Charter Communications' stock took a hit on Friday, plunging as much as 13% in premarket trading before bouncing back to close about 1.6% lower. The rally was short-lived, as investors grappled with the company's revenue miss and continued subscriber declines despite an earnings beat.
For Q2 2026, Charter reported revenue of $13.53 billion, down 1.7% compared to the previous year and just shy of analyst expectations. This marked the fourth consecutive quarter of declining revenue, a trend putting pressure on the telecom giant.
The company beat earnings expectations with adjusted EPS of $10.66, surpassing estimates of $10.00. Net profit stood at $1.29 billion. Even so, the numbers masked a tougher reality: broadband and video subscriber losses persisted.
Internet customers fell by 172,000 during the quarter, bringing the total broadband base to 29.4 million. Correspondingly, internet revenue slid 3.2% year over year to $5.8 billion. Competition from fixed wireless and fiber providers remains intense, pushing broadband subscribers down for multiple quarters in a row.
Video subscribers also declined by 21,000, to around 12.5 million. Although losses eased compared to 80,000 dropped last year, the segment remains under pressure.
Mobile Gains Offer Some Relief
Wireless services stood out positively. Charter added 406,000 mobile lines in the quarter, increasing its Spectrum Mobile base by 15.5% year over year to 12.5 million lines. Mobile service revenue jumped almost 19%, reaching $1.1 billion, showing the company’s accelerating focus on this growth area.
CEO Chris Winfrey emphasized the goal to provide top products coupled with strong value and service quality as their core approach.
Adjusted EBITDA shrank 4.3% year over year to $5.4 billion. Without expenses related to the pending Cox merger, the decline would have been less severe at 3.2%. Free cash flow decreased by $77 million to $969 million, impacted by capital expenditure accounting changes.
Charter also repurchased 4 million shares during the quarter, spending $838 million. The much-anticipated Cox deal is expected to close in August, which may shift the company’s trajectory.
