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Charter Gears Up to Report Q3 Earnings: What's in Store for the Stock?
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Key Takeaways
Charter's Q3 EPS is projected to rise 20.62% to $10.06, even as revenues are seen falling 1.41% to $13.48B.
Spectrum Mobile growth and CHTR's Cox acquisition could support Q3 revenues, adding over 11M more premises.
Broadband subscriber losses and competition could offset gains from political ads and Internet pricing.
Charter Communications (CHTR - Free Report) is scheduled to report its third-quarter 2026 results on Nov. 6, before the opening bell.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $13.48 billion, indicating a 1.41% year-over-year decline.
The consensus mark for earnings is pegged at $10.06 per share, revised 1.04% downward over the past 30 days. However, the projection suggests 20.62% year-over-year growth.
Charter surpassed the Zacks Consensus Estimate for earnings in just one of the trailing four quarters and missed in the remaining three, with the average negative surprise being 3.02%.
Let us see how things have shaped up for the upcoming announcement.
Charter Communications, Inc. Price and EPS Surprise
Charter's third-quarter results are likely to have benefited from sustained growth in Spectrum Mobile and its bundled connectivity offerings. The company added 406,000 mobile lines in the second quarter, taking its base to 12.5 million, up nearly 16% year over year. Mobile service revenues increased 18.9% to $1.1 billion, reflecting line growth and rate adjustments. Charter noted that Internet subscribers who also take mobile service churn nearly 40% less than Internet-only customers. Its $1,000 savings guarantee and competitive bundled pricing are expected to have encouraged further adoption, supporting mobile revenues and customer retention across its broadband base in the quarter under review.
Charter's acquisition of Cox Communications is expected to have expanded its third-quarter reporting base and commercial opportunity. Completed in August, the transaction means the quarter under review will include a full period of legacy Charter and a partial period of Cox operations. On Sept. 16, Spectrum introduced its products and pricing across former Cox markets, reaching more than 11 million additional homes and businesses. Free introductory mobile service and bundled offerings could have spurred early cross-selling. Management has also identified at least $800 million in annual run-rate expense synergies, although these will accrue over time. Cox's contribution likely lifted consolidated revenues despite near-term integration costs.
Charter's third-quarter performance is also likely to have gained from political advertising, Internet pricing actions and operating efficiencies. Second-quarter advertising revenues increased 12.3% year over year to $416 million, primarily reflecting higher political spending. The company expects political advertising to support second-half results, while Internet price adjustments introduced during the summer, alongside speed upgrades, are expected to bolster residential revenues. In addition, marketing and residential sales costs declined 3.1% in the second quarter as procurement savings took hold. Emerging AI-enabled service improvements and further cost-control initiatives are likely to have moderated expenses and supported standalone Charter's profitability in the quarter under review.
However, intense broadband competition is expected to have weighed on Charter's third-quarter performance. The company lost 172,000 Internet customers in the second quarter, compared with 116,000 a year earlier, reflecting softer new connections amid fiber expansion, aggressive promotional offers and fixed-wireless competition. Internet revenues declined 3.2% year over year to $5.8 billion, while residential revenues fell 3.5%. Management indicated that the timing of a return to broadband subscriber growth remains uncertain, despite improved bundles and service initiatives. Continued subscriber losses, together with promotional pressure and elevated customer-acquisition competition, are likely to have constrained organic revenue growth and operating leverage in the to-be-reported quarter.
What Our Model Says About CHTR Stock
Our proven model predicts an earnings beat for Charter this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Charter currently has an Earnings ESP of +0.42% and a Zacks Rank #3. This favorable combination suggests an increased likelihood of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat earnings in their upcoming releases:
American Public Education (APEI - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank #2. APEI’s shares have returned 12% year to date. APEI is set to report its third-quarter 2026 results on Nov. 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Angel Studios, Inc. (ANGX - Free Report) presently has an Earnings ESP of +7.69% and a Zacks Rank #2. However, ANGX’s shares have fallen 25.7% year to date. ANGX is set to report its third-quarter 2026 results on Nov. 10.
