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Rogers Communications beat Q1 estimates with EPS up 7.2% and revenues rising 15.3% y/y.
Media revenues surged 82.3% on MLSE inclusion, Blue Jays gains and new channel launches.
RCI raised free cash flow outlook while lowering capex guidance for 2026.
Rogers Communications (RCI - Free Report) reported first-quarter 2026 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate by 1.37% and up 7.2% year over year.
Revenues of $4.00 billion beat the consensus mark by 1.39% and increased 15.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 2% year over year to C$1.01 per share.
Total revenues increased 10.2% year over year to C$5.48 billion, primarily driven by growth in the Media businesses. Total service revenues increased 10.5% year over year to $4.91 billion in the quarter.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Wireless revenues (47.3% of total revenues) increased 1.8% year over year to C$2.59 billion. Wireless Service revenues rose 0.2% to C$2.03 billion. Equipment revenues increased 8.1% to $560 million.
Monthly mobile phone ARPU was C$55.6, down 2.4% year over year.
As of March 31, 2026, the prepaid mobile phone subscriber base totaled 1.21 million, an increase of 76K subscribers year over year. The monthly churn rate was 4.02% compared with 3.34% reported in the year-ago quarter.
As of March 31, 2026, the postpaid wireless subscriber base totaled 11.02 million, representing net additions of 244K subscribers year over year. The monthly churn rate was 1.22% compared with 1.01% in the year-ago quarter.
Segment operating expenses increased 2.8% year over year to C$1.27 billion.
Adjusted EBITDA increased 0.9% year over year to C$1.32 billion. Adjusted EBITDA margin expanded 40 basis points (bps) on a year-over-year basis to 65.1%.
Cable Details
Cable revenues (35.5% of total revenues) increased 0.7% year over year to C$1.95 billion.
Service revenues grew 0.7% year over year to C$1.94 billion. Equipment revenues decreased 9.1% on a year-over-year basis to C$10 million.
As of March 31, 2026, the retail Internet subscriber count was nearly 4.504 million, representing a net increase of 208K subscribers year over year.
As of March 31, 2026, total Smart Home Monitoring subscribers reached 157K, indicating an increase of 19K subscribers. The total Home Phone subscriber count was nearly 1.36 million, reflecting a loss of 122K customers in the reported quarter.
Monthly ARPA was C$133.16, lower than the C$136.97 reported in the year-ago quarter.
Segment operating expenses declined 0.1% year over year to C$826 million.
Adjusted EBITDA increased 1.3% year over year to C$1.12 billion. Adjusted EBITDA margin expanded 30 basis points on a year-over-year basis to 57.6%.
Media Details
Media revenues (18% of total revenues) jumped 82.3% year over year to C$988 million. Media’s gains were tied to the inclusion of MLSE, higher Toronto Blue Jays revenues and higher subscriber revenues linked to the launch of the Warner Bros. Discovery suite of channels, partly offset by lower advertising revenues.
Segment operating expenses increased 63.3% year over year to C$988 million.
Consolidated Results
Operating costs increased 14.5% to C$3.12 billion. As a percentage of revenues, operating costs expanded 220 bps to 56.9%.
Adjusted EBITDA increased 5% year over year to C$2.36 billion. Adjusted EBITDA margin contracted 220 bps to 43.1%.
Balance Sheet & Cash Flow Details
As of March 31, 2026, Rogers Communications had C$6 billion of available liquidity, including C$1.4 billion in cash and cash equivalents and C$4.6 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025, including C$1.3 billion in cash and cash equivalents and C$4.5 billion available under bank and other credit facilities.
Rogers Communications’ debt leverage ratio was 3.8 times as of March 31, 2026, improved from 3.9 times as of Dec. 31, 2025.
Cash flow from operating activities was C$1.50 billion, up 15.4% year over year from C$1.30 billion.
Free cash flow was C$776 million compared with C$1.02 billion generated in the previous quarter. On a year-over-year basis, it increased 32.4%, primarily due to lower capital expenditures and higher adjusted EBITDA.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on Tuesday.
RCI’s 2026 Guidance
For 2026, RCI maintained total service revenue growth and adjusted EBITDA growth ranges unchanged at 3%-5% and 1%-3%, respectively.
Capital expenditures are now projected to be in the range of C$2.5???billion to C$2.7 billion, below the prior guidance range of C$3.3 billion to C$3.5 billion. Free cash flow guidance has been raised between C$4.1 billion and C$4.3 billion, higher than the earlier range of C$3.3 billion to C$3.5 billion.
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Rogers Communications Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Rogers Communications (RCI - Free Report) reported first-quarter 2026 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate by 1.37% and up 7.2% year over year.
Revenues of $4.00 billion beat the consensus mark by 1.39% and increased 15.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 2% year over year to C$1.01 per share.
