AT&T filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $128.85 billion, which rose 3.5% on the year before. That growth rate was up 0.9 percentage points on the rate a quarter earlier.
Profitability
The trailing operating margin was 18.3%, down 0.7 percentage points from a year earlier. The trailing net margin was 10.2%.
Net income over the twelve months was $13.13 billion, which fell 41.0% on the year before.
Cash flow
Operating cash flow over the twelve months was $40.23 billion, down 1.5% on the year before. Capital spending was $22.42 billion, or 17.4% of revenue.
Free cash flow, operating cash flow less capital spending, was $17.82 billion, down 10.7% on the year before. Free cash flow was 13.8% of revenue (the free-cash-flow margin), down 2.2 percentage points from a year earlier.
Share count
The average diluted share count fell 3.1% over the year.
Against its own history
Today’s free-cash-flow margin of 13.8% is higher than 48% of the company’s own past quarterly readings, which have ranged from 7.5% to 23.1%. Today’s operating margin of 18.3% is higher than 81% of the company’s own past quarterly readings, which have ranged from −3.8% to 23.8%.
Today’s twelve-month revenue growth rate of 3.5% is higher than 82% of the company’s own past quarterly readings, which have ranged from −30.6% to 22.0%.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 41.1%, and 5 percentage points higher would raise it by 53.8%. A free-cash-flow margin 1 percentage point lower would lower it by 8.9%.
What to watch
The next filing will show whether the recent trend in revenue growth continues or reverses. It will also reveal if the decline in net income persists alongside the changes in operating cash flow. Finally, investors will see if the free-cash-flow margin stabilizes after its recent drop.
