Charter Communications Inc. (NASDAQ:CHTR) shares ticked higher in Monday’s premarket session after plunging 25.50% on Friday to close at $180.13 following a mixed first-quarter 2026 report.
Earnings Snapshot
The broadband and cable provider posted quarterly revenue of $13.597 billion, down 1.0% year over year but slightly above the analyst consensus estimate of $13.539 billion. Earnings came in at $9.17 per share, missing expectations of $9.98.
Chief Financial Officer Jessica Fischer said revenue declined 1% primarily due to lower residential video revenue, while residential connectivity revenue rose 0.9%.
Charter lost 120,000 internet customers in the quarter, compared with a decline of 59,000 a year earlier.
The company reiterated its 2026 capital spending forecast of about $11.4 billion, compared with $11.7 billion in fiscal 2025.
Earnings Call Takeaways
Charter Communications reported a 1% year-over-year decline in revenue, primarily due to lower residential video revenue, though residential connectivity revenue grew slightly by 0.9%.
The company added 370,000 Spectrum Mobile lines in the quarter, continuing its growth trajectory with over 12 million mobile lines in total.
Internet customer losses totaled 120,000 in the quarter, attributed to high competition and mobile substitution, while video customer losses improved significantly compared to the previous year.
The company is focusing on customer satisfaction through advanced network capabilities, product innovation like ‘Invincible Wi-Fi’, and AI tools to enhance service and reduce call times.
Charter Communications is awaiting final approval from the California Public Utilities Commission to complete the Cox transaction, expected to close in the summer, which will expand its customer base significantly.
The company is investing in network upgrades, aiming to provide gigabit speeds and low latency, with 50% of its network to be upgraded to multi-gig service by the end of the year.
Management highlighted the potential for future B2B and B2C applications leveraging their network’s low-latency capabilities. Capital expenditures are expected to be $11.4 billion in 2026, with a significant reduction anticipated by 2028, enhancing free cash flow.
Despite these challenges, the company maintains confidence in its long-term growth strategy, focusing on product and service quality, and expanding its hybrid network capabilities.
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $255.89. Recent analyst moves include:
- Benchmark: Buy (Lowers Target to $435.00) (April 23)
- Deutsche Bank: Hold (Lowers Target to $235.00) (February 3)
- Goldman Sachs: Sell (Lowers Target to $185.00) (February 2)
CHTR Stock Price Activity: Charter Communications shares were up 0.62% at $181.25 during premarket trading on Monday, according to Benzinga Pro data.
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