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Capital expenditure intensity reached 37.0% of revenue in 2026Q1, which contributed to a negative free cash flow of $4.1 billion and raises questions regarding the long-term sustainability of the current dividend policy.
AT&T Inc. (T) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 39.9B | 40.28B | 38.77B | 38.31B | 32.02B | 41.96B | 43.13B | 48.67B | 43.6B | 38.01B | 39.34B | 35.88B | 31.34B | 34.8B | 39.18B | 34.65B | 34.99B | 34.45B | 33.66B | 34.07B | 15.62B | 12.97B | 10.96B | 13.52B | 15.21B | 14.8B | 14.3B | 16.58B | 8.38B | 6.97B | 4.82B |
| Operating CF Growth % | -10.8% | 3.9% | 1.19% | 19.65% | -23.68% | -2.72% | -11.38% | 11.62% | 14.71% | -3.39% | 9.65% | 14.49% | -9.94% | -11.18% | 13.07% | -0.99% | 1.59% | 2.34% | -1.22% | 118.2% | 20.36% | 18.43% | -18.95% | -11.13% | 2.74% | 3.54% | -13.75% | 97.8% | 20.24% | 44.49% | 19.98% |
| Operating CF / Revenue % | 31.36% | 32.06% | 31.69% | 31.3% | 26.52% | 31.3% | 25.11% | 26.86% | 25.53% | 23.68% | 24.02% | 24.44% | 23.66% | 27.03% | 30.74% | 27.34% | 28.16% | 28.12% | 27.26% | 28.65% | 24.76% | 29.65% | 26.89% | 33.38% | 35.52% | 32.25% | 27.83% | 33.47% | 18.12% | 16.17% | 19.14% |
| Net Income | 21.49B | 23.39B | 12.25B | 14.4B | -6.87B | 21.48B | 21.48B | 13.9B | 19.37B | 29.45B | 12.98B | 13.35B | 6.74B | 7B | 7.26B | 4.18B | 19.86B | 12.84B | 12.87B | 12.15B | 7.36B | 4.79B | 4.98B | 898M | 5.65B | 7.01B | 1.29B | 4.59B | 938M | 1.47B | 3.48B |
| Depreciation & Amortization | 20.38B | 20.89B | 20.58B | 18.78B | 18.02B | 17.85B | 28.52B | 28.22B | 28.43B | 24.39B | 25.85B | 22.02B | 18.27B | 18.39B | 18.14B | 18.38B | 19.38B | 19.71B | 19.88B | 21.58B | 9.91B | 7.64B | 7.56B | 7.87B | 8.58B | 9.08B | 9.75B | 8.55B | 5.18B | 4.92B | 2.24B |
| Deferred Taxes | 0 | 0 | 1.57B | 3.04B | 2.98B | 7.41B | 1.68B | 1.81B | 4.93B | -15.27B | 2.95B | 4.12B | 1.95B | 6.34B | 1.75B | 2.94B | -3.28B | 1.89B | 5.89B | -240M | -87M | -658M | 614M | 3.42B | 2.44B | 1.93B | 1.09B | 976M | 744M | 134M | 133M |
| Other Non-Cash Items | -2.9B | -2.79B | 6.79B | 3.87B | 19.23B | 169M | 4.36B | 15.85B | -2.45B | 4.95B | 2.11B | -803M | 8.75B | 3.55B | 9.78B | 9.61B | 1.67B | -1.36B | 1.87B | 673M | -1.4B | 137M | -2.8B | 1.11B | 567M | -110M | 3.1B | 801M | 12M | -37M | -317M |
| Working Capital Changes | 62M | -1.2B | -2.42B | -1.77B | -1.85B | -4.96B | -13.32B | -11.93B | -7.14B | -5.99B | -5.44B | -3.25B | -4.69B | -948M | 1.73B | -464M | -2.64B | 1.56B | -6.64B | -85M | -163M | 1.07B | 594M | 219M | -2.03B | -3.1B | -933M | 1.66B | -1.15B | 477M | 142M |
| Capital Expenditures | -29.02B | -20.84B | -20.26B | -17.85B | -19.63B | -32.09B | -15.68B | -19.43B | -63.15B | -20.65B | -21.52B | -49.14B | -21.2B | -20.94B | -19.46B | -20.11B | -19.53B | -16.59B | -19.68B | -17.72B | -8.32B | -5.58B | -20.75B | -5.22B | -6.81B | -11.19B | -13.12B | -10.3B | -5.93B | -5.77B | -3.03B |
| CapEx / Revenue % | 22.81% | 16.59% | 16.56% | 14.58% | 16.25% | 23.94% | 9.13% | 10.73% | 36.98% | 12.86% | 13.14% | 33.48% | 16.01% | 16.27% | 15.27% | 15.87% | 15.71% | 13.55% | 15.94% | 14.9% | 13.19% | 12.74% | 50.93% | 12.89% | 15.9% | 24.37% | 25.55% | 20.8% | 12.82% | 13.38% | 12.01% |
