AT&T Inc.
10/21/2026 | Press release | Distributed by Public on 10/21/2026 14:25
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
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.
| Third Quarter | Nine-Month Period | ||||||||||||||||||||||||||||||||||
| Percent | Percent | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Advanced Connectivity Segment | |||||||||||||||||||||||||||||||||||
|
Operating income
|
$ | 7,628 | $ | 6,417 | 18.9 | % | $ | 21,826 | $ | 18,495 | 18.0 | % | |||||||||||||||||||||||
|
Add: Depreciation and amortization
|
4,702 | 5,076 | (7.4) | 14,094 | 15,084 | (6.6) | |||||||||||||||||||||||||||||
|
EBITDA
|
$ | 12,330 | $ | 11,493 | 7.3 | % | $ | 35,920 | $ | 33,579 | 7.0 | % | |||||||||||||||||||||||
|
Operating income margin
|
25.9 | % | 23.3 | % | 25.2 | % | 22.5 | % | |||||||||||||||||||||||||||
|
EBITDA margin
|
41.8 | % | 41.8 | % | 41.5 | % | 40.9 | % | |||||||||||||||||||||||||||
| Legacy Segment | |||||||||||||||||||||||||||||||||||
| Operating income | $ | 498 | $ | 679 | (26.7) | % | $ | 1,633 | $ | 2,657 | (38.5) | % | |||||||||||||||||||||||
|
Add: Depreciation and amortization
|
- | - | - | - | - | - | |||||||||||||||||||||||||||||
| EBITDA | $ | 498 | $ | 679 | (26.7) | % | $ | 1,633 | $ | 2,657 | (38.5) | % | |||||||||||||||||||||||
| Operating income margin | 32.8 | % | 33.7 | % | 33.2 | % | 40.4 | % | |||||||||||||||||||||||||||
| EBITDA margin | 32.8 | % | 33.7 | % | 33.2 | % | 40.4 | % | |||||||||||||||||||||||||||
|
Latin America Segment
|
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| Operating income | $ | 45 | $ | 22 | - | % | $ | 103 | $ | 111 | (7.2) | % | |||||||||||||||||||||||
|
Add: Depreciation and amortization
|
191 | 177 | 7.9 | 580 | 482 | 20.3 | |||||||||||||||||||||||||||||
| EBITDA | $ | 236 | $ | 199 | 18.6 | % | $ | 683 | $ | 593 | 15.2 | % | |||||||||||||||||||||||
| Operating income margin | 3.6 | % | 2.0 | % | 2.8 | % | 3.6 | % | |||||||||||||||||||||||||||
| EBITDA margin | 19.0 | % | 18.2 | % | 18.8 | % | 19.0 | % | |||||||||||||||||||||||||||
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