v3.26.1
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2026Six Months Ended June 30, 2026
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with CustomersTotal 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$556 (138)418 1,091 (267)824 
Legacy238 — 238 481 — 481 
Total Large Enterprise Revenue794 (138)656 1,572 (267)1,305 
Mid-Market Enterprise
Strategic245 (6)239 484 (12)472 
Legacy190 (1)189 390 (2)388 
Total Mid-Market Enterprise Revenue435 (7)428 874 (14)860 
Public Sector
Strategic196 (28)168 375 (54)321 
Legacy294 — 294 621 (1)620 
Total Public Sector Revenue490 (28)462 996 (55)941 
Wholesale
Strategic257 (71)186 516 (141)375 
Legacy396 (37)359 785 (76)709 
Total Wholesale Revenue653 (108)545 1,301 (217)1,084 
International and Other
Strategic35 — 35 69 (1)68 
Legacy37 — 37 76 — 76 
Total International and Other72 — 72 145 (1)144 
Business Revenue by Product Category
Strategic1,289 (243)1,046 2,535 (475)2,060 
Legacy1,155 (38)1,117 2,353 (79)2,274 
Total Business Revenue2,444 (281)2,163 4,888 (554)4,334 
Mass Markets by Product Category
Fiber Broadband17 — 17 109 (2)107 
Other Broadband192 (16)176 397 (33)364 
Voice and Other152 (1)151 310 (2)308 
Total Mass Markets Revenue361 (17)344 816 (37)779 
Total Revenue$2,805 (298)2,507 5,704 (591)5,113 
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with CustomersTotal 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$478 (91)387 941 (178)763 
Legacy288 — 288 594 — 594 
Total Large Enterprise Revenue766 (91)675 1,535 (178)1,357 
Mid-Market Enterprise
Strategic236 (5)231 468 (11)457 
Legacy237 (1)236 492 (3)489 
Total Mid-Market Enterprise Revenue473 (6)467 960 (14)946 
Public Sector
Strategic126 (24)102 269 (48)221 
Legacy357 — 357 695 — 695 
Total Public Sector Revenue483 (24)459 964 (48)916 
Wholesale
Strategic256 (69)187 524 (144)380 
Legacy432 (45)387 867 (85)782 
Total Wholesale Revenue688 (114)574 1,391 (229)1,162 
International and Other
Strategic34 (1)33 67 (2)65 
Legacy46 — 46 97 — 97 
Total International and Other80 (1)79 164 (2)162 
Business Revenue by Product Category
Strategic1,130 (190)940 2,269 (383)1,886 
Legacy1,360 (46)1,314 2,745 (88)2,657 
Total Business Revenue2,490 (236)2,254 5,014 (471)4,543 
Mass Markets by Product Category
Fiber Broadband217 (3)214 426 (6)420 
Other Broadband245 (24)221 502 (48)454 
Voice and Other140 40 180 332 31 363 
Total Mass Markets Revenue602 13 615 1,260 (23)1,237 
Total Revenue$3,092 (223)2,869 6,274 (494)5,780 
____________________________________________________________________
(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 June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Operating lease revenue
$299 265 591 527 
Percentage of Operating revenue
11 %9 %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:

June 30, 2026December 31, 2025
(Dollars in millions)
Customer receivables, net of allowance of $38 and $57(1)
$1,348 1,316 
Contract assets29 33 
Contract liabilities(2)
623 647 
______________________________________________________________________
(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 June 30, 2026Six Months Ended June 30, 2026
Acquisition Costs
Fulfillment Costs
Acquisition Costs
Fulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(1)
$197 274 196 264 
Costs incurred21 59 55 111 
Amortization(24)(43)(55)(85)
Change in contract costs held for sale(34)— (36)— 
End of period balance
$160 290 160 290 
______________________________________________________________________
(1)    The beginning balance for the six months ended June 30, 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 June 30, 2025Six Months Ended June 30, 2025
Acquisition Costs
Fulfillment Costs(1)
Acquisition Costs
Fulfillment Costs(1)
(Dollars in millions)(Dollars in millions)
Beginning of period balance
$210 236 203 222 
Costs incurred32 58 72 109 
Amortization(32)(39)(65)(76)
Change in contract costs held for sale— (14)— (14)
End of period balance
$210 241 210 241 
______________________________________________________________________
(1)    The ending balance for the three and six months ended June 30, 2025 excluded $14 million of fulfillment costs associated with the disposal group classified as held for sale.