ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW AT&T Inc. is referred to as “we,” “AT&T” or the “Company” throughout this document. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc., and the names of the particular subsidiaries and affiliates providing the services generally have been omitted. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this discussion in conjunction with the consolidated financial statements and accompanying notes (Notes). Our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this document generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this document can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10 ‑ K for the fiscal year ended December 31, 2024. We have two reportable segments: Communications and Latin America. Our segment results presented in Note 4 and discussed below follow our internal management reporting. Each segment’s percentage calculation of total segment operating revenue is derived from our segment results table in Note 4. Segment operating income is primarily attributable to our Communications segment due to prior-years operating losses in Latin America. Percentage increases and decreases that are not considered meaningful are denoted with a dash. Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating Revenues Communications $ 120,896   $ 117,652  $ 118,038  2.8    % (0.3) % Latin America 4,379   4,232  3,932  3.5   7.6 Corporate 373   452  458  (17.5) (1.3) AT&T Operating Revenues $ 125,648   $ 122,336  $ 122,428  2.7   % (0.1) % Operating Income (Loss) Communications $ 27,927   $ 27,095  $ 27,801  3.1   % (2.5) % Latin America 145   40  (141) —   — Segment Operating Income 28,072   27,135  27,660  3.5   (1.9) Corporate (2,559) (2,902) (2,961) 11.8   2.0 Certain significant items (1,351) (5,184) (1,238) 73.9   — AT&T Operating Income $ 24,162   $ 19,049  $ 23,461  26.8   % (18.8) % The Communications segment accounted for approximately 97% of our 2025 and 2024 total segment operating revenues and accounted for substantially all segment operating income in 2025 and 2024. This segment provides services to businesses and consumers located in the United States and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units: • Mobility provides nationwide wireless service and equipment. • Business Wireline provides advanced ethernet-based fiber services, fixed wireless services, IP Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. • Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and AT&T Internet Air (AIA) services, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services. The Latin America segment accounted for approximately 3% of our 2025 and 2024 total segment operating revenues and less than 1% of segment operating income in 2025 and 2024. This segment provides wireless service and equipment in Mexico. 20 AT&T Inc. Dollars in millions except per share amounts RESULTS OF OPERATIONS Consolidated Results Our financial results are summarized in the following table. We then discuss factors affecting our overall results. Additional analysis is discussed in our “Segment Results” section. We also discuss our expected revenue and expense trends for 2026 in the “Operating Environment and Trends of the Business” section. Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating revenues Service $ 101,158   $ 100,135  $ 99,649  1.0    % 0.5   % Equipment 24,490   22,201  22,779  10.3   (2.5) Total Operating Revenues 125,648   122,336  122,428  2.7   (0.1) Operating expenses Operations and support 79,762   77,632  78,997  2.7   (1.7) Asset impairments and abandonments and restructuring 838   5,075  1,193  (83.5) — Depreciation and amortization 20,886   20,580  18,777  1.5   9.6 Total Operating Expenses 101,486   103,287  98,967  (1.7) 4.4 Operating Income 24,162   19,049  23,461  26.8   (18.8) Interest expense 6,804   6,759  6,704  0.7   0.8 Equity in net income of affiliates 1,895   1,989  1,675  (4.7) 18.7 Other income (expense) – net 7,754   2,419  1,416  —   70.8 Income Before Income Taxes 27,007   16,698  19,848  61.7   (15.9) Net Income 23,386   12,253  15,623  90.9   (21.6) Net Income Attributable to AT&T 21,953   10,948  14,400  —   (24.0) Net Income Attributable to Common Stock $ 21,889   $ 10,746  $ 14,192  —   % (24.3) % OVERVIEW Operating revenues increased in 2025, reflecting higher Mobility and Consumer Wireline revenues, partially offset by declines in Business Wireline. Operating revenues in Mexico were also higher, overcoming unfavorable foreign exchange impacts during the first half of 2025. Operations and support expenses increased in 2025, reflecting higher sales volumes in our Mobility business unit, which drove higher equipment, advertising, selling and bad debt expenses. Also contributing to higher costs were approximately $440 of apportioned legal settlements during 2025, higher network-related expenses and advertising costs due to the launch of a new campaign in 2025. Increases were partially offset by declines from our continued transformation efforts and lower content licensing fees. Asset impairments and abandonments and restructuring decreased in 2025, with higher impairments in 2024. Noncash charges in 2024 primarily related to a goodwill impairment charge of $4,422 associated with our Business Wireline reporting unit as well as restructuring charges, including termination fees associated with our network modernization program to deploy commercial scale open radio access network (Open RAN). Expenses in 2025 primarily relate to restructuring severance charges. Depreciation and amortization expense increased in 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades, partially offset by lower depreciation from fully depreciated legacy assets and impacts from our Open RAN network modernization efforts. Operating income increased in 2025 and decreased in 2024. Our operating margin was 19.2% in 2025, compared to 15.6% in 2024, and 19.2% in 2023. Interest expense increased in 2025, primarily due to lower capitalized interest associated with spectrum acquisitions. The increase was partially offset by lower average commercial paper balances. 21 AT&T Inc. Dollars in millions except per share amounts Equity in net income of affiliates decreased in 2025, reflecting our sale of DIRECTV in July 2025. The decrease was partially offset by cash distributions received by AT&T in excess of the carrying amount of our investment in DIRECTV prior to disposition (see Notes 10 and 19). Other income (expense) – net increased in 2025. The increase was primarily due to a gain of approximately $5,600 recognized on the sale of our interest in DIRECTV (see Note 10). The increase was also driven by a gain on a prior disposition and noncash impairment charges for a held-for-sale business and our SKY Mexico equity investment. Partially offsetting the increases were lower pension and postretirement benefit credits and lower returns on other benefit-related investments. Income tax expense decreased in 2025, primarily due to a lower effective tax rate driven by a tax-free gain on sale of DIRECTV in 2025 and a goodwill impairment in 2024, which is not deductible for tax purposes. Our effective tax rate was 13.4% in 2025, 26.6% in 2024, and 21.3% in 2023, reflecting the nonrecognition of income taxes on the DIRECTV gain and larger discrete tax benefits in 2025, and the goodwill impairment in 2024, which was not deductible for tax purposes. Segment Results Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We evaluate segment performance based on operating income as well as EBITDA and/or EBITDA margin. See “Discussion and Reconciliation of Non-GAAP Measures” for a reconciliation of EBITDA and EBITDA margin to the most comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP). COMMUNICATIONS SEGMENT Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Segment Operating Revenues Mobility $ 89,482   $ 85,255  $ 83,982  5.0    % 1.5   % Business Wireline 17,231   18,819  20,883  (8.4) (9.9) Consumer Wireline 14,183   13,578  13,173  4.5   3.1 Total Segment Operating Revenues $ 120,896   $ 117,652  $ 118,038  2.8   % (0.3) % Segment Operating Income (Loss) Mobility $ 27,196   $ 26,314  $ 25,861  3.4   % 1.8  % Business Wireline (816) (88) 1,289  —   — Consumer Wireline 1,547   869  651  78.0   33.5 Total Segment Operating Income $ 27,927   $ 27,095  $ 27,801  3.1    % (2.5)  % Operating revenues increased in 2025, driven by increases in Mobility service revenue and our Consumer Wireline business unit, driven by gains in wireless and broadband services. Partially offsetting these increases were declines in our Business Wireline business unit, which reflects lower demand for legacy services. Operating income increased in 2025 and decreased in 2024. The 2025 operating income reflects an increase in operating income from our Mobility and Consumer Wireline business units, partially offset by a decrease in our Business Wireline business unit. Our Communications segment operating income margin was 23.1% in 2025, 23.0% in 2024 and 23.6% in 2023. Our Communications segment EBITDA margin was 39.6% in 2025, 39.5% in 2024 and 38.3% in 2023. 22 AT&T Inc. Dollars in millions except per share amounts Communications Business Unit Discussion Mobility Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating revenues Service $ 67,384   $ 65,373  $ 63,175  3.1    % 3.5  % Equipment 22,098   19,882  20,807  11.1   (4.4) Total Operating Revenues 89,482   85,255  83,982  5.0   1.5 Operating expenses Operations and support 51,864   48,724  49,604  6.4   (1.8) Depreciation and amortization 10,422   10,217  8,517  2.0   20.0 Total Operating Expenses 62,286   58,941  58,121  5.7   1.4 Operating Income $ 27,196   $ 26,314  $ 25,861  3.4   % 1.8  % The following tables highlight other key measures of performance for Mobility: Subscribers Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Postpaid 90,879 89,200 87,104 1.9   % 2.4  % Postpaid phone 74,214 72,749 71,255 2.0   2.1 Prepaid 18,294 19,023 19,236 (3.8) (1.1) Reseller 10,932 9,628 7,468 13.5   28.9 Total Mobility Subscribers 1 120,105 117,851 113,808 1.9    % 3.6   % 1 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. Mobility Net Additions Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Postpaid Phone Net Additions 1,551 1,653 1,744 (6.2)  % (5.2)  % Total Phone Net Additions 1,159 1,525 1,801 (24.0) (15.3) Postpaid 1 1,738 2,250 2,315 (22.8) (2.8) Prepaid (536) (102) 128 —   — Reseller 1,112 2,020 1,279 (45.0) 57.9 Mobility Net Subscriber Additions 2,3 2,314 4,168 3,722 (44.5)  % 12.0   % Postpaid Churn 4 1.05    % 0.92   % 0.98   % 13    BP (6)  BP Postpaid Phone Churn 4 0.90    % 0.76   % 0.81   % 14    BP (5)  BP 1 In addition to postpaid phones, includes tablets and wearables and other. Tablet net adds (losses) were 143, 167 and (68) for the years ended December 31, 2025, 2024 and 2023, respectively. Wearables and other net adds were 44, 430 and 639 for the years ended December 31, 2025, 2024 and 2023, respectively. 2 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. 3 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. 4 Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period. 23 AT&T Inc. Dollars in millions except per share amounts Service revenue increased during 2025, largely due to growth from subscriber gains, partially offset by promotional activity. ARPU Postpaid ARPU increased in 2025 reflecting pricing actions that were largely offset by increased promotional activity, growth in our converged customer relationships, and our success in attracting customers in underpenetrated segments with lower ARPUs but attractive lifetime values, such as age 55-plus in our “value customers.” Churn The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins. Postpaid churn and postpaid phone churn were higher in 2025, partially driven by an increase in our customer base that reached the end of device financing periods, which normalized in the second half of 2025. Equipment revenue increased in 2025, primarily driven by higher wireless device sales volumes. Operations and support expenses increased in 2025, primarily due to higher sales volumes, which drove higher equipment, advertising, selling and bad debt expenses. The increase also reflected higher advertising due to the launch of a new campaign, and higher network costs that were partially offset by lower content licensing fees and expense declines from transformation efforts. Depreciation expense increased in 2025, primarily due to ongoing capital spending for network upgrades and expansion, partially offset by lower depreciation impacts from our network modernization efforts. Operating income increased in 2025 and 2024. Our Mobility operating income margin was 30.4% in 2025, 30.9% in 2024 and 30.8% in 2023. Our Mobility EBITDA margin was 42.0% in 2025, 42.8% in 2024 and 40.9% in 2023. Business Wireline Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating revenues Legacy and other transitional services $ 9,170   $ 11,095  $ 13,680  (17.4) % (18.9) % Fiber and advanced connectivity services 7,333   6,969  6,594  5.2   5.7 Equipment 728   755  609  (3.6) 24.0 Total Operating Revenues 17,231   18,819  20,883  (8.4) (9.9) Operating expenses Operations and support 12,213   13,352  14,217  (8.5) (6.1) Depreciation and amortization 5,834   5,555  5,377  5.0   3.3 Total Operating Expenses 18,047   18,907  19,594  (4.5) (3.5) Operating Income (Loss) $ (816) $ (88) $ 1,289  —   % —  % Legacy and other transitional services revenues decreased in 2025, driven by lower demand for legacy and VPN services, which we expect to continue as we decommission our copper-based legacy network. These revenue declines were partially offset by targeted pricing actions in the first quarter of 2025. Fiber and advanced connectivity services revenues increased in 2025, driven by higher fiber and fixed wireless revenues. Equipment revenues decreased in 2025, driven by lower customer premises equipment sales, which can vary from year to year based on the nature of services purchased. Operations and support expenses decreased in 2025, primarily driven by lower personnel and customer support costs associated with ongoing transformation initiatives. Expense declines also include lower network and advertising costs. Depreciation expense increased in 2025, primarily due to ongoing capital investment for strategic initiatives such as fiber, partially offset by fully depreciated legacy assets. 24 AT&T Inc. Dollars in millions except per share amounts Operating income decreased in 2025 and 2024. Our Business Wireline operating income margin was (4.7)% in 2025, (0.5)% in 2024 and 6.2% in 2023. Our Business Wireline EBITDA margin was 29.1% in 2025, 29.1% in 2024 and 31.9% in 2023. Consumer Wireline Results Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Operating revenues Broadband $ 12,187   $ 11,212  $ 10,455  8.7   % 7.2  % Legacy voice and data services 1,013   1,265  1,508  (19.9) (16.1) Other service and equipment 983   1,101  1,210  (10.7) (9.0) Total Operating Revenues 14,183   13,578  13,173  4.5   3.1 Operating expenses Operations and support 8,933   9,048  9,053  (1.3) (0.1) Depreciation and amortization 3,703   3,661  3,469  1.1   5.5 Total Operating Expenses 12,636   12,709  12,522  (0.6) 1.5 Operating Income $ 1,547   $ 869  $ 651  78.0   % 33.5  % The following tables highlight other key measures of performance for Consumer Wireline: Broadband Connections Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Broadband 1 14,704   13,987  13,729  5.1   % 1.9  % Fiber Broadband Connections 10,406   9,331  8,307  11.5   % 12.3  % 1 Includes AIA. Broadband Net Additions Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Broadband Net Additions 1,2 729 258  (24) —   % —  % Fiber Broadband Net Additions 1,075 1,024 1,092 5.0   % (6.2) % 1 Includes AIA. 2 Excludes the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025. Broadband revenues increased in 2025, driven by an increase in fiber revenues of 17.0%. Higher fiber revenues reflect an increase in fiber customers, which we expect to continue as we invest further in building our fiber footprint, and higher ARPU. This increase also includes growth in AIA revenues and was partially offset by declines in copper-based broadband services. Legacy voice and data service revenues decreased in 2025, reflecting the continued decline in demand for these services in favor of other technologies, such as wireless and fiber services. Other service and equipment revenues decreased in 2025, reflecting the continued decline in the number of VoIP customers. Operations and support expenses decreased in 2025, driven by lower customer support costs and content licensing fees, offset by higher network-related expenses and marketing costs. Depreciation expense increased in 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades and expansion, partially offset by fully depreciated legacy assets. Operating income increased in 2025 and 2024. Our Consumer Wireline operating income margin was 10.9% in 2025, 6.4% in 2024 and 4.9% in 2023. Our Consumer Wireline EBITDA margin was 37.0% in 2025, 33.4% in 2024 and 31.3% in 2023. 25 AT&T Inc. Dollars in millions except per share amounts LATIN AMERICA SEGMENT Percent Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Segment Operating revenues Service $ 2,715   $ 2,668  $ 2,569  1.8    % 3.9  % Equipment 1,664   1,564  1,363  6.4   14.7 Total Segment Operating Revenues 4,379   4,232  3,932  3.5   7.6 Segment Operating expenses Operations and support 3,563   3,535  3,349  0.8   5.6 Depreciation and amortization 671   657  724  2.1   (9.3) Total Segment Operating Expenses 4,234   4,192  4,073  1.0   2.9 Operating Income (Loss) $ 145   $ 40  $ (141) —   % —  % The following tables highlight other key measures of performance for Mexico: Subscribers Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Postpaid 6,751   5,837  5,236  15.7   % 11.5  % Prepaid 17,730   17,486  16,663  1.4   4.9 Reseller 199   253  417  (21.3) (39.3) Mexico Wireless Subscribers 24,680   23,576  22,316  4.7   % 5.6  % Mexico Wireless Net Additions Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Postpaid 914   601  311  52.1   % 93.2  % Prepaid 244   823  459  (70.4) 79.3 Reseller (54) (164) (57) 67.1   — Mexico Wireless Net Additions 1,104   1,260  713  (12.4) % 76.7  % Service revenues increased in 2025, reflecting growth in subscribers and ARPU, partially offset by unfavorable foreign exchange impacts. Equipment revenues increased in 2025, driven by higher equipment sales, partially offset by unfavorable foreign exchange impacts. Operations and support expenses increased in 2025, driven by increased sales volume, resulting in higher equipment, selling and bad debt expense, partially offset by favorable impact of foreign exchange. Depreciation expense increased in 2025, primarily due to accelerated depreciation on certain network assets and higher in-service assets, partially offset by favorable impact of foreign exchange. Operating income improved in 2025 and 2024. Our Mexico operating income margin was 3.3% in 2025, 0.9% in 2024 and (3.6)% in 2023. Our Mexico EBITDA margin was 18.6% in 2025, 16.5% in 2024 and 14.8% in 2023. OPERATING ENVIRONMENT AND TRENDS OF THE BUSINESS 2026 Revenue Trends We expect revenue growth in our wireless and broadband businesses as customers demand instant connectivity and higher speeds made possible by wireless network enhancements through 5G deployment and our fiber network expansion. We believe that our simplified go-to-market strategy for 5G in underpenetrated markets will continue to contribute 26 AT&T Inc. Dollars in millions except per share amounts to wireless subscriber and service revenue growth and that expansion of our fiber and AIA serviceable locations will drive greater demand for broadband services. We expect that an increasing portion of our revenues will come from converged customers with seamless connectivity through an innovative product portfolio and strong customer relationships. As we expand our fiber reach, we will be orienting our business portfolio to leverage this opportunity to offset continuing declines in legacy Business Wireline products by growing connectivity with small to mid-sized businesses. We plan to use our strong fiber and wireless assets, broad distribution and integrated product offerings to strengthen our overall market position. We will continue to rationalize our product portfolio with a longer-term shift of the business to fiber and wireless connectivity, and growth in value-added services. As customers are demanding faster and more reliable services, we are decommissioning our legacy copper network and enhancing our offerings to include services that provide better experiences over newer technologies, such as AT&T Internet Air. 2026 Expense Trends During 2026, we expect expense trends consistent with the prior year, and that we will continue to focus on efficiency, led by our cost transformation initiative. We expect the spending required to support growth and efficiency initiatives, primarily our continued deployment of fiber and 5G, to pressure expense trends in 2026. These investments will help prepare us to meet the continued increase in customer demand for enhanced wireless and broadband services, including on-the-go video streaming, augmented reality, “smart” technologies, user generated content and AI. Our network modernization efforts should result in a more efficient use of capital and lower network-related expenses in the coming years. Furthermore, access to our network and newer technology may drive customers to upgrade devices and equipment, the expenses associated with those equipment sales are expected to contribute to higher costs. We continue to transform our operations to be more efficient and effective. We are restructuring businesses, working with regulators and customers to sunset legacy networks, improving customer service and ordering functions through digital transformation, sizing our support costs and staffing with current activity levels, and reassessing overall benefit costs. We also expect cost savings through AI-driven efficiencies in network design and operations, software development, sales, marketing, customer support services and general and administrative costs. Market Conditions In recent years, uncertainty surrounding global growth rates, tariffs, inflation and a higher interest rate environment continued to produce volatility in the credit, currency and equity markets. We expect ongoing pressure on pricing during 2026 as we respond to the geopolitical and macroeconomic environment and our competitive marketplace, especially in wireless services. Included on our consolidated balance sheets are assets held by benefit plans for the payment of future benefits. Our pension plans are subject to funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). We plan to voluntarily contribute approximately $350 to our pension plans in 2026 and expect only minimal ERISA contribution requirements. Investment returns on these assets depend largely on trends in the economy, and a weakness in the equity, fixed income and real asset markets could require us to make future contributions to the pension plans. In addition, our policy of recognizing actuarial gains and losses related to our pension and other postretirement plans in the period in which they arise subjects us to earnings volatility caused by changes in market conditions; however, these actuarial gains and losses do not impact segment performance as they are required to be recorded in “Other income (expense) – net.” Changes in our discount rate, which are tied to changes in the bond market, and changes in the performance of equity markets, may have significant impacts on the valuation of our pension and other postretirement obligations at the end of 2026 (see “Critical Accounting Policies and Estimates”). Expected Growth Areas Over the next few years, we expect our growth to come from wireless and IP-based fiber broadband services. We provide integrated services to diverse groups of customers in the United States. on a converged telecommunications network utilizing different technological platforms. In 2026, our key initiatives include: • Continuing our wireless subscriber momentum and 5G deployment, with expansion of wireless subscribers in underpenetrated markets and converged connectivity. • Continuing our fiber deployment, improving fiber penetration, growing AT&T Internet Air services, accelerating connectivity growth and increasing broadband revenues, inclusive of impact of integrating recent acquisitions of spectrum and fiber assets. • Continuing our deployment of Open RAN to build a more robust ecosystem of network infrastructure providers and suppliers, fostering lower network costs, improved operational efficiencies and allowing for continued investment in our fast-growing broadband network. • Continuing to drive efficiencies and a competitive advantage through cost transformation initiatives, including modernization of our IT infrastructure and product simplification. Wireless We expect to continue to deliver revenue growth in the coming years. We are in a period of rapid growth in wireless video and data usage and believe that there are substantial opportunities available for next-generation integrated services that 27 AT&T Inc. Dollars in millions except per share amounts combine technologies and services. As of December 31, 2025, we served 145 million wireless subscribers in North America, with 120 million in the United States. Our LTE technology covers over 441 million people in North America, and in the United States, we cover all major metropolitan areas and over 337 million people. At December 31, 2025, our network covers more than 322 million people with 5G technology in the United States and North America. When combined with our upgraded backhaul network, we provide enhanced network capabilities and superior mobile broadband speeds for data and video services. Our networks covering both the United States and Mexico have enabled our customers to use wireless services without roaming on other companies’ networks. At December 31, 2025, we provided LTE coverage to over 104 million people in Mexico. Integration of Wireless and Fiber Services The communications industry has evolved into internet-based technologies capable of converging the offering of wireline and wireless services. As the owner and operator of scaled wireless and fiber networks, we plan to continue to focus on expanding our wireless network capabilities and providing broadband offerings that allow customers to integrate their home or business fixed services with their mobile service. We intend to continue to develop and provide unique integrated mobile and broadband/fiber solutions. REGULATORY LANDSCAPE AT&T subsidiaries operating within the United States are subject to federal and state regulatory authorities. While these issues may apply only to certain subsidiaries, the words “we,” “AT&T” and “our” are used to simplify the discussion. The following discussions are intended as a condensed summary of the issues rather than as a comprehensive legal analysis and description of all of these specific issues. International Regulation Our subsidiaries operating outside the United States are subject to the jurisdiction of regulatory authorities in the territories in which the subsidiaries operate. Our licensing, compliance and advocacy initiatives in foreign countries primarily enable the provision of enterprise (i.e., large business) services globally and wireless services in Mexico. The General Data Protection Regulation went into effect in Europe in May of 2018. This regulation created a range of new compliance obligations and significantly increased financial penalties for noncompliance. AT&T processes and handles personal data of its customers and subscribers, employees of its enterprise customers and its employees. U.S. Regulation In the Telecommunications Act of 1996 (Telecom Act), Congress established a national policy framework intended to bring the benefits of competition and investment in advanced telecommunications facilities and services to all Americans by opening all telecommunications markets to competition and reducing or eliminating regulatory burdens that harm consumer welfare. Nonetheless, since then, the FCC and some state regulatory commissions have maintained, re-imposed or expanded certain regulatory requirements that were imposed decades ago on our traditional wireline subsidiaries when they operated as legal monopolies. Recently, the FCC’s regulatory approach has depended on control of the executive branch, eliminating a variety of antiquated and unnecessary regulations in a number of areas, while imposing or re-imposing regulations in other areas. We continue to support regulatory and legislative measures and efforts, at both the state and federal levels, to reduce inappropriate regulatory burdens that inhibit our ability to compete effectively and offer needed services to our customers, including initiatives to transition services from traditional networks to all IP-based networks. At the same time, we also seek to ensure that legacy regulations are not further extended to broadband or wireless services, which are subject to vigorous competition. We have organized the following discussion by service impacted. Internet Until 2015, the FCC classified fixed and mobile consumer broadband internet access services as information services subject to minimal regulation. In 2015, the FCC reclassified such services as telecommunications services subject to broader regulation by the FCC and imposed “net neutrality rules.” Since then, the FCC has twice reversed course, most recently again reclassifying such services as telecommunications services subject to broader regulation by the FCC in an order adopted on April 25, 2024. Multiple trade associations and other parties challenged the FCC’s reclassification decision in appeals consolidated in the U.S. Court of Appeals for the Sixth Circuit. The trade associations petitioned the Sixth Circuit to stay the FCC’s order. On August 1, 2024, the Sixth Circuit issued a stay of the FCC order pending review of the appeals, holding