Charter Communications Inc. released its first‑quarter 2026 financial results, reporting revenue of $13.6 billion, a 1.0 % year‑over‑year decline, and net income attributable to shareholders of $1.16 billion.
Revenue fell 1.0 % to $13.6 billion, beating the consensus estimate of $13.58 billion by $20 million. The decline was driven primarily by a 3 % drop in residential video revenue, while mobile service revenue grew 15.1 % and internet service revenue slipped 2.5 % due to a loss of 120,000 broadband customers.
Adjusted EBITDA for the quarter was $5.6 billion, down 2.2 % from $5.8 billion in Q1 2025. The 50‑basis‑point compression to a 41.5 % margin reflects higher operating costs and competitive pricing pressure in the broadband segment, even as mobile revenue expansion helped offset some of the margin squeeze.
Free cash flow fell 12.3 % to $1.37 billion, a decline driven by capital expenditures of $2.9 billion, up 19 % from the prior year. Management reiterated that the 2026 free‑cash‑flow guidance will be slightly higher than the prior year, excluding the one‑time Cox transition costs, and that CapEx will peak in 2026 before declining sharply thereafter.
CEO Chris Winfrey said, “We remain confident about our ability to win in the marketplace and grow over the longer term. That confidence is founded on our advanced network, our core operating strategy of delivering great products at great prices and our focus on increasing customer satisfaction.” CFO Jessica Fischer added, “We are committed to optimizing our capital expenditures to enhance shareholder value.”
The earnings miss on earnings per share—$9.17 versus the consensus estimate of $10.22—prompted a sharp market reaction, with the stock falling 13.6 % in pre‑market trading. Investors cited the EPS miss and the larger‑than‑expected broadband subscriber loss as key concerns.
While the company’s mobile segment continues to grow and the upcoming Cox transaction is expected to generate synergies, the short‑term outlook remains challenged by subscriber erosion in the core internet business and margin compression. The guidance for full‑year 2026 adjusted EBITDA to grow slightly year‑over‑year, excluding transition costs, signals management’s confidence in the long‑term trajectory despite the current headwinds.
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