CHTR · Q1 2026 Earnings

Cautious

Charter Communications

Reported April 24, 2026

30-second summary

Charter lost another tranche of broadband economics in Q1 FY2026: Internet revenue fell 1.3% YoY — the first negative print of the cycle — while total revenue declined 1.0% to $13.60B. Mobile service revenue re-accelerated to +15.1% from Q4 FY2025's +13.1%, but mobile line net adds decelerated to 368k from Q4 FY2025's 428k — the deceleration story is on lines, not revenue. Management reaffirmed FY2026 capex at ~$11.4B and cash taxes at $500M–$800M, but quietly let go of the prior "slight EBITDA growth" and rural passings (~450k) guideposts, replacing them with longer-dated language about a 2027 network-evolution finish line. The convergence-and-FCF-inflection thesis is now anchored on a milestone fifteen months out rather than near-term financial targets.

Headline numbers

EPS

Q1 FY2026

$9.27

Revenue

Q1 FY2026

$13.60B

-1.0% YoY

Free cash flow

Q1 FY2026

$1.37B

Operating margin

Q1 FY2026

23.6%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$13.60B	-1.0%	$13.60B	-0.0%
EPS	$9.27	—	$10.47	-11.5%
Operating margin	23.6%	—	24.0%	-40bps
Free cash flow	$1.37B	—	$0.77B	+77.5%

Guidance

Charter reaffirmed FY2026 capex at $11.4B but withdrew forward guidance on EBITDA growth, tax payments, and rural passings, signaling a shift toward qualitative messaging on network evolution completion and cash flow trajectory.

Guidance is issued for both next quarter and the full year. Both may appear below.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted EBITDA growth	FY 2026	slight growth	Withdrawn — no replacement	—	Withdrawn
Cash tax payments	FY 2026	$500 million to $800 million	Withdrawn — no replacement	—	Withdrawn
Subsidized rural passings growth	FY 2026	approximately 450,000	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Capital expenditures (approximately $11.4 billion)

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Internet	$5.852B	-1.3%
Mobile service	$1.052B	+15.1%
Video	$3.252B	-9.2%
Voice	$0.338B	-5.0%
Residential revenue	$10.494B	-2.7%
Commercial revenue	$1.839B	+1.0%
Advertising sales	$0.358B	+5.3%

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Total Customer Relationships	31.683 million
Total Connectivity Customers	30.520 million
Internet Customers	29.560 million
Mobile Lines	12.134 million
Video Customers	12.545 million
Monthly Residential Revenue per Customer	$118.44

Profitability

Q1 FY2026

Segment	Q1 FY2026
Adjusted EBITDA Margin	41.5%
Free Cash Flow Margin	10.1%

Management tone

Mobile experiment → AI/FCF inflection → Q4 FY2025 EBITDA warning and offer reset → "Game of inches" → Guidance retreat to 2027 milestone

Three quarters ago management was sizing FY2026 in quantitative ranges; this quarter two of the four anchors lapsed. The Q4 FY2025 framework laid out "slight EBITDA growth," ~$11.4B capex, $500M–$800M cash taxes, and ~450k rural passings. Q1 FY2026's release and call restated only capex and cash taxes, and replaced the EBITDA and rural lines with: "As we continue to improve our products, pricing, packaging, and service, and complete our rural and network initiatives, we are poised for improving customer and free cash flow growth." The shift from a numbered EBITDA anchor to "poised for improving" is the tonal admission that the H1 FY2026 trajectory is materially worse than the January framework implied.

The forward narrative now anchors fifteen months out, not on this fiscal year. "Spectrum expects to complete its network evolution initiative in 2027" is the operative line replacing the dropped FY2026 guideposts. Where Q4 FY2025 framed FY2026 as "the last large build year" with a specific subsidized-rural number attached, Q1 FY2026 frames 2027 as the inflection moment and declines to size FY2026 EBITDA quantitatively. The longer dating buys management time but also concedes that FY2026 is not the year the story turns.

Pricing pragmatism is now openly conceded. Asked about five-year price locks in Q&A, Chris Winfrey said Charter had "tested five-year price locks without seeing necessary lift at scale" and was managing the trade-off between "loyalty migration pace, proactive/reactive offer tuning, and pricing decisions traded against customer lifetime value." Jessica Fisher added that broadband ARPU growth for the year would be "close either way" — i.e. flat is the base case. Three quarters ago Charter framed structurally lower ARPU as headroom; this quarter ARPU growth is essentially conceded.

