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Comcast reports Q3 adjusted EPS of $1.07, beating estimates by 9.2%, as revenues fall 6.1% year over year.
Wireless service revenues rose 14.7% and Peacock subscribers grew 17% to 48M, supporting segment growth.
Free cash flow fell to $4.21B, while Comcast paused share repurchases through its planned business separation.
Comcast (CMCSA - Free Report) delivered adjusted earnings of $1.07 per share in the third quarter of 2026, which declined 4% from the year-ago period but surpassed the Zacks Consensus Estimate of 98 cents by 9.2%.
Consolidated revenues decreased 6.1% year over year to $29.3 billion and missed the consensus mark of $29.35 billion by 0.2%. On a pro forma basis, which reflects the Versant separation completed on Jan. 2, 2026, and the sale of Sky operations in Germany completed on May 31, 2026, revenues increased 0.5% year over year.
The quarter was shaped by continued wireless momentum in Connectivity & Platforms and Peacock’s second consecutive profitable quarter, partly offset by cyclical weakness in Theme Parks. Universal became the first studio to cross $5 billion at the global box office in 2026, led by The Odyssey, which became Universal’s highest-grossing film ever with nearly $1.8 billion in worldwide box office year to date.
Comcast launched Xfinity Shield, a platform that turns Xfinity Wi-Fi into an always-on cybersecurity and home protection layer, and opened Fast & Furious: Hollywood Drift at Universal Studios Hollywood. Comcast also said the planned separation of NBCUniversal and Sky into two independent companies remains on track. The quarter included $22 million of transaction costs related to the proposed NBCUniversal spin-off.
Comcast Corporation Price, Consensus and EPS Surprise
Connectivity & Platforms revenues (67.1% of revenues) decreased 2.7% year over year to $19.66 billion, as declines in Residential Connectivity & Platforms outweighed gains in Business Services Connectivity.
Within the segment, Residential Connectivity & Platforms revenues decreased 3.5% year over year to $17.02 billion. Domestic broadband revenues fell 4.7% to $6.24 billion, while domestic wireless service revenues rose 14.7% to $1.05 billion, aided by the conversion of promotional free lines to paid service. Business Services Connectivity revenues increased 2.7% year over year to $2.65 billion, driven by enterprise solutions.
Total Residential Connectivity & Platforms customer relationships increased 33,000 to 47.8 million. A rise in international customer relationships more than offset a decline in domestic customer relationships. Total domestic broadband residential customer net losses were 144,000. Total domestic wireless line net additions were 368,000, with total wireless lines rising to 10.6 million. That represents nearly 18% penetration of domestic residential broadband customers and 7% of addressable wireless lines in Comcast’s footprint. Total domestic video customer net losses were 274,000. Nearly 45% of broadband customers are now on gig-plus speed tiers.
Content & Experiences revenues (36% of revenues) increased 6.5% year over year to $10.54 billion, driven primarily by Media.
Within the segment, Media revenues increased 13% year over year to $5.36 billion, including $224 million of incremental revenue from the FIFA World Cup. Excluding the World Cup, Media revenues rose 8.3%. Peacock generated revenues of $1.8 billion, up from $1.4 billion, and adjusted EBITDA of $261 million, up $478 million year over year. Paid subscribers increased 17% year over year to 48 million.
Studios revenues decreased 1.1% year over year to $2.97 billion, as lower content licensing revenues offset a 76.6% jump in theatrical revenues. Theatrical gains came from The Odyssey, Minions & Monsters and the carryover benefit of Obsession. Theme Parks revenues decreased 4.4% year over year to $2.60 billion, reflecting lower park admissions revenues, including the impact of increased promotional activity.
CMCSA’s Operating Details
Costs and expenses in the third quarter of 2026 decreased 6.6% year over year to $23.98 billion.
Programming and production costs decreased 13.2% from the year-ago quarter to $7.52 billion. Marketing and promotion expenses decreased 3.5% year over year to $2.12 billion, while other operating and administrative expenses declined 1.4% to $10.65 billion.