| CapEx / D&A | 1.42x | 1.00x | 0.98x | 0.95x | 1.09x | 1.80x | 0.55x | 0.69x | 2.22x | 0.85x | 0.83x | 2.23x | 1.16x | 1.14x | 1.07x | 1.09x | 1.01x | 0.84x | 0.99x | 0.82x | 0.84x | 0.73x | 2.74x | 0.66x | 0.79x | 1.23x | 1.35x | 1.20x | 1.14x | 1.17x | 1.35x |
| CapEx Coverage (OCF/CapEx) | 1.37x | 1.93x | 1.91x | 2.15x | 1.63x | 1.31x | 2.75x | 2.50x | 0.69x | 1.84x | 1.83x | 0.73x | 1.48x | 1.66x | 2.01x | 1.72x | 1.79x | 2.08x | 1.71x | 1.92x | 1.88x | 2.33x | 0.53x | 2.59x | 2.23x | 1.32x | 1.09x | 1.61x | 1.41x | 1.21x | 1.59x |
| Cash from Investing | -25.33B | -18.78B | -17.49B | -19.66B | -25.8B | -32.09B | -13.55B | -16.69B | -63.15B | -18.94B | -24.21B | -49.14B | -18.34B | -23.12B | -19.68B | -21.25B | -21.45B | -17.93B | -29.14B | -18.51B | -8.29B | -974M | -20.75B | -3.1B | -3.33B | -8.39B | -14.4B | -10.58B | -4.55B | -6.22B | -3.44B |
| Acquisitions | -2.34B | -379M | -380M | -2.87B | -10B | -16.71B | 1.63B | 2.51B | -42.21B | 1.18B | -2.31B | -30.68B | 4.99B | -1.89B | -16M | -1.07B | -1.08B | -696M | -9.36B | -1.28B | 20M | 4.47B | -16.11B | 3.01B | 3.48B | 2.29B | -823M | -280M | 1.05B | -563M | -226M |
| Purchase of Investments | -24M | 0 | 0 | 0 | 0 | 0 | -160M | -365M | -185M | 0 | 0 | 0 | -1.89B | 0 | 0 | 0 | -100M | 16.59B | 19.68B | -579M | 0 | 0 | -135M | -1.15B | -1M | 0 | -539M | -26M | -42M | -916M | -1B |
| Sale of Investments | 181M | 181M | 0 | 0 | 0 | 0 | 497M | 435M | -493M | 449M | 506M | 0 | 21.2B | 0 | 0 | 0 | 19.53B | 55M | 504M | 1.03B | 3M | 99M | 549M | 248M | 2M | 510M | 84M | 31M | 355M | 1.03B | 816M |
| Other Investing | -903M | 2.26B | 3.15B | 1.06B | 3.82B | 1.15B | 160M | 165M | 502M | 522M | -386M | 749M | -21.43B | -291M | -199M | -73M | -20.27B | -17.28B | -20.29B | 36M | 4M | 37M | 50M | 3.02B | 1M | 1M | -1M | 2M | 11M | 13M | 19M |
| Cash from Financing | -7.21B | -6.39B | -24.71B | -15.61B | -23.74B | 1.58B | -32.01B | -25.08B | -25.99B | 25.93B | -14.46B | 9.78B | -7.74B | -13.2B | -17.67B | -11.65B | -15.85B | -14.51B | -4.69B | -16.01B | -6.13B | -11.23B | 4.61B | -9.17B | -9.02B | -6.36B | 252M | -6.11B | -3.78B | -670M | -1.63B |
| Dividends Paid | -8.02B | -8.18B | -8.21B | -8.14B | -9.86B | -15.07B | -14.96B | -14.89B | -13.41B | -12.04B | -11.8B | -10.2B | -9.55B | -9.7B | -10.24B | -10.17B | -9.92B | -9.67B | -9.51B | -8.74B | -5.15B | -4.26B | -4.14B | -4.54B | -3.56B | -3.46B | -3.42B | -3.29B | -3.13B | -2.97B | -1.76B |
| Dividend Payout Ratio % | - | 37.37% | 74.97% | 56.5% | - | 75.04% | - | 107.08% | 69.23% | 40.88% | 90.91% | 76.43% | 148.28% | 52.64% | 140.98% | 257.91% | 49.92% | 79.67% | - | 73.16% | 70.05% | 88.93% | 70.34% | 53.37% | 62.92% | 49.32% | 43.82% | 40.29% | 40.72% | 72.57% | 50.76% |
| Debt Issuance (Net) | 2M | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K |
| Stock Issued | 5M | 21M | 15M | 3M | 28M | 96M | 5.95B | 631M | 745M | 33M | 146M | 143M | 39M | 114M | 477M | 237M | 50M | 28M | 319M | 1.99B | 589M | 432M | 216M | 102M | 147M | 323M | 732M | 631M | 772M | 601M | 163M |
