How does AT&T (T) make money?

AT&T (T) generates revenue primarily from Wireless Service, which accounted for 86.4% of total revenue in TTM through Q1 2026. The company reported $126.53B in revenue and converted 16.9% of it into net profit, equivalent to roughly $21.37B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of AT&T (T)?

AT&T (T) reported a gross profit margin of 79.7% in TTM through Q1 2026, equivalent to $100.80B in gross profit on $126.53B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of AT&T (T)?

AT&T (T) reported an operating profit margin of 19.4% in TTM through Q1 2026, equivalent to $24.49B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of AT&T (T)?

AT&T (T) reported a net profit margin of 16.9% in TTM through Q1 2026, equivalent to $21.37B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is AT&T (T) profitable?

Yes. AT&T (T) reported $21.37B in net income for TTM through Q1 2026, with a net profit margin of 16.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does AT&T (T) spend on capital expenditures?

AT&T (T) spent $21.44B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 16.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does AT&T (T) generate?

AT&T (T) generated $17.35B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 13.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of AT&T (T)?

AT&T (T) had an effective tax rate of 13.3% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of AT&T (T)?

AT&T (T) reports revenue across 4 reportable product segments, led by Wireless Service at 86.4% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How AT&T Makes Money: 2026 Visual Revenue Map

AT&T (T) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 27, 2026).

AT&T discloses geographic revenue only in annual filings. to view the full breakdown.

AT&T (T) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for AT&T (T) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Wireless Service	$109.38B	86.4%
Legacy Voice and Data	$11.72B	9.3%
IP Broadband	$4.07B	3.2%
Other Service	$1.36B	1.1%
Total	$126.53B	100%

Wireless Service$109.38B
Legacy Voice and Data$11.72B
IP Broadband$4.07B
Other Service$1.36B
Total$126.53B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, AT&T (T) reports revenue across 4 operating segments; the largest segment was Wireless Service at 86.4%, followed by Legacy Voice and Data (9.3%) and IP Broadband (3.2%).

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