AMC Global Media Inc. (AMCX - Free Report) presently has an Earnings ESP of +681.82% and a Zacks Rank #3. AMCX’s shares have declined 15.3% year to date. AMCX is set to report its third-quarter 2026 results on Nov. 9.
View the Zacks #1 Rank List
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Charter Gears Up to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Charter Communications (CHTR - Free Report) is scheduled to report its third-quarter 2026 results on Nov. 6, before the opening bell.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $13.48 billion, indicating a 1.41% year-over-year decline.
The consensus mark for earnings is pegged at $10.06 per share, revised 1.04% downward over the past 30 days. However, the projection suggests 20.62% year-over-year growth.
Charter surpassed the Zacks Consensus Estimate for earnings in just one of the trailing four quarters and missed in the remaining three, with the average negative surprise being 3.02%.
Let us see how things have shaped up for the upcoming announcement.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote
Key Factors Expected to Shape CHTR's Q3 Results
Charter's third-quarter results are likely to have benefited from sustained growth in Spectrum Mobile and its bundled connectivity offerings. The company added 406,000 mobile lines in the second quarter, taking its base to 12.5 million, up nearly 16% year over year. Mobile service revenues increased 18.9% to $1.1 billion, reflecting line growth and rate adjustments. Charter noted that Internet subscribers who also take mobile service churn nearly 40% less than Internet-only customers. Its $1,000 savings guarantee and competitive bundled pricing are expected to have encouraged further adoption, supporting mobile revenues and customer retention across its broadband base in the quarter under review.
Charter's acquisition of Cox Communications is expected to have expanded its third-quarter reporting base and commercial opportunity. Completed in August, the transaction means the quarter under review will include a full period of legacy Charter and a partial period of Cox operations. On Sept. 16, Spectrum introduced its products and pricing across former Cox markets, reaching more than 11 million additional homes and businesses. Free introductory mobile service and bundled offerings could have spurred early cross-selling. Management has also identified at least $800 million in annual run-rate expense synergies, although these will accrue over time. Cox's contribution likely lifted consolidated revenues despite near-term integration costs.
Charter's third-quarter performance is also likely to have gained from political advertising, Internet pricing actions and operating efficiencies. Second-quarter advertising revenues increased 12.3% year over year to $416 million, primarily reflecting higher political spending. The company expects political advertising to support second-half results, while Internet price adjustments introduced during the summer, alongside speed upgrades, are expected to bolster residential revenues. In addition, marketing and residential sales costs declined 3.1% in the second quarter as procurement savings took hold. Emerging AI-enabled service improvements and further cost-control initiatives are likely to have moderated expenses and supported standalone Charter's profitability in the quarter under review.
However, intense broadband competition is expected to have weighed on Charter's third-quarter performance. The company lost 172,000 Internet customers in the second quarter, compared with 116,000 a year earlier, reflecting softer new connections amid fiber expansion, aggressive promotional offers and fixed-wireless competition. Internet revenues declined 3.2% year over year to $5.8 billion, while residential revenues fell 3.5%. Management indicated that the timing of a return to broadband subscriber growth remains uncertain, despite improved bundles and service initiatives. Continued subscriber losses, together with promotional pressure and elevated customer-acquisition competition, are likely to have constrained organic revenue growth and operating leverage in the to-be-reported quarter.
What Our Model Says About CHTR Stock
Our proven model predicts an earnings beat for Charter this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Charter currently has an Earnings ESP of +0.42% and a Zacks Rank #3. This favorable combination suggests an increased likelihood of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat earnings in their upcoming releases:
American Public Education (APEI - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank #2. APEI’s shares have returned 12% year to date. APEI is set to report its third-quarter 2026 results on Nov. 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Angel Studios, Inc. (ANGX - Free Report) presently has an Earnings ESP of +7.69% and a Zacks Rank #2. However, ANGX’s shares have fallen 25.7% year to date. ANGX is set to report its third-quarter 2026 results on Nov. 10.
AMC Global Media Inc. (AMCX - Free Report) presently has an Earnings ESP of +681.82% and a Zacks Rank #3. AMCX’s shares have declined 15.3% year to date. AMCX is set to report its third-quarter 2026 results on Nov. 9.