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How Does AT&T Make its Money?
AT&T is one of the world’s largest telecommunications companies, providing wireless service to over 71 million postpaid phone subscribers in the United States. After divesting its media assets (Warner Bros. Discovery spin-off), AT&T has refocused as a pure-play connectivity company with wireless, fiber broadband, and enterprise networking as its core businesses. The company has been aggressively expanding its fiber footprint, passing over 28 million locations, and rolling out its 5G network.
AT&T (T) Business Model
AT&T operates in the telecommunications sector. Below is a summary of AT&T’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from AT&T’s 2024 fiscal year filings with the SEC.
AT&T Competitors
AT&T’s key competitors and comparable public companies in the telecommunications sector include Verizon, T-Mobile, and Comcast. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how AT&T stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
AT&T’s total revenue in 2024 grew -0.1% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Mobility (Wireless) | $84,000 | $82,000 |
| Consumer Wireline | $13,300 | $13,600 |
| Business Wireline | $18,800 | $20,000 |
| Other and Corporate | $6,200 | $6,800 |
| Total | $122,300 | $122,400 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of AT&T’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $122,300 | $122,400 |
| Cost of Revenue | $57,000 | $58,000 |
| Gross Profit | $65,300 | $64,400 |
| Operating Expenses | $47,000 | $56,000 |
| Operating Income | $18,300 | $8,400 |
| Net Income | $12,500 | $-8,500 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 53.4% — This tells us how much profit AT&T keeps after direct costs of delivering their product or service.
Operating Margin: 15.0% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: -0.1% — Year-over-year revenue growth from 2023 to 2024.
Is AT&T Profitable?
Yes, AT&T is profitable. The company reported net income of $12,500 on total revenue of $122,300.
AT&T (T) Financial Summary
AT&T (T) is a telecommunications company that generated $122,300 in total revenue in fiscal year 2024. The company earned $12,500 in net income, making it profitable. For a deeper look at AT&T’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.