Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

AT&T Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income (loss)	23,386)	12,253)	15,623)	(7,055)	21,479)
Translation adjustment, net of taxes	354)	(545)	463)	346)	(127)
Reclassification adjustment included in net income (loss), net of taxes	—)	127)	—)	—)	2,087)
Distributions of WarnerMedia, net of taxes	—)	—)	—)	(182)	—)
Foreign currency	354)	(418)	463)	164)	1,960)
Net unrealized gains (losses), net of taxes	15)	(19)	22)	(143)	(63)
Reclassification adjustment included in net income (loss), net of taxes	3)	30)	11)	8)	(3)
Securities	18)	11)	33)	(135)	(66)
Net unrealized gains (losses), net of taxes	(650)	380)	922)	(648)	(715)
Reclassification adjustment included in net income (loss), net of taxes	45)	45)	47)	96)	72)
Distributions of WarnerMedia, net of taxes	—)	—)	—)	(24)	—)
Derivative instruments	(605)	425)	969)	(576)	(643)
Net prior service credit (cost) arising during period, net of taxes	—)	—)	32)	1,787)	(34)
Amortization of net prior service credit included in net income (loss), net of taxes	(1,427)	(1,523)	(1,963)	(2,028)	(2,020)
Reclassification adjustment realized in net income, net of taxes	5)	—)	—)	—)	—)
Distributions of WarnerMedia, net of taxes	—)	—)	—)	25)	—)
Defined benefit postretirement plans	(1,422)	(1,523)	(1,931)	(216)	(2,054)
Other comprehensive loss, net of tax	(1,655)	(1,505)	(466)	(763)	(803)
Comprehensive income (loss)	21,731)	10,748)	15,157)	(7,818)	20,676)
Comprehensive income attributable to noncontrolling interest	(1,433)	(1,305)	(1,223)	(1,469)	(1,396)
Comprehensive income (loss) attributable to AT&T	20,298)	9,443)	13,934)	(9,287)	19,280)

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 statement of comprehensive income reveals significant fluctuations in the company’s financial performance over the five-year period. Net income demonstrates considerable volatility, beginning at US$21,479 million in 2021, declining sharply to a loss of US$7,055 million in 2022, and then recovering to US$15,623 million in 2023. This positive trend continued with US$12,253 million in 2024, culminating in a substantial US$23,386 million in 2025. Other comprehensive income also exhibits variability, though generally follows a similar pattern to net income, with a loss in 2022 and increases in subsequent years.

Net Income Volatility: The substantial decline in net income in 2022 is a key observation. While the reasons are not apparent from this statement alone, it represents a significant shift in profitability. The subsequent recovery and strong performance in 2025 suggest a turnaround or the impact of specific strategic initiatives. Distributions of WarnerMedia, appearing as negative values in 2022, 2023, and 2024, likely contributed to the 2022 loss and impacted subsequent years.
Translation and Foreign Currency Adjustments: Translation adjustments, net of taxes, fluctuate between gains and losses, with a notable loss of US$545 million in 2024. Foreign currency adjustments also show variability, with gains in 2021, 2022, 2023, and 2025, and a loss in 2024. These adjustments suggest exposure to international markets and the impact of currency exchange rate changes on the company’s financial results.
Securities and Derivative Instruments: Net unrealized gains (losses) on securities demonstrate significant swings, particularly a large loss of US$650 million in 2025 following a substantial gain of US$922 million in 2023. Derivative instruments also exhibit considerable volatility, with a large gain in 2023 (US$969 million) followed by a substantial loss in 2025 (US$605 million). These fluctuations indicate active management of investment portfolios and hedging activities, which introduce considerable risk and reward.
Pension Plan Adjustments: The amortization of net prior service credit consistently represents a significant expense, ranging from US$1,427 million to US$2,028 million annually. Net prior service credit arising during the period was unusually high in 2022 (US$1,787 million) and then returned to more moderate levels. Defined benefit postretirement plans consistently contribute to comprehensive loss, mirroring the amortization expense.
Comprehensive Income: Comprehensive income, which includes net income and other comprehensive income, mirrors the trends observed in net income, with a loss in 2022 and subsequent recovery. The attributable portion to noncontrolling interest remains relatively stable, consistently representing a reduction in overall comprehensive income. The final year, 2025, shows a strong comprehensive income attributable to the company, reaching US$20,298 million.

Overall, the statement of comprehensive income indicates a period of significant financial turbulence followed by a strong recovery. The volatility in net income, coupled with fluctuations in other comprehensive income components, suggests the company operates in a dynamic environment with exposure to various financial risks. The impact of WarnerMedia distributions and the performance of securities and derivative instruments are particularly noteworthy factors influencing the company’s financial results.

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AT&T Inc. (NYSE:T)

Statement of Comprehensive Income