Comcast 10-Qquarter ended 2026-09-30
Mixed
Broadband losses and promotional pricing squeeze connectivity; buybacks are paused for the NBCUniversal and Sky separation.
Filed 2026-10-22 14:57 ET
Key figures · Q3 FY2026 · period ended 2026-09-30
- Revenue$29.3BYoY −6.1%QoQ −2.1%
- Operating income$5.3BYoY −3.9%QoQ +3.1%
- Net income$3.4BYoY +3.5%QoQ −2.2%
- Total assets$257.8BYoY −5.6%QoQ +0.1%
- Total debt$87.4BYoY −11.8%QoQ −3.3%
How total debt adds up Noncurrent portion of debt $83,806M + Current portion of debt $3,560M Total debt $87,366M Lines as the filer presents them on its balance sheet.
- Shareholders' equity$92.5BYoY −4.7%QoQ +3.1%
- Tangible book value−$39.1B1YoY +16.8%QoQ +7.6%
Notes (1)
- Tangible book value: About the summary: The summary's $39.2B is the excess of goodwill and other intangible assets over total equity; the claim's tangible book value is -$39.15B and uses shareholders' equity attributable to the company, excluding noncontrolling interests.
Notes on other figures in this summary (2)
Capital expenditures (nine months): Summary: $8.31B · Filing: $10.2B
Comment from AI: The summary's $8.31B is purchases of property, plant and equipment; capital expenditures of $10.17B also include $1.86B of cash paid for intangible assets.
Free cash flow (nine months): Summary: $14.6B · Filing: $12.7B
Comment from AI: The summary's $14.6B reflects operating cash flow less only $8.31B of property, plant and equipment purchases; the claim's $12.72B free cash flow also subtracts $1.86B of cash paid for intangible assets.
How this filing reads
- Health+0.6Free cash flow was $14.6B, debt fell 12% to $87.4B, and revolver availability was $11.8B.
- Momentum−0.5Q3 revenue fell 6.1% and adjusted EBITDA fell 5.8%, with broadband customers down 144,000.
- Outlook−0.3Broadband erosion threatens its largest profit engine; the planned mid-2027 separation remains conditional.
Executive Summary
Comcast sells broadband, wireless and entertainment to households and businesses, earning subscription, advertising, content and visitor revenue. It plans to separate NBCUniversal and Sky, allowing connectivity and entertainment to pursue independent strategies. Q3 showed the connectivity challenge: wireless growth did not offset shrinking broadband and video revenue. Peacock’s growth strengthened entertainment results, but theme parks faced weaker admissions and higher costs. For investors, the opportunity is a clearer strategic focus after separation; the threat is continued erosion of Comcast’s core broadband business.
What's Happening in the Business
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Connectivity bundles face a difficult trade-off. Comcast lost 144,000 domestic broadband customers in Q3, ending with 28.3M, while adding 368,000 wireless lines to reach 10.6M. Promotional pricing and free-line offers support acquisition and retention but pressure broadband revenue per customer.
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Peacock is gaining scale. Paid subscribers reached 48M from 41M, and quarterly revenue increased to $1.8B from $1.4B while costs stayed broadly flat. Media also benefited from the FIFA World Cup; excluding that event, quarterly revenue grew 8.3%.
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Entertainment performance was uneven. Higher theatrical revenue offset much of Studios’ lower licensing revenue, reflecting release timing. Theme Parks faced lower admissions, promotions and higher domestic operating costs; Epic Universe costs also weighed on year-to-date profitability.
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The portfolio is being reshaped. Versant separated on 1/2/2026, and Sky Germany was sold on 5/31/2026; both affect reported comparisons. Management targets the NBCUniversal and Sky separation for mid-2027, subject to conditions, and expects to retain up to 19.9% temporarily before monetizing it.
