T · Earnings call · 2026Q3T · Full report
Mexico Divestiture
AT&T INC. · 2026-10-21 · Importance 58 · Surprise 42 · In source text
AT&T recorded a $2.6 billion non-cash impairment charge in the third quarter related to its agreement to sell AT&T Mexico. Management said the sale will be excluded from continuing-operations long-term outlook beginning in 2027. The planned sale is expected to contribute proceeds toward debt repayment in 2027. AT&T Mexico wireless capital investment is expected to account for $300 million to $400 million of the roughly $1 billion annual capital-investment reduction planned for 2027 and 2028.
Key facts
- AT&T said the absence of AT&T Mexico will reduce annual cash flow by approximately $400 million-$500 million.
- AT&T signed an agreement to sell its wireless business in Mexico.
- AT&T recorded a $2.6 billion non-cash impairment charge related to its agreement to sell AT&T Mexico in Q3 2026.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -8.0% | AT&T recorded a $2.6 billion non-cash impairment charge related to its agreement to sell AT&T Mexico in Q3 2026. |
| cash | negative | probable | — | AT&T said the absence of AT&T Mexico will reduce annual cash flow by approximately $400 million-$500 million. |