Advanced Connectivity segment drives growth
Total Advanced Connectivity segment revenue rose 4.1% YoY to $28.615B in Q2, with operating income up 20.3% to $7.345B and operating margin expanding from 22.2% to 25.7%. Growth was led by Advanced home internet revenue (+27.3% YoY to $2.926B) and wireless service revenue (+3.3% YoY to $17.413B), including impacts from the Lumen mass markets fiber acquisition.
Legacy segment continues secular decline
Legacy segment revenue fell 25.9% YoY to $1.632B in Q2 as the company continues decommissioning its copper-based network; operating income fell 45.5% to $523M and operating margin declined from 43.6% to 32.0%, a trend management expects to continue.
Lumen fiber acquisition and Forged Fiber held-for-sale
On February 2, 2026, AT&T closed its acquisition of substantially all of Lumen's Mass Markets fiber business, placing acquired fiber assets into Forged Fiber 37 Services, LLC, which management intends to partially divest to an equity co-investment partner; as a result, Forged Fiber is classified as held-for-sale and reported as discontinued operations, excluded from continuing operations results.