AT&T, Inc. - 5.625% NT REDEEM 01/08/2067 USD 25

Strong execution driving accelerated growth (QoQ momentum + record fiber) - Advanced Connectivity results led the quarter: service revenue +2.7% YoY (total revenues +2.3% YoY), Adjusted EBITDA +5.2% YoY, Adjusted EBITDA margin up 110 bps to 39.1% (highest since refocusing on Advanced Connectivity). - Advanced Connectivity service revenues +5.1% YoY, accelerating +150 bps vs Q1; segment EBITDA +8% YoY from both top-line momentum and cost transformation. - Customer momentum: +1M+ Advanced Connectivity subscribers (fiber, fixed wireless, and postpaid phones), with best-ever 2Q for AT&T Fiber net adds and a record quarter for combined fiber + fixed wireless net adds.

Fiber + convergence strategy is working, with clear near-term trade-offs - Convergence: 42.5% of advanced home internet customers also have a postpaid wireless account (rises to 45% excluding Lumen acquired footprint), implying higher-value “converged” customer base. - Advanced home internet service revenues +27%+ YoY, driven by better fiber net adds and converged go-to-market; however, Fiber ARPU -1.3% YoY due to full-quarter impact of Lumen (but ~flat ARPU ex-Lumen footprint). - Management view: they’re optimizing for total Advanced Connectivity returns, not maximizing single-product ARPU; expecting some near-term Fiber ARPU pressure as mix includes more value/converged pricing.

Deployment outlook: aggressive fiber build + Lumen integration translating into demand - Company expects fiber expansion to reach 8 million new locations (including 4M+ acquired from Lumen)—described as largest year ever for fiber expansion. - Integration update: after ~6 months standing up operations, they’re translating into improved growth—notably June converged gross adds +45% vs February in Lumen territories. - Expectation: strong advanced connectivity growth continues; Business Advanced Connectivity service revenues +1.8% YoY in the quarter, with management saying AT&T Business is “turned a corner.”