that broadband providers are likely to succeed on the merits. On January 2, 2025, the Sixth Circuit issued an order granting the petition for review and setting aside the FCC net neutrality order, holding that broadband internet access service is an information service. In 2021, New York enacted the Affordable Broadband Act (ABA), requiring ISPs offering “fixed” mass-market broadband service, including fixed wireless, to offer discounted plans to low-income customers. In June 2021, the ABA was enjoined by a federal district court, which found the ABA preempted by federal law. In April 2024, the Second Circuit overruled and vacated the district court order. The Supreme Court subsequently denied the trade association’s request for review. Under an agreement 28 AT&T Inc. Dollars in millions except per share amounts with the New York Attorney General, the law began to be enforced on January 15, 2025. A number of state legislatures have since considered legislation regulating the rates of fixed broadband service, with Connecticut adopting a law requiring wireline ISPs that are state contractors to stand up a discounted broadband offering to low-income customers. Since 2018, some states have adopted legislation or issued executive orders that established state net neutrality rules, including California, Maine, Minnesota, Vermont and Washington. Additional states may seek to impose net neutrality requirements in the future. On November 15, 2023, the FCC adopted rules to “facilitate” equal access to broadband and prevent digital discrimination in broadband access. The rules, which became effective March 22, 2024, prohibit covered entities from implementing policies or practices not justified by genuine issues of technical or economic feasibility, that differentially impact consumers’ access to broadband internet access service based on prohibited characteristics (including income level, race and ethnicity) or that have such differential impact, whether intentional or not. The rules broadly apply prospectively to all aspects of an ISP’s service that could impact a consumer’s ability to access broadband, including deployment, marketing and credit checks, among other things. We may be required to answer complaints alleging that the company has violated the FCC rules, and those complaints may seek relief, including changes to our business practices or civil forfeitures that could result in significant costs or reputational harm. It is currently uncertain how the FCC will enforce these new rules. Several business associations have filed appeals challenging the rules and several of those appeals have been consolidated in the Eighth Circuit, which held oral argument on September 25, 2024. Privacy-related legislation continues to be adopted or considered in a number of jurisdictions. Legislative, regulatory and litigation actions could result in increased costs of compliance, further regulation or claims against broadband internet access service providers and others, and increased uncertainty in the value and availability of data. Infrastructure Investment On November 15, 2021, the Infrastructure Investment and Jobs Act (IIJA) was signed into law. The legislation appropriates $65,000 to support broadband deployment and adoption. The National Telecommunications and Information Agency (NTIA) is responsible for distributing more than $48,000 of this funding, including $42,500 in state grants for broadband deployment projects in unserved and underserved areas through the Broadband, Equity, Access and Deployment (BEAD) Programs. NTIA and states are in the process of administering these grants. Where appropriate, AT&T has applied for, and in some cases has been awarded, and may continue to apply for grants under this or other government infrastructure programs. Wireless Industry-wide network densification and 5G technology expansion efforts, which are needed to satisfy extensive demand for video and internet access, will involve significant deployment of “small cell” equipment. This increases the importance of local permitting processes that allow for the placement of small cell equipment in the public right-of-way on reasonable timelines and terms. The FCC has adopted multiple Orders streamlining federal, state and local wireless structure review processes that had the tendency to delay and impede deployment of small cell and related infrastructure used to provide telecommunications and broadband services. Additional spectrum will be needed industrywide for 5G and future services. On July 4, 2025, as part of the omnibus reconciliation package (One Big Beautiful Bill (OBBB)), the President signed into law a provision that reauthorized, for 10 years, FCC statutory authority to conduct spectrum auctions and further required auction of 800 MHz of spectrum within eight years. The FCC’s implementation of this legislation will have a direct impact on whether the wireless industry has sufficient spectrum to support future wireless services. As a first step, in November 2025, the FCC opened a rulemaking to consider the auctioning of spectrum in the upper C-Band, as required by OBBB. ACCOUNTING POLICIES AND STANDARDS Critical Accounting Policies and Estimates Because of the size of the financial statement line items they relate to or the extent of judgment required by our management, some of our accounting policies and estimates have a more significant impact on our consolidated financial statements than others. Pension and Postretirement Benefits Our actuarial estimates of retiree benefit expense and the associated significant weighted-average assumptions are discussed in Note 14. Our assumed weighted-average discount rates for pension and postretirement benefits of 5.50% and 5.30%, respectively, at December 31, 2025, reflect the hypothetical rate at which the projected benefit obligations could be effectively settled or paid out to participants. We determined our discount rate based on a range of factors, including a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date and corresponding to the related expected durations of future cash outflows for the obligations. These bonds had an average rating of at least Aa3 or AA- by the nationally recognized statistical rating organizations, denominated in U.S. dollars, and generally not callable, convertible or index linked. For the year ended December 31, 2025, when compared to the year ended December 31, 2024, we decreased our pension discount rate by 0.20%, resulting in an increase in our pension plan benefit obligation of $680, and decreased our postretirement discount rate by 0.30%, resulting in an increase in our postretirement benefit obligation of $167. 29 AT&T Inc. Dollars in millions except per share amounts Our expected long-term rate of return is 7.75% on pension plan assets and 4.00% on postretirement plan assets for 2025 and 2026. Our expected return on plan assets is calculated using the actual fair value of plan assets. If all other factors were to remain unchanged, we expect that a 0.50% decrease in the expected long-term rate of return would cause 2026 combined pension and postretirement cost to increase $139, which under our accounting policy would be adjusted to actual returns in the current year upon remeasurement of our retiree benefit plans. We recognize gains and losses on pension and postretirement plan assets and obligations immediately in “Other income (expense) – net” in our consolidated statements of income. These gains and losses are generally measured annually as of December 31, and accordingly, will normally be recorded during the fourth quarter, unless an earlier remeasurement is required. Should actual experience differ from actuarial assumptions, the projected pension benefit obligation and net pension cost and accumulated postretirement benefit obligation and postretirement benefit cost would be affected in future years. See Note 14 for additional discussions regarding our assumptions. Asset Valuations and Impairments Goodwill and other indefinite-lived intangible assets are not amortized but tested at least annually on October 1 for impairment. For impairment testing, we estimate fair values using models that predominantly rely on the expected cash flows to be derived from the reporting unit or use of the asset. Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the book value may not be recoverable over the remaining life. Inputs underlying the expected cash flows include, but are not limited to, subscriber counts, revenue per user, capital investment and acquisition costs per subscriber, and ongoing operating costs. We based our assumptions on a combination of our historical results, trends, business plans and marketplace participant data. Annual Goodwill Testing Goodwill is tested on a reporting unit basis by comparing the estimated fair value of each reporting unit to its book value. If the fair value exceeds the book value, then no impairment is measured. We estimate fair values using an income approach (also known as a discounted cash flow model) and market multiple approaches. The income approach utilizes our future cash flow projections with a perpetuity value discounted at an appropriate weighted average cost of capital. The market multiple approach uses the multiples of publicly traded companies whose services are comparable to those offered by the reporting units. As of October 1, 2025, the calculated fair values of the reporting units with remaining goodwill exceeded their book values in all circumstances in excess of 10%. If either the projected long-term growth rates declined by 0.5%, if the projected long-term EBITDA margin declined by 0.5%, or if the weighted average cost of capital increased by 0.5%, the fair values would still be higher than the book value of the reporting units. The fair values of our remaining reporting units could be negatively impacted by future sustained declines in macroeconomic or business conditions, higher discount rates or declines in the value of AT&T stock and could result in goodwill impairment charges in future periods. U.S. Wireless Licenses We have the option to first perform a qualitative assessment to determine whether it is more likely than not that the book value of our wireless licenses exceeds the fair value. On a periodic basis, or if the qualitative assessment indicates potential impairment, we will perform a quantitative impairment test. Our quantitative assessment involves assessing the fair value of U.S. wireless licenses using a discounted cash flow model (the Greenfield Approach) and a qualitative corroborative market approach based on auction prices, depending upon auction activity. The Greenfield Approach assumes a company initially owns only the wireless licenses and makes investments required to build an operation comparable to current use. These licenses are tested annually for impairment on an aggregated basis, consistent with their use on a national scope for the United States. For impairment testing, we assume subscriber and revenue growth will trend up to projected levels, with a long-term growth rate reflecting expected long-term inflation trends. We assume churn rates will initially exceed our current experience but decline to rates that are in line with industry-leading churn. During 2025, we performed a qualitative impairment assessment that considered several factors, including macroeconomic conditions, industry and regulatory considerations, recent and projected performance of the reporting unit and the prior quantitative impairment testing results. The qualitative assessment indicated it is more likely than not that the fair value of our wireless licenses exceeded the book value; thus, a quantitative assessment was not performed. For our most recent quantitative assessment, which was performed in 2024, we used a discount rate of 8.75%, based on the optimal long-term capital structure of a market participant and its associated cost of debt and equity for the licenses, to calculate the present value of the projected cash flows. The quantitative impairment assessment indicated the fair value of our wireless licenses exceeded their book value by more than 10%. If either the projected rate of long-term growth of cash flows or revenues 30 AT&T Inc. Dollars in millions except per share amounts declined by 0.5%, or if the discount rate increased by 0.5%, the fair values of these wireless licenses would still be higher than the book value. Income Taxes Our estimates of income taxes and the significant items giving rise to the deferred assets and liabilities are shown in Note 13 and reflect our assessment of actual future taxes to be paid on items reflected in the financial statements, giving consideration to both timing and probability of these estimates. Actual income taxes could vary from these estimates due to future changes in income tax law or the final review of our tax returns by federal, state or foreign tax authorities. We use our judgment to determine whether it is more likely than not that we will sustain positions that we have taken on tax returns and, if so, the amount of benefit to initially recognize within our financial statements. We regularly review our uncertain tax positions and adjust our unrecognized tax benefits (UTBs) in light of changes in facts and circumstances, such as changes in tax law, interactions with taxing authorities and developments in case law. These adjustments to our UTBs may affect our income tax expense. Settlement of uncertain tax positions may require use of our cash. New Accounting Standards See Note 1 for discussion of recently issued or adopted accounting standards. OTHER BUSINESS MATTERS Environmental We are subject from time to time to judicial and administrative proceedings brought by various governmental authorities under federal, state or local environmental laws. We reference in our Forms 10-Q and 10-K certain environmental proceedings that could result in monetary sanctions (exclusive of interest and costs) of three hundred thousand dollars or more. However, we do not believe that any of those currently pending will have a material adverse effect on our results of operations. LIQUIDITY AND CAPITAL RESOURCES For the years ended December 31, 2025 2024 2023 Cash provided by operating activities $ 40,284   $ 38,771  $ 38,314 Cash used in investing activities (18,777) (17,490) (19,660) Cash used in financing activities (6,386) (24,708) (15,614) At December 31, 2025 2024 Cash and cash equivalents $ 18,234   $ 3,298 Total debt 136,100   123,532 We had $18,234 in cash and cash equivalents available at December 31, 2025, increasing $14,936 since December 31, 2024. Cash and cash equivalents included cash of $3,521 and money market funds and other cash equivalents of $14,713. Approximately $1,330 of our cash and cash equivalents were held in accounts outside of the United States and may be subject to restrictions on repatriation. Our cash and cash equivalents at December 31, 2025 was elevated in anticipation of the consummation of announced transactions. (See Note 6) In 2025, cash inflows were primarily provided by cash receipts from operations, including cash from our sale and transfer of our receivables to third parties, and the disposition of our investment in DIRECTV. These inflows exceeded cash used to meet the needs of the business, including, but not limited to, payment of operating expenses, including higher device payments from higher sales volumes. The cash generated from operating activities was primarily used to fund capital improvements, make dividend payments to stockholders, repurchase preferred and common stock, and repay long-term debt. We maintain availability under our credit facilities and our commercial paper program to meet our short-term liquidity requirements. Refer to “Contractual Obligations” discussion below for additional information regarding our cash requirements. Cash Provided by Operating Activities During 2025, cash provided by operating activities was $40,284, compared to $38,771 in 2024, driven by operational growth and lower cash tax payments. Partially offsetting this increase and lowering cash from operations during 2025 were voluntarily pension contributions of approximately $1,150 and advanced cash payments of about $900 to Frontier Communications, a subsidiary of Verizon Communications Inc. We actively manage the timing of our supplier payments for operating items to optimize the use of our cash. Among other things, we seek to make payments on 90-day or greater terms, while providing the suppliers with access to bank facilities that 31 AT&T Inc. Dollars in millions except per share amounts permit earlier payments at their cost (referred to as supplier financing program). In addition, for payments to suppliers of handset inventory, as part of our working capital initiatives, we have arrangements that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (referred to as direct supplier financing). The net impact of direct supplier financing, including principal and interest payments, was to improve cash from operating activities $443 in 2025 and $661 in 2024. All supplier financing payments are due within one year. (See Note 22) Cash Used in Investing Activities During 2025, cash used in investing activities totaled $18,777, consisting primarily of $20,842 (including interest during construction) for capital expenditures. During 2025, investing activities also included $148 of FirstNet sustainability receipts net of investment and $620 for our investment in a new strategic partner, DriveNets, related to wireline network transformation accounted for under the equity method of accounting. On July 2, 2025, we completed the sale of our interest in DIRECTV to TPG and recorded a current note receivable of approximately $3,600, of which we had received $3,100 by the end of 2025, and a long-term note receivable of $500. (See Note 10) We enter into multi-year software licensing arrangements, which are typically paid over the license terms of two to five years and referred to as vendor financing. Additionally, for capital improvements, we have negotiated favorable vendor payment terms of 120 days or more with some of our vendors, which are also referred to as vendor financing. Vendor financing is excluded from capital expenditures and reported as financing activities. Vendor financing payments were $1,181 in 2025, compared to $1,792 in 2024. Capital expenditures in 2025 were $20,842, and when including $1,181 cash paid for vendor financing, capital investment was $22,023 ($32 lower than the prior year). The vast majority of our capital expenditures are spent on our networks, including product development and related support systems. In 2025, we placed $1,594 of productive assets in service under vendor financing arrangements (compared to $700 in 2024). In November 2024, we agreed to purchase select spectrum licenses from United States Cellular Corporation (UScellular) for approximately $1,000, subject to closing conditions, including the consummation of UScellular’s sale of its wireless operations and select spectrum assets to T-Mobile US, Inc. We completed our acquisition of these licenses on January 13, 2026, with a cash payment of $1,018. On May 21, 2025, we agreed to acquire substantially all of Lumen’s Mass Markets fiber business for $5,750 in cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations. On February 2, 2026, we completed the transaction and expect to manage the customer relationships in our Consumer Wireline business and place the fiber network assets in a new, wholly owned subsidiary. We plan to sell a controlling interest in the subsidiary to an equity partner that will co-invest in the ongoing business, and, as such, it is expected to meet the criteria for discontinued operations. On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45 GHz bands from EchoStar for approximately $23,000, subject to certain adjustments. The transaction is expected to close in early 2026 and is subject to regulatory approval and other closing conditions. The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services. We signed a short-term spectrum manager lease on the 3.45 GHz spectrum, which was deployed in cell sites covering nearly two-thirds of the U.S. population. The amount of capital expenditures is influenced by demand for services and products, capacity needs and network enhancements. In 2026, we expect that our capital investment, which includes capital expenditures and cash paid for vendor financing, will be in the $23,000 to $24,000 range. 32 AT&T Inc. Dollars in millions except per share amounts Cash Provided by or Used in Financing Activities In 2025, cash used in financing activities totaled $6,386 and was comprised of dividend payments, common and preferred stock repurchases, debt repayments and vendor financing payments, partially offset by issuances of long-term debt and issuances of preferred interests in a subsidiary. A tabular summary of our debt activity during 2025 is as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2025 Issuance of notes and debentures: USD notes $ —  $ 3,473  $ 4,959  $ —  $ 8,432 EUR notes 2,956  —  2,639  —  5,595 Debt issuances $ 2,956  $ 3,473  $ 7,598  $ —  $ 14,027 Repayments: USD notes $ —  $ —  $ —  $ (145) $ (145) EUR notes (1,321) (32) —  (2,441) (3,794) CAD notes —  —  —  (960) (960) Other (205) (62) (229) (133) (629) Repayments of long-term debt $ (1,526) $ (94) $ (229) $ (3,679) $ (5,528) The weighted average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.2% as of December 31, 2025 and 2024. We had $134,718 of total notes and debentures outstanding at December 31, 2025. This also included Euro, British pound sterling, Canadian dollar, Australian dollar and Swiss franc denominated debt that totaled approximately $35,307. At December 31, 2025, we had $9,011 of long-term debt maturing within one year. We had no outstanding commercial paper borrowings or other short-term borrowings on December 31, 2025. During 2025, we paid $1,181 of cash under our vendor financing program, compared to $1,792 in 2024. Total vendor financing payables included in our December 31, 2025 consolidated balance sheet were $1,892, with $956 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”). During 2025, we repurchased approximately 159 million shares totaling $4,269 under our $10,000 common stock repurchase authorization approved by the Board of Directors in December 2024, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022. At December 31, 2025, we had approximately $5,731 remaining under this 2024 repurchase authorization. On January 27, 2026, the Board approved an authorization to repurchase an additional $10,000 of common stock. We paid dividends on common and preferred shares of $8,180 in 2025, compared with $8,208 in 2024. Dividends on common stock declared by our Board of Directors totaled $1.11 per share in 2025 and in 2024. Our dividend policy considers the expectations and requirements of stockholders, capital funding requirements of AT&T and long-term growth opportunities. Financing activities in 2025 also included the issuance of $2,250 of nonconvertible cumulative preferred interests in Telco LLC, with the funds used to redeem all outstanding Series B preferred stock for $2,075 (see Note 16). We also received approximately $850 in upfront cash proceeds from a structured sale-leaseback of real estate. On February 5, 2026, we issued $6,500 principal amount of global notes due 2031 to 2056 with a weighted average coupon of 5.2%. We intend to use the net proceeds from this issuance for general corporate purposes, which may include debt repayments and pending acquisitions. Our 2026 financing activities will focus on managing our debt level, funding pending acquisitions, paying dividends, subject to approval by our Board of Directors, and repurchasing common stock when deemed appropriate. We plan to fund our financing 33 AT&T Inc. Dollars in millions except per share amounts uses of cash through a combination of cash from operations, issuance of debt and asset sales. The timing and mix of any debt issuance and/or refinancing will be guided by credit market conditions and interest rate trends. Credit Facilities The following summary of our various credit and loan agreements does not purport to be complete and is qualified in its entirety by reference to each agreement filed as exhibits to our Annual Report on Form 10-K. We use credit facilities as a tool in managing our liquidity status. On November 3, 2025, we entered into (i) a $12,000 Second Amended and Restated Credit Agreement (Revolving Credit Agreement), with Citibank, N.A., as agent, amending and restating our existing $12,000 Amended and Restated Credit Agreement, dated as of November 18, 2022, and (ii) a $17,500 Delayed Draw Term Loan Credit Agreement (Term Loan), with Bank of America, N.A., as agent. No amount was outstanding under the Revolving Credit Agreement or the Term Loan as of December 31, 2025. (See Note 11) We also utilize other external financing sources, which include various credit arrangements supported by government agencies to support network equipment purchases as well as a commercial paper program. The Revolving Credit Agreement and the Term Loan contain covenants that are customary for an issuer with investment grade senior debt credit ratings, including a net debt-to-EBITDA financial ratio covenant requiring us to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75-to-1. As of December 31, 2025, we were in compliance with the covenants for our credit facilities. Collateral Arrangements Most of our counterparty collateral arrangements require cash collateral posting by AT&T only when derivative market values exceed certain thresholds. Under these arrangements, which cover the majority of our $35,741 derivative portfolio, counterparties are still required to post collateral. During 2025, we posted $11 of cash collateral, on a net basis. Cash postings under these arrangements vary with changes in credit ratings and netting agreements. (See Note 12) Other Our total capital consists of debt (long-term debt and debt maturing within one year), redeemable noncontrolling interest and stockholders’ equity. Our capital structure does not include debt issued by our equity method investments. At December 31, 2025, our debt ratio was 51.4%, compared to 50.7% at December 31, 2024 and 53.5% at December 31, 2023. The debt ratio is affected by the same factors that affect total capital, and reflects our recent debt issuances, repayments and reclassifications related to redemption of noncontrolling interests. A significant amount of our cash outflows is related to tax items, acquisition of spectrum and benefits paid for current and former employees: • Total taxes incurred, collected and remitted by AT&T during 2025 and 2024 were $16,326 and $16,968. These taxes include income, franchise, property, sales, excise, payroll, gross receipts and various other taxes and fees. • Total domestic spectrum acquired primarily through FCC auctions, including cash, exchanged spectrum, auction deposits and spectrum relocation and clearing costs, was approximately $379 in 2025, $380 in 2024 and $2,940 in 2023. • Total health and welfare benefits provided to certain active and retired employees and their dependents totaled approximately $2,490 in 2025 and $2,550 in 2024, with $483 paid from plan assets in 2025, compared to $736 in 2024. Of those benefits, approximately $2,220 related to medical and prescription drug benefits in 2025, compared to $2,290 in 2024. We paid $2,957 of pension benefits out of plan assets in 2025, compared to $2,447 in 2024. 34 AT&T Inc. Dollars in millions except per share amounts Contractual Obligations Our contractual obligations as of December 31, 2025, and the estimated timing of payment, are in the following table: Payments Due By Period Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Long-term debt obligations 1 $ 144,664  $ 8,652  $ 15,858  $ 13,938  $ 106,216 Interest payments on long-term debt 2 94,373  6,067  11,059  9,992  67,255 Purchase obligations 3 24,638  8,545  10,698  2,505  2,890 Operating lease obligations 4 27,556  4,956  8,360  5,432  8,808 FirstNet sustainability payments 5 16,029  896  3,224  2,589  9,320 Unrecognized tax benefits (UTB) 6 10,282  45  —  —  10,237 Other finance obligations 7 11,626  1,843  2,699  1,928  5,156 Total Contractual Obligations 8 $ 329,168  $ 31,004  $ 51,898  $ 36,384  $ 209,882 1 Represents principal or payoff amounts of notes, debentures and credit agreement borrowings at maturity (see Note 11). Foreign debt includes the impact from hedges, when applicable. 2 Includes credit agreement borrowings. 3 We expect to fund the purchase obligations with cash on hand, which may include cash provided by operations or through incremental borrowings. The minimum commitment for certain obligations is based on termination penalties that could be paid to exit the contracts. (See Note 21) 4 Represents operating lease payments (see Note 8). 5 Represents contractual commitment to make sustainability payments over the 25-year contract. These sustainability payments represent our commitment to fund FirstNet’s operating expenses and future reinvestment in the network, which we own and operate. FirstNet has a statutory requirement to reinvest funds that exceed the agency’s operating expenses, which we anticipate to be $15,000. (See Note 20) 6 The noncurrent portion of the UTBs is included in the “More than 5 Years” column, as we cannot reasonably estimate the timing or amounts of additional cash payments, if any, at this time (see Note 13). 7 Represents future minimum payments under the Crown Castle and other arrangements (see Note 18), payables subject to extended payment terms (see Note 22) and finance lease payments (see Note 8). 8 Excludes debt transactions, pending acquisitions and other investment funding completed after December 31, 2025 (see Note 6). Certain items were excluded from this table because the year of payment is unknown and could not be reliably estimated, we believe the obligations are immaterial, or the settlement of the obligation will not require the use of cash. These items include: deferred income tax liability of $58,312 (see Note 13); net postemployment benefit obligations of $9,113 (including current portion); and other noncurrent liabilities of $7,155. 