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SEC filingRevenue grew 2.9% to $31.5B driven by higher equipment sales volumes and fiber customer growth, yielding 15.7% operating income expansion to $6.7B with margin up to 21.1%, though net income fell 12.0% to $3.8B from below-the-line pressures.
AT&T delivered revenue growth of 2.9% to $31.5 billion in Q1 2026 from $30.6 billion a year ago, primarily fueled by higher wireless device sales volumes contributing to equipment revenue increases and robust fiber revenue expansion. Fiber revenues specifically rose 21.2%, driven by growth in fiber customers including those from the acquired mass markets fiber business, underscoring the momentum in advanced connectivity offerings. These gains reflect strategic customer adds and acquisition integration, helping to offset declines elsewhere such as in other service revenues, which decreased due to the ongoing drop in consumer VoIP customers, and business transitional revenues, which fell from lower demand for VPN and wholesale services—trends management expects to persist.
Net income, however, declined 12.0% to $3.8 billion from $4.4 billion, with diluted EPS falling 11.5% to $0.54 from $0.61. This bottom-line pressure occurred below the operating line, consistent with the company's focus on evaluating segment performance via operating income, EBITDA, and margins rather than net figures alone. The capital structure excludes debt from equity method investments, providing clarity on core leverage amid these transitions.
Overall, these results demonstrate disciplined execution in high-growth areas like fiber while navigating legacy declines and sales-driven cost headwinds. Margin expansion signals effective cost transformation, positioning AT&T to capitalize on fiber acceleration and wireless momentum for sustained operational strength.