Charter Communications (CHTR) Q1 2026 Earnings Report

Charter reported QQ1 2026 revenue of $13.597 billion, flat to down modestly versus the year-ago period (YoY revenue change of approximately -0.6%) with a resilient profitability profile. Reported gross margin sits near 39.96%, and adjusted EBITDA declined about 2.2% YoY, translating into an EBITDA margin of roughly 32.8% for the quarter. Net income and earnings per share remained solid, with net income of about $1.363 billion and diluted EPS of $9.17 (reported EPS $9.27). In the near term, Charter continues to invest aggressively in its network and customer value stack, highlighted by Spectrum Mobile adding 370k lines in the quarter to more than 12 million mobile lines total, and a total of approximately 32 million customers pre-Cox, rising to over 70 million passings pro forma after the pending Cox close. Management emphasized inhibitors to near-term growth—competitive subsidies in mobile, elevated programmer/streaming allocations within video, and a challenging housing backdrop affecting broadband penetration—while outlining a robust path to long-term cash flow expansion via Cox synergies, pricing optimization, and material deleveraging. The Cox transaction remains the central driver of the mid-term growth narrative, with synergies pegged at a minimum of $800 million in run-rate operating expense savings and an expectation to reduce leverage toward the low end of 3.5x–3.75x within three years post-close. Near-term capex is elevated at approximately $11.4 billion for 2026, with a downward trajectory anticipated thereafter to sub-$8 billion annually, underpinning a materially improved free cash flow profile by the end of the decade. The management tone is constructive, underscored by a multi-year plan to migrate Cox customers to Spectrum pricing/packaging, expand B2B capabilities, and invest in product innovations (Invincible WiFi, AI-enabled service tools, and advanced edge/B2B offerings) to sustain a competitive moat.