The competitive diagnosis sharpened toward top-of-funnel rather than offer or churn. Winfrey in Q&A: yield at point of sale remains strong; voluntary churn at historical lows; the binding constraint is "sales traffic" — i.e. messaging value and earning service reputation. The COO hire (Nick Jeffrey) is positioned as the answer to a messaging gap, not a pricing or product gap. This is a more specific diagnosis than the Q3-Q4 FY2025 "macro and competition" framing.

Q&A highlights

Craig Moffitt · Moffitt Nathanson

How quickly will Charter move Cox customers to Spectrum pricing given Cox's higher broadband ARPU? What is the trajectory and pace of customer migration?

Chris Winfrey explained that while Cox's broadband ARPU is higher, overall customer ARPU is not significantly different. The strategy is to lower broadband promotional and retail pricing while using low Cox mobile and video penetration to maintain overall customer ARPU through product attachment. Migration pace will be managed based on marketing efforts, loyalty offers testing, and existing customer proactive/reactive migration, similar to prior acquisitions (TWC, Bright House). Entry will feature new Spectrum branding, lower pricing, field sales expansion, and B2B capabilities to drive growth.

Cox broadband ARPU higher than Charter, but overall customer ARPU not significantly differentCox has super low mobile and video penetration providing upside opportunityCox churn rate higher than Charter's, presenting opportunity for improvementCharter plans field sales and service hours expansion in Cox markets

Sean Diffley · Morgan Stanley

How does Charter assess the regulatory environment for further cable M&A consolidation, given FCC mention of fixed wireless and satellite competition in the Cox review?

Chris Winfrey stated Charter likes cable as an investment and would acquire more assets at appropriate pricing and conditions. He framed cable companies as regional competitors facing national/global competitors (fiber overbuilders, national telcos with fixed wireless and fiber, global video competition). Charter's operating strategy—100% U.S.-based service, lower pricing, innovation, improved service quality—has been beneficial for customers and employees in prior deals (TWC, Bright House, Bresnan) and demonstrates rationale for M&A. No current deals being evaluated beyond Cox completion.

Charter views cable as attractive investment for future M&ASynergies flex up/down based on transaction sizeCable operators are regional competitors with no overlap; compete against national/global competitorsCharter's operating strategy delivered 100% U.S.-based service, lower pricing, innovative products in prior acquisitions

John Hodulik · UBS

What competitive pressures are Charter seeing from fixed wireless access (AT&T), fiber overbuilds with converged offerings, and satellite (LEO) particularly in rural markets?

Chris Winfrey detailed that competitive challenges are primarily top-of-funnel (sales traffic) rather than yield or churn issues. On fixed wireless: AT&T filling gap left by other carriers, continuing at similar pace. Fiber overbuilds: growth pace unchanged; Charter maintains above-average market share in mature fiber overlap markets. Promotional intensity: varied by competitor and quarter, no fundamental change. Housing/mobile substitution remain factors. On satellite: no significant customer share loss tracked to date; Charter views satellite as potentially complementary rather than direct competitor in low-density rural and sees potential partnership opportunities (e.g., satellite as backup via Invincible Wi-Fi, reseller opportunities).

Yield at point of sale remains strong; churn at historical lowsAT&T fixed wireless access replacing gap from other carriers; pace similar to prior quartersFiber overbuilt growth pace continues at historical ratesCharter market share in mature fiber overlap areas above competition

Steve Cahill · Wells Fargo

Given Comcast's strong subscriber inflection on aggressive marketing/pricing, does Charter need to get more aggressive, or will current strategy improve trends? Also, how will Charter benefit from jump ball (mover) activity if housing improves?

Chris Winfrey acknowledged Comcast's strong results positively, confirmed team is evaluating learnings, but stated Charter's core issue is not offer expression but rather messaging value/utility and earning service reputation. He emphasized the COO hiring (Nick Jeffrey) addresses competitive market messaging challenges. On movers/jump balls: Charter actually performs well with mover cohort due to footprint scale and customer transitions; more housing movement would be net beneficial. Cox integration will further improve off-footprint move retention. Charter also working with industry peers to improve inter-carrier customer relationship transfers.

