Comcast Corporation
CMCSA · Nasdaq
Next quarter
Reports Oct 29, 2026.
Consensus is $1.01 EPS for Sep 2026 across 8 estimates, ranging $0.96 to $1.06.
CMCSA Jun 2026
- 7.22%
- +1.71%
- $0.97
- $1.04
- —
- $29.94B
Reported results
- $29.94B
- $5.16B
- 17.23%
- $3.53B
- $0.99
Highlights
- Adjusted earnings: Adjusted EPS was $1.04, ahead of the $0.97 consensus by 7.22%, while GAAP diluted EPS was $0.99 versus $2.98 a year ago.
- Underlying scale: Reported revenue was $29.94 billion, down 1.2% year over year and from $31.46 billion in Q1; pro forma revenue, excluding the Versant separation and Sky Germany sale, increased 4.7% to $29.57 billion.
- Profit pressure: Adjusted EBITDA declined 13.4% to $8.90 billion, or 5.3% on a pro forma basis; operating income was $5.16 billion versus $5.99 billion a year ago and $4.13 billion in Q1.
- Wireless momentum: Domestic wireless added a record 448,000 lines, taking the base to 10.2 million, while domestic broadband losses improved to 167,000 from 201,000 a year ago.
- Peacock profitability: Peacock generated $189 million of EBITDA, its first quarterly profit, versus a $101 million loss a year ago; paid subscribers rose by 2 million to 48 million.
- Content performance: Content & Experiences revenue rose 22.9% to $10.73 billion and adjusted EBITDA increased 7.1% to $1.33 billion, led by FIFA World Cup exposure and stronger theatrical releases.
- Cash returns and investment: Free cash flow increased 2.3% to $4.60 billion, while Comcast returned $2.1 billion through $1.2 billion of dividends and $900 million of repurchases; it paused repurchases as it prepares for the separation.
- Portfolio reshaping: Comcast announced its intention to spin off NBCUniversal and Sky into a separate public company, targeted for mid-2027, leaving a more connectivity-focused company.
Analysis
Comcast’s second quarter was an adjusted earnings beat and a meaningful portfolio transition, but not a clean operating acceleration. Adjusted EPS of $1.04 exceeded the $0.97 consensus by 7.22%; reported revenue of $29.94 billion fell 1.2% year over year and declined from $31.46 billion in Q1, while adjusted EBITDA dropped 13.4% to $8.90 billion. The year-ago comparison is distorted by the $9.4 billion Hulu gain, which drove GAAP net income to $11.12 billion and diluted EPS to $2.98; this quarter’s net income was $3.53 billion and GAAP EPS was $0.99. Relative to Q1, operating income improved from $4.13 billion, while net income rose from $2.17 billion.
The operating story split between a pressured residential connectivity business and stronger content and wireless trends. Residential Connectivity & Platforms revenue declined 4.0% and EBITDA 8.0% as broadband pricing and customer losses weighed on results, although wireless delivered a record 448,000 net additions. Business Services grew revenue 3.7% and EBITDA 5.0%. Content & Experiences benefited from the FIFA World Cup, theatrical hits and Peacock’s first profitable quarter, but Theme Parks EBITDA fell 5.1% amid near-term softness and higher operating costs. On a pro forma basis excluding Versant and Sky Germany, revenue grew 4.7%, but EBITDA still declined 5.3%.
NBCUniversal and Sky separation
The quarter’s strategic centerpiece was Comcast’s intention to separate NBCUniversal and Sky through a tax-free spin-off into two publicly traded companies. The proposed transaction would largely include Media, Studios and Theme Parks, plus the Sky businesses, and is targeted for mid-2027 subject to board, tax, regulatory and financing approvals. Comcast expects to retain up to 19.9% of the spun-off companies for up to one year and monetize that interest over time. The financial statements do not yet reflect the proposed separation.
- Portfolio cleanup: Versant was separated on January 2, 2026 and Sky Germany was sold on May 31, contributing to the reported revenue and EBITDA declines. On a pro forma basis for both transactions, revenue rose 4.7% to $29.57 billion, while adjusted EBITDA fell 5.3% to $8.92 billion.
- Capital allocation: Comcast returned $2.1 billion to shareholders in the quarter, comprising $1.2 billion of dividends and $900 million of share repurchases, but announced a pause in repurchases while it works through the separation process.
