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)

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3 months ended: 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 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 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%
Equipment -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 -11.98 -11.90 -17.26 -17.16
Other cost of revenues, exclusive of depreciation and amortization -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 -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 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 -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 0.00 -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 -15.76 -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) 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 -5.75 -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 -0.13 -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 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) -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 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 -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 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 -0.12 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) 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 -1.12 -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 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 -0.12 -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 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: 2026-03-31), 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).

The financial trajectory of the company reveals a distinct seasonal pattern in revenue composition and a general expansion of gross profit margins over the analyzed period. Operating revenues consistently oscillate between service and equipment contributions, with a recurring spike in equipment sales during the fourth quarter of each year, typically peaking between 20% and 24% of total revenues.

Revenue Mix and Gross Margin Trends
Service revenues generally maintain a dominant share, ranging from approximately 76% to 88%. A consistent inverse relationship exists between service and equipment revenues, where equipment sales increase during December quarters, coinciding with a contraction in the service revenue percentage. Despite these fluctuations, gross profit margins have demonstrated a structural improvement, rising from the 52% range in early 2021 to frequently exceeding 60% between 2022 and 2024, indicating enhanced cost efficiencies or pricing power in the core service offerings.
Operating Expense Profile
Selling, general, and administrative expenses remain relatively stable, fluctuating within a narrow band of 22% to 24% of operating revenues. However, depreciation and amortization costs have shown a gradual upward trend, increasing from approximately 13% in 2021 to a range of 15% to 17% in subsequent years, reflecting continued capital investment. Operating income typically remains robust, generally staying between 16% and 21%, except during periods of significant non-recurring charges.
Non-Recurring Events and Volatility
A significant anomaly is observed in the quarter ending December 31, 2022, where operating income plummeted to -67.29%. This was driven by a substantial asset impairment and abandonment charge of -85.36% of operating revenues, which led to a corresponding net loss attributable to common stock of -75.20%. Other volatility is noted in non-operating items, specifically a sharp increase in net income during the quarter ending September 30, 2025, which reached 31.51%, primarily fueled by a spike in other income totaling 20.37% of operating revenues.
Bottom-Line Performance
Excluding the 2022 impairment event, net income attributable to common stock has remained positive, typically ranging from 6% to 15%. Interest expenses have remained consistent, averaging between 4% and 6% of operating revenues, suggesting a stable debt-servicing cost relative to the scale of operations. The company's ability to maintain positive net margins despite high depreciation and interest costs suggests a sustainable operational baseline.

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