Charter team immediately reviewed Comcast results for adoptable tacticsCore issue is messaging value/utility, not offer expression or additional marketing spendHiring of Nick Jeffrey as COO to improve competitive market messaging and service reputationCharter performs well with mover cohort due to footprint scale

Vikash Harlalka · New Street Research

Has Charter pulled all pricing levers (e.g., five-year price locks like Comcast/Optimum)? What should we expect for broadband ARPU acceleration in 2026?

Chris Winfrey stated Charter continuously evaluates pricing strategies and has tested five-year price locks without seeing necessary lift at scale; remains open to adopting approaches that work elsewhere. Current focus is not just promotional price but total package including roll-off and retail rates. Management is focused on broadband growth return but sees no reason to change current approach. On ARPU: Jessica Fisher said broadband ARPU growth for the year will be "close either way" and dependent on multiple factors including loyalty migration pace, proactive/reactive offer tuning, and pricing adjustments to manage customer lifetime value vs. near-term ARPU/EBITDA impact.

Charter has tested five-year price locks without necessary lift at scaleNo planned adoption of price lock guarantees at this timeFocus on total pricing package including promotional, retail, and roll-off ratesBroadband ARPU growth for 2026 expected to be close to flat, dependent on multiple tuning factors

Answers to last quarter's watch list

Q1 FY2026 internet net losses — Total Internet customers fell to 29.56M from 29.68M at year-end, a loss of 120k versus Q4 FY2025's -119k. The "game of inches" framing is testing essentially flat at a negative level: the bleed did not improve.

Resolved negatively

FY2026 revenue trajectory and Internet revenue staying positive — Decisively answered, decisively negative. Total revenue declined 1.0% YoY (worse than FY2025's -0.6%) and Internet revenue turned negative for the first time at -1.3% YoY, breaking the +2.8% → +1.7% → +0.7% decel sequence.

Resolved negatively

Mobile net adds rebound from 428k — Mobile lines grew to 12.13M from 11.77M, implying 368k net adds — below Q4 FY2025's 428k and well below the 475k threshold. The iPhone 17 subsidy drag was not a one-quarter event.

Resolved negatively

Residential ARPU stabilization at $117.19 — Held and modestly improved to $118.44. The Q3 FY2025 promotional misstep damage appears to have stopped compounding.

Resolved positively

Cox regulatory milestone and pro-forma capex envelope — Q&A discussion of Cox migration mechanics (pricing, branding, mobile/video attachment) suggests close is proximate, but no specific regulatory date or pro-forma capex range was disclosed. Capex guidance explicitly excludes Cox impacts.

Continue monitoring

Streaming app allocation drag — The company didn't size the drag on this print. Adjusted EBITDA margin at 41.5% is close enough to Q4 FY2025's 41.8% that the full $1B headwind has not yet visibly landed, but it's not separately disclosed.

Continue monitoring

What to watch into next quarter

Whether the lapsed FY2026 EBITDA guide returns in any form, even qualitatively bracketed. Two consecutive quarters without an EBITDA dollar or growth-rate frame would confirm the January "slight growth" target is no longer achievable. Threshold: any return of a numerical or directional FY2026 EBITDA range would be a positive surprise.

Internet revenue trajectory — now negative for the first time. Watch whether Q2 FY2026 deepens past -1.3% YoY (signaling acceleration of structural pressure) or stabilizes near it (consistent with the ARPU bottoming pattern).

Mobile net adds breaking back above 475k — at 368k, the third consecutive quarter of decel. A fourth would force a structural rethink of the convergence-as-FCF-engine narrative.

Cox close timing and the first pro-forma capex/leverage update. Management's commentary suggests the integration playbook is fully scoped; the next event is regulatory.

Whether Nick Jeffrey's arrival as COO translates to any visible shift in messaging strategy or top-of-funnel metrics — management has explicitly anchored the competitive response on this hire.

First quantitative sizing of the streaming app allocation drag flagged in Q4 FY2025 as up to $1B. Without it, full-year EBITDA modeling is unanchored.

Sources

Charter Communications Q1 FY2026 Earnings Release, SEC 8-K Exhibit 99.1 — https://www.sec.gov/Archives/edgar/data/1091667/000109166726000027/chtrex991earningsrelease33.htm
Charter Communications Q1 FY2026 earnings call, prepared remarks and Q&A.

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