AT&T Reports 5.3% Revenue Growth in Q3 2026, Net Income Declines Due to Impairment Charge

AT&T Inc. reported its financial results for the third quarter and the first nine months of 2026, revealing a total operating revenue of $32.3 billion for the third quarter, a 5.3% increase from $30.7 billion in the same period last year. For the nine-month period ending September 30, 2026, total operating revenues reached $95.4 billion, up 3.5% from $92.2 billion in 2025. The company's net income attributable to common stock was $855 million, or $0.12 per diluted share, compared to $9.3 billion, or $1.29 per diluted share, in the prior year quarter. The significant decline in profitability was attributed to increased operating expenses and a noncash impairment charge related to the company's held-for-sale Mexico wireless business.

Operating expenses for the third quarter rose to $28.2 billion, a 14.8% increase from $24.6 billion in the previous year, driven primarily by higher operations and support costs, which surged by 20.6% to $23.2 billion. This increase was largely due to a noncash impairment charge, employee separation costs, and higher equipment sales expenses. The company's operating income fell to $4.1 billion, down 33.1% from $6.1 billion in the third quarter of 2025. For the nine-month period, operating income decreased by 3.2% to $17.8 billion.

Strategically, AT&T completed the acquisition of Lumen Technologies' Mass Markets fiber business for $5.8 billion in February 2026, which has been integrated into its Advanced Connectivity segment. The company also announced plans to sell its Mexico wireless business, classifying it as held-for-sale, which resulted in a noncash impairment charge of approximately $2.6 billion. Additionally, AT&T entered into a joint venture with Verizon and T-Mobile to enhance wireless coverage in underserved areas through pooled spectrum resources.

In terms of operational metrics, AT&T reported a total of 110.2 million retail wireless subscribers as of September 30, 2026, reflecting a 1.3% increase year-over-year. The company also saw a 29.3% increase in internet connections, totaling 16.2 million, driven by growth in fiber and fixed wireless services. The Advanced Connectivity segment's operating revenues increased by 7.2% to $29.5 billion in the third quarter, supported by higher wireless service and equipment revenues.

Looking ahead, AT&T anticipates continued revenue growth driven by its investments in fiber and 5G networks, despite challenges posed by the ongoing decommissioning of its legacy copper network. The company expects to maintain its focus on enhancing customer experience and operational efficiency while navigating the competitive landscape of the telecommunications industry.