| Share Repurchases | -7.99B | -6.58B | -215M | -194M | -890M | -202M | -5.5B | -2.42B | -609M | -463M | -512M | -269M | -1.62B | -13.03B | -12.75B | 0 | 0 | 0 | -6.08B | -10.39B | -2.68B | -2.57B | -448M | -490M | -1.46B | -3.54B | -2.25B | -1.17B | -498M | -102M | -650M |
| Other Financing | -2.56B | 1.92B | -4.03B | -6.19B | 29.94B | -2.55B | -6.52B | 4.15B | -3.93B | 1.98B | -1.62B | -3.68B | -2.22B | 251M | 89M | -424M | -515M | -467M | 151M | -51M | 218M | -3M | 0 | 50M | -56M | 39M | 65M | -33M | -683M | 787M | -24M |
| Net Change in Cash | 7.21B | 15.12B | -3.43B | 3.04B | -17.52B | 11.45B | -2.42B | 6.89B | -45.53B | 45B | 667M | -3.48B | 5.26B | -1.53B | 1.82B | 1.75B | -2.3B | 2.01B | -178M | -448M | 1.19B | 464M | -4.05B | 1.24B | 2.86B | 60M | 148M | -104M | 50M | 84M | -248M |
| Exchange Rate Effect | -156M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -287M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -310M | 1.14B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 12.33B | 3.41B | 6.83B | 3.79B | 21.32B | 9.87B | 12.29B | 5.4B | 50.93B | 5.93B | 5.12B | 8.6B | 3.34B | 4.87B | 3.04B | 1.44B | 3.74B | 1.79B | 1.97B | 2.42B | 1.22B | 760M | 4.81B | 3.57B | 703M | 643M | 495M | 599M | 410M | 314M | 490M |
| Cash at End | 17.94B | 18.53B | 3.41B | 6.83B | 3.79B | 21.32B | 9.87B | 12.29B | 5.4B | 50.93B | 5.79B | 5.12B | 8.6B | 3.34B | 4.87B | 3.19B | 1.44B | 3.8B | 1.79B | 1.97B | 2.42B | 1.22B | 760M | 4.81B | 3.57B | 703M | 643M | 495M | 460M | 398M | 242M |
| Free Cash Flow | 10.88B | 19.44B | 18.51B | 20.46B | 12.4B | 9.87B | 27.45B | 29.23B | -19.54B | 17.36B | 17.83B | -13.26B | 10.14B | 13.85B | 19.71B | 14.54B | 15.46B | 17.85B | 13.98B | 16.36B | 7.29B | 7.4B | -9.79B | 8.3B | 8.4B | 3.62B | 1.18B | 6.27B | 2.45B | 1.2B | 1.8B |
| FCF Growth % | -44.58% | 5.05% | -9.54% | 65.05% | 25.63% | -64.06% | -6.08% | 249.58% | -212.56% | -2.61% | 234.41% | -230.82% | -26.8% | -29.72% | 35.58% | -5.98% | -13.37% | 27.68% | -14.52% | 124.19% | -1.39% | 175.55% | -218% | -1.24% | 132.36% | 207.74% | -81.27% | 155.66% | 103.82% | -33% | 6.65% |
| FCF Margin % | 8.55% | 15.47% | 15.13% | 16.71% | 10.27% | 7.36% | 15.98% | 16.13% | -11.44% | 10.81% | 10.88% | -9.04% | 7.66% | 10.76% | 15.47% | 11.47% | 12.44% | 14.57% | 11.33% | 13.75% | 11.57% | 16.9% | -24.04% | 20.49% | 19.62% | 7.88% | 2.29% | 12.67% | 5.31% | 2.79% | 7.13% |
| FCF / Net Income % | 50.6% | 88.82% | 169.05% | 142.09% | -145.44% | 49.14% | -530.43% | 210.26% | -100.89% | 58.96% | 137.39% | -99.39% | 157.39% | 75.21% | 271.35% | 368.61% | 77.84% | 147.06% | -532.57% | 136.85% | 99.17% | 154.58% | -166.33% | 97.57% | 148.63% | 51.6% | 15.06% | 76.9% | 31.91% | 29.46% | 51.68% |
Quick answers to the most common questions about buying T stock.
AT&T Inc. (T) generated $40.28B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AT&T Inc. (T) generated $19.44B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AT&T Inc. (T) spent $20.84B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AT&T Inc. (T) returned $8.18B to shareholders via cash dividends and spent $6.58B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High debt refinancing costs
