<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the audited balance sheet of AT&T at December 31, 1994, audited consolidated statement of income for the year ended December 31, 1994 and the statement of cash flows at December 31, 1994 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1994 <PERIOD-START> JAN-01-1994 <PERIOD-END> DEC-31-1994 <CASH> 1,208 <SECURITIES> 294 <RECEIVABLES> 29,874 <ALLOWANCES> 1,251 <INVENTORY> 3,633 <CURRENT-ASSETS> 37,611 <PP&E> 45,982 <DEPRECIATION> 23,947 <TOTAL-ASSETS> 79,262 <CURRENT-LIABILITIES> 30,930 <BONDS> 11,358 <COMMON> 1,569 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 16,352 <TOTAL-LIABILITY-AND-EQUITY> 79,262 <SALES> 21,161 <TOTAL-REVENUES> 75,094 <CGS> 13,273 <TOTAL-COSTS> 44,317 <OTHER-EXPENSES> 22,747 <LOSS-PROVISION> 1,929 <INTEREST-EXPENSE> 748 <INCOME-PRETAX> 7,518 <INCOME-TAX> 2,808 <INCOME-CONTINUING> 4,710 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 4,710 <EPS-PRIMARY> $3.01 <EPS-DILUTED> 0