Total revenues increased 10.2% year over year to C$5.48 billion, primarily driven by growth in the Media businesses. Total service revenues increased 10.5% year over year to $4.91 billion in the quarter.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote
Q1 Segmental Details of RCI
Wireless Details
Wireless revenues (47.3% of total revenues) increased 1.8% year over year to C$2.59 billion. Wireless Service revenues rose 0.2% to C$2.03 billion. Equipment revenues increased 8.1% to $560 million.
Monthly mobile phone ARPU was C$55.6, down 2.4% year over year.
As of March 31, 2026, the prepaid mobile phone subscriber base totaled 1.21 million, an increase of 76K subscribers year over year. The monthly churn rate was 4.02% compared with 3.34% reported in the year-ago quarter.
As of March 31, 2026, the postpaid wireless subscriber base totaled 11.02 million, representing net additions of 244K subscribers year over year. The monthly churn rate was 1.22% compared with 1.01% in the year-ago quarter.
Segment operating expenses increased 2.8% year over year to C$1.27 billion.
Adjusted EBITDA increased 0.9% year over year to C$1.32 billion. Adjusted EBITDA margin expanded 40 basis points (bps) on a year-over-year basis to 65.1%.
Cable Details
Cable revenues (35.5% of total revenues) increased 0.7% year over year to C$1.95 billion.
Service revenues grew 0.7% year over year to C$1.94 billion. Equipment revenues decreased 9.1% on a year-over-year basis to C$10 million.
As of March 31, 2026, the retail Internet subscriber count was nearly 4.504 million, representing a net increase of 208K subscribers year over year.
As of March 31, 2026, total Smart Home Monitoring subscribers reached 157K, indicating an increase of 19K subscribers. The total Home Phone subscriber count was nearly 1.36 million, reflecting a loss of 122K customers in the reported quarter.
Monthly ARPA was C$133.16, lower than the C$136.97 reported in the year-ago quarter.
Segment operating expenses declined 0.1% year over year to C$826 million.
Adjusted EBITDA increased 1.3% year over year to C$1.12 billion. Adjusted EBITDA margin expanded 30 basis points on a year-over-year basis to 57.6%.
Media Details
Media revenues (18% of total revenues) jumped 82.3% year over year to C$988 million. Media’s gains were tied to the inclusion of MLSE, higher Toronto Blue Jays revenues and higher subscriber revenues linked to the launch of the Warner Bros. Discovery suite of channels, partly offset by lower advertising revenues.
Segment operating expenses increased 63.3% year over year to C$988 million.
Consolidated Results
Operating costs increased 14.5% to C$3.12 billion. As a percentage of revenues, operating costs expanded 220 bps to 56.9%.
Adjusted EBITDA increased 5% year over year to C$2.36 billion. Adjusted EBITDA margin contracted 220 bps to 43.1%.
Balance Sheet & Cash Flow Details
As of March 31, 2026, Rogers Communications had C$6 billion of available liquidity, including C$1.4 billion in cash and cash equivalents and C$4.6 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025, including C$1.3 billion in cash and cash equivalents and C$4.5 billion available under bank and other credit facilities.
Rogers Communications’ debt leverage ratio was 3.8 times as of March 31, 2026, improved from 3.9 times as of Dec. 31, 2025.
Cash flow from operating activities was C$1.50 billion, up 15.4% year over year from C$1.30 billion.
Free cash flow was C$776 million compared with C$1.02 billion generated in the previous quarter. On a year-over-year basis, it increased 32.4%, primarily due to lower capital expenditures and higher adjusted EBITDA.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on Tuesday.
RCI’s 2026 Guidance
For 2026, RCI maintained total service revenue growth and adjusted EBITDA growth ranges unchanged at 3%-5% and 1%-3%, respectively.
Capital expenditures are now projected to be in the range of C$2.5???billion to C$2.7 billion, below the prior guidance range of C$3.3 billion to C$3.5 billion. Free cash flow guidance has been raised between C$4.1 billion and C$4.3 billion, higher than the earlier range of C$3.3 billion to C$3.5 billion.
RCI’s Zacks Rank & Stocks to Consider
Currently, RCI carries a Zacks Rank #4 (Sell).
Some better-ranked stocks that investors can consider in the broader Zacks Utilities sector are Atmos Energy (ATO - Free Report) , Consolidated Edison (ED - Free Report) and FirstEnergy Corp. (FE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atmos Energy shares have returned 8.8% in the year-to-date period. ATO is set to report its second-quarter fiscal 2026 results on May 6.
Consolidated Edison shares have gained 8.9% in the year-to-date period. ED is set to report its first-quarter 2026 results on May 7.
FirstEnergy shares have risen 8.2% in the year-to-date period. FE is set to report its first-quarter 2026 results on April 28.