35 AT&T Inc. Dollars in millions except per share amounts DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES We also evaluate segment and business unit 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 business units. 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. 2025 2024 2023 Communications Segment Operating income $ 27,927   $ 27,095  $ 27,801 Add: Depreciation and amortization 19,959   19,433  17,363 EBITDA $ 47,886   $ 46,528  $ 45,164 Operating income margin 23.1   % 23.0  % 23.6  % EBITDA margin 39.6   % 39.5  % 38.3  % Mobility Operating income $ 27,196   $ 26,314  $ 25,861 Add: Depreciation and amortization 10,422   10,217  8,517 EBITDA $ 37,618   $ 36,531  $ 34,378 Operating income margin 30.4   % 30.9  % 30.8  % EBITDA margin 42.0   % 42.8  % 40.9  % Business Wireline Operating income (loss) $ (816) $ (88) $ 1,289 Add: Depreciation and amortization 5,834   5,555  5,377 EBITDA $ 5,018   $ 5,467  $ 6,666 Operating income margin (4.7) % (0.5) % 6.2  % EBITDA margin 29.1   % 29.1  % 31.9  % Consumer Wireline Operating income $ 1,547   $ 869  $ 651 Add: Depreciation and amortization 3,703   3,661  3,469 EBITDA $ 5,250   $ 4,530  $ 4,120 Operating income margin 10.9   % 6.4  % 4.9  % EBITDA margin 37.0   % 33.4  % 31.3  % Latin America Segment Operating income (loss) $ 145   $ 40  $ (141) Add: Depreciation and amortization 671   657  724 EBITDA $ 816   $ 697  $ 583 Operating income margin 3.3   % 0.9  % (3.6) % EBITDA margin 18.6   % 16.5  % 14.8  % 36 AT&T Inc. Dollars in millions except per share amounts ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risks primarily from changes in interest rates and foreign currency exchange rates. These risks, along with other business risks, impact our cost of capital. It is our policy to manage our debt structure and foreign exchange exposure in order to manage capital costs, control financial risks and maintain financial flexibility over the long term. In managing market risks, we employ derivatives according to documented policies and procedures, including interest rate swaps, interest rate locks, foreign currency exchange contracts and combined interest rate foreign currency contracts (cross-currency swaps). We do not use derivatives for trading or speculative purposes. We do not foresee significant changes in the strategies we use to manage market risk in the near future. One of the most significant assumptions used in estimating our postretirement benefit obligations is the assumed weighted-average discount rate, which is the hypothetical rate at which the projected benefit obligations could be effectively settled or paid out to participants. We determined our discount rate based on a range of factors, including a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date and corresponding to the related expected durations of future cash outflows for the obligations. In recent years, the discount rates have been increasingly volatile, and on average have been lower than in historical periods. Lower discount rates used to measure our pension and postretirement plans result in higher obligations. Future increases in these rates could result in lower obligations, improved funded status and actuarial gains. Interest Rate Risk The majority of our financial instruments are medium- and long-term fixed-rate notes and debentures. Changes in interest rates can lead to significant fluctuations in the fair value of these instruments. The principal amounts by expected maturity, average interest rate and fair value of our liabilities that are exposed to interest rate risk are described in Notes 11 and 12. In managing interest expense, we control our mix of fixed- and floating-rate debt through term loans, floating-rate notes, and interest rate swaps. We have established interest rate risk limits that we closely monitor by measuring interest rate sensitivities in our debt and interest rate derivatives portfolios. Our foreign-denominated long-term debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S. dollars at issuance through cross-currency swaps, removing interest rate risk and foreign currency exchange risk associated with the underlying interest and principal payments. Likewise, periodically we enter into interest rate locks to partially hedge the risk of increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt. We expect gains or losses on our cross-currency swaps and interest rate locks to offset the losses and gains in the financial instruments they hedge. We had no interest rate swaps and no interest rate locks at December 31, 2025. Foreign Exchange Risk We principally use foreign exchange contracts to hedge costs and debt denominated in foreign currencies. We are also exposed to foreign currency exchange risk through our foreign affiliates and equity investments in foreign companies. Through cross-currency swaps, our foreign-denominated debt has been swapped from fixed-rate or floating-rate foreign currencies to fixed-rate U.S. dollars at issuance, removing interest rate and foreign currency exchange risk associated with the underlying interest and principal payments. We expect gains or losses in our cross-currency swaps to offset the gains and losses in the financial instruments they hedge. We had cross-currency swaps with a notional value of $35,741 and a fair value of $(1,174) outstanding at December 31, 2025. For the purpose of assessing specific risks, we use a sensitivity analysis to determine the effects that market risk exposures may have on the fair value of our financial instruments and results of operations. We had no foreign exchange forward contracts at December 31, 2025. 37 AT&T Inc. REPORT OF MANAGEMENT The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The integrity and objectivity of the data in these financial statements, including estimates and judgments relating to matters not concluded by year end, are the responsibility of management, as is all other information included in the Annual Report, unless otherwise indicated. The financial statements of AT&T Inc. (AT&T) have been audited by Ernst & Young LLP, Independent Registered Public Accounting Firm. Management has made available to Ernst & Young LLP all of AT&T’s financial records and related data, as well as the minutes of stockholders’ and directors’ meetings. Furthermore, management believes that all representations made to Ernst & Young LLP during its audit were valid and appropriate. Management maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by AT&T is recorded, processed, summarized, accumulated and communicated to its management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure, and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms. Management also seeks to ensure the objectivity and integrity of its financial data by the careful selection of its managers, by organizational arrangements that provide an appropriate division of responsibility and by communication programs aimed at ensuring that its policies, standards and managerial authorities are understood throughout the organization. The Audit Committee of the Board of Directors meets periodically with management, the internal auditors and the independent auditors to review the manner in which they are performing their respective responsibilities and to discuss auditing, internal accounting controls and financial reporting matters. Both the internal auditors and the independent auditors periodically meet alone with the Audit Committee and have access to the Audit Committee at any time. Assessment of Internal Control The management of AT&T is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) or 15d-15(f) under the Securities Exchange Act of 1934. AT&T’s internal control system was designed to provide reasonable assurance to the company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements. AT&T management assessed the effectiveness of the company’s internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013 framework). Based on its assessment, AT&T management believes that, as of December 31, 2025, the company’s internal control over financial reporting is effective based on those criteria. Ernst & Young LLP, the independent registered public accounting firm that audited the financial statements included in this Annual Report, has issued an attestation report on the company’s internal control over financial reporting. /s/John T. Stankey /s/Pascal Desroches . John T. Stankey Pascal Desroches Chairman of the Board, Chief Executive Officer and President Senior Executive Vice President and Chief Financial Officer 38 AT&T Inc. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of AT&T Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of AT&T Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 9, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Discount rates used in determining pension and postretirement benefit obligations Description of the Matter At December 31, 2025, the Company’s defined benefit pension obligation was $ 30,627 million and exceeded the fair value of pension plan assets of $ 28,677 million, resulting in an unfunded benefit obligation of $ 1,950 million. Additionally, at December 31, 2025, the Company’s postretirement benefit obligation was $ 6,477 million and exceeded the fair value of postretirement plan assets of $ 722 million, resulting in an unfunded benefit obligation of $ 5,755 million. As explained in Note 14 to the consolidated financial statements, the Company updates the assumptions used to measure the defined benefit pension and postretirement benefit obligations, including discount rates, at December 31 or upon a remeasurement event. The Company determines the discount rates used to measure the obligations based on the development of a yield curve using high-quality corporate bonds selected to yield cash flows that correspond to the expected timing and amount of the expected future benefit payments. 39 AT&T Inc. Auditing the defined benefit pension and postretirement benefit obligations was complex due to the judgmental nature of the actuarial assumptions made by management, primarily the discount rates, used in the Company’s measurement process. The discount rates have a significant effect on the measurement of the defined benefit pension and postretirement benefit obligations, and auditing the discount rates was complex because it required an evaluation of the credit quality of the corporate bonds used to develop the discount rates and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of certain controls over management’s review of the determination of the discount rates used in the defined benefit pension and postretirement benefit obligations calculations. To test the determination of the discount rates used in the calculation of the defined benefit pension and postretirement benefit obligations, we performed audit procedures that focused on evaluating, with the assistance of our actuarial specialists, the determination of the discount rates, among other procedures. For example, we evaluated the selected yield curve used to determine the discount rates applied in measuring the defined benefit pension and postretirement benefit obligations. As part of this assessment, we considered the credit quality of the corporate bonds that comprised the yield curve and compared the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments. Evaluation of goodwill for impairment Description of the Matter At December 31, 2025, the Company’s goodwill balance was $ 63,425 million. As discussed in Note 1 to the consolidated financial statements, reporting unit goodwill is tested at least annually for impairment. Estimating fair value in connection with the impairment evaluation involves the utilization of discounted cash flow and market multiple approaches. Auditing management’s annual goodwill impairment test for the Consumer Wireline reporting unit was complex because the estimation of fair value involves subjective management assumptions, such as the projected long-term EBITDA margin and weighted average cost of capital, and complex valuation methodologies, such as the discounted cash flow and market multiple approaches. Assumptions used in these valuation models are forward-looking, and changes in these assumptions can have a material effect on the determination of fair value. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of certain controls over the Company’s impairment evaluation processes. Our procedures included testing controls over management’s review of the valuation models and its determination of the significant assumptions described above. Our audit procedures to test management’s impairment evaluation included, among others, assessing the valuation methodologies and significant assumptions discussed above and the underlying data used to develop such assumptions. For example, we compared the significant assumptions to current industry, market and economic trends, and other guideline companies in the same industry. Where appropriate, we evaluated whether changes to the Company’s business and other factors would affect the significant assumptions. We also assessed the historical accuracy of management’s estimates and performed independent sensitivity analyses. We involved our valuation specialists to assist us in evaluating the methodologies and auditing the assumptions used to calculate the estimated fair value of the Consumer Wireline reporting unit. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1999. Dallas, Texas February 9, 2026 40 AT&T Inc. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of AT&T Inc. Opinion on Internal Control Over Financial Reporting We have audited AT&T Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, AT&T Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2025 consolidated financial statements of the Company and our report dated February 9, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report of Management. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas February 9, 2026 41 AT&T Inc. Dollars in millions except per share amounts ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Consolidated Statements of Income 2025 2024 2023 Operating Revenues Service $ 101,158   $ 100,135   $ 99,649 Equipment 24,490   22,201   22,779 Total operating revenues 125,648   122,336   122,428 Operating Expenses Cost of revenues Equipment 25,396   22,249   23,136 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 25,424   26,972   26,987 Selling, general and administrative 28,942   28,411   28,874 Asset impairments and abandonments and restructuring 838   5,075   1,193 Depreciation and amortization 20,886   20,580   18,777 Total operating expenses 101,486   103,287   98,967 Operating Income 24,162   19,049   23,461 Other Income (Expense) Interest expense ( 6,804 ) ( 6,759 ) ( 6,704 ) Equity in net income of affiliates 1,895   1,989   1,675 Other income (expense) – net 7,754   2,419   1,416 Total other income (expense) 2,845   ( 2,351 ) ( 3,613 ) Income Before Income Taxes 27,007   16,698   19,848 Income tax expense 3,621   4,445   4,225 Net Income 23,386   12,253   15,623 Less: Net Income Attributable to Noncontrolling Interest ( 1,433 ) ( 1,305 ) ( 1,223 ) Net Income Attributable to AT&T $ 21,953   $ 10,948   $ 14,400 Less: Preferred Stock Dividends and Redemption Gain ( 64 ) ( 202 ) ( 208 ) Net Income Attributable to Common Stock $ 21,889   $ 10,746   $ 14,192 Basic Earnings Per Share Attributable to Common Stock $ 3.04   $ 1.49   $ 1.97 Diluted Earnings Per Share Attributable to Common Stock $ 3.04   $ 1.49   $ 1.97 The accompanying notes are an integral part of the consolidated financial statements. 42 AT&T Inc. Dollars in millions except per share amounts Consolidated Statements of Comprehensive Income 2025 2024 2023 Net income $ 23,386   $ 12,253   $ 15,623 Other comprehensive income (loss), net of tax: Foreign Currency: Translation adjustment, net of taxes of $ 117 , $( 175 ) and $ 143 354   ( 545 ) 463 Reclassification adjustment included in net income, net of taxes of $ 0 , $( 14 ) and $ 0 —   127   — Securities: Net unrealized gains (losses), net of taxes of $ 5 , $( 5 ) and $ 8 15   ( 19 ) 22 Reclassification adjustment included in net income, net of taxes of $ 1 , $ 10 and $ 4 3   30   11 Derivative Instruments: Net unrealized gains (losses), net of taxes of $( 216 ), $ 121 and $ 228 ( 650 ) 380   922 Reclassification adjustment included in net income, net of taxes of $ 14 , $ 14 and $ 12 45   45   47 Defined benefit postretirement plans: Net prior service (cost) credit arising during period, net of taxes of $ 0 , $ 0 and $ 10 —   —   32 Amortization of net prior service credit included in net income, net of taxes of $( 457 ), $( 492 ) and $( 642 ) ( 1,427 ) ( 1,523 ) ( 1,963 ) Reclassification adjustment realized in net income, net of taxes of $( 4 ), $ 0 and $ 0 5   —   — Other comprehensive income (loss) ( 1,655 ) ( 1,505 ) ( 466 ) Total comprehensive income 21,731   10,748   15,157 Less: Total comprehensive income attributable to noncontrolling interest ( 1,433 ) ( 1,305 ) ( 1,223 ) Total Comprehensive Income Attributable to AT&T $ 20,298   $ 9,443   $ 13,934 The accompanying notes are an integral part of the consolidated financial statements. 43 AT&T Inc. Dollars in millions except per share amounts Consolidated Balance Sheets December 31, 2025 2024 Assets Current Assets Cash and cash equivalents $ 18,234   $ 3,298 Accounts receivable – net of related allowance for credit loss of $ 429 and $ 375 8,843   9,638 Inventories 2,420   2,270 Prepaid and other current assets 19,235   15,962 Total current assets 48,732   31,168 Property, Plant and Equipment – Net 131,559   128,871 Goodwill – Net 63,425   63,432 Licenses – Net 128,148   127,035 Other Intangible Assets – Net 5,254   5,255 Investments in and Advances to Equity Affiliates 1,106   295 Operating Lease Right-Of-Use Assets 22,642   20,909 Other Assets 19,332   17,830 Total Assets $ 420,198   $ 394,795 Liabilities and Stockholders’ Equity Current Liabilities Debt maturing within one year $ 9,011   $ 5,089 Accounts payable and accrued liabilities 38,514   35,657 Advanced billings and customer deposits 4,266   4,099 Dividends payable 1,989   2,027 Total current liabilities 53,780   46,872 Long-Term Debt 127,089   118,443 Deferred Credits and Other Noncurrent Liabilities Noncurrent deferred tax liabilities 58,312   58,939 Postemployment benefit obligation 8,478   9,025 Operating lease liabilities 18,943   17,391 Other noncurrent liabilities 25,104   23,900 Total deferred credits and other noncurrent liabilities 110,837   109,255 Redeemable Noncontrolling Interest 2,001   1,980 Stockholders’ Equity Preferred stock ($ 1 par value, 10,000,000 authorized at December 31, 2025 and December 31, 2024): Series A ( 48,000 issued and outstanding at December 31, 2025 and December 31, 2024) —   — Series B ( 20,000 issued and 0 outstanding at December 31, 2025 and 20,000 issued and outstanding at December 31, 2024) —   — Series C ( 70,000 issued and outstanding at December 31, 2025 and December 31, 2024) —   — Common stock ($ 1 par value, 14,000,000,000 authorized at December 31, 2025 and December 31, 2024: issued 7,620,748,598 at December 31, 2025 and December 31, 2024) 7,621   7,621 Additional paid-in capital 106,533   109,108 Retained earnings 15,768   1,871 Treasury stock ( 583,246,242 at December 31, 2025 and 444,853,148 at December 31, 2024, at cost) ( 18,529 ) ( 15,023 ) Accumulated other comprehensive income (loss) ( 860 ) 795 Noncontrolling interest 15,958   13,873 Total stockholders’ equity 126,491   118,245 Total Liabilities and Stockholders’ Equity $ 420,198   $ 394,795 The accompanying notes are an integral part of the consolidated financial statements. 44 AT&T Inc. Dollars in millions except per share amounts Consolidated Statements of Cash Flows 2025 2024 2023 Operating Activities Net Income $ 23,386   $ 12,253   $ 15,623 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 20,886   20,580   18,777 Provision for uncollectible accounts 2,271   1,969   1,969 Asset impairments and abandonments and restructuring 838   5,075   1,193 Pension and postretirement benefit expense (credit) ( 1,588 ) ( 1,883 ) ( 2,552 ) Actuarial and settlement (gain) loss on pension and postretirement benefits – net 519   56   1,594 Net (gain) loss on investments ( 5,889 ) 80   441 Changes in operating assets and liabilities: Receivables ( 1,526 ) 123   82 Equipment installment receivables and related sales 324   ( 1,846 ) ( 133 ) Contract asset and cost deferral ( 1,208 ) 160   ( 1,006 ) Inventories, prepaid and other current assets ( 460 ) 70   747 Accounts payable and other accrued liabilities 884   ( 1,104 ) ( 1,574 ) Changes in income taxes 2,226   1,978   2,618 Postretirement claims and contributions ( 1,436 ) ( 166 ) ( 735 ) Other – net 1,057   1,426   1,270 Total adjustments 16,898   26,518   22,691 Net Cash Provided by Operating Activities 40,284   38,771   38,314 Investing Activities Capital expenditures ( 20,842 ) ( 20,263 ) ( 17,853 ) Acquisitions, net of cash acquired ( 379 ) ( 380 ) ( 2,942 ) Dispositions 3,218   75   72 Distributions from DIRECTV in excess of cumulative equity in earnings —   928   2,049 (Purchases), sales and settlements of securities – net 181   2,575   ( 902 ) Other – net ( 955 ) ( 425 ) ( 84 ) Net Cash Used in Investing Activities ( 18,777 ) ( 17,490 ) ( 19,660 ) Financing Activities Net change in short-term borrowings with original maturities of three months or less —   —   ( 914 ) Issuance of other short-term borrowings —   491   5,406 Repayment of other short-term borrowings —   ( 2,487 ) ( 3,415 ) Issuance of long-term debt 14,027   19   10,004 Repayment of long-term debt ( 5,528 ) ( 10,297 ) ( 12,044 ) Note payable to DIRECTV, net of payments —   —   ( 130 ) Payment of vendor financing ( 1,181 ) ( 1,792 ) ( 5,742 ) Redemption of preferred stock ( 2,075 ) —   — Purchase of treasury stock ( 4,500 ) ( 215 ) ( 194 ) Issuance of treasury stock 21   15   3 Issuance of preferred interests in subsidiary 2,221   —   7,151 Redemption of preferred interests in subsidiary ( 65 ) —   ( 5,333 ) Dividends paid ( 8,180 ) ( 8,208 ) ( 8,136 ) Other – net ( 1,126 ) ( 2,234 ) ( 2,270 ) Net Cash Used in Financing Activities ( 6,386 ) ( 24,708 ) ( 15,614 ) Net increase (decrease) in cash and cash equivalents and restricted cash 15,121   ( 3,427 ) 3,040 Cash and cash equivalents and restricted cash beginning of year 3,406   6,833   3,793 Cash and Cash Equivalents and Restricted Cash End of Year $ 18,527   $ 3,406   $ 6,833 The accompanying notes are an integral part of the consolidated financial statements. 45 AT&T Inc. Dollars and shares in millions except per share amounts Consolidated Statements of Changes in Stockholders’ Equity 2025 2024 2023 Shares Amount Shares Amount Shares Amount Preferred Stock – Series A Balance at beginning of year —   $ —   —   $ —   —   $ — Balance at end of year —   $ —   —   $ —   —   $ — Preferred Stock – Series B Balance at beginning of year —   $ —   —   $ —   —   $ — Balance at end of year —   $ —   —   $ —   —   $ — Preferred Stock – Series C Balance at beginning of year —   $ —   —   $ —   —   $ — Balance at end of year —   $ —   —   $ —   —   $ — Common Stock Balance at beginning of year 7,621   $ 7,621   7,621   $ 7,621   7,621   $ 7,621 Balance at end of year 7,621   $ 7,621   7,621   $ 7,621   7,621   $ 7,621 Additional Paid-In Capital Balance at beginning of year $ 109,108   $ 114,519   $ 123,610 Redemption of preferred stock ( 2,165 ) —   — Preferred stock dividends —   ( 134 ) ( 205 ) Common stock dividends ($ 1.11 , $ 1.11 and $ 1.11 per share in 2025, 2024 and 2023) —   ( 4,020 ) ( 7,991 ) Issuance of treasury stock ( 469 ) ( 516 ) ( 379 ) Share-based compensation 59   ( 184 ) ( 109 ) Redemption or reclassification of interests held by noncontrolling owners —   ( 557 ) ( 407 ) Balance at end of year $ 106,533   $ 109,108   $ 114,519 Retained Earnings (Deficit) Balance at beginning of year $ 1,871   $ ( 5,015 ) $ ( 19,415 ) Net income attributable to AT&T 21,953   10,948   14,400 Preferred stock redemption gain 90   —   — Preferred stock dividends ( 194 ) ( 71 ) — Common stock dividends ($ 1.11 , $ 1.11 and $ 1.11 per share in 2025, 2024 and 2023) ( 7,952 ) ( 3,991 ) — Balance at end of year $ 15,768   $ 1,871   $ ( 5,015 ) The accompanying notes are an integral part of the consolidated financial statements. 46 AT&T Inc. Dollars and shares in millions except per share amounts Consolidated Statements of Changes in Stockholders’ Equity – continued 2025 2024 2023 Shares Amount Shares Amount Shares Amount Treasury Stock Balance at beginning of year ( 445 ) $ ( 15,023 ) ( 471 ) $ ( 16,128 ) ( 493 ) $ ( 17,082 ) Repurchase and acquisition of common stock ( 168 ) ( 4,539 ) ( 12 ) ( 215 ) ( 10 ) ( 194 ) Reissuance of treasury stock 30   1,033   38   1,320   32   1,148 Balance at end of year ( 583 ) $ ( 18,529 ) ( 445 ) $ ( 15,023 ) ( 471 ) $ ( 16,128 ) Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax Balance at beginning of year $ 795   $ 2,300   $ 2,766 Other comprehensive income (loss) attributable to AT&T ( 1,655 ) ( 1,505 ) ( 466 ) Balance at end of year $ ( 860 ) $ 795   $ 2,300 Noncontrolling Interest 1 Balance at beginning of year $ 13,873   $ 14,145   $ 8,957 Net income attributable to noncontrolling interest 1,276   1,163   1,146 Issuance and acquisition (disposition) of noncontrolling owners 2,221   ( 29 ) 5,180 Redemption of noncontrolling interest ( 144 ) ( 76 ) ( 53 ) Distributions ( 1,268 ) ( 1,330 ) ( 1,085 ) Balance at end of year $ 15,958   $ 13,873   $ 14,145 Total Stockholders’ Equity at beginning of year $ 118,245   $ 117,442   $ 106,457 Total Stockholders’ Equity at end of year $ 126,491   $ 118,245   $ 117,442 1 Excludes redeemable noncontrolling interest. The accompanying notes are an integral part of the consolidated financial statements. 47 AT&T Inc. Dollars in millions except per share amounts Notes to Consolidated Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Throughout this document, AT&T Inc. is referred to as “AT&T,” “we” or the “Company.” The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. All significant intercompany transactions are eliminated in consolidation. Investments in entities that we do not control but have significant influence are accounted for under the equity method. We also record our proportionate share of our equity method investees’ other comprehensive income (OCI) items, including translation adjustments. We treat distributions received from equity method investees as returns on investment and classify them as cash flows from operating activities until those distributions exceed our cumulative equity in the earnings of that investment. We treat the excess amount as a return of investment and classify it as cash flows from investing activities. In the event we receive dividends in excess of the carrying amount of the investment, and we have no obligation to provide financial support to the equity method investee, we treat those dividends as returns on investment and classify them as cash flows from operating activities. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including other estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Moreover, unfavorable changes in market conditions, including interest rates, could adversely impact those estimates and result in asset impairments. Certain prior-period amounts have been conformed to the current period’s presentation, providing further disaggregation of activities within Cash from Operations in our consolidated statements of cash flows and additional revenue categories for our Business Wireline and Consumer Wireline business units. Adopted and New Accounting Standards Income Taxes In December 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09). Beginning with our 2025 annual reporting, we adopted, through retrospective application, ASU 2023-09, which requires that a public entity disclose specific categories in its annual income tax rate reconciliation table and provide additional qualitative information for reconciling items representing at least 5% of pre-tax income or loss from continuing operations, using the federal statutory tax rate. The standard also requires an annual breakdown of income taxes paid by jurisdiction (i.e., federal, state and foreign), with further disaggregation by jurisdictions representing at least 5% of total income taxes paid. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07). Beginning with our 2024 annual reporting, we adopted, through retrospective application, ASU 2023-07 , which requires that a public entity disclose, on an interim and annual basis, significant segment expense categories and amounts that are regularly provided to its chief operating decision maker (CODM) and included in each reported measure of segment profit or loss. An entity must also disclose, by reportable segment, the amount and composition of other expenses. The standard requires an entity disclose the title and position of its CODM and explain how the CODM uses these reported measures in assessing segment performance and determining how to allocate resources. Convertible Instruments Beginning with 2022 interim reporting, we adopted, through retrospective application, ASU No. 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (ASU 2020-06) . ASU 2020-06 requires that instruments which may be settled in cash or stock are presumed settled in stock in calculating diluted earnings per share. Prior to the April 2023 repurchase, settlement of our Series A Cumulative Perpetual Membership Interests in AT&T Mobility II LLC (Mobility preferred interests) could have resulted in additional dilutive impact, the magnitude of which was influenced by the fair value of the Mobility preferred interests and the average AT&T common stock price during the reporting period, which varied from period-to-period (see Note 16). Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03), which requires that a public entity disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation and (d) intangible asset amortization included in each relevant expense caption presented on the face of the income statement. The standard also requires an entity to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively as well as disclose the total 48 AT&T Inc. Dollars in millions except per share amounts amount of selling expenses and, annually, the entity’s definition of selling expenses. ASU 2024-03 will be effective for annual periods beginning after December 15, 2026, with either retrospective or prospective application. The standard allows for early adoption of these requirements; we are currently evaluating the disclosure impacts of our adoption. Internal-Use Software In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). ASU 2025-06 removes references to prescriptive and sequential software development stages and requires software cost capitalization when management has authorized and committed to funding, and it is probable that the project will be completed, and the software used for its intended function. ASU 2025-06 will be effective for annual reporting periods beginning after December 15, 2027. We are evaluating the impacts of our adoption of ASU 2025-06 and currently do not expect that it will have a material impact on our financial statements. Accounting Policies Income Taxes We record deferred income taxes for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the computed tax basis of those assets and liabilities. We record valuation allowances against the deferred tax assets (included, together with our deferred income tax assets, as part of our reportable net deferred income tax liabilities on our consolidated balance sheets), for which the realization is uncertain. We review these items regularly in light of changes in federal, state and foreign tax laws and changes in our business. On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. As a result of the legislation, we reduced our taxable income position in 2025. The legislation did not materially impact our income tax expense, but we expect it will result in a material decrease to cash taxes paid relative to our expectations. (See Note 13) Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less. The carrying amounts approximate fair value. At December 31, 2025, we held $ 3,521 in cash and $ 14,713 in money market funds and other cash equivalents. Of our total cash and cash equivalents, $ 1,330 resided in foreign jurisdictions, some of which is subject to restrictions on repatriation. Allowance for Credit Losses We record expense to maintain an allowance for credit losses for estimated losses that result from the failure or inability of our customers to make required payments deemed collectible from the customer when the service was provided or product was delivered. When determining the allowances for trade receivables and loans, we consider the probability of recoverability of accounts receivable based on past experience, taking into account current collection trends and general economic factors, including bankruptcy rates. We also consider future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as catastrophes or pending bankruptcies. Inventories Inventories primarily consist of wireless devices and accessories and are valued at the lower of cost or net realizable value . Property, Plant and Equipment Property, plant and equipment is stated at cost, except for assets acquired through business combinations, which are initially recorded at fair value. The cost of additions and substantial improvements to property, plant and equipment is capitalized, and includes internal compensation costs for these projects. The cost of maintenance and repairs of property, plant and equipment is charged to operating expenses. Property, plant and equipment costs are depreciated using straight-line methods over their estimated economic lives. Certain subsidiaries follow composite group depreciation methodology. Accordingly, when a portion of their depreciable property, plant and equipment is retired in the ordinary course of business, the gross book value is reclassified to accumulated depreciation, and no gain or loss is recognized on the disposition of these assets. Property, plant and equipment is reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. We recognize an impairment loss when the carrying amount of a long-lived asset is not recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. (See Note 7) The liability for the fair value of an asset retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made. In periods subsequent to initial measurement, we recognize period-to-period changes in the 49 AT&T Inc. Dollars in millions except per share amounts liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate. The increase in the carrying value of the associated long-lived asset is depreciated over the corresponding estimated economic life. Software Costs We capitalize certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in “Property, Plant and Equipment – Net” on our consolidated balance sheets. We amortize our capitalized software costs over a three -year to seven -year period, reflecting the estimated period during which these assets will remain in service. Goodwill and Other Intangible Assets We have the following major classes of intangible assets: goodwill; licenses, which include Federal Communications Commission (FCC) and other wireless licenses; customer lists and relationships; and trademarks, trade names and various other finite-lived intangible assets (see Note 9). Goodwill represents the excess of consideration paid over the fair value of identifiable net assets acquired in business combinations. Wireless licenses provide us with the exclusive right to utilize certain radio frequency spectrum to provide wireless communications services. While wireless licenses are issued for a fixed period of time (generally 10 years), renewals of domestic wireless licenses have occurred routinely and at nominal cost. We have determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our FCC wireless licenses. Cash paid, including spectrum deposits (net of refunds), capitalized interest, and any payments for incentive and relocation costs are included in “Acquisitions, net of cash acquired” in our consolidated statements of cash flows. Interest is capitalized until the spectrum is ready for its intended use. We amortize our wireless licenses in Mexico over their average remaining economic life of 25 years. We acquired the rights to the AT&T and other trade names in previous acquisitions, classifying certain of those trade names as indefinite-lived. We have the effective ability to retain these exclusive rights permanently at a nominal cost. Goodwill, FCC wireless licenses and other indefinite-lived intangible assets are not amortized but are tested at least annually for impairment (see Note 9). The testing for Goodwill and other indefinite-lived intangible assets is performed on the value as of October 1 each year and compares the book values of the assets to their fair values. Goodwill is tested by comparing the carrying amount of each reporting unit, deemed to be our principal operating segments or one level below them, to the fair value using both discounted cash flow as well as market multiple approaches. Trade names are tested by comparing their book values to their fair values calculated using a discounted cash flow approach on a presumed royalty rate derived from the revenues related to each brand name. For FCC wireless licenses, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that the book value exceeds their fair value. We consider several factors under the qualitative assessment, including macroeconomic conditions, industry and regulatory considerations, recent and projected performance of the business and the prior quantitative impairment testing results. On a periodic basis, or if the qualitative assessment indicates potential impairment, we perform a quantitative impairment test on the value as of October 1. FCC wireless licenses are tested on an aggregate basis, consistent with our use of the licenses on a national scope, using a discounted cash flow approach. We last performed a quantitative test in 2024. Intangible assets that have finite useful lives are amortized over their estimated economic lives (see Note 9). Customer lists and relationships are amortized using primarily the sum-of-the-months-digits method of amortization over the period in which those relationships are expected to contribute to our future cash flows. Finite-lived trademarks and trade names are amortized using the straight-line method over the estimated useful life of the assets. The remaining finite-lived intangible assets are generally amortized using the straight-line method. These assets, along with other long-lived assets, are reviewed for recoverability whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Advertising Costs We expense advertising costs for products and services or for promoting our corporate image as incurred (see Note 23). Foreign Currency Translation Our foreign subsidiaries and foreign investments generally report their earnings in their local currencies. We translate their foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate their revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated OCI on our consolidated balance sheets (see Note 3). 50 AT&T Inc. Dollars in millions except per share amounts Pension and Other Postretirement Benefits See Note 14 for a comprehensive discussion of our pension and postretirement benefits, including a discussion of the actuarial assumptions, our policy for recognizing the associated gains and losses and our method used to estimate service and interest cost components. NOTE 2. EARNINGS PER SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below: Year Ended December 31, 2025 2024 2023 Numerators Numerator for basic earnings per share: Net Income Attributable to Common Stock $ 21,889   $ 10,746   $ 14,192 Dilutive potential common shares: Mobility preferred interests —   —   72 Share-based compensation 12   —   13 Numerator for diluted earnings per share $ 21,901   $ 10,746   $ 14,277 Denominators (000,000) Denominator for basic earnings per share: Weighted average number of common shares outstanding 7,169   7,199   7,181 Dilutive potential common shares: Mobility preferred interests (in shares) —   —   71 Share-based compensation (in shares) 10   5   6 Denominator for diluted earnings per share 7,179   7,204   7,258 On April 5, 2023, we repurchased all of our Mobility preferred interests (see Note 16). For periods prior to repurchase, under ASU 2020-06, the ability to settle the Mobility preferred interests in stock was reflected in our diluted earnings per share calculation (see Note 1). 51 AT&T Inc. Dollars in millions except per share amounts NOTE 3. OTHER COMPREHENSIVE INCOME Changes in the balances of each component included in accumulated OCI are presented below. All amounts are net of tax and exclude noncontrolling interest. Foreign Currency Translation Adjustment Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivative Instruments Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income Balance as of December 31, 2022 $ ( 1,800 ) $ ( 90 ) $ ( 1,998 ) $ 6,654 $ 2,766 Other comprehensive income (loss) before reclassifications 463   22   922   32   1,439 Amounts reclassified from accumulated OCI —   1 11   1 47   2 ( 1,963 ) 3 ( 1,905 ) Net other comprehensive income (loss) 463   33   969   ( 1,931 ) ( 466 ) Balance as of December 31, 2023 ( 1,337 ) ( 57 ) ( 1,029 ) 4,723   2,300 Other comprehensive income (loss) before reclassifications ( 545 ) ( 19 ) 380   —   ( 184 ) Amounts reclassified from accumulated OCI 127   1 30   1 45   2 ( 1,523 ) 3 ( 1,321 ) Net other comprehensive income (loss) ( 418 ) 11   425   ( 1,523 ) ( 1,505 ) Balance as of December 31, 2024 ( 1,755 ) ( 46 ) ( 604 ) 3,200   795 Other comprehensive income (loss) before reclassifications 354   15   ( 650 ) —   ( 281 ) Amounts reclassified from accumulated OCI —   1 3   1 45   2 ( 1,422 ) 3 ( 1,374 ) Net other comprehensive income (loss) 354   18   ( 605 ) ( 1,422 ) ( 1,655 ) Balance as of December 31, 2025 $ ( 1,401 ) $ ( 28 ) $ ( 1,209 ) $ 1,778   $ ( 860 ) 1 (Gains) losses are included in “Other income (expense) – net” in the consolidated statements of income. 2 (Gains) losses are primarily included in “Interest expense” in the consolidated statements of income (see Note 12). 3 The amortization of prior service credits associated with postretirement benefits is included in “Other income (expense) – net” in the consolidated statements of income (see Note 14). NOTE 4. SEGMENT INFORMATION Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We have two reportable segments: Communications and Latin America. Our chief operating decision maker (CODM) is our Chief Executive Officer and President. Our CODM uses operating income to evaluate performance and allocate resources, including capital allocations, when managing the business. Our CODM manages operations through the review of actual and forecasted “Operations and Support Expenses” information at a segment and business unit level, with Communications and Latin America segments primarily evaluated on a direct cost basis and comprised of equipment, compensation, network and technology, sales, advertising and other costs. Additionally, business unit expenses within the Communications segment include direct and shared costs. Direct costs are incurred in support of products and services offered by the business units, such as equipment costs (predominantly wireless devices), network access, rents, leases, sales support, customer provisioning and commission expenses. Shared costs amongst the business units generally include information technology, network engineering and construction costs, advertising and other general and administrative expense. 52 AT&T Inc. Dollars in millions except per share amounts The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units: • Mobility provides nationwide wireless service and equipment. • Business Wireline provides advanced ethernet-based fiber services, fixed wireless services, IP Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. • Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and our fixed wireless access product (AT&T Internet Air or “AIA”) that provides internet services delivered over our 5G wireless network, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services. The Latin America segment provides wireless service and equipment in Mexico. Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes. Corporate includes : • DTV-related retained costs , which are costs previously allocated to the Video business that were retained after the transaction, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements. With the sale of our remaining interest in DIRECTV, we will no longer report these costs in 2026 (see Note 10). • Parent administration support , which includes costs borne by AT&T where the business units do not influence decision making. • Securitization fees associated with our sales of receivables (see Note 17). • Value portfolio , which are businesses no longer integral to our operations or which we no longer actively market. Other items consist of : • Certain significant items , which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated. “Interest expense” and “Other income (expense) – net” are managed only on a total company basis and are, accordingly, reflected only in consolidated results. For the year ended December 31, 2025 Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 89,482   $ 51,864   $ 10,422   $ 27,196 Business Wireline 17,231   12,213   5,834   ( 816 ) Consumer Wireline 14,183   8,933   3,703   1,547 Total Communications 120,896   73,010   19,959   27,927 Latin America 4,379   3,563   671   145 Segment Total 125,275   76,573   20,630   28,072 Corporate and Other Corporate: DTV-related retained costs —   225   200   ( 425 ) Parent administration support ( 1 ) 1,737   18   ( 1,756 ) Securitization fees 115   702   —   ( 587 ) Value portfolio 259   50   —   209 Total Corporate 373   2,714   218   ( 2,559 ) Certain significant items —   1,313   38   ( 1,351 ) Total Corporate and Other 373   4,027   256   ( 3,910 ) AT&T Inc. $ 125,648   $ 80,600   $ 20,886   $ 24,162 53 AT&T Inc. Dollars in millions except per share amounts For the year ended December 31, 2024 Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 85,255   $ 48,724   $ 10,217   $ 26,314 Business Wireline 18,819   13,352   5,555   ( 88 ) Consumer Wireline 13,578   9,048   3,661   869 Total Communications 117,652   71,124   19,433   27,095 Latin America 4,232   3,535   657   40 Segment Total 121,884   74,659   20,090   27,135 Corporate and Other Corporate: DTV-related retained costs —   465   414   ( 879 ) Parent administration support ( 2 ) 1,722   6   ( 1,730 ) Securitization fees 116   628   —   ( 512 ) Value portfolio 338   102   17   219 Total Corporate 452   2,917   437   ( 2,902 ) Certain significant items —   5,131   53   ( 5,184 ) Total Corporate and Other 452   8,048   490   ( 8,086 ) AT&T Inc. $ 122,336   $ 82,707   $ 20,580   $ 19,049 For the year ended December 31, 2023 Revenues Operations and Support Expenses Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 83,982   $ 49,604   $ 8,517   $ 25,861 Business Wireline 20,883   14,217   5,377   1,289 Consumer Wireline 13,173   9,053   3,469   651 Total Communications 118,038   72,874   17,363   27,801 Latin America 3,932   3,349   724   ( 141 ) Segment Total 121,970   76,223   18,087   27,660 Corporate and Other Corporate: DTV-related retained costs —   686   586   ( 1,272 ) Parent administration support ( 7 ) 1,416   6   ( 1,429 ) Securitization fees 85   604   —   ( 519 ) Value portfolio 380   99   22   259 Total Corporate 458   2,805   614   ( 2,961 ) Certain significant items —   1,162   76   ( 1,238 ) Total Corporate and Other 458   3,967   690   ( 4,199 ) AT&T Inc. $ 122,428   $ 80,190   $ 18,777   $ 23,461 54 AT&T Inc. Dollars in millions except per share amounts The following table is a reconciliation of Segment Operating Income to “Income Before Income Taxes” reported in our consolidated statements of income: For the years ended December 31, 2025 2024 2023 Communications $ 27,927   $ 27,095   $ 27,801 Latin America 145   40   ( 141 ) Segment Operating Income 28,072   27,135   27,660 Reconciling Items: Corporate ( 2,559 ) ( 2,902 ) ( 2,961 ) Transaction, legal and other costs ( 627 ) ( 123 ) ( 98 ) Amortization of intangibles acquired ( 38 ) ( 53 ) ( 76 ) Asset impairments and abandonments and restructuring ( 838 ) ( 5,075 ) ( 1,193 ) Benefit-related gains (losses) 152   67   129 AT&T Operating Income 24,162   19,049   23,461 Interest expense 6,804   6,759   6,704 Equity in net income of affiliates 1,895   1,989   1,675 Other income (expense) – net 7,754   2,419   1,416 Income Before Income Taxes $ 27,007   $ 16,698   $ 19,848 The following table sets forth revenues earned from customers, and property, plant and equipment located in different geographic areas: At or for the years ended December 31, 2025 2024 2023 Revenues Net Property, Plant & Equipment Revenues Net Property, Plant & Equipment Revenues Net Property, Plant & Equipment United States $ 120,219   $ 128,181   $ 116,882   $ 125,573   $ 117,097   $ 124,387 Mexico 4,428   3,097   4,286   2,981   3,993   3,750 Asia/Pacific Rim 395   68   462   82   521   99 Europe 382   126   441   139   504   166 Latin America 110   54   149   60   194   67 Other 114   33   116   36   119   20 Total $ 125,648   $ 131,559   $ 122,336   $ 128,871   $ 122,428   $ 128,489 The following table presents assets, investments in equity affiliates and capital expenditures by segment: At or for the years ended December 31, 2025 2024 Assets Investments in Equity Method Investees Capital Expenditures Assets Investments in Equity Method Investees Capital Expenditures Communications $ 500,244   $ —   $ 19,588   $ 481,757   $ —   $ 19,335 Latin America 9,460   —   276   7,808   —   269 Corporate and eliminations ( 89,506 ) 1,106   978   ( 94,770 ) 295   659 Total $ 420,198   $ 1,106   $ 20,842   $ 394,795   $ 295   $ 20,263 55 AT&T Inc. Dollars in millions except per share amounts NOTE 5. REVENUE RECOGNITION We report our revenues net of sales taxes and record certain regulatory fees, primarily Universal Service Fund (USF) fees, on a net basis. No customer accounted for more than 10% of consolidated revenues in 2025, 2024 or 2023. We offer service-only contracts and contracts that bundle equipment used to access the services and/or with other service offerings. Some contracts have fixed terms and others are cancelable on a short-term basis (i.e., month-to-month arrangements). Examples of service revenues include wireless, fiber and other advanced connectivity, transitional and legacy voice and data. These services represent a series of distinct services that is considered a separate performance obligation. Service revenue is recognized when services are provided, based upon either period of time (e.g., monthly service fees) or usage (e.g., bytes of data processed). Some of our services require customer premises equipment that, when combined and integrated with AT&T’s specific network infrastructure, facilitates the delivery of service to the customer. In evaluating whether the equipment is a separate performance obligation, we consider the customer’s ability to benefit from the equipment on its own or together with other readily available resources and if so, whether the service and equipment are separately identifiable (i.e., is the service highly dependent on, or highly interrelated with the equipment). When equipment is a separate performance obligation, we record the sale of equipment when title has passed and the products are accepted by the customer. For devices sold through indirect channels (e.g., national retailers), revenue is recognized when the retailer accepts the device, not upon activation. Our equipment and service revenues are predominantly recognized on a gross basis, as most of our services do not involve a third party and we typically control the equipment that is sold to our customers. Revenue recognized from fixed-term contracts that bundle services and/or equipment is allocated based on the standalone selling price of all required performance obligations of the contract (i.e., each item included in the bundle). Promotional discounts are attributed to each required component of the arrangement, resulting in recognition over the contract term. Standalone selling prices are determined by assessing prices paid for service-only contracts (e.g., arrangements where customers bring their own devices) and standalone device pricing. We offer the majority of our customers the option to purchase certain wireless devices in installments over a specified period of time, and, in many cases, they may be eligible to trade in the original equipment for a new device and have the remaining unpaid balance paid or settled. For customers that elect these equipment installment payment programs, at the point of sale, we recognize revenue for the entire amount of revenue allocated to the customer receivable net of fair value of the trade-in right guarantee, when applicable. The difference between the revenue recognized and the consideration received is recorded as a note receivable when the devices are not discounted and our right to consideration is unconditional. When installment sales include promotional discounts that are earned by customers over the contract term (e.g., “buy one get one free” or equipment discounts with trade-in of a device), notes receivable are recognized net of discounts and the difference between revenue recognized and consideration received is recorded as a contract asset to be amortized over the contract term. Less commonly, we offer certain customers highly discounted devices when they enter into a minimum service agreement term. For these contracts, we recognize equipment revenue at the point of sale based on a standalone selling price allocation. The difference between the revenue recognized and the cash received is recorded as a contract asset that will amortize over the contract term. Our contracts allow for customers to frequently modify their arrangement, without incurring penalties in many cases. When a contract is modified, we evaluate the change in scope or price of the contract to determine if the modification should be treated as a new contract or if it should be considered a change of the existing contract. We generally do not have significant impacts from contract modifications. Revenues from transactions between us and our customers are recorded net of revenue-based regulatory fees and taxes. Cash incentives given to customers are recorded as a reduction of revenue. Nonrefundable, upfront service activation and setup fees associated with service arrangements are deferred and recognized over the associated service contract period or customer relationship life. 56 AT&T Inc. Dollars in millions except per share amounts Revenue Categories The following tables set forth reported revenue by category and by business unit: For the year ended December 31, 2025 Communications Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total Wireless service $ 67,384   $ —   $ —   $ 2,715   $ —   $ 70,099 Fiber and advanced connectivity 1 —   7,333   8,645   —   —   15,978 Non-fiber consumer broadband —   —   3,542   —   —   3,542 Legacy and other transitional —   9,170   1,013   —   179   10,362 Other —   —   983   —   194   1,177 Total Service 67,384   16,503   14,183   2,715   373   101,158 Equipment 22,098   728   —   1,664   —   24,490 Total $ 89,482   $ 17,231   $ 14,183   $ 4,379   $ 373   $ 125,648 1 Advanced connectivity services reported in Business Wireline. For the year ended December 31, 2024 Communications Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total Wireless service $ 65,373   $ —   $ —   $ 2,668   $ —   $ 68,041 Fiber and advanced connectivity 1 —   6,969   7,391   —   —   14,360 Non-fiber consumer broadband —   —   3,821   —   —   3,821 Legacy and other transitional —   11,095   1,265   —   253   12,613 Other —   —   1,101   —   199   1,300 Total Service 65,373   18,064   13,578   2,668   452   100,135 Equipment 19,882   755   —   1,564   —   22,201 Total $ 85,255   $ 18,819   $ 13,578   $ 4,232   $ 452   $ 122,336 1 Advanced connectivity services reported in Business Wireline. For the year ended December 31, 2023 Communications Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total Wireless service $ 63,175   $ —   $ —   $ 2,569   $ —   $ 65,744 Fiber and advanced connectivity 1 —   6,594   6,267   —   —   12,861 Non-fiber consumer broadband —   —   4,188   —   —   4,188 Legacy and other transitional —   13,680   1,508   —   294   15,482 Other —   —   1,210   —   164   1,374 Total Service 63,175   20,274   13,173   2,569   458   99,649 Equipment 20,807   609   —   1,363   —   22,779 Total $ 83,982   $ 20,883   $ 13,173   $ 3,932   $ 458   $ 122,428 1 Advanced connectivity services reported in Business Wireline. Deferred Customer Contract Acquisition and Fulfillment Costs Costs to acquire and fulfill customer contracts, including commissions on service activations, for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to five years . 57 AT&T Inc. Dollars in millions except per share amounts The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets at December 31: Consolidated Balance Sheets 2025 2024 Deferred Acquisition Costs Prepaid and other current assets $ 3,550   $ 3,239 Other Assets 4,778   4,177 Total deferred customer contract acquisition costs $ 8,328   $ 7,416 Deferred Fulfillment Costs Prepaid and other current assets $ 1,862   $ 2,101 Other Assets 2,864   3,289 Total deferred customer contract fulfillment costs $ 4,726   $ 5,390 The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in “Selling, general and administrative” and “Other cost of revenues,” respectively, for the years ended December 31: Consolidated Statements of Income 2025 2024 Deferred acquisition cost amortization $ 3,837   $ 3,667 Deferred fulfillment cost amortization 2,279   2,525 Contract Assets and Liabilities A contract asset is recorded when revenue is recognized in advance of our right to bill and receive consideration. The contract asset will decrease as services are provided and billed. For example, when installment sales include promotional discounts (e.g., trade-in device credits) the difference between revenue recognized and consideration received is recorded as a contract asset to be amortized over the contract term. Our contract assets primarily relate to our wireless businesses. Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a specified service period result in additional contract assets recognized. These contract assets will amortize over the service contract period, resulting in lower future service revenue. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Reductions in the contract liability will be recorded as we satisfy the performance obligations. The following table presents contract assets and liabilities on our consolidated balance sheets at December 31: Consolidated Balance Sheets 2025 2024 Contract asset $ 7,816   $ 6,855 Current portion in “Prepaid and other current assets” 4,131   3,845 Contract liability 4,409   4,272 Current portion in “Advanced billings and customer deposits” 4,136   3,981 Our beginning of period contract liabilities recorded as customer contract revenue during 2025 was $ 3,981 . Remaining Performance Obligations Remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. In determining the transaction price allocated, we do not include non-recurring charges and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year, which are primarily prepaid wireless and residential internet agreements. Remaining performance obligations associated with business contracts reflect recurring charges billed, adjusted to reflect estimates for sales incentives and revenue adjustments. Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevant promotional activities, calculating the remaining performance obligation using the average service component for the portfolio and the average device price. As of December 31, 58 AT&T Inc. Dollars in millions except per share amounts 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 43,989 , of which we expect to recognize approximately  88 % by the end of 2027, with the balance recognized thereafter. NOTE 6. ACQUISITIONS, DISPOSITIONS AND OTHER ADJUSTMENTS Spectrum Auctions In February 2021, the FCC announced that AT&T was the winning bidder for 1,621 C-Band licenses, comprised of a total of 80 MHz nationwide, including 40 MHz in Phase I. We received the licenses in July 2021 and classified the auction deposits, related capitalized interest and billed relocation costs as “Licenses – Net” on our December 31, 2021 consolidated balance sheet. In December 2021, we paid $ 955 of Incentive Payments upon clearing of Phase I spectrum and paid $ 2,112 upon clearing of Phase II spectrum in 2023. Pending Acquisitions Spectrum On August 25, 2025, we agreed to purchase FCC licenses in the 600 MHz and 3.45 GHz bands from EchoStar Corporation for approximately $ 23,000 , subject to certain adjustments. The transaction is expected to close in early 2026 and is subject to regulatory approval and other closing conditions. The FCC licenses will be used to expand our 5G network, meet future capacity demands and support future wireless communications services. We signed a short-term spectrum manager lease on the 3.45 GHz spectrum, which was deployed in cell sites covering nearly two-thirds of the U.S. population. Fiber On May 21, 2025, we agreed to acquire substantially all of Lumen’s Mass Markets fiber business for $ 5,750 cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations. On February 2, 2026, we completed the transaction and expect to manage the customer relationships in our Consumer Wireline business and place the fiber network assets in a new, wholly owned subsidiary. We plan to sell a controlling interest in the subsidiary to an equity partner that will co-invest in the ongoing business, and, as such, it is expected to meet the criteria for discontinued operations. NOTE 7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is summarized as follows at December 31: Lives (years) 2025 2024 Land - $ 1,370   $ 1,372 Buildings and improvements 2 - 44 40,674   39,947 Central office equipment 1 3 - 10 87,496   101,607 Cable, wiring and conduit 15 - 50 101,530   95,217 Other equipment 3 - 20 90,853   87,656 Software 3 - 7 17,942   17,663 Under construction - 7,705   7,452 347,570   350,914 Accumulated depreciation and amortization 216,011   222,043 Property, plant and equipment – net $ 131,559   $ 128,871 1   Includes certain network software. Our depreciation expense was $ 20,746 in 2025, $ 20,421 in 2024 and $ 18,593 in 2023. Depreciation expense included amortization of software totaling $ 3,209 in 2025, $ 3,076 in 2024 and $ 3,023 in 2023. In conjunction with the decommissioning of our copper-based legacy network, we retired approximately $ 16,600 of fully depreciated assets that were no longer in use. These assets were primarily related to our network and central offices. NOTE 8. LEASES We have operating and finance leases for certain facilities and equipment used in our operations. Our leases generally have remaining lease terms of up to 15 years. Some of our operating leases (e.g., for towers and real estate) contain renewal options that may be exercised, and some of our leases include options to terminate the leases within one year. We have recognized a right-of-use asset for both operating and finance leases, and a corresponding lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based 59 AT&T Inc. Dollars in millions except per share amounts on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities. The components of lease expense were as follows: 2025 2024 2023 Operating lease cost $ 5,927 $ 5,776 $ 5,577 Finance lease cost: Amortization of leased assets in property, plant and equipment $ 182 $ 205 $ 232 Interest on lease obligation 142 171 184 Total finance lease cost $ 324 $ 376 $ 416 The following table provides supplemental cash flows information related to leases: 2025 2024 2023 Cash Flows from Operating Activities Cash paid for amounts included in lease obligations: Operating cash flows from operating leases $ 4,830 $ 4,757 $ 4,588 Supplemental Lease Cash Flow Disclosures Operating lease right-of-use assets obtained in exchange for new operating lease obligations 5,517 3,762 2,693 The following tables set forth supplemental balance sheet information related to leases at December 31: 2025 2024 Operating Leases Operating lease right-of-use assets $ 22,642   $ 20,909 Accounts payable and accrued liabilities $ 3,581   $ 3,533 Operating lease obligation 18,943   17,391 Total operating lease obligation $ 22,524   $ 20,924 Finance Leases Property, plant and equipment, at cost $ 2,476   $ 2,449 Accumulated depreciation and amortization ( 1,484 ) ( 1,378 ) Property, plant and equipment – net $ 992   $ 1,071 Current portion of long-term debt $ 190   $ 179 Long-term debt 1,192   1,237 Total finance lease obligation $ 1,382   $ 1,416 2025 2024 Weighted-Average Remaining Lease Term (years) Operating leases 7.6 7.6 Finance leases 5.3 6.7 Weighted-Average Discount Rate Operating leases 4.6   % 4.5   % Finance leases 8.7   % 8.5   % 60 AT&T Inc. Dollars in millions except per share amounts The following table provides the expected future minimum maturities of lease obligations: At December 31, 2025 Operating Leases Finance Leases 2026 $ 4,956   $ 309 2027 4,489   316 2028 3,871   324 2029 3,141   333 2030 2,291   275 Thereafter 8,808   204 Total lease payments 27,556   1,761 Less: Imputed interest ( 5,032 ) ( 379 ) Total $ 22,524   $ 1,382 NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS We test goodwill for impairment at a reporting unit level, which is deemed to be our principal operating segments or one level below, using the methodology described in Note 1. With our annual impairment testing as of October 1, the calculated fair value of each reporting unit exceeded its book value. Changes to our goodwill in 2024 resulted from a third-quarter noncash goodwill impairment charge of $ 4,422 in our consolidated statements of income, which represented the entirety of our Business Wireline reporting unit goodwill. The decline in fair value was primarily due to the change in the long-term strategic plan of our Business Wireline reporting unit, which reflected lower long-term projected future cash flows associated with the industry-wide secular decline, including a faster-than-previously anticipated decline of legacy services. Our Communications segment has three reporting units: Mobility, Consumer Wireline and Business Wireline. Business Wireline goodwill was fully impaired in 2024. The reporting unit is deemed to be the operating segment for Latin America and its goodwill was fully impaired in 2022. At December 31, 2025, accumulated goodwill impairments totaled $ 29,234 . The following table sets forth the changes in the carrying amounts of goodwill for the Communications segment: 2025 2024 Balance at Jan. 1 Dispositions and other Balance at Dec. 31 Balance at Jan. 1 Impairment Balance at Dec. 31 Communications Goodwill $ 91,840   $ ( 7 ) $ 91,833   $ 91,840   $ —  $ 91,840 Accumulated Impairments ( 28,408 ) —   ( 28,408 ) ( 23,986 ) ( 4,422 ) ( 28,408 ) Total $ 63,432   $ ( 7 ) $ 63,425   $ 67,854   $ ( 4,422 ) $ 63,432 We review amortizing intangible assets for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable over the remaining life of the asset or asset group. In 2025, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our FCC wireless licenses exceeded the book value and did not result in an impairment. In 2024, we performed a quantitative impairment assessment, which reflected the fair value of our FCC wireless licenses exceeded their book value. FCC wireless licenses increased in 2025 primarily due to spectrum acquisitions and capitalized interest. FCC wireless licenses increased in 2024 primarily due to compensable relocation and incentive payments and $ 199 of capitalized interest. (See Notes 6 and 23) 61 AT&T Inc. Dollars in millions except per share amounts Our other intangible assets at December 31 are summarized as follows: 2025 2024 Other Intangible Assets Weighted-Average Life Gross Carrying Amount Accumulated Amortization Currency Translation Adjustment Gross Carrying Amount Accumulated Amortization Currency Translation Adjustment Amortized intangible assets: Wireless licenses 21.3 years $ 3,582   $ 831   $ ( 73 ) $ 2,999   $ 696   $ ( 343 ) Customer lists and relationships N/A —   —   —   349   275   ( 74 ) Trademarks, trade names and other 13.2 years 42   23   ( 6 ) 43   23   ( 6 ) Total 21.2 years $ 3,624   $ 854   $ ( 79 ) $ 3,391   $ 994   $ ( 423 ) Indefinite-lived intangible assets not subject to amortization: Wireless licenses $ 125,470   $ 125,075 Trade names 5,241   5,241 Total $ 130,711   $ 130,316 Amortized intangible assets are definite-life assets, and, as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets. Amortization expense for definite-life intangible assets was $ 140 for the year ended December 31, 2025, $ 159 for the year ended December 31, 2024 and $ 184 for the year ended December 31, 2023. Estimated amortization expense for the next five years is: $ 178 for 2026, $ 178 for 2027, $ 178 for 2028, $ 178 for 2029 and $ 176 for 2030. NOTE 10. EQUITY METHOD INVESTMENTS Investments in partnerships, joint ventures and less than majority-owned subsidiaries in which we have significant influence are accounted for under the equity method. Our investments in equity affiliates at December 31, 2025, primarily included our interests in DriveNets and Gigapower. On July 2, 2025, we sold our interest in DIRECTV to TPG Capital (TPG). DIRECTV Prior to its sale, we accounted for our investment in DIRECTV under the equity method of accounting. DIRECTV was considered a VIE for accounting purposes. As DIRECTV was jointly governed by a board with representation from both AT&T and TPG, with TPG having tie-breaking authority on certain key decisions, most significantly the appointment and removal of the CEO, we concluded that we were not the primary beneficiary of DIRECTV. Our ownership interest in DIRECTV included $ 4,250 of junior preferred interests, an additional distribution preference of $ 4,200 and a 70 % economic interest in common units. In third-quarter 2024, our investment in DIRECTV was reduced to zero on our consolidated balance sheet, as a result of aggregate cash receipts exceeding our initial investment balance plus our cumulative equity in DIRECTV earnings. As we were not committed, implicitly or explicitly, to provide financial or other support to DIRECTV, we recorded cash distributions received in excess of our share of DIRECTV’s earnings in “Equity in net income of affiliates” in the consolidated statements of income and as cash provided by operations in the consolidated statements of cash flows. Prior to sale, during 2025, 2024 and 2023, we recognized $ 1,926 , $ 2,027 and $ 1,666 of equity in net income of affiliates and received total distributions of $ 1,926 , $ 2,955 and $ 3,715 , respectively, from DIRECTV. The book value of our investment in DIRECTV was $ 0 at December 31, 2025 and 2024. Upon the sale of our interests in DIRECTV in July 2025, we recorded a current note receivable of approximately $ 3,600 and a long-term receivable of $ 500 . The disposition of DIRECTV also resulted in the release of approximately $ 2,900 of historical deferred tax liabilities. We recorded a gain on the sale of DIRECTV of approximately $ 5,600 , which includes the impact of the transfer of deferred tax liabilities, indemnification liabilities and unfavorable contracts, in “Other income (expense) – net” in the 62 AT&T Inc. Dollars in millions except per share amounts consolidated statements of income in 2025. As of December 31, 2025, we have received $ 3,100 of cash on the current note receivable, which was included in “Dispositions” in the consolidated statements of cash flows. DriveNets We hold a 16.6 % interest in DriveNets, which designs and builds high-scale networking solutions for service providers and AI infrastructures. Gigapower We hold a 50 % interest in our joint venture Gigapower, LLC (Gigapower), which provides a fiber network in select areas to internet service providers and other businesses across the United States. SKY Mexico In June 2024, we sold our 41.3 % interest in SKY Mexico, a leading pay-TV provider in Mexico. The following table is a reconciliation of our investments in equity affiliates as presented on our consolidated balance sheets: 2025 2024 Beginning of year $ 295   $ 1,251 Additional investments 819   117 Distributions from DIRECTV in excess of cumulative equity in earnings —   ( 928 ) Dividends and distributions of cumulative earnings received ( 1,937 ) ( 2,033 ) Equity in net income of affiliates 1,895   1,989 Impairments —   ( 155 ) Other adjustments 34   54 End of year $ 1,106   $ 295 NOTE 11. DEBT Long-term debt of AT&T and its subsidiaries, including interest rates and maturities, is summarized as follows at December 31: 2025 2024 Notes and debentures Interest Rates 1 Maturities 0.00 % – 2.99 % 2025 – 2033 $ 22,240   $ 21,860 3.00 % – 4.99 % 2025 – 2061 89,379   83,725 5.00 % – 6.99 % 2025 – 2095 29,165   22,679 7.00 % – 8.75 % 2025 – 2097 3,524   3,565 Fair value of interest rate swaps recorded in debt 3   6 144,311   131,835 Unamortized (discount) premium – net ( 9,193 ) ( 9,340 ) Unamortized issuance costs ( 400 ) ( 379 ) Total notes and debentures 134,718   122,116 Finance lease obligations 1,382   1,416 Total long-term debt, including current maturities 136,100   123,532 Current maturities of long-term debt ( 9,011 ) ( 5,089 ) Total long-term debt $ 127,089   $ 118,443 1 Foreign debt includes the impact from hedges, when applicable. We had outstanding Euro, British pound sterling, Canadian dollar, Australian dollar and Swiss franc denominated debt of approximately $ 35,307 and $ 30,685 at December 31, 2025 and 2024, respectively. The weighted-average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.2 % as of December 31, 2025 and 2024. Our long-term debt maturing within one year was $ 9,011 and $ 5,089 at December 31, 2025 and 2024, respectively. We had no outstanding commercial paper or other short-term borrowings as of December 31, 2025 and 2024. 63 AT&T Inc. Dollars in millions except per share amounts Financing Activities During 2025, we received net proceeds of $ 14,027 on the issuance of $ 14,111 in long-term debt, with an average weighted maturity of approximately 12.3 years and a weighted average interest rate of 5.0 %. We repaid $ 5,399 of long-term debt with a weighted average interest rate of 4.7 %. Our debt activity during 2025 primarily consisted of the following: First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2025 Issuance of notes and debentures: USD notes $ —   $ 3,473   $ 4,959   $ —   $ 8,432 EUR notes 2,956   —   2,639   —   5,595 Debt issuances $ 2,956   $ 3,473   $ 7,598   $ —   $ 14,027 Repayments: USD notes $ —   $ —   $ —   $ ( 145 ) $ ( 145 ) EUR notes ( 1,321 ) ( 32 ) —   ( 2,441 ) ( 3,794 ) CAD notes —   —   —   ( 960 ) ( 960 ) Other ( 205 ) ( 62 ) ( 229 ) ( 133 ) ( 629 ) Repayments of long-term debt $ ( 1,526 ) $ ( 94 ) $ ( 229 ) $ ( 3,679 ) $ ( 5,528 ) As of December 31, 2025 and 2024, we were in compliance with all covenants and conditions of instruments governing our debt. Substantially all of our outstanding long-term debt is unsecured. Maturities of outstanding long-term notes and debentures, as of December 31, 2025, and the corresponding weighted-average interest rate scheduled for repayment are as follows: 2026 2027 2028 2029 2030 Thereafter Debt repayments 1,2 $ 8,652   $ 8,953   $ 6,905   $ 6,918   $ 7,020   $ 106,216 Weighted-average interest rate 2 3.1 % 3.8 % 3.2 % 4.6 % 4.3 % 4.3 % 1 Debt repayments represent maturity value. Foreign debt includes the impact from hedges, when applicable. 2 Includes credit agreement borrowings. On February 5, 2026, we issued $ 6,500 principal amount of global notes due 2031 to 2056 with a weighted average coupon of 5.2 %. We intend to use the net proceeds from this issuance for general corporate purposes, which may include debt repayments and pending acquisitions. Credit Facilities General On November 3, 2025, we entered into (i) a $ 12,000 Second Amended and Restated Credit Agreement (Revolving Credit Agreement), with Citibank, N.A., as agent, amending and restating our existing $ 12,000 Amended and Restated Credit Agreement, dated as of November 18, 2022, and (ii) a $ 17,500 Delayed Draw Term Loan Credit Agreement (Term Loan), with Bank of America, N.A., as agent. No amount was outstanding under either the Revolving Credit Agreement or the Term Loan as of December 31, 2025. The Revolving Credit Agreement and the Term Loan contain covenants that are customary for an issuer with investment grade senior debt credit ratings, including a net debt-to-EBITDA financial ratio covenant requiring us to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75 to 1. The events of default under the Revolving Credit Agreement and the Term Loan are customary for agreements of this type and such events would result in the acceleration of, or permit the requisite lenders to accelerate, as applicable, required payments under the relevant agreement and could increase the applicable margin under the relevant agreement by 2.00 % per annum. Revolving Credit Agreement Advances under the Revolving Credit Agreement denominated in U.S. dollars will bear interest, at our option, either: • at a variable annual rate equal to: (1) the highest of (but not less than zero) (a) the rate of interest announced publicly by Citibank in New York, New York, from time to time, as Citibank’s base rate, (b) 0.5 % per annum above the federal funds rate, and (c) the forward-looking term rate based on the secured overnight financing rate (Term SOFR) for a period of one 64 AT&T Inc. Dollars in millions except per share amounts month plus 1.00 %, plus (2) an applicable margin, as set forth in the Revolving Credit Agreement (Applicable Margin for Base Advances); or • at a rate equal to: (i) Term SOFR for a period of one, three or six months, as applicable, plus (ii) an applicable margin, as set forth in the Revolving Credit Agreement (Applicable Margin for Benchmark Rate Revolving Advances). Advances under the Revolving Credit Agreement denominated in Euro will bear interest at the Euro Interbank Offered Rate (EURIBOR) plus the Applicable Margin for Benchmark Rate Revolving Advances. Advances under the Revolving Credit Agreement denominated in Sterling will bear interest at the Sterling Overnight Index Average (SONIA) plus the Applicable Margin for Benchmark Rate Revolving Advances. The Applicable Margin for Benchmark Rate Revolving Advances will be equal to 0.690 %, 0.805 %, 0.920 % or 1.045 % per annum depending on our senior unsecured long-term debt ratings. The Applicable Margin for Base Rate Revolving Advances will be equal to the greater of (x) 0.00 % and (y) the relevant Applicable Margin for Benchmark Rate Revolving Advances minus 1.00 % per annum, depending on our senior unsecured long-term debt ratings. We will also pay a facility fee of 0.06 %, 0.07 % or 0.08 % per annum of the amount of the lender commitments, depending on AT&T’s credit rating under the Revolving Credit Agreement. The obligations of the lenders under the Revolving Credit Agreement to provide advances to us will terminate on November 3, 2030, unless the commitments are terminated in whole prior to that date. All advances must be repaid no later than the date on which lenders are no longer obligated to make any advances under the Revolving Credit Agreement. The Revolving Credit Agreement provides that we and the lenders representing more than 50% of the facility amount may agree to extend their commitments under the Revolving Credit Agreement for two one-year periods beyond the initial termination date. We have the right to terminate, in whole or in part, amounts committed by the lenders under the Revolving Credit Agreement in excess of any outstanding advances; however, any such terminated commitments may not be reinstated. The proceeds of the advances shall be solely for general corporate purposes. Delayed Draw Term Loan Credit Agreement The Term Loan is comprised of (i) a $ 6,000 364-day delayed draw term loan facility (364-Day Term Loan Facility) and (ii) a $ 11,500 two-year delayed draw term loan facility (Two-Year Term Loan Facility). Each of the 364-Day Term Loan Facility and Two-Year Term Loan Facility is available for a single draw at any time before November 3, 2026. The proceeds of the Term Loan will be used for general corporate purposes, which may include financing acquisitions of additional spectrum. Advances will bear interest, at our option, either: • at a variable annual rate (Base Rate) equal to: (1) the highest of (but not less than zero) (a) the prime rate quoted by Bank of America, N.A., (b) 0.5 % per annum above the federal funds rate, and (c) the forward-looking SOFR term rate administered by the Chicago Mercantile Exchange (or any successor administrator) and published on the applicable Reuters screen page (or such other commercially available source providing such quotations) (Term SOFR Screen Rate) for a period of one month plus 1.00 %, plus (2) an applicable margin, as set forth in the Term Loan (Applicable Margin for Base Rate Term Advances); or • at a variable annual rate based upon Term SOFR (SOFR Rate) equal to: (1) the Term SOFR Screen Rate with a term equivalent to the applicable interest period of the advance plus (2) an applicable margin, as set forth in the Term Loan (Applicable Margin for SOFR Rate Term Advances). The Applicable Margin for SOFR Rate Term Advances will be equal to 0.450 %, 0.575 %, 0.825 %, 0.950 % and 1.075 % per annum for the 364-Day Term Loan Facility and 0.550 %, 0.675 %, 0.925 %, 1.050 % and 1.175 % per annum for the Two-Year Term Loan Facility, in each case, depending on our senior unsecured long-term debt ratings. The Applicable Margin for Base Rate Term Advances under the Term Loan will be equal to the greater of (x) 0.00 % and (y) the relevant Applicable Margin for SOFR Rate Term Advances minus 1.00 % per annum, depending on our unsecured long-term debt ratings. Commencing March 3, 2026, we will also pay a fee of 0.05 %, 0.06 %, 0.07 %, 0.08 % or 0.10 % per annum of the amount of unused lender commitments, depending on our senior unsecured long-term debt ratings. The Term Loan is not subject to amortization, and the entire principal amount of (i) the 364-Day Term Loan Facility will be due and payable 364 days after the date on which the borrowing is made and (ii) the Two-Year Term Loan Facility will be due and payable two years after the date on which the borrowing is made. 65 AT&T Inc. Dollars in millions except per share amounts NOTE 12. FAIR VALUE MEASUREMENTS AND DISCLOSURE The Fair Value Measurement and Disclosure framework in ASC 820, “Fair Value Measurement,” provides a three-tiered fair value hierarchy based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. The valuation methodologies described above may produce a fair value calculation that may not be indicative of future net realizable value or reflective of future fair values. We believe our valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2024. Long-Term Debt and Other Financial Instruments The carrying amounts and estimated fair values of our long-term debt, including current maturities, and other financial instruments are summarized as follows: December 31, 2025 December 31, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Notes and debentures 1 $ 134,718   $ 127,852   $ 122,116   $ 114,167 Investment securities 2 1,609   1,609   1,603   1,603 1 Includes credit agreement borrowings. 2 Excludes investments accounted for under the equity method. The carrying amount of debt with an original maturity of less than one year approximates fair value. The fair value measurements used for notes and debentures are considered Level 2 and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets. Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of December 31, 2025 and December 31, 2024. Derivatives designated as hedging instruments are reflected as “Prepaid and other current assets,” 66 AT&T Inc. Dollars in millions except per share amounts “Other Assets,” “Accounts payable and accrued liabilities,” and “Other noncurrent liabilities” on our consolidated balance sheets. December 31, 2025 Level 1 Level 2 Level 3 Total Equity Securities Domestic equities $ 566   $ —   $ —   $ 566 International equities 8   —   —   8 Fixed income equities 217   —   —   217 Available-for-Sale Debt Securities —   587   —   587 Asset Derivatives Cross-currency swaps —   876   —   876 Liability Derivatives Cross-currency swaps —   ( 2,050 ) —   ( 2,050 ) December 31, 2024 Level 1 Level 2 Level 3 Total Equity Securities Domestic equities $ 484   $ —   $ —   $ 484 International equities 8   —   —   8 Fixed income equities 178   —   —   178 Available-for-Sale Debt Securities —   689   —   689 Asset Derivatives Cross-currency swaps —   87   —   87 Liability Derivatives Cross-currency swaps —   ( 4,163 ) —   ( 4,163 ) Investment Securities Our investment securities include both equity and debt securities that are measured at fair value, as well as equity securities without readily determinable fair values. A substantial portion of the fair values of our investment securities is estimated based on quoted market prices. Investments in equity securities not traded on a national securities exchange are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities. Investments in debt securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The components comprising total gains and losses in the period on equity securities are as follows: For the years ended December 31, 2025 2024 2023 Total gains (losses) recognized on equity securities $ 85   $ 209   $ 257 Gains (losses) recognized on equity securities sold 1   ( 52 ) 89 Unrealized gains (losses) recognized on equity securities held at end of period $ 84   $ 261   $ 168 At December 31, 2025, available-for-sale debt securities totaling $ 587 have maturities as follows - less than one year: $ 13 ; one to three years: $ 125 ; three to five years: $ 183 ; five or more years: $ 266 . Our cash equivalents (money market securities) and short-term investments (certificate and time deposits) are recorded at amortized cost, and the respective carrying amounts approximate fair values. Short-term investments are recorded in “Prepaid and other current assets,” and our investment securities are recorded in “Other Assets” on the consolidated balance sheets. Derivative Financial Instruments We enter into derivative transactions to manage certain market risks, primarily interest rate risk and foreign currency exchange risk. This includes the use of interest rate swaps, interest rate locks, foreign exchange forward contracts and combined interest rate foreign exchange contracts (cross-currency swaps). We do not use derivatives for trading or speculative purposes. We 67 AT&T Inc. Dollars in millions except per share amounts record derivatives on our consolidated balance sheets at fair value that is derived from observable market data, including yield curves and foreign exchange rates (all of our derivatives are Level 2). Cash flows associated with derivative instruments are presented in the same category in the consolidated statements of cash flows as the item being hedged. Fair Value Hedging Periodically, we enter into and designate fixed-to-floating interest rate swaps as fair value hedges. The purpose of these swaps is to manage interest rate risk by managing our mix of fixed-rate and floating-rate debt. These swaps involve the receipt of fixed-rate amounts for floating interest rate payments over the life of the swaps without exchange of the underlying principal amount. We also designate most of our cross-currency swaps and foreign exchange contracts as fair value hedges. The purpose of these contracts is to hedge foreign currency risk associated with changes in spot rates on foreign-denominated debt. For cross-currency hedges, we have elected to exclude the change in fair value of the swap related to both time value and cross-currency basis spread from the assessment of hedge effectiveness. For foreign exchange contracts, we have elected to exclude the change in fair value of forward points from the assessment of hedge effectiveness. Unrealized and realized gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the earnings impact of excluded components. In instances where we have elected to exclude components from the assessment of hedge effectiveness related to fair value hedges, unrealized gains or losses on such excluded components are recorded as a component of accumulated OCI and recognized into earnings over the life of the hedging instrument. Unrealized gains on derivatives designated as fair value hedges are recorded at fair value as assets, and unrealized losses are recorded at fair market value as liabilities. Except for excluded components, changes in the fair value of derivative instruments designated as fair value hedges are offset against the change in fair value of the hedged assets or liabilities through earnings. In the years ended December 31, 2025 and 2024, no ineffectiveness was measured on fair value hedges. Cash Flow Hedging We designate some of our cross-currency swaps as cash flow hedges to hedge our exposure to variability in expected future cash flows that are attributable to foreign currency risk and interest rate risk generated from our foreign-denominated debt. These agreements include initial and final exchanges of principal from fixed foreign denominated amounts to fixed U.S. dollar denominated amounts, to be exchanged at a specified rate that is usually determined by the market spot rate upon issuance. They also include an interest rate swap of a fixed or floating foreign denominated interest rate to a fixed U.S. dollar denominated interest rate. On September 30, 2022, we de-designated most of our cross-currency swaps from cash flow hedges and re-designated these swaps as fair value hedges. The amount remaining in accumulated other comprehensive loss related to cash flow hedges on the de-designation date was $ 1,857 . The amount will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur. The election of fair value hedge designation for cross-currency swaps does not have an impact on our financial results. Unrealized gains on derivatives designated as cash flow hedges are recorded at fair value as assets, and unrealized losses are recorded at fair value as liabilities. For derivative instruments designated as cash flow hedges, changes in fair value are reported as a component of accumulated OCI and are reclassified into the consolidated statements of income in the same period the hedged transaction affects earnings. Periodically, we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt. We designate our interest rate locks as cash flow hedges. Gains and losses when we settle our interest rate locks are amortized into income over the life of the related debt. Over the next 12 months, we expect to reclassify $ 59 from accumulated OCI to “Interest expense” due to the amortization of net losses on historical interest rate locks. Collateral and Credit-Risk Contingency We have entered into agreements with our derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. At December 31, 2025, we had posted collateral of $ 513 (a deposit asset) and held collateral of $ 314 (a receipt liability). Under the agreements, if AT&T’s credit rating had been downgraded two ratings levels by Fitch Ratings, one level by S&P and one level by Moody’s, before the final collateral exchange in December, we would have been required to post additional collateral of $ 49 . If AT&T’s credit rating had been downgraded three ratings levels by Fitch Ratings, two levels by S&P and two levels by Moody’s, we would have been required to post additional collateral of $ 1,405 . At December 31, 2024, we had posted collateral of $ 188 (a deposit asset) and held collateral of $ 0 (a receipt liability). We do not offset the fair value of collateral, whether the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) exists, against the fair value of the derivative instruments. 