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Accruals
According to reported financial data, AT&T's operating cash flow consistently dwarfs net income, with the OCF/NI ratio reaching an extreme 5.20 in 2023Q4, suggesting that non-cash charges and accounting accruals are significantly obscuring the company's true cash-generating capacity relative to its reported accounting profits.
The persistent gap between net income and operating cash flow indicates that depreciation and amortization charges are massive relative to earnings, which may lead investors to underestimate the company's underlying cash-generating power. This divergence warrants caution, as it suggests that reported net income is a poor proxy for the actual liquidity available to service the company's substantial debt obligations.
Free Cash Flow Volatility Persists
As reported in recent filings, AT&T's free cash flow trajectory remains highly inconsistent, swinging from a negative $4.1 billion in 2026Q1 to a positive $6.8 billion in 2023Q4, which highlights the difficulty in maintaining stable cash generation amidst heavy infrastructure investment cycles.
The sharp swing into negative free cash flow in the most recent quarter suggests that capital intensity is periodically overwhelming the company's ability to self-fund its operations and dividend commitments. Investors should monitor whether this volatility is a structural feature of the current network upgrade cycle or a sign of deteriorating operational efficiency.
Capital Intensity Pressures Cash Flow
Based on the provided cash flow statements, AT&T's capital expenditure reached a peak of 37.0% of revenue in 2026Q1, indicating that the company remains in a high-intensity investment phase that continues to exert significant downward pressure on its available free cash flow.
The elevated CapEx/Revenue ratio suggests that the company is aggressively prioritizing fiber and 5G deployment, which may be necessary for long-term competitiveness but currently limits financial flexibility. This heavy reliance on capital reinvestment implies that any slowdown in revenue growth could rapidly impair the company's ability to sustain its current dividend payout.
Dividend Sustainability Amidst Debt Constraints
As indicated by the company's cash flow statements, AT&T consistently allocates approximately $2.0 billion per quarter to dividends, a figure that appears increasingly difficult to reconcile with the recent negative free cash flow observed in 2026Q1, raising questions about long-term capital allocation priorities.
The commitment to a steady dividend despite fluctuating free cash flow suggests that management is prioritizing shareholder returns to maintain investor confidence, even at the expense of balance sheet deleveraging. This strategy appears risky given the company's high debt load and the ongoing need for significant capital expenditures to maintain its network infrastructure.