Abstract
Charter Communications will report fourth-quarter results on January 30, 2026, Pre-Market. This preview consolidates last quarter’s performance, current-quarter forecasts, and analyst views based on data available through January 23, 2026.
Market Forecast
For the current quarter, market projections indicate revenue of $13.74 billion, an estimated adjusted EPS of $9.90, and EBIT of $3.28 billion; forecasts imply a year-over-year revenue decline of 0.96%, a year-over-year EPS increase of 5.82%, and a year-over-year EBIT decline of 3.42%. Net profit margin and gross profit margin guidance were not explicitly provided in the forecast dataset, but consensus commentary implies stable margins with slight pressure from promotional activity and mix shifts. The primary business remains residential connectivity, expected to be resilient despite churn noise; the most promising segment is commercial services, supported by incremental small business demand and product mix improvements, though explicit quarterly forecast revenue and year-over-year figures for sub-segments were not provided.
Last Quarter Review
In the previous quarter, Charter Communications reported revenue of $13.67 billion, a gross profit margin of 54.99%, net profit attributable to the parent company of $1.14 billion, a net profit margin of 8.32%, and adjusted EPS of $8.34; year-over-year growth rates for revenue, EBIT, and adjusted EPS were -0.89%, -6.12%, and -5.44%, respectively, and net profit declined quarter over quarter by 12.61%. A key highlight was that EBIT of $3.13 billion missed expectations by $0.14 billion, while adjusted EPS of $8.34 came in below the $9.33 estimate, reflecting softer-than-anticipated operating leverage. Residential revenue totaled $10.65 billion, commercial revenue $1.84 billion, advertising revenue $0.36 billion, and other revenue $0.84 billion; revenue mix indicated residential at 77.86% of total, commercial at 13.42%, advertising at 2.60%, and other at 6.11%.
Current Quarter Outlook
Residential Connectivity
Residential connectivity remains Charter Communications’ anchor business and the largest driver of cash flow. In the prior quarter, this segment delivered $10.65 billion, accounting for 77.86% of total revenue. For the current quarter, management’s tone and market forecasts suggest steadier trends in broadband relative to video, which continues to be pressured by cord-cutting. Price actions and promotional bundling can support subscriber retention, but they may modestly weigh on gross margin in the near term due to lower ARPU growth. The anticipated stabilization in net adds for internet, combined with ongoing migration to higher-speed tiers, offers a pathway to incremental ARPU uplift over the medium term. Execution on network upgrades and extending footprint into underserved areas may improve long-term growth, even if the near-term impact is muted by construction timing and customer acquisition costs.
Commercial Services
Commercial services are positioned as the most promising area for incremental growth this quarter. Although explicit quarterly forecast revenue and year-over-year growth were not disclosed in the dataset, the segment’s prior quarter revenue of $1.84 billion underscores consistent contribution and potential for expansion. Small and medium-sized business demand for reliable connectivity and security solutions continues to rise, which can translate into stable contract wins and better churn profiles. Product mix improvement, including higher-value connectivity bundles and enterprise solutions, may modestly lift segment margins despite broader promotional pressures. Cross-selling of adjacent services, such as cloud connectivity, voice, and security, offers incremental revenue per account, and the pipeline of local business expansions can sustain mid-single-digit growth tendencies.
Stock Price Drivers This Quarter
Stock performance will likely hinge on broadband subscriber trends, realized pricing actions, and margin sustainability. Investors will closely watch net internet adds and churn patterns, particularly relative to competitive fiber deployments and fixed wireless substitution. The reported EBIT trajectory—forecast at $3.28 billion, down 3.42% year over year—sets expectations for disciplined cost control and operational efficiency; any variance here will color sentiment. An EPS print of $9.90, up 5.82% year over year, implies lower non-operating drag and improved capital management; if achieved alongside stable cash generation, it can mitigate concerns about revenue softness. Advertising revenue normalization and seasonal dynamics can add noise, but less sensitivity relative to residential connectivity should keep the focus on subscriber quality, ARPU, and cost containment. The pace of network upgrades, execution on buildouts, and the level of promotional intensity versus peers are additional swing factors.
Analyst Opinions
Across recent institutional commentaries, the majority view skews cautiously constructive, expecting a stabilization in broadband trends and modest EPS outperformance against subdued revenue. The bullish cohort points to improving customer experience metrics and disciplined capital allocation supporting per-share earnings growth, even as top-line pressure persists. One widely cited stance emphasizes that consensus EPS at $9.90 reflects credible cost management and lower interest or tax headwinds, suggesting room for modest upside if subscriber metrics come in better than feared. Supportive perspectives also note commercial services as a buffer to consumer-side volatility, underpinned by ongoing demand from small businesses and enterprises for connectivity and adjacent solutions. By contrast, bearish voices—though in the minority—remain focused on competitive intensity and the drag from video declines; these are acknowledged but not dominant in shaping near-term expectations. The prevailing view, therefore, anticipates a mixed top line, but a defensible margin framework and EPS that can meet or slightly exceed consensus if execution aligns with plan.
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