | 3.83 $B | 4.35 $B | -12.00% |
EPS (Basic) $ | 0.54 $ | 0.61 $ | -11.48% |
EPS (Diluted) $ | 0.54 $ | 0.61 $ | -11.48% |
SG&A Expense $B | 7.32 $B | 7.15 $B | +2.39% |
Answers draw on this SEC filing and the data on this page
AT&T delivered Q2 FY2026 revenue of $31.56B (+2.3% YoY) and operating income of $7.04B (+8.3% YoY), driven by strong Advanced Connectivity segment growth (fiber, wireless, AT&T Internet Air) and margin expansion, partially offset by continued declines in the Legacy segment and equity losses tied to the DIRECTV divestiture.
AT&T delivered a strong FY2025, with net income doubling to $21.95B and operating income surging 26.8% to $24.16B on modest 2.7% revenue growth of $125.65B, driven by improved margins and disciplined cost management.
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