U.S telecom bellwether, AT&T Inc. T reported strong financial results in the first quarter of 2016. Both the top and the bottom line outpaced the respective Zacks Consensus Estimate. However, the company’s U.S. postpaid wireless subscriber addition of 129,000 was down a significant 70.7% year over year.On a GAAP basis, AT&T reported net income of $3,803 million or 61 cents per share in comparison with $3,263 million or 63 cents per share in the year-ago quarter. Quarterly adjusted earnings per share came in at 72 cents, surpassing the Zacks Consensus Estimate of 69 cents.Quarterly total revenue increased 24.4% year over year to $40,535 million, beating the Zacks Consensus Estimate of $40,493 million. Total operating expenses in the reported quarter were $33,404 million, up 23.6% year over year. Operating income was $7,131 million compared with $5,557 million in the year-ago quarter.Cash Flow & LiquidityIn the first quarter of 2016, AT&T generated $7,900 million of cash from operations compared with $6,738 million in the year-ago quarter. Free cash flow in the reported quarter was $3,449 million compared with $2,890 million in the prior-year quarter.At the end of the first quarter of 2016, AT&T had $10,008 million of cash and cash equivalents and $130,503 million of total debt outstanding compared with $5,121 million and $126,151 million, respectively, at the end of 2015. Debt-to-capitalization ratio was 0.50 at the end of the first quarter of 2016 compared with 0.49 at the end of 2015.Business Solutions SegmentTotal revenue at the segment was $17,609 million, up 0.3% year over year. Of this, Wireless service revenues were $7,855 million, up 4.5% year over year. Fixed strategic services revenues reached $2,786 million, up 9.3%. Legacy voice and data services contributed $4,338 million, down 8.8%. Other service generated $859 million, up 1.5% while Wireless Equipment revenues totaled $1,771 million, down 6.4%. Operating income was $4,299 million, up 3.8%. Operating margin was 24.4% compared with 23.6% in the prior-year quarter.As of Mar 31, 2016, Business Solutions wireless subscriber base was 75,771,000, up 13.2%. Within this, Postpaid wireless subscribers were 48,844,000, Reseller wireless subscribers were 64,000 and Connected Devices were 26,863,000. In the reported quarter, this segment gained a net of 133,000 Postpaid wireless customers and 1,578,000 Connected Devices but lost 22,000 Resellers. Business wireless postpaid churn rate was 1.02% compared with 0.90% in the year-ago quarter.Entertainment and Internet Services Segment Total revenue at the segment grossed $12,658 million, up a whopping 123.6% year over year (after the DIRECTV acquisition). Within the total, Video entertainment revenues were $8,904 million, up an enormous 375.9%. High-Speed Internet revenues were $1,803 million, up 16.1%. Legacy voice and data services contributed $1,313 million, down 18.5%. Equipment and Other service generated $638 million, up 2.2%. Operating income was $1,592 million against an operating loss of $264 million in the prior-year quarter. Operating margin was 12.6%, a reversal from a negative 4.7% in the year-earlier quarter.As of Mar 31, 2016, total video connections at this segment were 25,344,000, up a whopping 324.6%. Of the total, Satellite connections tallied 20,112,000 and U-verse connections were 5,232,000. In the reported quarter, AT&T lost 382,000 U-verse customers but gained 328,000 satellite TV customers. Total broadband connections at this segment were 14,291,000, down 1.7%. Total wireline voice connections were 12,113,000, down 11.4%.Consumer Mobility Segment Total revenue at the segment was $8,328 million, down 5.1% year over year. Within the total, Service revenues were $6,943 million, down 4.9%. Equipment segment generated $1,385 million, up 6.4%. Equipment revenues were $1,618 million, down 6.5%. Operating income was $2,494 million, up 11.6%. Operating margin was 29.9% compared with 25.5% in the prior-year quarter.As of Mar 31, 2016, Consumer Mobility wireless subscriber base was 54,674,000, down 0.3%. Of this, Postpaid wireless subscribers totaled 28,294,000 and Prepaid wireless customers were 12,171,000. Reseller wireless subscribers were 13,313,000 and Connected Devices were 896,000. In the reported quarter, this segment lost a net 4,000 postpaid wireless customers, 378,000 resellers and 26,000 connected devices. The company gained 500,000 prepaid customers. Consumer Mobility postpaid churn rate was 1.24% compared with 1.20% in the year-ago quarter. Total churn rate for the segment was 2.11%, up from 2.04% in the year-ago quarter.International Segment Total revenue at the segment was $1,667 million. Within the total, Video entertainment revenues were $1,130 million. Wireless service revenues were $455 million. Wireless Equipment revenues were $82 million. Operating loss was $198 million and operating margin was a negative 11.9%.As of Mar 31, 2016, International wireless subscriber base was 9,213,000. In the reported quarter, this segment gained a net of 529,000 wireless customers. Total churn rate was 5.45%. International video subscriber base touched 12,436,000 but the company lost 73,000 International video customers in the quarter.Zacks Rank & Stocks to ConsiderAT&T currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in this industry include Windstream Holdings Inc. WIN, Telefonica Brasil SA VIV and NTT DOCOMO Inc. DCM. All three stocks currently sport a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T INC (T): Free Stock Analysis Report WINDSTREAM HLDG (WIN): Free Stock Analysis Report TELEF BRASIL SA (VIV): Free Stock Analysis Report NTT DOCOMO -ADR (DCM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research