Common-Size Income Statement
Quarterly Data
AT&T Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 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).
The financial performance over the observed period is characterized by a consistent revenue mix subject to seasonal fluctuations, an overall expansion in gross profit margins, and significant volatility in operating income driven by episodic non-cash impairment charges.
- Revenue Composition and Seasonality
- Operating revenues are divided between service and equipment streams. Service revenues generally constitute the majority of total revenue, typically ranging between 75% and 88%. A recurring seasonal pattern is evident in equipment revenues, which consistently peak in the fourth quarter of each year, reaching highs of 24.13% in December 2025. Conversely, service revenue percentages decline during these same periods, reflecting the cyclical nature of hardware upgrades and holiday sales.
- Gross Profitability and Cost Structure
- There is a visible trend of improving gross profit margins, which rose from approximately 52% in early 2021 to consistently exceed 60% between 2023 and 2024. This improvement is primarily attributed to a reduction in the cost of revenues, which declined from peaks of 48% in 2021 to lows near 38% in 2024. However, this trend experienced a temporary reversal in December 2025, where the cost of revenues climbed to 44.28%, reducing the gross profit margin to 55.72%.
- Operating Expense Stability and Volatility
- Selling, general, and administrative expenses remained remarkably stable throughout the period, fluctuating narrowly between 21% and 24% of operating revenues. Depreciation and amortization showed a gradual increase, moving from roughly 13% in 2021 to a range of 15% to 17% in subsequent years. The most significant volatility in operating income resulted from asset impairments and restructuring charges. A major impairment event occurred in December 2022, where charges totaling 85.36% of operating revenues led to an operating loss of 67.29% for that quarter. Subsequent impairments were noted in June 2024 and September 2026.
- Net Income and Bottom-Line Trends
- Net income attributable to common stock generally tracks with operating income, though it is influenced by other income and interest expenses. Interest expenses have remained relatively steady, typically between 4% and 6% of revenues. A notable outlier occurred in September 2025, where net income peaked at 30.21% of operating revenues, driven by a significant spike in other income, net, which reached 20.37%. Despite these anomalies, the long-term trend indicates a capacity for double-digit net margins when excluding extraordinary impairment charges.
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