Cable Giant Charter Stock Sinks After Customer Exodus Accelerates

Charter Communications Inc. (NASDAQ:CHTR) shares plunged Friday after the company reported weaker-than-expected fiscal first-quarter 2026 results.

Details

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.

The revenue decline was driven by weaker residential video performance. Charter lost 120,000 internet customers in the quarter, compared with a decline of 59,000 a year earlier.

Total video customers fell by 60,000, an improvement from the loss of 181,000 in the prior-year period, aided by simplified pricing, packaging changes and the inclusion of streaming apps in Spectrum's expanded basic packages.

Mobile continued to be a bright spot. The company added 368,000 mobile lines, bringing the total to 12.1 million as of March 31, 2026.

Adjusted EBITDA margin narrowed 50 basis points to 41.5%.

Cash Flow and Spending

Free cash flow declined to $1.37 billion from $1.56 billion a year earlier, reflecting higher capital expenditures. Net cash provided by operating activities totaled $4.3 billion.

Charter ended the quarter with $517 million in cash and equivalents and served 29.6 million internet customers.

Charter Communications Earnings Call Highlights

Chief Executive Officer Chris Winfrey said Spectrum Mobile remains the fastest-growing provider in Charter's footprint, surpassing 12 million lines after adding about 370,000 during the quarter.

He also pointed to improving video trends, with customer losses narrowing, and said network upgrades should enable symmetrical, multi-gig speeds across roughly half the footprint by year-end.

Chief Financial Officer Jessica Fischer said revenue declined 1% primarily due to lower residential video revenue, while residential connectivity revenue rose 0.9%. Adjusted EBITDA fell 2.2%, or 1.8% excluding Cox-related transition costs.

Fischer said Charter continues to expect about $11.4 billion in capital expenditures in 2026 but anticipates annual capex falling below $8 billion after major network investments are completed.

Executives said the pending acquisition of Cox Communications is expected to expand Charter's footprint and generate at least $800 million in run-rate operating expense synergies, with potential for further upside.

Charter repurchased $963 million of stock during the quarter.

Outlook

The company reiterated its 2026 capital spending forecast of about $11.4 billion, compared with $11.7 billion in fiscal 2025.

Charter Communications Stock Tanks

CHTR Price Action: Charter Communications shares were down 22.57% at $187.20 at the time of publication on Friday. The stock is near its 52-week low of $180.38, according to Benzinga Pro data.

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