Key Financial Highlights
| Metric | Q3 2026 | 9M 2026 | Investor interpretation |
|---|---|---|---|
| Revenue | $29.3B, −6.1% Y/Y | $90.7B, −0.8% | Disposals and residential weakness outweighed entertainment growth. |
| Operating income | $5.32B, −3.9% | $14.6B, −15% | Quarterly costs fell faster than revenue, but year-to-date profitability weakened. |
| Adjusted EBITDA | $9.11B, −5.8% | $25.9B, −12% | Underlying earnings declined despite Media’s improvement. |
| Net income | $3.45B, +3.5% | $9.15B, −49% | Lower interest and amortization helped Q3; the prior-year Hulu gain dominates the nine-month comparison. |
| Operating cash flow / free cash flow | — | $22.9B / $14.6B, −7.7% / −13% | Lower operating cash flow and higher capital spending reduced available cash. |
| Debt carrying value | $87.4B at 9/30/2026, −12% from year-end | — | Repayments reduced leverage, although cash also declined. |
Segment revenue includes intersegment sales; adjusted EBITDA is Comcast’s segment profit measure.
| Segment | Q3 revenue; Y/Y change | Q3 adjusted EBITDA; Y/Y change |
|---|---|---|
| Residential Connectivity & Platforms | $17B; −3.5% | $6.1B; −5.8% |
| Business Services Connectivity | $2.6B; +2.7% | $1.5B; +1.7% |
| Media | $5.4B; +13% | $770M; +211% |
| Studios | $3.0B; −1.1% | $400M; +19% |
| Theme Parks | $2.6B; −4.4% | $780M; −17% |
- Earnings comparability: 9M 2025 included a $9.4B pretax Hulu-sale gain, making the net-income decline much larger than the operating decline. Versant’s prior-year revenue also remains in comparisons.
- Cash conversion: 9M operating cash flow exceeded net income, with capital expenditures of $8.31B producing the free cash flow above. Cash taxes benefited from timing, credits, a refund and legislative deductions.
- Capital returns: cash-flow-statement repurchases were $2.52B; shares outstanding fell by 55.1M, or 1.5%, net of issuance. Stock-based compensation was $1.13B, and repurchases were suspended at the start of Q3 for the proposed separation.
- Liquidity: cash and equivalents fell to $7.60B from $9.48B, alongside $10.4B of debt repayments and repurchases; available revolving credit was $11.8B.
Risk Assessment
- Separation execution and tax: board, regulatory, financing and tax conditions could delay or derail the spin-off; duplicated functions could increase costs, while failed tax-free treatment could create substantial liabilities.
- Broadband economics: fewer customers and lower average rates are weakening Comcast’s largest profit engine, while wireless promotions may protect relationships without restoring residential margins.
- Intangible-asset exposure: goodwill and other intangible assets exceeded total equity by $39.2B, leaving substantial accounting exposure if future business deterioration triggers impairments.
This 10-Q lists only the risk factors that changed since the annual report. Full list: the company's 10-Ks on SEC.
What to Watch
- Broadband and wireless bundles: broadband lost customers while wireless added lines; success means stabilizing broadband customers and revenue, while failure means promotions continue without stemming erosion.
- Peacock economics: subscriber and revenue growth outpaced broadly flat costs; later filings should show whether that operating leverage persists beyond major sports events.
- Theme Parks returns: Epic Universe helped year-to-date revenue but not profitability; stronger admissions and earnings would validate the investment, while continued discounting and cost pressure would weaken it.
- Separation outcome: management targets mid-2027; approvals, financing and final operating arrangements will show whether the split delivers strategic independence without excessive duplicated costs or tax liabilities.
Changes since the previous 10-Q
- Watch item improved Peacock operating leverage
Media adjusted EBITDA grew 3.7%; rising programming costs constrained Peacock’s growth payoff. → Peacock earned $261M adjusted EBITDA, its second profitable quarter; Media adjusted EBITDA grew 211%. - Watch item worsened Theme parks investment returns
Theme Parks adjusted EBITDA fell 5% despite Orlando revenue support; operating leverage remained elusive. → Adjusted EBITDA fell 17%; lower admissions joined cost pressure, worsening the investment’s profitability picture.
Figures are computed from the filing's XBRL data; the summary and scores are written by an AI model reading the filing.
Model 006 · prompt v105 · 2026-10-22 22:44:02Z