Charter Communications Q2 revenue slightly misses on weakness in residential video services

Overview

• US cable and broadband provider's Q2 revenue fell 1.7%, slightly missing analyst expectations

• Adjusted EBITDA declined 4.3% year-over-year as revenue fell and costs remained flat

• Company repurchased 4.0 mln shares for $838 mln during the quarter

Outlook

• Charter expects 2026 capital expenditures, excluding Cox transaction impacts, of about $11.4 bln

• Company expects to complete network evolution initiative in 2027

Result Drivers

• VIDEO REVENUE DECLINE - Lower residential video revenue driven by a higher mix of lower-priced packages, increased costs allocated to programmer streaming applications, and a decline in video customers

• INTERNET REVENUE DROP - Internet revenue declined due to a decrease in Internet customers and changes in pricing and packaging mix

• MOBILE GROWTH - Mobile service revenue rose 18.9% year-over-year, driven by growth in mobile lines and rate adjustments

Company press release: ID:nPnbvM8yma

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and 6 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Charter Communications Inc is $195.00, about 54.2% above its July 23 closing price of $126.50

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• July 23 - Comcast posts smaller-than-expected drop in Q2 revenue and adjusted EPS

• July 22 - ATT tops targets for new wireless subscribers as bundle offers spur demand

• July 23 - T-Mobile Q2 revenue slightly misses analyst estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)