68 AT&T Inc. Dollars in millions except per share amounts Following are the notional amounts of our outstanding derivative positions at December 31: 2025 2024 Cross-currency swaps $ 35,741   $ 34,884 Total $ 35,741   $ 34,884 Following are the related hedged items affecting our financial position and performance: Effect of Derivatives in the Consolidated Statements of Income Fair Value Hedging Relationships For the years ended December 31, 2025 2024 2023 Interest rate swaps (“Interest expense”): Gain (loss) on interest rate swaps $ ( 3 ) $ ( 1 ) $ ( 6 ) Gain (loss) on long-term debt 3   1   6 Cross-currency swaps: Gain (loss) on cross-currency swaps 3,741   ( 1,347 ) 1,121 Gain (loss) on long-term debt ( 3,741 ) 1,347   ( 1,121 ) Gain (loss) recognized in accumulated OCI ( 866 ) 501   1,126 Foreign exchange contracts: Gain (loss) on foreign exchange contracts —   —   12 Gain (loss) on long-term debt —   —   ( 12 ) Gain (loss) recognized in accumulated OCI —   —   12 In addition, the net swap settlements that accrued and settled in the periods above were offset against “Interest expense.” Cash Flow Hedging Relationships For the years ended December 31, 2025 2024 2023 Cross-currency swaps: Gain (loss) recognized in accumulated OCI $ —   $ —   $ 12 Interest rate locks: Interest income (expense) reclassified from accumulated OCI into income ( 59 ) ( 59 ) ( 59 ) Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, impairment indicators may subject goodwill and long-lived assets to nonrecurring fair value measurements. The implied fair values of the Business Wireline, Consumer Wireline and Mexico reporting units were estimated using both the discounted cash flow as well as market multiple approaches (see Note 9). The inputs to these models are considered Level 3. 69 AT&T Inc. Dollars in millions except per share amounts NOTE 13. INCOME TAXES Significant components of our deferred tax liabilities (assets) are as follows at December 31: 2025 2024 Depreciation and amortization $ 37,570   $ 36,531 Licenses and nonamortizable intangibles 21,742   20,660 Lease right-of-use assets 5,494   5,103 Lease liabilities ( 5,464 ) ( 5,107 ) Employee benefits ( 2,585 ) ( 3,017 ) Deferred fulfillment costs 1,657   1,788 Equity in partnership 14   2,716 Net operating loss and other carryforwards ( 5,567 ) ( 5,619 ) Other – net 1,401   1,466 Subtotal 54,262   54,521 Deferred tax assets valuation allowance 3,978   4,338 Net deferred tax liabilities $ 58,240   $ 58,859 Noncurrent deferred tax liabilities $ 58,312   $ 58,939 Less: Noncurrent deferred tax assets ( 72 ) ( 80 ) Net deferred tax liabilities $ 58,240   $ 58,859 At December 31, 2025, we had combined net operating and capital loss carryforwards (tax effected) for federal income tax purposes of $ 695 , state of $ 545 and foreign of $ 2,227 , expiring through 2045. Additionally, we had federal credit carryforwards of $ 645 and state credit carryforwards of $ 1,454 , expiring primarily through 2045. We recognize a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. Our valuation allowances at December 31, 2025 and 2024 related primarily to state and foreign net operating losses and state credit carryforwards. We consider post-1986 unremitted foreign earnings subjected to the one-time transition tax not to be indefinitely reinvested as such earnings can be repatriated without any significant incremental tax costs. We consider other types of unremitted foreign earnings to be indefinitely reinvested. U.S. income and foreign withholding taxes have not been recorded on temporary differences related to investments in certain foreign subsidiaries as such differences are considered indefinitely reinvested. The amount of unrecognized deferred tax liability does not have a material impact on the financial statements. We recognize the financial statement effects of a tax return position when it is more likely than not, based on the technical merits, that the position will ultimately be sustained. For tax positions that meet this recognition threshold, we apply our judgment, taking into account applicable tax laws, our experience in managing tax audits and relevant GAAP, to determine the amount of tax benefits to recognize in our financial statements. For each position, the difference between the benefit realized on our tax return and the benefit reflected in our financial statements is recorded on our consolidated balance sheets as an unrecognized tax benefit (UTB). We update our UTBs at each financial statement date to reflect the impacts of audit settlements and other resolutions of audit issues, the expiration of statutes of limitation, developments in tax law and ongoing discussions with taxing authorities. 70 AT&T Inc. Dollars in millions except per share amounts A reconciliation of the change in our UTB balance from January 1 to December 31 for 2025, 2024 and 2023 is as follows: Federal, State and Foreign Tax 2025 2024 2023 Balance at beginning of year $ 12,533   $ 11,924   $ 9,657 Increases for tax positions related to the current year 521   369   1,026 Increases for tax positions related to prior years 294   1,017   448 Decreases for tax positions related to prior years ( 124 ) ( 772 ) ( 212 ) Lapse of statute of limitations ( 13 ) ( 8 ) ( 16 ) Settlements 96   3   1,021 Balance at end of year 13,307   12,533   11,924 Accrued interest and penalties 2,604   2,223   1,785 Gross unrecognized income tax benefits 15,911   14,756   13,709 Less: Deferred federal and state income tax benefits ( 966 ) ( 849 ) ( 687 ) Less: Tax attributable to timing items included above ( 7,401 ) ( 6,964 ) ( 6,438 ) Total UTB that, if recognized, would impact the effective income tax rate as of the end of the year $ 7,544   $ 6,943   $ 6,584 Periodically we make deposits to taxing jurisdictions which reduce our UTB balance but are not included in the reconciliation above. The amount of deposits that reduced our UTB balance was $ 2,894 at December 31, 2025, $ 2,282 at December 31, 2024 and $ 2,361 at December 31, 2023. Current tax assets on our consolidated balance sheets were $ 2,772 at December 31, 2025, $ 2,236 at December 31, 2024 and $ 2,079 at December 31, 2023. Accrued interest and penalties included in UTBs were $ 2,604 as of December 31, 2025, $ 2,223 as of December 31, 2024 and $ 1,785 as of December 31, 2023. We record interest and penalties related to federal, state and foreign UTBs in income tax expense. The net interest and penalty expense included in income tax expense was $ 476 for 2025, $ 474 for 2024 and $ 324 for 2023. We file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. As a large taxpayer, our income tax returns are regularly audited by the Internal Revenue Service (IRS) and other taxing authorities. The IRS has completed field examinations of our tax returns through 2015. All audit periods prior to 2006 are closed for federal examination purposes, and we have effectively resolved all outstanding audit issues for years through 2010 with the IRS Appeals Division. The components of income tax expense (benefit) are as follows: 2025 2024 2023 Federal: Current $ 970   $ 2,769   $ 2,280 Deferred 2,524   1,289   2,250 3,494   4,058   4,530 State and local: Current ( 269 ) 859   423 Deferred 331   ( 512 ) ( 832 ) 62   347   ( 409 ) Foreign: Current 44   68   66 Deferred 21   ( 28 ) 38 65   40   104 Total $ 3,621   $ 4,445   $ 4,225 71 AT&T Inc. Dollars in millions except per share amounts “Income Before Income Taxes” in the consolidated statements of income included the following components for the years ended December 31: 2025 2024 2023 U.S. income before income taxes $ 26,993   $ 16,674   $ 20,506 Foreign income (loss) before income taxes 14   24   ( 658 ) Total $ 27,007   $ 16,698   $ 19,848 A reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is as follows: 2025 2024 2023 Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ 5,671   21.0   % $ 3,507   21.0   % $ 4,168   21.0   % State and local income taxes – net of federal tax effect 1,2 ( 155 ) ( 0.6 ) 276   1.6   262   1.3 Foreign tax effects 40   0.2   22   0.1   98   0.5 Effect of change in tax laws or rates enacted current period —   —   —   —   —   — Effect of cross-border tax laws —   —   ( 19 ) ( 0.1 ) ( 1 ) — Tax credits Research and development credit ( 139 ) ( 0.5 ) ( 183 ) ( 1.1 ) ( 180 ) ( 0.9 ) Other ( 5 ) —   ( 7 ) —   ( 5 ) — Changes in valuation allowance 53   0.2   2   —   53   0.3 Nontaxable or nondeductible items: Goodwill impairment —   —   929   5.6   9   — Noncontrolling interest ( 301 ) ( 1.1 ) ( 274 ) ( 1.6 ) ( 259 ) ( 1.3 ) Divestiture of DIRECTV ( 1,311 ) ( 4.9 ) —   —   —   — Other ( 124 ) ( 0.5 ) ( 43 ) ( 0.3 ) ( 157 ) ( 0.8 ) Changes in unrecognized tax benefits 2 578   2.1   388   2.3   467   2.4 Other adjustments Tax basis adjustments ( 592 ) ( 2.2 ) —   —   —   — Other ( 94 ) ( 0.3 ) ( 153 ) ( 0.9 ) ( 230 ) ( 1.2 ) Effective income tax rate $ 3,621   13.4   % $ 4,445   26.6   % $ 4,225   21.3   % 1 The states that contribute to the majority (greater than 50%) of the tax effect in this category include California for 2025; Florida, Illinois, Michigan, New York and Texas for 2024; and California and Illinois for 2023. State taxes are impacted by current year earnings, book-tax differences, apportionment methodologies, legislative changes, divestitures, return to accrual adjustments and other permanent book-tax differences. 2 Effective January 1, 2025, we adopted ASU 2023-09, which requires the effective tax rate reconciliation to include a distinct category for changes in UTBs. This category must include the tax effects of changes in judgment related to prior-period tax positions, settlements and statute of limitations expirations, aggregated across all tax jurisdictions. Furthermore, in accordance with ASU 2023-09, we have elected to present tax positions taken in the current annual reporting period, aggregated across all tax jurisdictions, within “Changes in unrecognized tax benefits.” The amounts of cash income taxes paid, net of amounts refunded, are as follows at December 31: 2025 2024 2023 Federal $ 1,219   $ 2,452   $ 1,319 State 91   ( 49 ) 193 Foreign 43   53   87 Total $ 1,353   $ 2,456   $ 1,599 72 AT&T Inc. Dollars in millions except per share amounts NOTE 14. PENSION AND POSTRETIREMENT BENEFITS We offer noncontributory pension programs covering the majority of domestic nonmanagement employees in our Communications business. Nonmanagement employees’ pension benefits are generally calculated using one of two formulas: a flat dollar amount applied to years of service according to job classification, or a cash balance plan with negotiated annual pension band credits as well as interest credits. Most employees can elect to receive their pension benefits in either a lump sum payment or an annuity. Pension programs covering U.S. management employees are closed to new entrants. These programs continue to provide benefits to participants that were generally hired before January 1, 2015, who receive benefits under either cash balance pension programs that include annual or monthly credits based on salary as well as interest credits, or a traditional pension formula (i.e., a stated percentage of employees’ adjusted career income). We also provide a variety of medical, dental and life insurance benefits to certain retired employees under various plans and accrue actuarially determined postretirement benefit costs as active employees earn these benefits. In 2023, AT&T and State Street Global Advisors Trust Company, as independent fiduciary of the AT&T Pension Benefit Plan (Plan), entered into a commitment agreement with subsidiaries of Athene Holding Ltd. (Athene) under which AT&T agreed to purchase nonparticipating single premium group annuity contracts that would transfer to Athene $ 8,067 of the Plan’s defined benefit pension obligations related to certain retirees, participants and beneficiaries under the Plan. This transaction with Athene was considered a settlement for accounting purposes and required us to remeasure our pension plan assets and obligations at quarter-end for the second and third quarters of 2023. Obligations and Funded Status For defined benefit pension plans, the benefit obligation is the projected benefit obligation, the actuarial present value, as of our December 31 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees and their beneficiaries and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels as applicable. For postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, the actuarial present value as of the measurement date of all future benefits attributed under the terms of the postretirement benefit plans to employee service. The following table presents the change in the projected benefit obligation for the years ended December 31: Pension Benefits Postretirement Benefits 2025 2024 2025 2024 Benefit obligation at beginning of year $ 30,944   $ 33,227   $ 6,339   $ 6,693 Service cost - benefits earned during the period 427   487   18   22 Interest cost on projected benefit obligation 1,601   1,586   318   310 Actuarial (gain) loss 629   ( 1,909 ) 394   84 Benefits paid, including settlements ( 2,957 ) ( 2,447 ) ( 609 ) ( 770 ) Plan transfers ( 17 ) —   17   — Benefit obligation at end of year $ 30,627   $ 30,944   $ 6,477   $ 6,339 73 AT&T Inc. Dollars in millions except per share amounts The following table presents the change in the fair value of plan assets for the years ended December 31 and the plans’ funded status at December 31: Pension Benefits Postretirement Benefits 2025 2024 2025 2024 Fair value of plan assets at beginning of year $ 27,919   $ 30,098   $ 1,144   $ 1,763 Actual return on plan assets 2,562   265   61   117 Benefits paid, including settlements 1 ( 2,957 ) ( 2,447 ) ( 483 ) ( 736 ) Contributions 1,153   3   —   — Fair value of plan assets at end of year 28,677   27,919   722   1,144 Unfunded status at end of year 2 $ ( 1,950 ) $ ( 3,025 ) $ ( 5,755 ) $ ( 5,195 ) 1 At our discretion, certain postretirement benefits may be paid from our cash accounts, which does not reduce Voluntary Employee Benefit Association (VEBA) assets. Future benefit payments may be made from VEBA trusts and thus reduce those asset balances. 2 Funded status is not indicative of our ability to pay ongoing pension benefits or of our obligation to fund retirement trusts. Required pension funding is determined in accordance with the Employee Retirement Income Security Act of 1974, as amended (ERISA), and applicable regulations. Amounts recognized on our consolidated balance sheets at December 31 are listed below: Pension Benefits Postretirement Benefits 2025 2024 2025 2024 Current portion of employee benefit obligation 1 $ —   $ —   $ ( 499 ) $ ( 455 ) Employee benefit obligation 2 ( 1,950 ) ( 3,025 ) ( 5,256 ) ( 4,740 ) Net amount recognized $ ( 1,950 ) $ ( 3,025 ) $ ( 5,755 ) $ ( 5,195 ) 1 Included in “Accounts payable and accrued liabilities.” 2 Included in “Postemployment benefit obligation,” combined with international pension obligations and other postemployment obligations of $ 212 and $ 1,060 at December 31, 2025, and $ 157 and $ 1,103 at December 31, 2024, respectively. The accumulated benefit obligation for our pension plans represents the actuarial present value of benefits based on employee service and compensation as of a certain date and does not include an assumption about future compensation levels. The accumulated benefit obligation for our pension plans was $ 30,069 at December 31, 2025, and $ 30,322 at December 31, 2024. Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income Periodic Benefit Costs The service cost component of net periodic pension cost (credit) is recorded in operating expenses in the consolidated statements of income while the remaining components are recorded in “Other income (expense) – net.” Our combined net pension and postretirement cost (credit) recognized in our consolidated statements of income was $( 1,121 ), $( 1,817 ) and $( 1,017 ) for the years ended December 31, 2025, 2024 and 2023. The following table presents the components of net periodic benefit cost (credit): Pension Benefits Postretirement Benefits 2025 2024 2023 2025 2024 2023 Service cost – benefits earned during the period $ 427   $ 487   $ 477   $ 18   $ 22   $ 23 Interest cost on projected benefit obligation 1,601   1,586   1,876   318   310   340 Expected return on assets ( 2,029 ) ( 2,212 ) ( 2,533 ) ( 38 ) ( 61 ) ( 130 ) Amortization of prior service credit ( 48 ) ( 87 ) ( 133 ) ( 1,837 ) ( 1,928 ) ( 2,472 ) Net periodic benefit cost (credit) before remeasurement ( 49 ) ( 226 ) ( 313 ) ( 1,539 ) ( 1,657 ) ( 2,239 ) Actuarial (gain) loss 96   38   1,717   371   28   181 Settlement (gain) loss —   —   ( 363 ) —   —   — Net pension and postretirement cost (credit) $ 47   $ ( 188 ) $ 1,041   $ ( 1,168 ) $ ( 1,629 ) $ ( 2,058 ) 74 AT&T Inc. Dollars in millions except per share amounts Other Changes in Benefit Obligations Recognized in Other Comprehensive Income The following table presents the after-tax changes in benefit obligations recognized in OCI and the after-tax prior service credits that were amortized from OCI into net periodic benefit costs: Pension Benefits Postretirement Benefits 2025 2024 2023 2025 2024 2023 Balance at beginning of year $ 150   $ 216   $ 316   $ 3,066   $ 4,523   $ 6,354 Prior service (cost) credit —   —   —   —   —   32 Amortization of prior service credit ( 36 ) ( 66 ) ( 100 ) ( 1,392 ) ( 1,457 ) ( 1,863 ) Total recognized in other comprehensive (income) loss ( 36 ) ( 66 ) ( 100 ) ( 1,392 ) ( 1,457 ) ( 1,831 ) Balance at end of year $ 114   $ 150   $ 216   $ 1,674   $ 3,066   $ 4,523 Assumptions In determining the projected benefit obligation and the net pension and postretirement benefit cost, we used the following significant weighted-average assumptions: Pension Benefits Postretirement Benefits 2025 2024 2023 2025 2024 2023 Weighted-average discount rate for determining benefit obligation at December 31 5.50 % 5.70 % 5.00 % 5.30 % 5.60 % 5.00 % Discount rate in effect for determining service cost 1 5.80 % 5.10 % 5.40 % 5.80 % 5.10 % 5.20 % Discount rate in effect for determining interest cost 1 5.40 % 4.90 % 5.30 % 5.30 % 4.90 % 5.10 % Weighted-average interest credit rate for cash balance pension programs 2 4.60 % 4.60 % 4.20 % — % — % — % Long-term rate of return on plan assets 7.75 % 7.75 % 7.50 % 4.00 % 4.00 % 6.50 % Composite rate of compensation increase for determining benefit obligation 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Composite rate of compensation increase for determining net cost (credit) 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 1 Weighted-average discount rates shown for years with interim remeasurements: 2023 for pension benefits. 2 Weighted-average interest crediting rates for cash balance pension programs relate only to the cash balance portion of total pension benefits. A 0.50 % increase in the weighted-average interest crediting rate would increase the pension benefit obligation by $ 140 . We recognize gains and losses on pension and postretirement plan assets and obligations immediately in “Other income (expense) – net” in our consolidated statements of income. These gains and losses are generally measured annually as of December 31 and accordingly, will normally be recorded during the fourth quarter, unless an earlier remeasurement is required. Should actual experience differ from actuarial assumptions, the projected pension benefit obligation and net pension cost and accumulated postretirement benefit obligation and postretirement benefit cost would be affected in future years. Discount Rate Our assumed weighted-average discount rates for pension and postretirement benefits of 5.50 % and 5.30 % respectively, at December 31, 2025, reflect the hypothetical rate at which the projected benefit obligation could be effectively settled or paid out to participants. We determined our discount rates based on a range of factors, including a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date and corresponding to the related expected durations of future cash outflows. These bonds had an average rating of at least Aa3 or AA- by the nationally recognized statistical rating organizations, denominated in U.S. dollars, and generally not callable, convertible or index linked. For the year ended December 31, 2025, when compared to the year ended December 31, 2024, we decreased our pension discount rate by 0.20 %, resulting in an increase in our pension plan benefit obligation of $ 680 , and decreased our postretirement discount rate by 0.30 %, resulting in an increase in our postretirement benefit obligation of $ 167 . For the year ended December 31, 2024, when compared to the year ended December 31, 2023, we increased our pension 75 AT&T Inc. Dollars in millions except per share amounts discount rate by 0.70 %, resulting in a decrease in our pension plan benefit obligation of $ 1,994 , and increased our postretirement discount rate by 0.60 %, resulting in a decrease in our postretirement benefit obligation of $ 317 . We utilize a full yield curve approach in the estimation of the service and interest components of net periodic benefit costs for pension and other postretirement benefits. Under this approach, we apply discounting using individual spot rates from a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date. These spot rates align to each of the projected benefit obligations and service cost cash flows. The service cost component relates to the active participants in the plan, so the relevant cash flows on which to apply the yield curve are considerably longer in duration on average than the total projected benefit obligation cash flows, which also include benefit payments to retirees. Interest cost is computed by multiplying each spot rate by the corresponding discounted projected benefit obligation cash flows. The full yield curve approach reduces any actuarial gains and losses based upon interest rate expectations (e.g., built-in gains in interest cost in an upward-sloping yield curve scenario), or gains and losses merely resulting from the timing and magnitude of cash outflows associated with our benefit obligations. Neither the annual measurement of our total benefit obligations nor annual net benefit cost is affected by the full yield curve approach. Expected Long-Term Rate of Return In 2026, our expected long-term rate of return is 7.75 % on pension plan assets and 4.00 % on postretirement plan assets. Our long-term rates of return reflect the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In setting the long-term assumed rate of return, management considers capital markets’ future expectations, the asset mix of the plans’ investment and average historical asset return. Actual long-term returns can, in relatively stable markets, also serve as a factor in determining future expectations. We consider many factors that include, but are not limited to, historical returns on plan assets, current market information on long-term returns (e.g., long-term bond rates) and current and target asset allocations between asset categories. The target asset allocation is determined based on consultations with external investment advisers. If all other factors were to remain unchanged, we expect that a 0.50 % decrease in the expected long-term rate of return would cause 2026 combined pension and postretirement cost to increase $ 139 . However, any differences in the rate and actual returns will be included with the actuarial gain or loss recorded in the fourth quarter when our plans are remeasured. Composite Rate of Compensation Increase Our expected composite rate of compensation increase cost of 3.00 % in 2025 and 2024 reflects the long-term average rate of salary increases. Healthcare Cost Trend Our healthcare cost trend assumptions are developed based on historical cost data, the near-term outlook and an assessment of likely long-term trends. Based on our assessment of expectations of healthcare industry inflation, our 2026 assumed annual healthcare prescription drug cost trend and medical cost trend for eligible participants is 8.25 %, grading down to an ultimate trend rate of 4.25 % in 2035. For 2025, our assumed annual healthcare prescription drug cost trend and medical cost trend for eligible participants was 8.25 %, grading down to an ultimate trend rate of 4.25 % in 2032. Plan Assets Plan assets consist primarily of private and public equity, government and corporate bonds, and real assets (real estate and natural resources). The asset allocations of the pension plans are maintained to meet ERISA requirements. Any plan contributions, as determined by ERISA regulations, are made to a pension trust for the benefit of plan participants. We do not have significant ERISA required contributions to our pension plans for 2026. We voluntarily contributed $ 1,150 to our pension plans during 2025, and intend to voluntarily contribute $ 350 during 2026. We maintain VEBA trusts to partially fund postretirement benefits; however, there are no ERISA or regulatory requirements that these postretirement benefit plans be funded annually. The principal investment objectives are to ensure the availability of funds to pay pension and postretirement benefits as they become due under a broad range of future economic scenarios, maximize long-term investment return with an acceptable level of risk based on our pension and postretirement obligations, and diversify broadly across and within the capital markets to insulate asset values against adverse experience in any one market. Each asset class has broadly diversified characteristics. Substantial biases toward any particular investing style or type of security are sought to be avoided by managing the aggregation of all accounts with portfolio benchmarks. Asset and benefit obligation forecasting studies are conducted periodically, generally every two to three years, or when significant changes have occurred in market conditions, benefits, participant demographics or funded status. Decisions regarding investment policy are made with an understanding of the effect of asset allocation on funded status, future contributions and projected expenses. During 2025, the pension trust entered into a series of derivative contracts as part of an additional interest rate hedging strategy. This hedging strategy better aligns the pension asset duration with the liability duration and improves the interest rate hedge ratio. The notional amount of the contracts was approximately $ 7,300 as of December 31, 2025. 76 AT&T Inc. Dollars in millions except per share amounts The plans’ weighted-average asset targets and actual allocations as a percentage of plan assets, including the exposure of future contracts by asset categories, at December 31 are as follows: Pension Assets 1 Postretirement (VEBA) Assets Target 2025 2024 Target 2025 2024 Equity securities: Domestic 8    % - 18   % 14    % 12    % 8    % - 18    % 13    % 10    % International 5    % - 15   % 11   9   —    % - 10    % 5   4 Fixed income securities 39    % - 49   % 43   44   —    % - 14    % 9   12 Real assets 11    % - 21   % 13   15   —    % - 6    % 1   1 Private equity 13    % - 23   % 17   19   —    % - 6    % 1   1 Other —    % - 3   % 2   1   66    % - 76    % 71   72 Total 100   % 100   % 100   % 100   % 1  Excludes interest rate hedging strategy notional value of $ 7,300 . At December 31, 2025, AT&T securities represented less than 1% of assets held by our pension trust. The VEBA trusts do not hold AT&T securities. Investment Valuation Investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. Investments in securities traded on a national securities exchange are valued at the last reported sales price on the final business day of the year. If no sale was reported on that date, they are valued at the last reported bid price. Investments in securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Shares of registered investment companies are valued based on quoted market prices, which represent the net asset value of shares held at year-end. Other commingled investment entities are valued at quoted redemption values that represent the net asset values of units held at year-end, which management has determined approximates fair value. Real estate and natural resource direct investments are valued at amounts based upon appraisal reports. Fixed income securities valuation is based upon observable prices for comparable assets, broker/dealer quotes (spreads or prices), or a pricing matrix that derives spreads for each bond based on external market data, including the current credit rating for the bonds, credit spreads to Treasuries for each credit rating, sector add-ons or credits, issue-specific add-ons or credits as well as call or other options. Purchases and sales of securities are recorded as of the trade date. Realized gains and losses on sales of securities are determined on the basis of average cost. Interest income is recognized on the accrual basis. Dividend income is recognized on the ex-dividend date. Non-interest bearing cash and overdrafts are valued at cost, which approximates fair value. Fair Value Measurements See Note 12 for a discussion of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. 