TLDR
- Comcast reported Q4 adjusted earnings of 84 cents per share, beating analyst estimates of 73-75 cents per share
- Revenue came in at $32.31 billion, up 1.2% year-over-year but slightly below the $32.34 billion forecast
- The company lost 181,000 broadband subscribers in Q4, worse than the expected loss of 176,000 customers
- Theme parks business had its best quarter on record with revenue jumping 21.9% to $2.98 billion
- Peacock streaming added 3 million paid subscribers but losses widened to $552 million due to sports deal costs
Comcast shares jumped over 4% Thursday morning after the cable giant reported fourth-quarter earnings that topped Wall Street expectations. The company posted adjusted earnings of 84 cents per share, crushing analyst forecasts of 73 cents.
Revenue climbed 1.2% to $32.31 billion for the three months ending December. That figure came in just shy of the $32.34 billion analysts were expecting.
The stock got hammered last year, dropping 20% as investors worried about the company’s core business troubles. Shares traded at $29.62 by midmorning while the S&P 500 slipped 0.7%.
But the earnings beat couldn’t mask a continuing problem. Comcast lost 181,000 broadband customers during the quarter. Wall Street had penciled in losses of around 176,000 subscribers.
The subscriber exodus stems from fierce competition in the broadband market. Fiber providers are running aggressive promotional campaigns. Fixed-wireless internet services are offering cheaper alternatives.
Connectivity Segment Shows Strain
The connectivity and platforms segment, which houses the struggling broadband unit, pulled in $20.24 billion. That’s down 1.1% from the same period last year.
Comcast is fighting back by freezing prices for 2026. The company is also revamping packages, bundling services together, and throwing in free mobile lines to attract customers.
Analysts don’t expect any real customer growth until 2027. Comcast said it plans to convert many of those free mobile line users into paying customers during the second half of this year.
The content and experiences division performed better. Revenue rose 5.4% to $12.74 billion. This segment includes the Peacock streaming service and Universal theme parks.
Theme Parks Deliver Record Quarter
Epic Universe and other theme parks had their best quarter ever. Revenue soared 21.9% to $2.98 billion.
Peacock added 3 million paid subscribers after sluggish growth in 2025. The streaming service scored exclusive NBA games and an NFL deal that helped drive sign-ups.
Those sports rights came at a cost. Peacock’s losses ballooned to $552 million in the quarter.
Co-CEO Mike Cavanagh said NBCUniversal will broadcast roughly 40% of the industry’s major live events in 2026. That includes the Super Bowl and Winter Olympics.
Free cash flow hit $4.37 billion for the quarter. Analysts had only expected $2.23 billion.
The company announced its dividend will hold steady at $1.32 per share for 2026. December coverage from Barron’s highlighted Comcast as undervalued based on projected 2026 earnings.
Comcast’s wireless business continues to lose money as it gives away free lines to retain customers. The company expects to start converting those freebies into paying accounts later this year.
Comcast lost 181,000 broadband customers in Q4 while beating earnings at 84 cents per share.
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