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Comcast shares rose about 3% on October 22 after adjusted EPS of $1.07 beat the $0.98 estimate, as media revenue and Peacock offset connectivity weakness.
- Adjusted EPS of $1.07 beat the $0.98 consensus by about 9%, but fell 4.0% from $1.12 a year earlier.
- Media revenue rose 13% to $5.36 billion, and Peacock earned $261 million in adjusted EBITDA.
- Domestic broadband lost 144,000 customers, versus about 116,800 expected.
Lead
Comcast (NASDAQ: CMCSA) reported third-quarter 2026 results on Thursday, October 22. Adjusted earnings per share were $1.07 against a consensus of $0.98. Revenue was $29.3 billion, slightly above forecasts, and adjusted EBITDA was $9.1 billion. The shares gained roughly 3% to about $22.67, still about 31% below the 52-week high of $32.85. The quarter showed a split portfolio: a recovering media arm and a broadband business that is losing customers to cheaper rivals.What Happened in Comcast's Third Quarter?
Reported revenue fell 6.1% to $29.3 billion, largely because the January 2026 spin-off of Versant Media Group is no longer in the numbers. On a pro forma basis, revenue rose 0.5% and adjusted EBITDA rose 0.8%. Net income attributable to Comcast rose 3.5% to $3.45 billion, and GAAP diluted EPS was $0.97, up 7.2%.
Free cash flow was $4.2 billion, down 14.8% from a year earlier. Comcast paid $1.2 billion in dividends during the quarter.
Why Did Media Revenue Outweigh the Connectivity Decline?
Media revenue rose 13.0% to $5.36 billion, helped by $224 million of incremental FIFA World Cup revenue and gains in Peacock distribution. Excluding the World Cup, growth was 8.3%. Media adjusted EBITDA rose to $769 million from $247 million. Peacock posted adjusted EBITDA of $261 million, against a $217 million loss a year earlier. This was its second consecutive profitable quarter. Revenue grew 34% to $1.8 billion, and paid subscribers rose 17% to 48 million. Reality programming such as "Love Island USA" supported the gains. Studios revenue was $2.97 billion, and adjusted EBITDA rose 18.6% to $402 million. "The Odyssey" became the highest-grossing film in Universal's history. Content & Experiences revenue rose 6.5% to $10.5 billion.How Weak Is Comcast's Broadband Business?
The broadband business is weak: Comcast lost 144,000 domestic broadband customers, compared with 91,000 lost a year earlier. Connectivity & Platforms revenue fell 2.7% to $19.7 billion, and adjusted EBITDA fell 4.4% to $7.59 billion.
Competition from fiber builders, fixed wireless providers and carriers such as AT&T (T) is forcing heavier discounting to hold customers, which pressures margins. Residential connectivity EBITDA fell 5.8%.
Wireless was a partial offset. Comcast added 368,000 lines in the quarter and now serves 10.6 million, up about 18% from a year earlier. Business services revenue rose 2.7% to $2.65 billion. Management argues that bundling mobile with broadband reduces churn and raises customer lifetime value. It also said it cut customer service contact rates by 20% with technology and AI tools.
Where Did Theme Parks Fall Short?
Theme parks were the main drag within Content & Experiences. Revenue fell 4.4% to $2.60 billion, missing the $2.71 billion estimate, and adjusted EBITDA fell 17.1% to $780 million. Softness at Orlando and weaker Chinese tourism to Japan amid geopolitical tension weighed on the segment.
Strategic Context
Comcast is preparing a structural break-up of its media assets. The separation of NBCUniversal and Sky remains on track for mid-2027, and standalone corporate infrastructure is being built. The Versant spin-off, completed in January, was the first step.
The co-CEOs, Brian Roberts and Mike Cavanagh, said the company is taking "decisive steps to strengthen our businesses and unlock the full potential of their structural advantages." Comcast has flagged a transformation charge of more than $1 billion for the fourth quarter, linked to restructuring in connectivity. It gave no specific fourth-quarter guidance.
What Comes Next for Comcast Stock?
The two segments are moving in opposite directions. Media and Peacock supplied the earnings beat, and the profitability of streaming is now a measurable driver of results. Connectivity, the larger business, is still shrinking in revenue and customers.
Near-term attention will fall on the fourth-quarter restructuring charge, the pace of broadband price competition, and whether wireless growth keeps offsetting lost home-internet subscribers. The first three quarters of 2026 show the same pattern: content strength alongside a core network business that is under pressure.
Outlook
Comcast beat expectations on earnings and revenue, and Peacock is now consistently profitable. Broadband losses and a weaker parks segment limit the gains. The mid-2027 NBCUniversal separation will define the company's shape, and the next few quarters will test whether wireless and cost cuts can stabilize the connectivity business.
Mentioned tickers: CMCSA, T
