AT&T says its third-quarter profit surged thanks to a large gain from a tax settlement and a sale of a business. Even without the gain, the largest U.S. telecommunications company added a record number of subscribers for the period.

AT&T Inc. said Thursday its net income rose to $12.3 billion, or $2.08 per share, for the three months ended Sept. 30. That's up from $3.2 billion, or 54 cents per share, a year earlier.

Excluding the $8.3 billion gain, AT&T says it would have earned 55 cents per share, matching Wall Street's expectations.

The company says its revenue climbed 3 percent to $31.58 billion. Analysts were expecting revenue of $31.25 billion, according to a poll by Thomson Reuters.

AT&T says it added 2.6 million net subscribers, the most ever in a third quarter.