77 AT&T Inc. Dollars in millions except per share amounts The following tables set forth by level, within the fair value hierarchy, the pension and postretirement assets and liabilities at fair value as of December 31, 2025: Pension Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Non-interest bearing cash $ 92   $ —   $ —   $ 92 Interest bearing cash 4   —   —   4 Foreign currency contracts —   3   —   3 Equity securities: Domestic equities 2,797   —   2   2,799 International equities 1,593   —   —   1,593 Fixed income securities: Corporate bonds and other investments —   7,007   14   7,021 Government and municipal bonds 26   3,675   —   3,701 Mortgage-backed securities —   198   —   198 Real estate and real assets —   —   2,403   2,403 Securities lending collateral 1 688   1,484   —   2,172 Receivable for variation margin 2   —   —   2 Assets at fair value 5,202   12,367   2,419   19,988 Investments sold short and other liabilities at fair value ( 48 ) ( 3 ) —   ( 51 ) Total plan net assets at fair value $ 5,154   $ 12,364   $ 2,419   $ 19,937 Assets held at net asset value practical expedient Private equity funds 5,029 Real estate funds 1,198 Commingled funds 5,076 Total assets held at net asset value practical expedient 11,303 Other assets (liabilities) 2 ( 2,563 ) Total Plan Net Assets $ 28,677 1 Securities lending collateral primarily includes cash and government and municipal bonds. 2 Other assets (liabilities) include amounts receivable, accounts payable and net adjustment for securities lending payable. Postretirement Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Interest bearing cash $ 505   $ —   $ —   $ 505 Equity securities: Domestic equities 3   —   —   3 Total plan net assets at fair value $ 508   $ —   $ —   $ 508 Assets held at net asset value practical expedient Private equity funds 6 Real estate funds 9 Commingled funds 197 Total assets held at net asset value practical expedient 212 Other assets (liabilities) 1 2 Total Plan Net Assets $ 722 1 Other assets (liabilities) include amounts receivable and accounts payable. 78 AT&T Inc. Dollars in millions except per share amounts The following tables set forth by level, within the fair value hierarchy, the pension and postretirement assets and liabilities at fair value as of December 31, 2024: Pension Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Non-interest bearing cash $ 146   $ —   $ —   $ 146 Interest bearing cash 23   —   —   23 Foreign currency contracts —   2   —   2 Equity securities: Domestic equities 2,608   —   2   2,610 International equities 1,145   —   —   1,145 Fixed income securities: Corporate bonds and other investments —   6,925   1   6,926 Government and municipal bonds —   4,274   —   4,274 Mortgage-backed securities —   267   —   267 Real estate and real assets —   —   2,311   2,311 Securities lending collateral 1 643   961   —   1,604 Receivable for variation margin 4   —   —   4 Assets at fair value 4,569   12,429   2,314   19,312 Investments sold short and other liabilities at fair value ( 152 ) ( 12 ) —   ( 164 ) Total plan net assets at fair value $ 4,417   $ 12,417   $ 2,314   $ 19,148 Assets held at net asset value practical expedient Private equity funds 5,138 Real estate funds 1,957 Commingled funds 3,895 Total assets held at net asset value practical expedient 10,990 Other assets (liabilities) 2 ( 2,219 ) Total Plan Net Assets $ 27,919 1 Securities lending collateral primarily includes cash and government and municipal bonds. 2 Other assets (liabilities) include amounts receivable, accounts payable and net adjustment for securities lending payable. Postretirement Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Interest bearing cash $ 816   $ 6   $ —   $ 822 Equity securities: Domestic equities 1   —   —   1 Total plan net assets at fair value $ 817   $ 6   $ —   $ 823 Assets held at net asset value practical expedient Private equity funds 9 Real estate funds 9 Commingled funds 299 Total assets held at net asset value practical expedient 317 Other assets (liabilities) 1 4 Total Plan Net Assets $ 1,144 1 Other assets (liabilities) include amounts receivable and accounts payable. 79 AT&T Inc. Dollars in millions except per share amounts For the years ended December 31, 2025 and 2024, our postretirement assets did not include significant investments in Level 3 assets, nor were there significant changes in fair value of those assets during the period. The tables below set forth a summary of changes in the fair value of the Level 3 pension assets: Equities Fixed Income Funds Real Estate and Real Assets Total Balance as of December 31, 2024 $ 2   $ 1   $ 2,311   $ 2,314 Realized gains (losses) —   —   ( 315 ) ( 315 ) Unrealized gains (losses) —   —   325   325 Transfers in —   —   319   319 Purchases —   13   102   115 Sales —   —   ( 339 ) ( 339 ) Balance as of December 31, 2025 $ 2   $ 14   $ 2,403   $ 2,419 Equities Fixed Income Funds Real Estate and Real Assets Total Balance as of December 31, 2023 $ 2   $ 1   $ 2,954   $ 2,957 Realized gains (losses) —   —   159   159 Unrealized gains (losses) —   —   ( 510 ) ( 510 ) Purchases —   —   291   291 Sales —   —   ( 583 ) ( 583 ) Balance as of December 31, 2024 $ 2   $ 1   $ 2,311   $ 2,314 Estimated Future Benefit Payments Expected benefit payments are estimated using the same assumptions used in determining our benefit obligation at December 31, 2025. Because benefit payments will depend on future employment and compensation levels; average years employed; average life spans; and payment elections, among other factors, changes in any of these assumptions could significantly affect these expected amounts. The following table provides expected benefit payments under our pension and postretirement plans: Pension Benefits Postretirement Benefits 2026 $ 3,460   $ 664 2027 2,955   641 2028 2,893   623 2029 2,830   520 2030 2,765   538 Years 2031 - 2035 12,516   2,536 Supplemental Retirement Plans We also provide certain senior- and middle-management employees with nonqualified, unfunded supplemental retirement and savings plans. While these plans are unfunded, we have assets in a designated non-bankruptcy remote trust that are independently managed and used to provide for certain of these benefits. These plans include supplemental pension benefits as well as compensation-deferral plans, some of which include a corresponding match by us based on a percentage of the compensation deferral. For our supplemental retirement plans, the projected benefit obligation was $ 1,199 and the net supplemental retirement pension cost was $ 92 at and for the year ended December 31, 2025. The projected benefit obligation was $ 1,305 and the net supplemental retirement pension cost was $ 18 at and for the year ended December 31, 2024. We use the same significant assumptions for the composite rate of compensation increase in determining our projected benefit obligation and the net pension and postemployment benefit cost. Our discount rates of 5.10 % at December 31, 2025 and 5.50 % at December 31, 2024 were calculated using the same methodologies used in calculating the discount rates for our qualified pension and postretirement benefit plans. Deferred compensation expense was $ 96 in 2025, $ 152 in 2024 and $ 101 in 2023. 80 AT&T Inc. Dollars in millions except per share amounts Contributory Savings Plans We maintain contributory savings plans that cover substantially all employees. Under the savings plans, we match in cash or company stock a stated percentage of eligible employee contributions, subject to a specified ceiling. There are no debt-financed shares held by the Employee Stock Ownership Plans, allocated or unallocated. Our match of employee contributions to the savings plans is fulfilled with purchases of our stock on the open market or company cash. Benefit cost, which is based on the cost of shares or units allocated to participating employees’ accounts or the cash contributed to participant accounts, was $ 546 , $ 565 and $ 570 for the years ended December 31, 2025, 2024 and 2023. NOTE 15. SHARE-BASED COMPENSATION Under our various share-based compensation plans, senior and other management employees and nonemployee directors have received performance stock units and other nonvested stock units. As of December 31, 2025, we were authorized to issue up to approximately 41 million shares of common stock (including shares that may be issued upon exercise of outstanding options or upon vesting of performance stock units or other nonvested stock units) pursuant to these various plans: • Performance stock units, which are nonvested stock units, which are valued based upon the market price of our common stock at the date of grant and performance expectations. These distribute in the form of AT&T common stock and cash at the end of a three -year period, subject to the achievement of certain performance goals. We treat the cash-settled portion of these awards as a liability. • Restricted stock and restricted stock units are valued at the market price of our common stock at the date of grant and do not have any performance conditions. Restricted stock predominantly vests over a three - to ten -year period and restricted stock units predominantly vest over a three -year period. We account for our share-based compensation arrangements based on the fair value of the awards on their respective grant date, which may affect our ability to fully realize the value shown on our consolidated balance sheets of deferred tax assets associated with compensation expense. We record a valuation allowance when our future taxable income is not expected to be sufficient to recover the asset. Accordingly, there can be no assurance that the current stock price of our common shares will rise to levels sufficient to realize the entire tax benefit currently reflected on our consolidated balance sheets. However, to the extent we generate excess tax benefits (i.e., those additional tax benefits in excess of the deferred taxes associated with compensation expense previously recognized) the potential future impact on income would be reduced. Our consolidated statements of income include the share-based compensation cost recognized for the plans described above as “Selling, general and administrative” expense. Those expenses, as well as the associated tax benefits, are reflected in the table below: 2025 2024 2023 Performance stock units $ 152   $ 127   $ 79 Restricted stock and stock units 384   378   400 Total $ 536   $ 505   $ 479 Income tax benefit $ 130   $ 123   $ 118 A summary of the status of our nonvested stock units as of December 31, 2025, and changes during the year then ended is presented as follows (shares in millions): Nonvested Stock Units Shares Weighted-Average Grant- Date Fair Value Nonvested at January 1, 2025 37   $ 19.88 Granted 18   26.04 Vested ( 22 ) 20.87 Forfeited ( 4 ) 21.13 Nonvested at December 31, 2025 29   $ 22.74 81 AT&T Inc. Dollars in millions except per share amounts As of December 31, 2025, there was $ 584 of total unrecognized compensation cost related to nonvested share-based compensation arrangements outstanding. That cost is expected to be recognized over a weighted-average period of 1.89 years. The total fair value of shares vested during the year was $ 464 for 2025, compared to $ 452 for 2024 and $ 592 for 2023. NOTE 16. STOCKHOLDERS’ AND MEZZANINE EQUITY Authorized Shares We have authorized 14 billion common shares of AT&T stock and 10 million preferred shares of AT&T stock, each with a par value of $ 1.00 per share. Cumulative perpetual preferred shares consist of the following: • Series A: 48 thousand shares outstanding at December 31, 2025 and December 31, 2024, with a $ 25,000 per share liquidation preference and a dividend rate of 5.000 %. • Series B: no shares outstanding at December 31, 2025 and 20 thousand shares outstanding at December 31, 2024, with a € 100,000 per share liquidation preference, and an initial rate of 2.875 %. We redeemed all outstanding Series B cumulative preferred shares on March 3, 2025. The shares had a total liquidation preference of € 2.0 billion and were redeemed for $ 2,075 . • Series C: 70 thousand shares outstanding at December 31, 2025 and December 31, 2024, with a $ 25,000 per share liquidation preference, and a dividend rate of 4.75 %. So long as the quarterly preferred dividends are declared and paid on a timely basis on each series of preferred shares, there are no limitations on our ability to declare a dividend on or repurchase AT&T common shares. The preferred shares are optionally redeemable by AT&T at the liquidation price on or after five years from the issuance date, or upon certain other contingent events. Stock Repurchase Program From time to time, we repurchase shares of common stock. Over the past few years, these repurchases have generally been for distribution through our employee benefit plans or in connection with certain acquisitions. In December 2024, the Board approved an authorization to repurchase up to $ 10,000 of common stock (the “2024 Authorization”) and terminated the March 2014 authorization. During 2025, we repurchased approximately 159  million shares totaling $ 4,269 under this authorization, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022. On January 27, 2026, the Board approved an authorization to repurchase an additional $ 10,000 of common stock (the “2026 Authorization”). To implement repurchase authorizations, we have used open market repurchases, relying on Rule 10b5-1 of the Securities Exchange Act of 1934, where feasible. We have also used accelerated share repurchase agreements with large financial institutions to repurchase our stock. During 2024, we repurchased approximately 36  thousand shares totaling $ 1 under the March 2014 authorization. Dividend Declarations In December 2025 and December 2024, AT&T declared a quarterly preferred dividend of $ 36 . In December 2025 and December 2024, AT&T declared a quarterly common dividend of $ 0.2775 per share of common stock. Preferred Interests Issued by Subsidiaries We have issued cumulative perpetual preferred membership interests in certain subsidiaries. The preferred interests are entitled to cash distributions, subject to declaration. Mobility II Preferred Interests In 2018, we issued 320 million Series A Cumulative Perpetual Preferred Membership Interests in Mobility II (Mobility preferred interests), which paid cash distributions of 7 % per annum, subject to declaration. So long as the distributions were declared and paid, the terms of the Mobility preferred interests did not impose any limitations on cash movements between affiliates, or our ability to declare a dividend on or repurchase AT&T shares. All Mobility preferred interests were repurchased as of April 2023. Prior to repurchase, a holder of the Mobility preferred interests could put the interests to Mobility II, or Mobility II could have redeemed the interests upon a change in control of Mobility II or on or after September 9, 2022, with either option only allowed to be exercised during certain periods. The redemption price was to be paid with cash, AT&T common stock, or a combination of cash and AT&T common stock, at Mobility II’s sole election. Tower Holdings Preferred Interests In 2019, we issued $ 6,000 nonconvertible cumulative preferred interests in a wireless subsidiary (Tower Holdings) that holds interests in various tower assets and has the right to receive approximately $ 6,000 if the purchase options from the tower companies are exercised. The membership interests in Tower Holdings consist of (1) common interests, which are held by a consolidated subsidiary of AT&T, and (2) two series of preferred interests (collectively the “2019 Tower preferred interests”). The 2019 Tower preferred 82 AT&T Inc. Dollars in millions except per share amounts interests were subject to reset in December 2024 and included a September series (Tower Class A-1) totaling $ 1,500 that paid an initial preferred distribution of 5.0 %, and a December series (Tower Class A-2) totaling $ 4,500 that paid an initial preferred distribution of 4.75 %. In August 2024, we amended the 2019 Tower preferred interests, effective November 2024, to reset the rate and restructure the membership interests whereby all of the 2019 Tower preferred interests are now designated Fixed Rate Class A Limited Membership Interests (Tower Fixed Rate Interests). A portion of the Tower Fixed Rate Interests will move to Floating Rate Class A Limited Membership Interests (Tower Floating Rate Interests) each year over a five-year period. The Tower Fixed Rate Interests pay a preferred distribution of 5.90 %, and the Tower Floating Rate Interests pay a preferred distribution equal to the Secured Overnight Financing Rate (SOFR) plus 250 basis points, as defined in the agreement. Distributions are paid quarterly, subject to declaration, and reset every five years . Any failure to declare or pay distributions on the Tower Fixed Rate Interests or Tower Floating Rate Interests (collectively, the “Tower preferred interests”) would not impose any limitation on cash movements between affiliates, or our ability to declare a dividend on or repurchase AT&T shares. We can call the Tower preferred interests at the issue price beginning in November 2029, and we can call the Tower Floating Rate Interests at any time. We redeemed $ 65 of the Tower Floating Rate Interests in November 2025. If not called, the remaining Tower Floating Rate Interests could equal $ 460 by 2028. The Tower preferred interests are included in “Noncontrolling interest” on the consolidated balance sheets. The holders of the Tower preferred interests have the option to require redemption upon the occurrence of certain contingent events, such as the failure of AT&T to pay the preferred distribution for two or more periods or to meet certain other requirements, including a minimum credit rating. If notice is given upon such an event, all other holders of equal or more subordinate classes of membership interests in Tower Holdings are entitled to receive the same form of consideration payable to the holders of the preferred interests, resulting in a deemed liquidation for accounting purposes. Telco LLC Preferred Interests In September 2020, we issued $ 2,000 nonconvertible cumulative preferred interests (Telco Class A-1) out of a newly created limited liability company (Telco LLC) that was formed to hold telecommunications-related assets. In April 2023, we expanded our September 2020 transaction and issued an additional $ 5,250 of nonconvertible cumulative preferred interests (Telco Class A-2 and A-3). In March 2025, we issued an additional $ 2,250 of nonconvertible cumulative preferred interests in Telco LLC (Telco Class A-4). The Telco Class A-4 interests will pay an initial preferred distribution of 5.94 % annually, subject to declaration, and subject to reset on November 1, 2028, and every four years thereafter. The Telco Class A-4 interests can be called at issue price beginning on November 1, 2028, and are subject to the same redemption and liquidation rights as the Telco Class A-1, A-2 and A-3 interests. As of December 31, 2025 and 2024, cumulative preferred interests in our Telco LLC totaled $ 9,500 and $ 7,250 (collectively the “Telco preferred interests”). Members’ equity in Telco LLC consists of (1) members’ interests, which are held by a consolidated subsidiary of AT&T, (2) Telco Class A-1 preferred interests, which pay an initial preferred distribution of 4.25 % annually, subject to declaration, and subject to reset every seven years , and (3) Telco Class A-2 and A-3 preferred interests, which pay an initial preferred distribution of 6.85 % annually, subject to declaration, and subject to reset on November 1, 2027, and every seven years thereafter. Failure to pay distributions on the Telco preferred interests would not limit cash movements between affiliates, or our ability to declare a dividend on or repurchase AT&T shares. We can call the Telco preferred interests at the issue price beginning seven years from the issuance date. The Telco preferred interests are included in “Noncontrolling interest” on the consolidated balance sheets. The holders of the Telco preferred interests have the option to require redemption upon the occurrence of certain contingent events, such as the failure of Telco LLC to pay the preferred distribution for two or more periods or to meet certain other requirements, including a minimum credit rating. If notice is given, all other holders of equal or more subordinate classes of members’ equity are entitled to receive the same form of consideration payable to the holders of the preferred interests, resulting in a deemed liquidation for accounting purposes. Mobility II Redeemable Noncontrolling Interests In June 2023, we issued two million  Series B Cumulative Perpetual Preferred Membership Interests in Mobility II LLC (Mobility noncontrolling interests), which pay cash distributions of 6.8 % per annum, subject to declaration. So long as the distributions are declared and paid, the terms of the Mobility noncontrolling interests will not impose any limitations on cash movements between affiliates, or our ability to declare a dividend on or repurchase AT&T shares. The Mobility noncontrolling interests are required to be initially recorded at fair value less issuance costs and will accrete to redemption value of $ 2,000 through “Net Income Attributable to Noncontrolling Interest.” The Mobility noncontrolling interests are considered Level 3 under the Fair Value Measurement and Disclosures framework (see Note 12) and included in “Redeemable Noncontrolling Interest” on the consolidated balance sheets. 83 AT&T Inc. Dollars in millions except per share amounts A holder of the Mobility noncontrolling interests may put the interests to Mobility II on or after the earliest of certain events or each June 15 and December 15, beginning on June 15, 2028. Mobility II may redeem the interests on each March 15 and September 15, beginning on March 15, 2028. The price at which a put option or a redemption option can be exercised is the sum of (a) $ 1,000 per Mobility noncontrolling interest plus (b) any accrued and unpaid distributions. The redemption price must be paid in cash. NOTE 17. SALES OF RECEIVABLES We have agreements with various third-party financial institutions pertaining to the sales of certain types of our accounts receivable. The most significant of these programs are discussed in detail below and generally consist of (1) receivables arising from equipment installment plans, which are sold for cash and beneficial interests, such as deferred purchase price, when applicable, and (2) revolving trade receivables, which are sold for cash. Under the terms of our agreements for these programs, we continue to service the transferred receivables on behalf of the financial institutions. The following table sets forth a summary of cash proceeds received, net of remittances paid, from sales of receivables for the years ended December 31: 2025 2024 2023 Net cash received (paid) from equipment installment receivables program 1 $ 1,318   $ ( 1,358 ) $ 648 Net cash received (paid) from revolving receivables program 16   1,147   1,456 Net cash received (paid) from other programs —   —   ( 632 ) Total net cash impact to cash flows from operating activities 2 $ 1,334   $ ( 211 ) $ 1,472 1 Cash from initial sales of $ 12,391 , $ 10,587 and $ 10,980 for the years ended December 31, 2025, 2024 and 2023, respectively. 2 Net of facility fees. The sales of receivables did not have a material impact on our consolidated statements of income or to “Total Assets” reported on our consolidated balance sheets. We reflect cash receipts on sold receivables as cash flows from operations in our consolidated statements of cash flows. In the event cash is received on the beneficial interests, those receipts are classified as cash flows from investing activities, when applicable. Our equipment installment and revolving receivables programs are discussed in detail below. The following table sets forth a summary of the receivables and accounts being serviced at December 31: 2025 2024 Equipment Installment Revolving Equipment Installment Revolving Gross receivables: $ 3,725   $ 425   $ 3,504   $ 553 Balance sheet classification Accounts receivable Notes receivable 1,886   —   1,817   — Trade receivables 304   425   237   553 Other Assets Noncurrent notes and trade receivables 1,535   —   1,450   — Outstanding portfolio of receivables derecognized from our consolidated balance sheets $ 11,987   $ 2,940   $ 11,909   $ 2,770 Cash proceeds received, net of remittances 1 9,617   2,940   8,243   2,770 1 Represents amounts to which financial institutions remain entitled, excluding the beneficial interests. Equipment Installment Receivables Program We offer our customers the option to purchase certain wireless devices in installments over a specified period of time and, in many cases, once certain conditions are met, they may be eligible to trade in the original equipment for a new device and have the remaining unpaid balance paid or settled. 84 AT&T Inc. Dollars in millions except per share amounts We maintain a program under which we transfer a portion of these receivables through our bankruptcy-remote subsidiary in exchange for cash and beneficial interests. In the event a customer trades in a device prior to the end of the installment contract period, we agree to make a payment to the financial institutions equal to any outstanding remaining installment receivable balance. Accordingly, we record a guarantee obligation for this estimated amount at the time the receivables are transferred. The following table sets forth a summary of equipment installment receivables sold under this program: 2025 2024 2023 Gross receivables sold 1 $ 12,513   $ 10,696   $ 11,104 Net receivables sold 2 11,991   10,160   10,603 Cash proceeds received 12,391   10,587   10,980 Guarantee obligation recorded 925   930   932 1 Receivables net of promotion credits. 2 Receivables net of allowance and other reserves. Beneficial interests, when applicable, and guarantee obligations are initially recorded at estimated fair value and subsequently adjusted for changes in present value of expected cash flows. The estimation of their fair values is based on remaining installment payments expected to be collected and the expected timing and value of device trade-ins. The estimated value of the device trade-ins considers prices offered to us by independent third parties and contemplates changes in value after the launch of a device model. The fair value measurements used for the beneficial interests and the guarantee obligation are considered Level 3 under the Fair Value Measurement and Disclosure framework (see Note 12). The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests: 2025 2024 2023 Fair value of repurchased receivables $ 4,786   $ 3,185   $ 2,997 Carrying value of beneficial interests 4,774   3,199   3,013 Gain (loss) on repurchases 1 $ 12   $ ( 14 ) $ ( 16 ) 1 These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income. At December 31, 2025 and December 31, 2024, our beneficial interests were $ 2,067 and $ 3,185 , respectively, of which $ 1,338 and $ 1,906 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at December 31, 2025 and December 31, 2024 was $ 410 and $ 301 , respectively, of which $ 216 and $ 150 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation. Revolving Receivables Program During 2025, we expanded our revolving agreement to transfer up to $ 2,940 of certain receivables through our bankruptcy-remote subsidiaries to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, we transfer additional receivables into the program, resulting in our gross receivables sold exceeding net cash flow impacts (e.g., collect and reinvest). The transferred receivables are fully guaranteed by our bankruptcy-remote subsidiaries, which hold additional receivables in the amount of $ 425 that are pledged as collateral under this agreement. The transfers are recorded at fair value of the proceeds received and obligations assumed less derecognized receivables. Our maximum exposure to loss related to these receivables transferred is limited to the derecognized amount outstanding. 85 AT&T Inc. Dollars in millions except per share amounts The following table sets forth a summary of the revolving receivables sold: 2025 2024 2023 Gross receivables sold/cash proceeds received 1 $ 30,311   $ 21,632   $ 8,882 Total collections under revolving agreement 30,141   20,362   7,382 Net cash proceeds received $ 170   $ 1,270   $ 1,500 Net receivables sold 2 $ 29,480   $ 21,039   $ 8,679 1 Includes initial sales of receivables of $ 170 , $ 1,270 and $ 1,500 for the years ended December 31, 2025, 2024 and 2023, respectively. 