AT&T Inc.

Good morning and welcome to AT&T's first quarter 2026 earnings call. At this time, all participants are in a listen only mode. Should you need assistance during the call, please press star then zero and an operator will assist you offline. Following the presentation, the call will be open for questions. If you would like to ask a question, please press star then one and you will be placed in the question queue. If you are in the question queue and would like to withdraw your question, you can do so by pressing star then two. As a reminder, this conference is being recorded. I would now like to turn the conference call over to our host, Brett Feldman, Treasurer and Head of Investor Relations. Please go ahead.

Thank you and good morning. Welcome to our first quarter call. I'm Brett Feldman, Treasurer and Head of Investor Relations for AT&T. Joining me on the call today are John Stanky, our Chairman and CEO, and Pascal DeRoche, our CFO. Before we begin, I need to call your attention to our Safe Harbor Statement. It says that some of our comments today may be forward-looking. As such, they are subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information, as well as our earnings materials, are available on the Investor Relations website. I also want to note that the quiet period for FCC Spectrum Auction 113 is in effect. During this period, applicants are required to avoid discussions of bids, bidding strategy, and post-auction market structure with other auction applicants. And finally, I want to note that the discussion of our operating results and outlook during this call will be on a continuing operations basis. With that, I'll turn things over to John.

Thanks, Brett, and good morning, everyone. I appreciate you joining us today. We executed well in the first quarter, delivering results that were consistent with the outlook we provided while implementing several key strategic initiatives. Last quarter, we told you that we had positioned AT&T for improved growth with our investment-led strategy in fiber and 5G. There's clear evidence of this in our first quarter results. We reported 584,000 total fiber and fixed wireless advanced internet customer net additions. This is our best ever first quarter result in the sixth consecutive quarter with over half a million consumer and business net ads. We also continue to see accelerated pace of our customers purchasing their wireless and internet connectivity together. 42% of our advanced home internet customers also choose AT&T Wireless. But when excluding the transaction with Lumen, this convergence rate approached 45% on an organic basis during the first quarter. This is more than a three percentage point increase compared to last year, which is our fastest ever year-over-year convergence growth rate. These results are encouraging, but not surprising. It is exactly what customers have told us they want. They're increasingly choosing what we believe to be the best combined fixed and mobile internet service in the market. When our customers choose AT&T for their wireless and internet connectivity, they consistently express stronger brand love, higher net promoter scores, and ultimately stay with us longer. During our Analyst and Investor Day in 2024, we shared a few data points highlighting the relative improvements that we see among our converged customers in key operating metrics such as customer lifetime values and churn. These benefits remain robust, and we expect that as a greater portion of our customers purchase their wireless and internet connectivity from AT&T, we'll demonstrate improved trends in churn and additional improvement in account growth. During the first quarter, we made further progress at positioning AT&T as the preferred provider for connecting consumers and businesses to the internet. We closed our transaction with Lumen ahead of schedule, adding 1.1 million fiber customers and over 4 million fiber locations. We're pleased with the progress we're making as we integrate these assets in several major metro areas and position the business for faster growth. Well, the indicators are positive. We now offer fiber services throughout our distribution channels in these areas, which has driven sales activity well above pre-transaction trends. We're executing the steps to scale engineering, construction, and service delivery in the acquired geographies and expect that as we move into the back half of the year, we'll achieve steady improvement in fiber and wireless customer growth in these areas. When we focus on customers' needs and invest in the experience and products they want, we find success. And in the first quarter, we gave customers more reasons to choose AT&T. We expanded the AT&T Guarantee to cover internet error and launched a new flagship app to deliver a simple, digital-first experience to customers. We also launched AT&T OneConnect, which enables customers to easily connect all their eligible devices at home and on the go and eliminates the need to buy internet access twice. We refreshed our Unlimited Your Way plans to deliver more value. All these moves are based on a consistent set of principles that drive our approach to serving customers the way they want to be served. with offers that deliver on simplicity, value and choice, and converge connectivity. After years of industry-leading investments in our fiber and wireless network, we believe that we have now established a structural advantage that others will not catch. We reach more than 90 million customer locations across the country with our advanced internet services over either fiber or 5G. We believe this provides us with more scalable reach and converged connectivity than any of our peers, including a meaningful scale and performance advantage in fiber. This is an advantage we're growing as we ramp our deployment at a faster pace than anyone else. Today, we reach over 37 million customer locations with fiber, and we're on track to reach 60 million plus locations by the end of the decade. As I discussed last quarter, when we complete our work at a fiber location, we believe we're able to offer that customer access to the internet on a lower marginal cost structure than any competitor with superior performance and an industry-leading experience on America's best and fastest home internet. This positions AT&T to compete on performance and value by putting our service at the center of our converged offers and shifting the focus away from expensive device subsidies. You saw us lean into this advantage with the launch of AT&T OneConnect, the industry's first ever single subscription service for fiber and wireless with a flat monthly price. This is how you should expect us to go to market as we accelerate the expansion of our fiber availability with offers and marketing strategies that yield attractive returns by driving deeper fiber penetration and growth in converged customer relationships. Running these plays has not only strengthened our performance in the consumer market, but they've begun to demonstrate that the same strategy can strengthen our business enterprise operations. During the first quarter, advanced connectivity business service revenues stabilized on a year-over-year basis for the first time ever. This reflects improved growth in fiber and 5G that is now offsetting declines in transitional services such as VPN as we drive better sales execution across an expanding footprint of business locations that we can reach with fiber and fixed wireless. We're operating from a position of strength as we lean into the strategic foundation we've built. Our investments have positioned us to accelerate and scale the execution of our strategy in 2026. And through the course of the year, you can expect to see the momentum in our operating trends build. As we continue our journey forward, our strategies and capital allocation will remain focused on meeting the advanced connectivity needs of consumers, businesses, the public sector and first responders as they adopt and rely on AI-enabled tools and applications. We expect AI to fundamentally transform network requirements beyond download speeds to the ability to support symmetrical capacity, ultra-low latency, and session control across multiple access technologies under sustained load. And that's how we're architecting our converged network. We've committed to greater investment than any of our peers in the U.S. connectivity infrastructure, and by the end of this decade, we expect to operate the most advanced and open communications network in the U.S., built on a foundation of dense metro fiber and deep nationwide spectrum. With the opportunity to reach more end users in our competition, coupled with our historically scaled metro and long-haul core, AT&T is well-positioned to lead our industry in AI-ready connectivity. Investment in high-performing networking is a critical component of a competitive American AI ecosystem. We continue to appreciate the leadership of FCC Chairman Carr and the Commission's continued efforts to modernize America's networks. What we see transpiring on the federal policy front are the absolute right moves for the U.S. to sustain leadership in communications infrastructure at this seminal moment in the birth of the AI economy. I reflect on this moment within the context of AT&T's milestone celebration of the 150th anniversary of the first phone call. For a century and a half, we've adjusted to shifts in markets, technology, and the evolution of public policy. It's a story of many chapters over 150 years shared by proud and dedicated AT&T employees and retirees, consistently rising to our longstanding call of the spirit of service. While all the chapters are important, some turn out to be more consequential than others. And I believe we're entering one of those chapters that will be exactly that. I couldn't be more optimistic, given how this company has positioned itself as we enter this defining moment, that our best days are ahead of us. With that, I'll turn it over to Pascal.