Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
AT&T Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance presented demonstrates significant volatility over the five-year period. Operating revenues experienced a substantial decline from 2021 to 2022, followed by a period of relative stabilization and modest growth through 2025. Profitability metrics exhibit even more pronounced fluctuations, with a notable loss in 2022 before recovering and trending upward in subsequent years.
- Revenue Analysis
- Operating revenues decreased considerably from US$168.864 billion in 2021 to US$120.741 billion in 2022, representing a decline of approximately 28.5%. Revenues then showed a slow recovery, reaching US$125.648 billion by 2025. Service revenues, the primary component of operating revenues, mirrored this pattern, falling from US$146.391 billion to US$97.831 billion in 2022 and gradually increasing to US$101.158 billion in 2025. Equipment revenues remained relatively stable, with a slight increase observed in the final year of the period.
- Profitability Analysis
- Gross profit followed the revenue trend, decreasing from US$89.057 billion in 2021 to US$69.893 billion in 2022, and then increasing to US$74.828 billion in 2025. Operating income experienced a dramatic shift from a profit of US$23.347 billion in 2021 to a loss of US$4.587 billion in 2022. This was followed by a strong recovery, with operating income reaching US$24.162 billion in 2025. Net income attributable to AT&T exhibited a similar pattern, declining to a loss of US$8.524 billion in 2022 before rising to a profit of US$21.953 billion in 2025.
- Cost Structure
- Cost of revenues decreased significantly from US$79.807 billion in 2021 to US$50.848 billion in 2022, likely contributing to the revenue decline. While costs increased slightly in subsequent years, they remained below the 2021 level. Selling, general and administrative expenses demonstrated a consistent downward trend from US$37.944 billion to US$28.942 billion over the period. However, asset impairments and abandonments and restructuring charges were particularly high in 2022 at US$27.498 billion, contributing to the overall loss. Depreciation and amortization remained relatively stable, fluctuating between US$18.021 billion and US$22.862 billion.
- Other Income and Expenses
- Other income (expense), net, was highly variable. A significant positive impact was observed in 2021 (US$9.853 billion) and 2025 (US$7.754 billion), while a negative impact was seen in 2023 (US$3.613 billion). Interest expense remained relatively consistent throughout the period, ranging from US$6.108 billion to US$6.884 billion. Equity in net income of affiliates showed modest fluctuations, generally remaining between US$1.675 billion and US$1.895 billion.
Overall, the period was characterized by a substantial downturn in 2022, followed by a recovery and growth trajectory through 2025. The fluctuations in profitability were heavily influenced by changes in operating revenues, significant asset impairments in 2022, and variations in other income and expenses. The consistent management of selling, general and administrative expenses may have contributed to the improved performance in later years.
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