AT&T Inc. (NYSE:T)

The financial data reveals multiple fluctuations in income and expense items as a percentage of operating revenues over the reported periods. Key trends and observations are summarized below:

Revenue Composition

The proportion of operating revenues derived from services shows a generally declining trend from around 90.89% in early 2020 to levels near 82% by mid-2025, with some variability quarter to quarter. Conversely, equipment's share of operating revenues increased from roughly 9.11% in early 2020 to about 17.5%-22% in recent quarters. This shift suggests a gradual rebalancing between service and equipment revenues over time.

Cost of Revenues

Equipment-related costs consistently represent a negative percentage of operating revenues, reflecting costs exceeding or offsetting related revenues, with a peak negative contribution greater than 22% in some quarters. Other cost components such as “Other cost of revenues” remained relatively stable, fluctuating in the range of approximately -17% to -22%, with no clear upward or downward trend.

Gross Profit

Gross profit margins, calculated as a percentage of operating revenues, generally improved from about 55% in early 2020 to peak near 61% in mid-2024, despite some quarter-to-quarter volatility. This indicates improved efficiency or favorable pricing over time in generating gross profit relative to revenues.

Operating Expenses and Special Items

Selling, general and administrative expenses have stayed relatively consistent, ranging roughly between -20% and -24% of operating revenues. Asset impairments, abandonments, and restructuring charges are markedly volatile, with isolated substantial negative impacts such as a severe dip in late 2022 indicating one-time or irregular charges affecting profitability in certain quarters.

Operating Income

Operating income as a percentage of operating revenues exhibits significant fluctuations, including strongly negative performance in some quarters (e.g., late 2020 and late 2022) with operating losses exceeding -60% in one instance. Otherwise, this metric mostly remains positive, fluctuating generally between 7% and 21%, illustrating variable operating profitability.

Interest Expense and Other Income (Expense)

Interest expense consistently consumes approximately 4% to 5.7% of operating revenues, showing modest variation but no clear directional trend. Other income and expense items vary with some positive contributions in certain periods and negative in others, including occasional large swings (e.g., a sharp positive spike nearing 20% of operating revenues by late 2025), which may be related to non-recurring items or changes in financial activities external to primary operations.

Income Before Taxes and Net Income

Income from continuing operations before tax mostly follows the pattern of operating income but with some additional volatility potentially attributable to other income and interest expenses. Quarter-to-quarter results include periods of negative income, notably in late 2020 and late 2022. Net income attributable to the company fluctuates similarly, with notable losses in specific quarters but generally maintaining positive returns between 11% and 15% in recent years. The swings suggest episodic impacts from extraordinary expenses or restructuring influence the bottom line.

Tax Expense

Income tax expense varies between approximately -1% and -5% of operating revenues, with occasional periods reflecting tax benefits or credits (e.g., a positive tax expense in late 2020), consistent with the variability in pre-tax income levels.

Noncontrolling Interests and Dividends

Net income attributable to noncontrolling interests tends to be a small negative percentage of operating revenues, typically around -0.7% to -1.2%, with limited variation. Preferred stock dividends are minor, generally below 0.2%, and stable across the periods.

Overall, the data present a company experiencing fluctuating profitability influenced by volatile operating income and periodic special charges. There is a discernible shift in revenue mix away from services toward equipment. Operating expenses and cost of revenues remain significant but relatively stable. Large impairments and restructuring costs caused sharp short-term profit declines in selected quarters. The entity maintains a positive net income trend in most recent quarters despite these challenges.