- Balance sheet: Debt stood at $90.4 billion at June 30, down from $98.9 billion at year-end 2025, while cash and cash equivalents were $7.7 billion versus $9.5 billion.
Connectivity turnaround
Connectivity remained the main earnings drag, but management highlighted early evidence that its new go-to-market strategy is improving customer trends. Residential Connectivity & Platforms revenue fell 4.0% to $17.12 billion and adjusted EBITDA fell 8.0% to $6.45 billion, with margin down 160 basis points to 37.7%. Broadband revenue declined 5.5% to $6.28 billion because of lower average rates and fewer customers, while video revenue declined 7.8% to $6.09 billion.
- Wireless: Domestic wireless added 448,000 lines, the company’s best quarterly result, versus 378,000 a year ago. The base reached 10.19 million lines, up from 8.53 million, and penetration remained about 7% of the addressable footprint.
- Broadband: Domestic broadband customer losses were 167,000, an improvement of 34,000 from the 201,000 loss a year ago. The customer base ended at 28.49 million, versus 28.99 million a year earlier.
- Business services: Business Services Connectivity revenue increased 3.7% to $2.67 billion and adjusted EBITDA rose 5.0% to $1.52 billion, lifting margin 60 basis points to 56.7%, driven primarily by enterprise solutions.
Peacock monetisation
Media produced growth despite the structural decline in traditional television, with the FIFA World Cup providing a substantial event-driven lift and Peacock reaching profitability. Media revenue rose 25.3% to $5.69 billion, including $440 million of incremental World Cup revenue, while revenue excluding major events increased 15.6% to $5.25 billion. Media adjusted EBITDA grew only 3.7% to $708 million as NBA and World Cup programming costs increased.
- Peacock: Revenue was $1.9 billion and adjusted EBITDA was $189 million, compared with $1.2 billion of revenue and a $101 million EBITDA loss a year ago. Paid subscribers increased by 2 million in the quarter to 48 million.
- Advertising and distribution: Domestic advertising revenue rose 55.0% to $2.16 billion, or 23.5% excluding the World Cup, while domestic distribution revenue increased 22.1% to $1.99 billion.
- Engagement: The FIFA World Cup generated the top ten most-watched matches in Spanish-language history across Telemundo and Peacock, supporting advertising, distribution and subscriber growth.
Studios and theme parks
Studios was the strongest traditional content contributor, while Theme Parks showed the near-term softness management flagged. Studios revenue increased 25.0% to $3.04 billion and adjusted EBITDA rose to $202 million from $61 million, driven by theatrical releases including The Super Mario Galaxy Movie, Obsession and the international distribution of Michael. The Super Mario Galaxy Movie exceeded $1 billion in worldwide box office year to date, while Obsession surpassed $400 million.
- Theme Parks: Revenue increased 2.7% to $2.41 billion, helped by Orlando and the continuing contribution of Epic Universe, but adjusted EBITDA declined 5.1% to $609 million as operating costs rose 5.7% and international parks weakened.
- Content & Experiences: Combined revenue increased 22.9% to $10.73 billion and adjusted EBITDA increased 7.1% to $1.33 billion, with Media and Studios more than offsetting the Theme Parks decline.
- Investment: Capital expenditures rose 8.3% to $2.9 billion, including a 19.9% increase to $2.3 billion in Connectivity & Platforms, while Content & Experiences spending fell 20.4% to $584 million after the opening of Epic Universe.
Cash flow and earnings quality
Cash generation was resilient despite lower operating profit. Net cash from operating activities increased 3.5% year over year to $8.09 billion and free cash flow rose 2.3% to $4.60 billion. Capital expenditures increased to $2.90 billion from $2.68 billion, reflecting higher connectivity investment. The GAAP earnings comparison remains unusually noisy because the prior-year quarter included the Hulu disposal gain, while adjusted earnings still declined.
- Adjusted earnings: Adjusted net income fell 20.3% to $3.71 billion and adjusted EPS declined 16.7% from $1.25, despite the reported beat against the $0.97 consensus.
- Operating earnings: Operating income fell 13.9% year over year to $5.16 billion, but improved from $4.13 billion in Q1.
- Six-month cash flow: Through June, operating cash flow was $14.98 billion versus $16.11 billion a year ago and free cash flow was $8.51 billion versus $9.92 billion.
