A month has gone by since the last earnings report for Rogers Communication (RCI Quick QuoteRCI - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Rogers Communication due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Rogers Communication, Inc. before we dive into how investors and analysts have reacted as of late.

Rogers Communications Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Rogers Communications (RCI Quick QuoteRCI - 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.

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.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Rogers Communication has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Rogers Communication has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.