v3.26.3
Revenue Recognition (Tables)
 9 Months Ended
Sep. 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 September 30, 2026Nine Months Ended September 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$584 (149)435 1,675 (416)1,259 
Legacy226 — 226 707 — 707 
Total Large Enterprise Revenue810 (149)661 2,382 (416)1,966 
Mid-Market Enterprise
Strategic250 (6)244 734 (18)716 
Legacy180 (1)179 570 (3)567 
Total Mid-Market Enterprise Revenue430 (7)423 1,304 (21)1,283 
Public Sector
Strategic150 (30)120 525 (84)441 
Legacy279 — 279 900 (1)899 
Total Public Sector Revenue429 (30)399 1,425 (85)1,340 
Wholesale
Strategic258 (70)188 774 (211)563 
Legacy349 (35)314 1,134 (111)1,023 
Total Wholesale Revenue607 (105)502 1,908 (322)1,586 
International and Other
Strategic37 — 37 106 (1)105 
Legacy33 — 33 109 — 109 
Total International and Other70 — 70 215 (1)214 
Business Revenue by Product Category
Strategic1,279 (255)1,024 3,814 (730)3,084 
Legacy1,067 (36)1,031 3,420 (115)3,305 
Total Business Revenue2,346 (291)2,055 7,234 (845)6,389 
Mass Markets by Product Category
Fiber Broadband17 — 17 126 (2)124 
Other Broadband179 (14)165 576 (47)529 
Voice and Other173 (28)145 483 (30)453 
Total Mass Markets Revenue369 (42)327 1,185 (79)1,106 
Total Revenue$2,715 (333)2,382 8,419 (924)7,495 
Three Months Ended September 30, 2025Nine Months Ended September 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$507 (101)406 1,448 (279)1,169 
Legacy275 — 275 869 — 869 
Total Large Enterprise Revenue782 (101)681 2,317 (279)2,038 
Mid-Market Enterprise
Strategic236 (7)229 704 (18)686 
Legacy228 (1)227 720 (4)716 
Total Mid-Market Enterprise Revenue464 (8)456 1,424 (22)1,402 
Public Sector
Strategic135 (25)110 404 (73)331 
Legacy341 — 341 1,036 — 1,036 
Total Public Sector Revenue476 (25)451 1,440 (73)1,367 
Wholesale
Strategic255 (73)182 779 (217)562 
Legacy400 (40)360 1,267 (125)1,142 
Total Wholesale Revenue655 (113)542 2,046 (342)1,704 
International and Other
Strategic34 (1)33 101 (3)98 
Legacy45 — 45 142 — 142 
Total International and Other79 (1)78 243 (3)240 
Business Revenue by Product Category
Strategic1,167 (207)960 3,436 (590)2,846 
Legacy1,289 (41)1,248 4,034 (129)3,905 
Total Business Revenue2,456 (248)2,208 7,470 (719)6,751 
Mass Markets by Product Category
Fiber Broadband225 (3)222 651 (9)642 
Other Broadband230 (23)207 732 (71)661 
Voice and Other176 (7)169 508 24 532 
Total Mass Markets Revenue631 (33)598 1,891 (56)1,835 
Total Revenue$3,087 (281)2,806 9,361 (775)8,586 
____________________________________________________________________
(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 September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Operating lease revenue
$307 272 898 799 
Percentage of operating revenue11 %9 %11 %9 %
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:

September 30, 2026December 31, 2025
(Dollars in millions)
Customer receivables, net of allowance of $33 and $57(1)
$1,148 1,316 
Contract assets26 33 
Contract liabilities(2)
773 647 
______________________________________________________________________
(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 September 30, 2026Nine Months Ended September 30, 2026
Acquisition Costs
Fulfillment Costs
Acquisition Costs
Fulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(1)
$160 290 196 264 
Costs incurred26 57 81 168 
Amortization(26)(44)(81)(129)
Change in contract costs held for sale— — (36)— 
End of period balance
$160 303 160 303 
______________________________________________________________________
(1)    The beginning balance for the nine months ended September 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 September 30, 2025Nine Months Ended September 30, 2025
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(1)
$210 241 203 222 
Costs incurred34 57 106 166 
Amortization(30)(41)(95)(117)
Change in contract costs held for sale— (3)— (17)
End of period balance(2)
$214 254 214 254 
______________________________________________________________________
(1)    The beginning balance for the three months ended September 30, 2025 excluded $14 million of fulfillment costs associated with the disposal group classified as held for sale.
(2)    The ending balance for the three and nine months ended September 30, 2025 excluded $17 million of fulfillment costs associated with the disposal group classified as held for sale.