AT&T Inc.

AT&T generated $125.6B in full-year 2025 revenue, predominantly from monthly wireless service subscriptions across 74.2 million postpaid phone subscribers and 10.4 million fiber broadband subscribers. Postpaid wireless churn of 0.98% in Q4 2025, while rising from 0.85% the prior-year quarter, still reflects high aggregate billing continuity across a large recurring subscription base.

Following the 2022 WarnerMedia spinoff and DirecTV divestiture, AT&T operates purely in telecommunications across three segments: Mobility (wireless), Consumer Wireline (fiber), and Business Wireline (legacy services in structural decline). All segments provide connectivity within a single industry, with Mexico wireless contributing approximately 3% of total revenues.

The Communications segment generating approximately 97% of AT&T's revenues is entirely U.S.-based, with the Latin America segment (Mexico wireless, 24.7 million subscribers at year-end 2025) contributing the remaining approximately 3%. AT&T has no material operations outside North America.

AT&T's capital investment was approximately $22 billion in FY2025, representing roughly 17-18% of revenue, a structurally high capex intensity that limits operating leverage. Fiber deployment requires sustained upfront infrastructure spending before generating subscriber returns, and the declining Business Wireline segment generates revenue erosion on largely fixed infrastructure costs.

Wireless service and fiber broadband subscriptions are monthly recurring and have become near-essential for U.S. households and enterprises, supporting high daily utility and low voluntary cancellation absent a pricing trigger. Most consumer wireless plans are month-to-month rather than multi-year contractual, which limits the depth of contractual lock-in relative to enterprise software or multi-year backlog businesses.