T earnings analysis
What we found in T's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AT&T reported $31.558 billion of Q2 revenue, up 2.3% year over year and slightly above the prior quarter, while reported EPS of $0.65 exceeded the $0.54 recorded in 2026 Q1. Performance was led by Advanced Connectivity, where operating income rose 20.3% to $7.345 billion and operating margin reached 25.7%. Free cash flow improved to $4.7 billion, but the 45.5% decline in Legacy operating income to $523 million remains a meaningful offset to core-connectivity momentum.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue returned to year-over-year growth
- Revenue was $31.558 billion, up $708 million, or 2.3%, from $30.850 billion in 2025 Q2 and modestly above $31.510 billion in 2026 Q1.
- Advanced Connectivity margin expanded
- Advanced Connectivity operating income increased $1.239 billion to $7.345 billion, a 20.3% increase, while its operating margin expanded to 25.7% from 22.2%.
- Core segment EBITDA strengthened
- Advanced Connectivity EBITDA rose 8.0% to $12.032 billion, and EBITDA margin improved 150 basis points to 42.0% from 40.5%.
- Free cash flow rebounded sharply
- Free cash flow was $4.7 billion, up from $2.68 billion in 2026 Q1 and above $4.4 billion in 2025 Q2.
- Share repurchases were substantial
- AT&T repurchased 86.234 million shares during the quarter at an average price of $25.01 per share; $11.296 billion remained available under repurchase authorizations at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Legacy business profitability deteriorated
- Legacy segment operating income fell $436 million to $523 million, a 45.5% year-over-year decline, and its operating margin contracted to 32.0% from 43.6%.
- Latin America operating margin compressed
- Latin America operating income declined 17.4% to $38 million and operating margin fell to 3.1% from 4.4%, despite EBITDA increasing 12.9% to $227 million.
- Large cross-currency hedge exposure
- Foreign-currency debt hedges had a U.S.-dollar notional value of $36.037 billion and a net fair value liability of $1.827 billion at June 30, 2026, leaving material market-value exposure.
- No risk-factor updates disclosed
- The filing states that there were no material risk-factor developments during the second quarter of 2026; therefore, it does not identify a new or revised risk factor versus the 2025 Form 10-K.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.65
- Segment
- Advanced Connectivity: operating income $7.345 billion, up 20.3% year over year; EBITDA $12.032 billion, up 8.0%.
- Segment
- Legacy: operating income $523 million, down 45.5% year over year; EBITDA $523 million, down 45.5%.
- Segment
- Latin America: operating income $38 million, down 17.4% year over year; EBITDA $227 million, up 12.9%.
What they said about what is next.
The supplied 10-Q text does not contain quantitative earnings or revenue guidance. Quantitative outlook was deferred to the earnings release/call rather than provided in the filing.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 27, 2026
- AT&T's 10-Q shows a modest revenue beat for Q1 with continued strength in the Advanced Connectivity business while Legacy and Latin America profitability weakened. Segment disclosures show Advanced Connectivity…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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