AT&T, Inc.

Strong “advanced connectivity” momentum driving results (good) - Q3 consolidated service revenue +3.8% YoY (best third-quarter performance in >4 years). - Adjusted EBITDA +5.4% YoY, with record third-quarter adjusted EBITDA margin of 38.7% (despite +12% equipment revenue growth, which is margin-dilutive). - Adjusted EPS $0.65, +20% YoY (from $0.54), driven by EBITDA growth and lower depreciation. - Advanced Connectivity service revenue +6.1% YoY (EBITDA +7.3%); Wireless service revenue +5% YoY with postpaid phone ARPU +4% and 379k postpaid phone net adds.

Subscriber growth and convergence accelerating (good/surprising) - Added 1M+ Advanced Connectivity subscribers during the quarter (best >4 years; 2nd straight quarter with >1M net adds). - Q3 advanced home internet: +23%+ YoY service revenue, with 696k net adds total (416k Fiber, 280k Internet Air)—a record quarter. - Convergence: ~43% of advanced home internet customers also have AT&T postpaid wireless; added ~350k converged account relationships, faster sequential growth than Q2. - Lumen-turf momentum: converged penetration +250 bps since early-Feb close (as AT&T converts territories to AT&T Fiber).

Guidance raised/improved near-term, but Q4 faces headwinds (mixed: good + bad) - Full-year outlook: - Consolidated service revenue: still expected low single-digit growth. - Consolidated adjusted EBITDA: now upper end of 3%–4% range. - Adjusted EPS: raised to ~$2.40 (from prior $2.25–$2.35). - Free cash flow: reiterated $18B+ with $23B–$24B capex. - Q4 specific challenges: - Higher marketing/customer acquisition costs due to extended device launch cycle and expanded fiber go-to-market. - Unfavorable vendor dispute settlements ~ $100M (primarily impacts legacy segment). - Notable accounting items affecting comparability: - $2.6B non-cash impairment tied to the Mexico wireless sale agreement. - ~$800M employee separation charge impacting cash mainly in 2027.