$T · AT&T INC.
AT&T filed its Q3 FY2026 10-Q, reporting revenue of $32.32B (+5.3% YoY) and GAAP EPS of $0.12, down from $1.29 a year ago. The collapse was driven by a $3.37B asset impairments and abandonments and restructuring charge. Net income attributable to AT&T fell to $891M from $9.31B in Q3 2025. Operating income dropped 33% to $4.1B. The balance sheet shows long-term debt rising to $150.1B from $127.1B at year-end 2025, with $25.68B spent on acquisitions in the first nine months.
- Q3 GAAP EPS of $0.12 vs $1.29 a year ago — a 90.7% collapse driven by a $3.37B asset impairment and restructuring charge.
- Revenue rose 5.3% YoY to $32.32B, with service revenue up 3.8% and equipment revenue up 12.1%.
- Operating income fell 33% YoY to $4.1B; operating margin compressed to 12.7% from 19.9% in Q3 2025.
- Postpaid phone net adds slowed to 379K (vs 405K a year ago); postpaid phone churn held flat at 0.92%.
- AT&T Fiber added 2.44M subscribers YoY (24.1% growth), reaching 12.56M total fiber connections.
Stock fell 6.45% in the regular session to $21.91; extended-hours show a modest +0.37% bounce to $21.99, suggesting the impairment-driven earnings collapse was largely priced in during regular trading.
A $3.37B impairment charge decimated quarterly profits at America's largest telecom by market cap, while debt surged $23B in nine months — a double red flag for income investors.
AT&T's fiber growth (+24.1% YoY) outpaces cable peers but the massive impairment charge contrasts with Verizon's cleaner Q3. Wireless competition remains intense — postpaid phone net adds decelerated while T-Mobile continues gaining share.
The $3.37B asset impairment and restructuring charge signals potential overvaluation of legacy assets. Interest expense rose 16.4% YoY to $1.98B as long-term debt climbed to $150.1B from $127.1B at year-end 2025. The $25.68B in acquisitions (net of cash) in the first nine months raises integration/
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