2 Receivables net of allowance and other reserves. NOTE 18. TOWER TRANSACTION In December 2013, we closed our transaction with Crown Castle International Corp. (Crown Castle) in which Crown Castle gained the exclusive rights to lease and operate 9,048 wireless towers and purchased 627 of our wireless towers for $ 4,827 in cash. The leases have various terms with an average length of approximately 28 years. As the leases expire, Crown Castle will have fixed price purchase options for these towers totaling approximately $ 4,200 , based on their estimated fair market values at the end of the lease terms. We are subleasing space on the towers from Crown Castle over an estimated original term of 20 years, at current market rates, subject to further optional renewals in the future. We determined that we did not transfer control of the tower assets, which prevented us from achieving sale-leaseback accounting for the transaction, and we accounted for the cash proceeds from Crown Castle as a financing obligation on our consolidated balance sheets. We record interest on the financing obligation using the effective interest method at a rate of approximately 3.9 %. The financing obligation is increased by interest expense and estimated future net cash flows generated and retained by Crown Castle from operation of the tower sites, and reduced by our contractual payments. We continue to include the tower assets in “Property, Plant and Equipment – Net” on our consolidated balance sheets and depreciate them accordingly. At December 31, 2025 and 2024, the tower assets had a balance of $ 569 and $ 608 , respectively. Our depreciation expense for these assets was $ 39 for each of 2025, 2024 and 2023. Payments made to Crown Castle under this arrangement were $ 274 for 2025. At December 31, 2025, the future minimum payments under the sublease arrangement are $ 280 for 2026, $ 285 for 2027, $ 291 for 2028, $ 297 for 2029, $ 303 for 2030 and $ 1,086 thereafter. NOTE 19. TRANSACTIONS WITH DIRECTV Prior to its sale, we accounted for our investment in DIRECTV under the equity method and recorded our share of DIRECTV earnings as equity in net income of affiliates, with DIRECTV considered a related party. On July 2, 2025, we sold our interest in DIRECTV to TPG. (See Note 10) The following table sets forth our share of DIRECTV’s earnings included in “Equity in net income of affiliates” and cash distributions received from DIRECTV: 2025 2024 2023 DIRECTV’s earnings included in Equity in net income of affiliates $ 1,926   $ 2,027   $ 1,666 Distributions classified as operating activities $ 1,926   $ 2,027   $ 1,666 Distributions classified as investing activities —   928   2,049 Cash distributions received from DIRECTV $ 1,926   $ 2,955   $ 3,715 For the years ended December 31, 2025, 2024 and 2023, we billed DIRECTV approximately $ 240 , $ 536 and $ 730 under commercial arrangements and transition service agreements, which were recorded as a reduction to the operations and support expenses incurred. 86 AT&T Inc. Dollars in millions except per share amounts NOTE 20. FIRSTNET In 2017, the First Responder Network Authority (FirstNet) selected AT&T to build and manage the first nationwide broadband network dedicated to America’s first responders. Under the 25 -year agreement, FirstNet provides 20 MHz of valuable telecommunications spectrum and success-based payments of $ 6,500 to support network buildout, which has been substantially completed. We are required to construct a network that achieves coverage and nationwide interoperability requirements and have a contractual commitment to make sustainability payments of $ 18,000 over the 25 -year contract. These sustainability payments represent our commitment to fund FirstNet’s operating expenses and future reinvestments in the network which we own and operate, which we estimate in the $ 3,000 or less range over the life of the 25 -year contract. After FirstNet’s operating expenses are paid, we anticipate the remaining amount, expected to be in the $ 15,000 range, will be reinvested into the network. On January 30, 2024, FirstNet agreed to reinvest up to $ 6,300 in the network over 10 years, subject to authorization. During 2025, we submitted $ 420 in sustainability payments, with future payments under the agreement of $ 896 for 2026, $ 1,566 for 2027, $ 1,658 for 2028, $ 1,474 for 2029, $ 1,115 for 2030, and $ 9,320 thereafter. Amounts paid to FirstNet, which are not expected to be returned to AT&T to be reinvested into our network, will be expensed in the period paid. In the event FirstNet does not reinvest any funds to construct, operate, improve and maintain this network, our maximum exposure to loss is the total amount of the sustainability payments, which would be reflected in higher expense. NOTE 21. CONTINGENT LIABILITIES We are party to numerous lawsuits, regulatory proceedings and other matters arising in the ordinary course of business. In evaluating these matters on an ongoing basis, we take into account amounts already accrued on the balance sheet. In our opinion, although the outcomes of these proceedings are uncertain, they should not have a material adverse effect on our financial position, results of operations or cash flows. See Note 12 for a discussion of collateral and credit-risk contingencies. We have contractual obligations to purchase certain goods or services from various other parties. Our purchase obligations are expected to be approximately $ 8,545 in 2026, $ 10,698 in total for 2027 and 2028, $ 2,505 in total for 2029 and 2030 and $ 2,890 in total for years thereafter. NOTE 22. SUPPLIER AND VENDOR FINANCING PROGRAMS Supplier Financing Program We actively manage the timing of our supplier payments for operating items to optimize the use of our cash and seek to make payments on 90-day or greater terms, while providing suppliers with access to bank facilities that permit earlier payment at their cost. Our supplier financing program does not result in changes to our normal, contracted payment cycles or cash from operations. At the supplier’s election, they can receive payment of AT&T obligations prior to the scheduled due dates, at a discounted price from the third-party financial institution. The discounted price paid to participating suppliers is based on a variable rate that is indexed to the overnight borrowing rate. We agree to pay the financial institution the stated amount generally within 90 days of receipt of the invoice. We do not have pledged assets or other guarantees under our supplier financing program. Our outstanding payment obligations are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets and are reported as operating or investing (when capitalizable) activities in our statements of cash flows when paid. The following table presents the change in the supplier financing obligation for the years ended December 31: 2025 2024 Confirmed obligations outstanding at the beginning of year $ 2,498   $ 2,844 Invoices received 17,939   15,510 Invoices paid ( 17,347 ) ( 15,856 ) Confirmed obligations outstanding at the end of year $ 3,090   $ 2,498 87 AT&T Inc. Dollars in millions except per share amounts Direct Supplier Financing We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by generally 90 days at an additional cost to us (variable rate extension fee). Direct supplier financing outstanding is included in “Accounts payable and accrued liabilities” on our consolidated balance sheets and is reported as operating activities in our statements of cash flows when paid. The following table presents the change in the direct supplier financing obligation for the years ended December 31: 2025 2024 Obligations outstanding at the beginning of year $ 6,272   $ 5,442 Invoices extended 19,850   15,831 Invoices paid ( 19,221 ) ( 15,001 ) Obligations outstanding at the end of year $ 6,901   $ 6,272 Vendor Financing We enter into multi-year software licensing arrangements, which, consistent with industry standards, are paid over the license terms of two to five years. Additionally, in connection with capital improvements and the acquisition of other productive assets, we negotiate favorable payment terms of 120 days or more (referred to as vendor financing), which are reported as financing activities in our statements of cash flows when paid. The following table presents the change in the vendor financing obligation for the years ended December 31: 2025 2024 Obligations outstanding at the beginning of year $ 1,424   $ 2,516 Commitments 1,594   700 Payments ( 1,181 ) ( 1,792 ) Obligations outstanding at the end of year 1,2 $ 1,837   $ 1,424 1 Total vendor financing payables at December 31, 2025 and 2024 were $ 1,892 and $ 1,448 , respectively, of which $ 956 and $ 749 are included in “Accounts payable and accrued liabilities.” 2 Includes software licensing arrangements of approximately $ 1,200 and $ 850 at December 31, 2025 and 2024, respectively. NOTE 23. ADDITIONAL FINANCIAL INFORMATION December 31, Consolidated Balance Sheets 2025 2024 Accounts payable and accrued liabilities: Accounts payable $ 29,910   $ 27,433 Accrued payroll and commissions 2,002   2,015 Current portion of employee benefit obligation 635   570 Accrued interest 2,361   2,020 Accrued taxes 585   1,301 Other 3,021   2,318 Total accounts payable and accrued liabilities $ 38,514   $ 35,657 Consolidated Statements of Income 2025 2024 2023 Advertising expense $ 3,105   $ 2,505   $ 2,576 Interest income $ 403   $ 212   $ 303 Interest expense incurred $ 7,025   $ 7,120   $ 7,578 Capitalized interest – capital expenditures ( 165 ) ( 162 ) ( 179 ) Capitalized interest – spectrum 1 ( 56 ) ( 199 ) ( 695 ) Total interest expense $ 6,804   $ 6,759   $ 6,704 1 Included in “Acquisitions, net of cash acquired” in our consolidated statements of cash flows. 88 AT&T Inc. Dollars in millions except per share amounts Cash and Cash Flows We typically maintain our restricted cash balances for purchases and sales of certain investment securities and funding of certain deferred compensation benefit payments. The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets: December 31, Cash and Cash Equivalents and Restricted Cash 2025 2024 2023 2022 Cash and cash equivalents $ 18,234   $ 3,298   $ 6,722   $ 3,701 Restricted cash in Prepaid and other current assets 157   1   2   1 Restricted cash in Other Assets 136   107   109   91 Cash and cash equivalents and restricted cash $ 18,527   $ 3,406   $ 6,833   $ 3,793 The following tables summarize certain cash flow activities during the periods: Consolidated Statements of Cash Flows 2025 2024 2023 Cash paid (received) during the year for: Interest $ 6,625   $ 7,132   $ 7,370 Income taxes, net of refunds 1,353   2,456   1,599 Purchase of property and equipment $ 20,677   $ 20,101   $ 17,674 Interest during construction - capital expenditures 1 165   162   179 Total Capital expenditures $ 20,842   $ 20,263   $ 17,853 Business acquisitions $ —   $ —   $ — Spectrum acquisitions 323   181   2,247 Interest during construction - spectrum 1 56   199   695 Total Acquisitions, net of cash acquired $ 379   $ 380   $ 2,942 1 Total capitalized interest was $ 221 , $ 361 and $ 874 for 2025, 2024 and 2023, respectively. Labor Contracts As of December 31, 2025, we employed approximately 133,030 persons. Approximately 43 % of our employees are represented by the Communications Workers of America (CWA), the International Brotherhood of Electrical Workers (IBEW) or other unions. After expiration of collective bargaining agreements, work stoppages or labor disruptions may occur in the absence of new contracts or other agreements being reached. The main contracts set to expire in 2026 include the following: • A contract covering approximately 9,000 employees across 36 states and the District of Columbia is set to expire in February. • A contract covering approximately 4,300 employees across five states is set to expire in April. • Two wireline contracts covering approximately 1,800 employees across all 50 states as well as the U.S. Virgin Islands and Puerto Rico are set to expire in April. 89 AT&T Inc. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE During our two most recent fiscal years, there has been no change in the independent accountant engaged as the principal accountant to audit our financial statements, and the independent accountant has not expressed reliance on other independent accountants in its reports during such time period. ITEM 9A. CONTROLS AND PROCEDURES Disclosure Controls and Procedures The registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized, accumulated and communicated to its management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure, and reported within the time periods specified in the SEC’s rules and forms. The Chief Executive Officer and Chief Financial Officer have performed an evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of December 31, 2025. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the registrant’s disclosure controls and procedures were effective as of December 31, 2025. There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Internal Control Over Financial Reporting a. Management’s Annual Report on Internal Control over Financial Reporting The management of AT&T is responsible for establishing and maintaining adequate internal control over financial reporting. AT&T’s internal control system was designed to provide reasonable assurance as to the integrity and reliability of the published financial statements. AT&T management assessed the effectiveness of the company’s internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013 framework). Based on its assessment, AT&T management believes that, as of December 31, 2025, the Company’s internal control over financial reporting is effective based on those criteria. b. Attestation Report of the Independent Registered Public Accounting Firm The independent registered public accounting firm that audited the financial statements included in the Annual Report containing the disclosure required by this Item, Ernst & Young LLP, has issued an attestation report on the Company’s internal control over financial reporting. ITEM 9B. OTHER INFORMATION a. There is no information that was required to be disclosed in a report on Form 8-K during the fourth quarter of 2025 but was not reported. b. In the quarter ended December 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a plan for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a non-Rule 10b5-1 trading arrangement for the purchase or sale of our securities, within the meaning of Item 408 of Regulation S-K . ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 90 AT&T Inc. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Information regarding executive officers required by Item 401 of Regulation S-K is furnished in a separate disclosure at the end of Part I of this report entitled “Information about our Executive Officers.” Information regarding directors required by Item 401 of Regulation S-K is incorporated herein by reference pursuant to General Instruction G(3) from the registrant’s 2026 definitive proxy statement (Proxy Statement) under the heading “Management Proposal Item No. 1. Election of Directors.” Information required by Item 405 of Regulation S-K is incorporated herein by reference pursuant to General Instruction G(3) from the registrant’s Proxy Statement under the heading “Delinquent Section 16(a) Reports.” The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The members of the committee are Messrs. Luczo and McCallister, and Mses. Mayer and Taylor. The additional information required by Item 407(d)(5) of Regulation S-K is incorporated herein by reference pursuant to General Instruction G(3) from the registrant’s Proxy Statement under the heading “Audit Committee.” The registrant has adopted a code of ethics entitled “Code of Ethics” that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, or controller or persons performing similar functions. The additional information required by Item 406 of Regulation S-K is provided in this report under the heading “General” under Part I, Item 1. Business. Information required by Item 408(b) of Regulation S-K is incorporated herein by reference pursuant to General Instruction G(3) from the registrant’s Proxy Statement under the heading “Insider Trading Policy.” ITEM 11. EXECUTIVE COMPENSATION Information required by this Item is incorporated herein by reference pursuant to General Instruction G(3) from the registrant’s Proxy Statement under the headings “Director Compensation,” “2025 Director Compensation Table,” “CEO Pay Ratio,” “Pay Versus Performance,” and the pages beginning with the heading “Compensation Discussion and Analysis” and ending with, and including, the pages under the heading “Potential Payments upon Change in Control.” Information required by Item 407(e)(5) of Regulation S-K is included in the registrant’s Proxy Statement under the heading “Compensation Committee Report” and is incorporated herein by reference pursuant to General Instruction G(3) and shall be deemed furnished in this Annual Report on Form 10-K and will not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Information required by Item 201(d) of Regulation S-K is included in the registrant’s Proxy Statement under the heading “Equity Compensation Plan Information,” which is incorporated herein by reference pursuant to General Instruction G(3). Information required by Item 403 of Regulation S-K is included in the registrant’s Proxy Statement under the heading “Common Stock Ownership,” which is incorporated herein by reference pursuant to General Instruction G(3). 91 AT&T Inc. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Information required by Item 404 of Regulation S-K is included in the registrant’s Proxy Statement under the heading “Related Person Transactions,” which is incorporated herein by reference pursuant to General Instruction G(3). Information required by Item 407(a) of Regulation S-K is included in the registrant’s Proxy Statement under the heading “Director Independence,” which is incorporated herein by reference pursuant to General Instruction G(3). ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Information required by this Item is included in the registrant’s Proxy Statement under the heading “Principal Accountant Fees and Services,” which is incorporated herein by reference pursuant to General Instruction G(3). PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) Documents filed as a part of the report: Page (1) Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 39 Financial Statements covered by Report of Independent Registered Public Accounting Firm: Consolidated Statements of Income 42 Consolidated Statements of Comprehensive Income 43 Consolidated Balance Sheets 44 Consolidated Statements of Cash Flows 45 Consolidated Statements of Changes in Stockholders’ Equity 46 Notes to Consolidated Financial Statements 48 (2) Financial Statement Schedules: II - Valuation and Qualifying Accounts 95 Financial statement schedules other than those listed above have been omitted because the required information is contained in the financial statements and notes thereto, or because such schedules are not required or applicable. (3) Exhibits: Exhibits identified in parentheses below, on file with the SEC, are incorporated herein by reference as exhibits hereto. Unless otherwise indicated, all exhibits so incorporated are from File No. 001-8610. Exhibit Number 2-a Securities Purchase Agreement, dated September 29, 2024, by and among AT&T Services, Inc., AT&T Diversified MVPD Holdings LLC, AT&T MVPD Holdings LLC, Merlin Parent 2024, Inc., TPG Partners IX, L.P. and DIRECTV Entertainment Holdings LLC ( Exhibit 2.1 to Form 10-Q for the period ending September 30, 2024 )* 2-b Purchase Agreement, dated as of May 21, 2025, by and among Lumen Technologies, Inc., the Sellers named therein, Forged Fiber 37, LLC, and, solely for purposes of Section 11.16 thereof, AT&T DW Holdings, Inc. ( Exhibit 2.1 to Form 8-K filed on May 21, 2025 )* 3-a Restated Certificate of Incorporation, filed with the Secretary of State of Delaware on December 13, 2013 ( Exhibit 3.1 to Form 8-K filed on December 16, 2013 ) 3-b Bylaws ( Exhibit 3.1 to Form 8-K filed on February 2, 2023 ) 3-c Certificate of Designations with respect to Series A Preferred Stock ( Exhibit 3.1 to Form 8-K filed on December 12, 2019 ) 3-d Certificate of Designations with respect to Series B Preferred Stock ( Exhibit 3.1 to Form 8-K filed on February 18, 2020 ) 92 AT&T Inc. 3-e Certificate of Designations with respect to Series C Preferred Stock ( Exhibit 3.2 to Form 8-K filed on February 18, 2020 ) 4-a No instrument which defines the rights of holders of long-term debt of the registrant and all of its consolidated subsidiaries is filed herewith pursuant to Regulation S-K, Item 601(b)(4)(iii)(A), except for the instruments referred to in 4-b, 4-c, 4-d, 4-e, 4-f below. Pursuant to this regulation, the registrant hereby agrees to furnish a copy of any such instrument not filed herewith to the SEC upon request. 4-b Guaranty of certain obligations of Pacific Bell Telephone Co. and Southwestern Bell Telephone Co. ( Exhibit 4-c to Form 10-K for the period ending December 31, 2011 ) 4-c Guaranty of certain obligations of Ameritech Capital Funding Corp., Indiana Bell Telephone Co. Inc., Michigan Bell Telephone Co., Pacific Bell Telephone Co., Southwestern Bell Telephone Company, Illinois Bell Telephone Company, The Ohio Bell Telephone Company, The Southern New England Telephone Company, Southern New England Telecommunications Corporation, and Wisconsin Bell, Inc. ( Exhibit 4-d to Form 10-K for the period ending December 31, 2011 ) 4-d Guarantee of certain obligations of AT&T Enterprises LLC ( Exhibit 4-e to Form 10-K for the period ending December 31, 2011 ) 4-e Indenture, dated as of May 15, 2013, between AT&T Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee ( Exhibit 4.1 to Form 8-K filed on May 15, 2013 ) 4-f Indenture dated as of November 1, 1994 between SBC Communications Inc. and The Bank of New York, as Trustee ( Exhibit 4-h to Form 10-K for the period ending December 31, 2013 ) 4-g Deposit Agreement, dated December 12, 2019, among AT&T Inc., Computershare Inc. and Computershare Trust Company, N.A., collectively, as depositary, and the holders from time to time of the depository receipts described therein ( Exhibit 4.3 to Form 8-K filed December 12, 2019 ) 4-h Deposit Agreement, dated February 18, 2020, among the Company, Computershare Inc. and Computershare Trust Company, N.A., collectively, as depositary, and the holders from time to time of the depositary receipts described therein ( Exhibit 4.3 to Form 8-K filed February 18, 2020 ) 4-i Description of AT&T’s Securities Registered Under Section 12 of the Exchange Act 10-a 2018 Incentive Plan ( Exhibit 10-a to Form 10-K for the period ending December 31, 2017 ) ** 10-b 2016 Incentive Plan ( Exhibit 10-a to Form 10-Q for the period ending March 31, 2016 ) ** 10-c Resolution Regarding John Stankey ( Exhibit 10-b to Form 10-Q for the period ending September 30, 2017 )** 10-d 2011 Incentive Plan ( Exhibit 10-a to Form 10-Q for the period ending September 30, 2015 )** 10-e Short Term Incentive Plan ( Exhibit 10-e to Form 10-K for the period ending December 31, 2024 )** 10-f Supplemental Life Insurance Plan ( Exhibit 10-f to Form 10-K for the period ending December 31, 2024 )** 10-g Supplemental Retirement Income Plan ( Exhibit 10-e to Form 10-K for the period ending December 31, 2013 )** 10-h 2005 Supplemental Employee Retirement Plan (Exhibit 10-g to Form 10-K for the period ending December 31, 2021) ** 10-i Salary and Incentive Award Deferral Plan ( Exhibit 10-k to Form 10-K for the period ending December 31, 2011 )** 10-j Stock Savings Plan ( Exhibit 10-l to Form 10-K for the period ending December 31, 2011 )** 10-k Stock Purchase and Deferral Plan as amended May 16, 2024 ( Exhibit 10.2 to Form 10-Q for the period ending June 30, 2024 ) ** 10-l Cash Deferral Plan as amended May 16, 2024 ( Exhibit 10.1 to Form 10-Q for the period ending June 30, 2024 )** 10-m Master Trust Agreement for AT&T Inc. Deferred Compensation Plans and Other Executive Benefit Plans and subsequent amendments dated August 1, 1995 and November 1, 1999 ( Exhibit 10-dd to Form 10-K for the period ending December 31, 2009 )** 10-n Officer Disability Plan ( Exhibit 10-n to Form 10-K for the period ending December 31, 2024 )** 10-o AT&T Inc. Health Plan ( Exhibit 10. 1 to Form 10-Q for the period ending June 30, 202 5 )** 10-p Pension Benefit Makeup Plan No.1 ( Exhibit 10-n to Form 10-K for the period ending December 31, 2016 )** 10-q AT&T Inc. Equity Retention and Hedging Policy as amended March 24, 2022 ( Exhibit 10.2 to Form 10-Q for the period ending March 31, 2022 ) 93 AT&T Inc. 10-r Administrative Plan ( Exhibit 10.1 to Form 10-Q for the period ending September 30, 2023 )** 10-s AT&T Inc. Non-Employee Director Stock and Deferral Plan ** 10-t AT&T Inc. Non-Employee Director Stock Purchase Plan ( Exhibit 10-t to Form 10-K for the period ending December 31, 2013 )** 10-u AT&T Inc. Board of Directors Communications Concession Program ( Exhibit 10-u to Form 10-K for the period ending December 31, 2022 )** 10-v Form of Indemnity Agreement between AT&T Inc. and its directors and officers ( Exhibit 10-v to Form 10-K for the period ending December 31, 2023 )** 10-w AT&T Executive Physical Program ( Exhibit 10.4 to Form 10-Q for the period ending June 30, 2023 )** 10-x Attorney Fee Payment Agreement for John Stankey ( Exhibit 10.1 to Form 8-K filed on July 3, 2018 )** 10-y $12,000,000,000 Second Amended and Restated Credit Agreement, dated as of November 3, 2025, among AT&T Inc., the lenders named therein and Citibank, N.A., as agent ( Exhibit 10.1 to Form 8-K filed on November 3, 2025 ) 10-z $17,500,000,000 Delayed Draw Term Loan Credit Agreement, dated as of November 3, 2025, among AT&T Inc., the lenders named therein and Bank of America, N.A., as agent ( Exhibit 10.2 to Form 8-K filed on November 3, 2025 ) 10-aa Third Amended and Restated Limited Liability Company Agreement of NCWPCS MPL Holdings, LLC ( Exhibit 10.1 to Form 10-Q for the period ending September 30, 2024 )* 10-bb AT&T Inc. Change in Control Severance Plan ( Exhibit 10-aa to Form 10-K for the period ending December 31, 2024 )** 10-cc Relocation Program Plan ( Exhibit 10.2 to Form 10-Q for the period ending September 30, 2021 )** 10-dd Fourth Amended and Restated Limited Liability Company Agreement of AT&T Fiber Investment, LLC ( Exhibit 10-ii to Form 10-K for the period ending December 31, 2024 )* 10-ee License Purchase Agreement, dated August 25, 2025, by and among EchoStar Corporation, the other parties set forth therein, and AT&T Mobility II LLC ( Exhibit 10.1 to Form 10-Q for the period ending September 30, 2025 )* 19 Insider Trading Policy ( Exhibit 19 to Form 10-K for the period ending December 31, 2024 ) 21 Subsidiaries of AT&T Inc. 23 Consent of Ernst & Young LLP 24 Powers of Attorney 31 Rule 13a-14(a)/15d-14(a) Certifications 31.1 Certification of Principal Executive Officer 31.2 Certification of Principal Financial Officer 32 Section 1350 Certification 97 AT&T Inc. Clawback Policy ( Exhibit 97 to Form 10-K for the period ending December 31, 2023 ) 99 Supplemental Interim Financial Information 101 The consolidated financial statements from the Company’s Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 9, 2026, formatted in Inline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Balance Sheets, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags. 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

• Certain schedules (or similar attachments) have been omitted pursuant to Item 601(a)(5) or Item 601(b)(2) of Regulation S-K. The registrant agrees to furnish copies of such schedules (or similar attachments) to the U.S. Securities and Exchange Commission upon request. ** Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this report. We will furnish to stockholders upon request, and without charge, a copy of the Annual Report to Stockholders and the Proxy Statement, portions of which are incorporated by reference in the Form 10-K. We will furnish any other exhibit at cost. 94 AT&T Inc. ITEM 16. FORM 10-K SUMMARY None. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Allowance for Credit Losses COL. A COL. B COL. C COL. D COL. E Additions (1) (2) (3) Balance at Beginning of Period Charged to Costs and Expenses (a) Charged to Other Accounts Acquisitions Deductions (b) Balance at End of Period (c) Year 2025 $ 553   2,271   —   —   2,174   $ 650 Year 2024 $ 756   1,969   —   —   2,172   $ 553 Year 2023 $ 1,011   1,969   —   —   2,224   $ 756 (a) Includes amounts previously written off which were credited directly to this account when recovered. Excludes direct charges and credits to expense for nontrade receivables in the consolidated statements of income. (b) Amounts written off as uncollectible. (c) Includes balances applicable to trade receivables, loans, contract assets and other assets subject to credit loss measurement (see Note 1). Allowance for Deferred Tax Assets COL. A COL. B COL. C COL. D COL. E Additions (1) (2) (3) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Acquisitions Deductions Balance at End of Period Year 2025 $ 4,338   ( 360 ) —   —   —   $ 3,978 Year 2024 $ 4,656   ( 318 ) —   —   —   $ 4,338 Year 2023 $ 4,175   481   —   —   —   $ 4,656 95 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 9th day of February, 2026. AT&T INC. /s/ Pascal Desroches Pascal Desroches Senior Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated. Principal Executive Officer: John T. Stankey* Chairman of the Board, Chief Executive Officer and President Principal Financial Officer: Pascal Desroches Senior Executive Vice President and Chief Financial Officer /s/ Pascal Desroches Pascal Desroches, as attorney-in-fact and on his own behalf as Principal Financial Officer Principal Accounting Officer: Sabrina Sanders Senior Vice President, Chief Accounting Officer and Controller /s/ Sabrina Sanders February 9, 2026 Directors: John T. Stankey* Beth E. Mooney* William E. Kennard* Matthew K. Rose* Kelly J. Grier* Cynthia B. Taylor* Marissa A. Mayer* Luis A. Ubiñas* Michael B. McCallister*
• by power of attorney 96