AT&T increased third-quarter revenue to $32.3 billion, but charges pushed reported earnings sharply lower. Its 21 October 2026 release put diluted earnings per share from continuing operations at $0.13, against $1.29 a year earlier. Total diluted EPS, including discontinued operations, was a separate $0.12.
The distinction matters: AT&T’s adjusted EPS was $0.65, up from $0.54. That company-defined non-GAAP measure removes specified items; it is not the amount shown as total earnings per share in the statutory income statement.
The numbers, on matching bases
| Measure | Result or outlook |
|---|---|
| Period | Three months ended 30 September 2026; comparisons are with Q3 2025. Source |
| Revenue | $32.322 billion versus $30.709 billion; up 5.3%. Source |
| Total GAAP diluted EPS | $0.12 versus $1.29; includes discontinued operations. Source |
| GAAP diluted EPS — continuing operations | $0.13 versus $1.29. Source |
| Adjusted diluted EPS — non-GAAP | $0.65 versus $0.54; starts from continuing operations. Source |
| Operating cash flow — continuing operations | $10.5 billion versus $10.2 billion. Source |
| Free cash flow — non-GAAP | About $5.0 billion versus $4.9 billion; see the company’s reconciliation. Source |
Why reported and adjusted profit diverged
AT&T disclosed a $2.6 billion noncash impairment of its Mexico wireless business, which was classified as held for sale, and employee-separation charges. The prior-year comparison also included a gain from selling the DIRECTV investment. These items mean the fall in reported EPS cannot be interpreted as an equivalent decline in the underlying sales base.
The reconciliation makes the bridge explicit: $0.13 of continuing-operations EPS plus $0.50 of restructuring and impairment adjustments and $0.02 of benefit-related, transaction, legal and other items produces $0.65 adjusted EPS. Last year’s bridge removes a $0.79 DIRECTV sale gain. These are accounting adjustments, not additional revenue or cash receipts.
What readers should watch
Continuing-operations cash flow provides another check on the earnings presentation. Free cash flow is also a non-GAAP calculation and should be read with AT&T’s definition, rather than treated as interchangeable with operating cash flow. Any future disposal of the Mexico business remains distinct from the current held-for-sale classification.
For another example of why accounting items need to be separated from operating trends, see CapKet’s Netflix earnings report. This report does not infer a share-price move or recommend an investment.
Official sources and verification scope
Issuer’s 21 October 2026 results release · Official financial statements and reconciliation
Source records observed at 2026-10-21T19:11:01.690Z. The linked records are issued by the same company; alternate release and PDF formats are not independent corroboration. This is an AI-assisted primary-document check, not independent human editorial approval. All monetary figures are US dollars; EPS means earnings per share.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.