Stock Analysis on Net
Stock Analysis on Net

AT&T Inc. (NYSE:T)

Common-Size Income Statement 
Quarterly Data

AT&T Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Service 82.32 80.87 75.87 82.50 81.99 82.08 77.88 83.19 83.92 82.73 78.29 82.74 83.06 81.68 79.23 82.32 81.87 80.77 83.23 87.28 88.45 87.63
Equipment 17.68 19.13 24.13 17.50 18.01 17.92 22.12 16.81 16.08 17.27 21.71 17.26 16.94 18.32 20.77 17.68 18.13 19.23 16.77 12.72 11.55 12.37
Operating revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equipment -18.19 -20.01 -25.39 -17.81 -18.60 -18.59 -22.78 -16.33 -16.16 -17.13 -22.49 -17.20 -16.90 -18.77 -22.33 -18.11 -18.67 -20.32 -18.20 -13.59 -12.13 -12.64
Broadcast, programming and operations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -11.98 -11.90 -17.26 -17.16
Other cost of revenues, exclusive of depreciation and amortization -19.98 -19.87 -18.89 -20.68 -20.79 -20.70 -21.17 -22.17 -22.24 -22.68 -20.95 -22.52 -22.63 -22.14 -20.97 -22.50 -22.96 -22.55 -18.15 -19.16 -18.52 -18.19
Cost of revenues -38.17% -39.88% -44.28% -38.49% -39.39% -39.29% -43.95% -38.49% -38.40% -39.81% -43.44% -39.72% -39.53% -40.91% -43.30% -40.61% -41.63% -42.86% -48.33% -44.65% -47.90% -47.99%
Gross profit 61.83% 60.12% 55.72% 61.51% 60.61% 60.71% 56.05% 61.51% 61.60% 60.19% 56.56% 60.28% 60.47% 59.09% 56.70% 59.39% 58.37% 57.14% 51.67% 55.35% 52.10% 52.01%
Selling, general and administrative -22.88 -23.22 -22.11 -24.27 -22.51 -23.33 -22.88 -23.03 -23.64 -23.38 -23.37 -23.74 -23.43 -23.81 -23.98 -23.97 -24.51 -23.49 -24.40 -23.06 -21.25 -21.35
Asset impairments and abandonments and restructuring -0.91 0.00 -1.00 0.00 0.00 -1.65 -0.04 -14.64 -1.61 -0.53 -1.84 -1.99 0.00 0.00 -85.36 -0.38 -2.13 0.00 -0.46 -0.40 -10.34 0.00
Depreciation and amortization -15.74 -15.76 -15.32 -17.31 -17.02 -16.95 -16.64 -16.84 -17.02 -16.81 -14.88 -15.50 -15.63 -15.37 -14.66 -15.03 -15.01 -15.02 -13.85 -14.07 -13.08 -13.22
Operating income (loss) 22.30% 21.13% 17.30% 19.93% 21.07% 18.79% 16.49% 7.00% 19.33% 19.47% 16.46% 19.05% 21.41% 19.91% -67.29% 20.01% 16.72% 18.64% 12.96% 17.81% 7.42% 17.44%
Interest expense -5.97 -5.75 -5.35 -5.54 -5.37 -5.41 -5.14 -5.54 -5.70 -5.74 -5.39 -5.48 -5.37 -5.67 -4.98 -4.73 -5.07 -5.47 -4.06 -4.18 -3.82 -4.26
Equity in net income (loss) of affiliates -0.09 -0.13 -0.03 -0.07 1.57 4.70 3.33 0.90 1.17 0.98 1.05 1.38 1.27 1.79 1.19 1.30 1.70 1.75 1.09 0.23 0.09 0.12
Other income (expense), net 2.21 1.89 0.83 20.37 2.49 1.49 1.76 2.37 2.29 1.50 -2.95 1.45 3.30 3.10 -2.93 7.56 7.77 7.26 5.75 5.71 2.27 9.61
Other income (expense) -3.85% -4.00% -4.55% 14.76% -1.31% 0.77% -0.06% -2.27% -2.25% -3.26% -7.29% -2.64% -0.81% -0.78% -6.72% 4.13% 4.40% 3.54% 2.78% 1.76% -1.46% 5.47%
Income (loss) from continuing operations before income taxes 18.45% 17.13% 12.74% 34.69% 19.77% 19.56% 16.43% 4.73% 17.09% 16.21% 9.17% 16.41% 20.61% 19.13% -74.01% 24.15% 21.12% 22.18% 15.74% 19.57% 5.96% 22.90%
Income tax expense on continuing operations -2.48 -3.74 -0.33 -3.18 -4.01 -4.24 -2.79 -4.25 -3.83 -3.72 -1.11 -3.80 -4.69 -4.36 0.25 -3.02 -5.09 -4.85 -2.58 -3.86 -1.71 -4.83
Income (loss) from continuing operations 15.96% 13.39% 12.42% 31.51% 15.76% 15.32% 13.65% 0.48% 13.25% 12.49% 8.06% 12.61% 15.92% 14.77% -73.76% 21.12% 16.03% 17.33% 13.16% 15.71% 4.25% 18.08%
Income (loss) from discontinued operations, net of tax -0.09 -0.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.11 0.18 -0.72 0.05 0.00 0.00 0.00 0.00
Net income (loss) 15.88% 13.27% 12.42% 31.51% 15.76% 15.32% 13.65% 0.48% 13.25% 12.49% 8.06% 12.61% 15.92% 14.77% -73.88% 21.30% 15.31% 17.38% 13.16% 15.71% 4.25% 18.08%
Net income attributable to noncontrolling interest -1.21 -1.12 -1.10 -1.18 -1.17 -1.11 -1.02 -1.06 -1.18 -1.02 -1.23 -1.09 -0.91 -0.75 -1.15 -1.24 -1.28 -1.19 -0.85 -0.89 -0.69 -0.89
Net income (loss) attributable to AT&T 14.66% 12.15% 11.32% 30.33% 14.59% 14.21% 12.63% -0.58% 12.07% 11.47% 6.83% 11.52% 15.00% 14.03% -75.03% 20.06% 14.02% 16.19% 12.31% 14.82% 3.56% 17.18%
Preferred stock dividends and redemption gain -0.11 -0.11 -0.11 -0.12 -0.12 0.14 -0.15 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.16 -0.18 -0.16 -0.12 -0.13 -0.13 -0.11
Net income (loss) attributable to common stock 14.55% 12.04% 11.21% 30.21% 14.47% 14.35% 12.48% -0.75% 11.90% 11.31% 6.67% 11.35% 14.83% 13.86% -75.20% 19.89% 13.85% 16.03% 12.19% 14.70% 3.44% 17.07%

