v3.26.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue from External Customers by Products and Services
The following tables provide total revenue by sales channel and product category. They also provide the amount of revenue that is not subject to Topic 606, but is instead governed by other accounting standards. The amounts in the tables below include revenue for the Mass Markets Fiber-to-the-Home business prior to its sale on February 2, 2026:

Three Months Ended March 31, 2026
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total revenue from Contracts with Customers
(Dollars in millions)
Sales Channel and Product Category
Large Enterprise
Strategic$535 (131)404 
Legacy243 — 243 
Total Large Enterprise Revenue778 (131)647 
Mid-Market Enterprise
Strategic239 (6)233 
Legacy200 (1)199 
Total Mid-Market Enterprise Revenue439 (7)432 
Public Sector
Strategic179 (26)153 
Legacy327 (1)326 
Total Public Sector Revenue506 (27)479 
Wholesale
Strategic259 (76)183 
Legacy389 (39)350 
Total Wholesale Revenue648 (115)533 
International and Other
Strategic34 (1)33 
Legacy39 — 39 
Total International and Other73 (1)72 
Business Revenue by Product Category
Strategic1,246 (240)1,006 
Legacy1,198 (41)1,157 
Total Business Revenue2,444 (281)2,163 
Mass Markets by Product Category
Fiber Broadband92 (17)75 
Other Broadband205 (2)203 
Voice and Other158 (1)157 
Total Mass Markets Revenue455 (20)435 
Total Revenue$2,899 (301)2,598 
Three Months Ended March 31, 2025
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total revenue from Contracts with Customers
(Dollars in millions)
Sales Channel and Product Category
Large Enterprise
Strategic$463 (87)376 
Legacy306 — 306 
Total Large Enterprise Revenue769 (87)682 
Mid-Market Enterprise
Strategic232 (6)226 
Legacy255 (2)253 
Total Mid-Market Enterprise Revenue487 (8)479 
Public Sector
Strategic143 (24)119 
Legacy338 — 338 
Total Public Sector Revenue481 (24)457 
Wholesale
Strategic268 (75)193 
Legacy435 (40)395 
Total Wholesale Revenue703 (115)588 
International and Other
Strategic33 (1)32 
Legacy51 — 51 
Total International and Other84 (1)83 
Business Revenue by Product Category
Strategic1,139 (193)946 
Legacy1,385 (42)1,343 
Total Business Revenue2,524 (235)2,289 
Mass Markets by Product Category
Fiber Broadband209 (3)206 
Other Broadband257 (24)233 
Voice and Other192 (9)183 
Total Mass Markets Revenue658 (36)622 
Total Revenue$3,182 (271)2,911 
____________________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.
Schedule of Operating Lease Revenue
The following table provides details of our gross operating lease revenue:

Three Months Ended March 31,
20262025
(Dollars in millions)
Operating lease revenue
$300 262
Percentage of Operating revenue
10 %8 %
Schedule of Contract with Customer, Asset and Liability
The following table provides balances of customer receivables, contract assets, and contract liabilities, net of amounts classified as held for sale:

March 31, 2026December 31, 2025
 (Dollars in millions)
Customer receivables, less allowance of $65 and $57(1)
$1,597 1,316 
Contract assets
31 33 
Contract liabilities(2)
699 647 
______________________________________________________________________
(1)    As of December 31, 2025, this amount excluded $13 million of customer receivables, net associated with the disposal group classified as held for sale.
(2)     As of December 31, 2025, this amount excluded $32 million of contract liabilities associated with the disposal group classified as held for sale.
Schedule of Capitalized Contract Cost
The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended March 31, 2026

Acquisition Costs
Fulfillment Costs
(Dollars in millions)
Beginning of period balance(1)
$196 264 
Costs incurred34 52 
Amortization(31)(42)
Change in contract costs held for sale(2)— 
End of period balance
$197 274 
______________________________________________________________________
(1)    The beginning balance for the three months ended March 31, 2026 excluded $24 million and $21 million of acquisition costs and fulfillment costs, respectively, associated with the disposal group classified as held for sale.


Three Months Ended March 31, 2025
Acquisition CostsFulfillment Costs
(Dollars in millions)
Beginning of period balance
$203 222 
Costs incurred40 51 
Amortization(33)(37)
End of period balance
$210 236