Adjusted EBITDA decreased 5.8% year over year to $9.11 billion. On a pro forma basis reflecting the Versant separation and the Sky Germany sale, adjusted EBITDA increased 0.8% year over year.
Total Connectivity & Platforms adjusted EBITDA declined 4.4% year over year to $7.59 billion. Residential Connectivity & Platforms adjusted EBITDA decreased 5.8% year over year to $6.11 billion, reflecting investment in the go-to-market strategy. Business Services Connectivity adjusted EBITDA increased 1.7% year over year to $1.48 billion, with an adjusted EBITDA margin of 55.9%.
Content & Experiences adjusted EBITDA increased 29.3% year over year to $1.80 billion. Media adjusted EBITDA increased to $769 million from $247 million in the year-ago quarter. Studios adjusted EBITDA increased 18.6% year over year to $402 million on lower operating expenses. Theme Parks adjusted EBITDA decreased 17.1% year over year to $780 million.
CMCSA’s Cash Flow & Liquidity
As of Sept. 30, 2026, cash and cash equivalents totaled $7.60 billion, down from $7.66 billion as of June 30, 2026.
As of Sept. 30, 2026, consolidated total debt was $87.37 billion, down from $90.38 billion as of June 30, 2026.
Free cash flow was $4.21 billion in the reported quarter, down from $4.95 billion in the prior-year quarter.
In the third quarter of 2026, Comcast generated $7.9 billion in cash from operations, down from $8.69 billion in the prior-year quarter. Capital expenditures were consistent year over year at $3.1 billion.
Comcast paid dividends totaling $1.2 billion. As previously announced, the company suspended its share repurchase program beginning in the third quarter. It expects the pause to remain in place through the proposed separation of its businesses into two independent publicly traded companies.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #4 (Sell).
Fox is set to report its quarterly results on Nov. 2, while both MARRIOTT VAC WW and Versant Media Group are slated to report their quarterly results on Nov. 3.
View the Zacks #1 Rank List
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Comcast's Q3 Earnings Beat Estimates, Revenues Decline Y/Y
Key Takeaways
Comcast (CMCSA - Free Report) delivered adjusted earnings of $1.07 per share in the third quarter of 2026, which declined 4% from the year-ago period but surpassed the Zacks Consensus Estimate of 98 cents by 9.2%.
Consolidated revenues decreased 6.1% year over year to $29.3 billion and missed the consensus mark of $29.35 billion by 0.2%. On a pro forma basis, which reflects the Versant separation completed on Jan. 2, 2026, and the sale of Sky operations in Germany completed on May 31, 2026, revenues increased 0.5% year over year.
The quarter was shaped by continued wireless momentum in Connectivity & Platforms and Peacock’s second consecutive profitable quarter, partly offset by cyclical weakness in Theme Parks. Universal became the first studio to cross $5 billion at the global box office in 2026, led by The Odyssey, which became Universal’s highest-grossing film ever with nearly $1.8 billion in worldwide box office year to date.
Comcast launched Xfinity Shield, a platform that turns Xfinity Wi-Fi into an always-on cybersecurity and home protection layer, and opened Fast & Furious: Hollywood Drift at Universal Studios Hollywood. Comcast also said the planned separation of NBCUniversal and Sky into two independent companies remains on track. The quarter included $22 million of transaction costs related to the proposed NBCUniversal spin-off.
Comcast Corporation Price, Consensus and EPS Surprise
Comcast Corporation price-consensus-eps-surprise-chart | Comcast Corporation Quote
CMCSA Wireless Momentum Offsets Broadband Pressure
Connectivity & Platforms revenues (67.1% of revenues) decreased 2.7% year over year to $19.66 billion, as declines in Residential Connectivity & Platforms outweighed gains in Business Services Connectivity.
Within the segment, Residential Connectivity & Platforms revenues decreased 3.5% year over year to $17.02 billion. Domestic broadband revenues fell 4.7% to $6.24 billion, while domestic wireless service revenues rose 14.7% to $1.05 billion, aided by the conversion of promotional free lines to paid service. Business Services Connectivity revenues increased 2.7% year over year to $2.65 billion, driven by enterprise solutions.