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

Analysis of the common-size income statement reveals a recurring seasonal pattern in revenue composition and significant volatility in operating income driven by non-recurring impairment charges.

Revenue Stream Composition
A distinct seasonal shift is observed in the revenue mix. Service revenues typically dominate, ranging between 75% and 88% of operating revenues. However, a consistent decline in the service percentage occurs every December, coinciding with a peak in equipment revenues, which reach their highest levels in the fourth quarter of each year, peaking at 24.13% in December 2025. This indicates a strong seasonal correlation between year-end activity and hardware sales.
Gross Profitability and Cost Structure
Gross profit margins demonstrated a general upward trend from 2021, moving from the low 50% range to stabilize between 56% and 61% in subsequent years. This improvement is primarily attributed to a reduction in the cost of revenues, which decreased from approximately 48% in early 2021 to around 38-40% by 2024. A temporary reversal is noted in December 2025, where the cost of revenues rose to 44.28%, compressing the gross profit to 55.72%.
Operating Expense and Income Volatility
Selling, general, and administrative expenses have remained relatively constant, fluctuating minimally between 22% and 24% of operating revenues. Depreciation and amortization costs have seen a gradual increase, rising from roughly 13% in 2021 to approximately 16-17% in later periods. The most significant volatility is found in operating income, largely due to asset impairments and restructuring. A substantial impairment charge of 85.36% in December 2022 resulted in an operating loss of 67.29% for that quarter, highlighting the severe impact of non-cash charges on operational results.
Net Income and Non-Operating Performance
Net income attributable to common stock exhibits high variance, mirroring the volatility of operating income. While the baseline net margin typically oscillates between 11% and 15%, it was severely impacted by the December 2022 impairment, dropping to -75.20%. Conversely, a significant spike to 30.21% in September 2025 was driven by a surge in other income, which reached 20.37% of operating revenues in that period. Interest expenses have remained stable throughout the analyzed timeframe, generally fluctuating between 4% and 6% of total operating revenues.

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