Total Residential Connectivity & Platforms customer relationships increased 33,000 to 47.8 million. A rise in international customer relationships more than offset a decline in domestic customer relationships. Total domestic broadband residential customer net losses were 144,000. Total domestic wireless line net additions were 368,000, with total wireless lines rising to 10.6 million. That represents nearly 18% penetration of domestic residential broadband customers and 7% of addressable wireless lines in Comcast’s footprint. Total domestic video customer net losses were 274,000. Nearly 45% of broadband customers are now on gig-plus speed tiers.
Content & Experiences revenues (36% of revenues) increased 6.5% year over year to $10.54 billion, driven primarily by Media.
Within the segment, Media revenues increased 13% year over year to $5.36 billion, including $224 million of incremental revenue from the FIFA World Cup. Excluding the World Cup, Media revenues rose 8.3%. Peacock generated revenues of $1.8 billion, up from $1.4 billion, and adjusted EBITDA of $261 million, up $478 million year over year. Paid subscribers increased 17% year over year to 48 million.
Studios revenues decreased 1.1% year over year to $2.97 billion, as lower content licensing revenues offset a 76.6% jump in theatrical revenues. Theatrical gains came from The Odyssey, Minions & Monsters and the carryover benefit of Obsession. Theme Parks revenues decreased 4.4% year over year to $2.60 billion, reflecting lower park admissions revenues, including the impact of increased promotional activity.
CMCSA’s Operating Details
Costs and expenses in the third quarter of 2026 decreased 6.6% year over year to $23.98 billion.
Programming and production costs decreased 13.2% from the year-ago quarter to $7.52 billion. Marketing and promotion expenses decreased 3.5% year over year to $2.12 billion, while other operating and administrative expenses declined 1.4% to $10.65 billion.
Adjusted EBITDA decreased 5.8% year over year to $9.11 billion. On a pro forma basis reflecting the Versant separation and the Sky Germany sale, adjusted EBITDA increased 0.8% year over year.
Total Connectivity & Platforms adjusted EBITDA declined 4.4% year over year to $7.59 billion. Residential Connectivity & Platforms adjusted EBITDA decreased 5.8% year over year to $6.11 billion, reflecting investment in the go-to-market strategy. Business Services Connectivity adjusted EBITDA increased 1.7% year over year to $1.48 billion, with an adjusted EBITDA margin of 55.9%.
Content & Experiences adjusted EBITDA increased 29.3% year over year to $1.80 billion. Media adjusted EBITDA increased to $769 million from $247 million in the year-ago quarter. Studios adjusted EBITDA increased 18.6% year over year to $402 million on lower operating expenses. Theme Parks adjusted EBITDA decreased 17.1% year over year to $780 million.
CMCSA’s Cash Flow & Liquidity
As of Sept. 30, 2026, cash and cash equivalents totaled $7.60 billion, down from $7.66 billion as of June 30, 2026.
As of Sept. 30, 2026, consolidated total debt was $87.37 billion, down from $90.38 billion as of June 30, 2026.
Free cash flow was $4.21 billion in the reported quarter, down from $4.95 billion in the prior-year quarter.
In the third quarter of 2026, Comcast generated $7.9 billion in cash from operations, down from $8.69 billion in the prior-year quarter. Capital expenditures were consistent year over year at $3.1 billion.
Comcast paid dividends totaling $1.2 billion. As previously announced, the company suspended its share repurchase program beginning in the third quarter. It expects the pause to remain in place through the proposed separation of its businesses into two independent publicly traded companies.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #4 (Sell).
Fox (FOXA - Free Report) , MARRIOTT VAC WW (VAC - Free Report) and Versant Media Group, Inc. (VSNT - Free Report) are some better-ranked stocks investors can consider in the broader Consumer Discretionary sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox is set to report its quarterly results on Nov. 2, while both MARRIOTT VAC WW and Versant Media Group are slated to report their quarterly results on Nov. 3.