NEW YORK, July 24, 2026, 11:06 a.m. EDT
Shares of Charter Communications NASDAQ:CHTR dropped 3.0% to $122.69 after the company reported weaker broadband results and cut its outlook for core profit. Previously, the stock hit a session low of $108.76. The delayed quote was captured at 10:50 a.m. EDT, with trading on Nasdaq still underway.
Charter is now projecting a decrease of around 1% in standalone EBITDA for 2026, not factoring in expenses related to the Cox transition. Earlier, management had anticipated modest EBITDA growth.
The per-share data showed a contrast. Diluted earnings increased by 16.1% to $10.66, even as net income edged down 0.7%. The average diluted share count decreased 14.4%.
During the quarter, Charter repurchased four million shares for a total of $838 million, averaging $209.50 per share and using up 86% of its free cash flow. At $122.69 per share, the same stake would be valued at roughly $491 million, $347 million less than what Charter paid overall, according to aggregate data.
The comparison does not represent an accounting loss. It reflects the gap between recent capital deployment and the market price as of Friday.
| Second-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $13.526 billion | $13.766 billion | -1.7% |
| Adjusted EBITDA | $5.449 billion | $5.693 billion | -4.3% |
| Net income | $1.292 billion | $1.301 billion | -0.7% |
| Diluted EPS | $10.66 | $9.18 | +16.1% |
| Average diluted shares | 121.3 million | 141.7 million | -14.4% |
| Free cash flow | $969 million | $1.046 billion | -7.4% |
Company data; percentage variations are based on published figures.
A shift in capital allocation is underway. Chief Financial Officer Jessica Fischer stated, “We have paused our share repurchases through the end of the third quarter.” Charter anticipates resuming buybacks in the fourth quarter. StockAnalysis
Debt remains a key issue. At the end of June, Charter reported $93.8 billion in principal debt and $509 million in cash. The company cut its target leverage ratio after the transaction to 3.5 times, with management forecasting that this goal will be achieved inside three years.
Charter’s operating shortfall was notable. The company reported a loss of 172,000 internet subscribers, compared to a projected drop of 140,712. The disclosed figure was roughly 22% below analyst expectations.
Mobile offset declines elsewhere, as Charter gained 406,000 mobile lines, surpassing the projected 382,706. Video subscriber losses shrank to 21,000, well ahead of analysts’ forecasts.
Comcast NASDAQ:CMCSA, the nearest publicly traded cable rival, also experienced pressure, with a loss of 167,000 residential broadband subscribers on Thursday. However, it gained 448,000 wireless lines.
The telecom sector saw a starker contrast. AT&T NYSE:T reported 646,000 new internet connections, counting those brought in via acquisition. Verizon Communications NYSE:VZ reported 348,000 new broadband connections. Although definitions vary, the two companies trended in opposite directions.
Charter’s share count will change again following the upcoming Cox deal. Management anticipates the acquisition will be completed by mid-to-late August. More than 46 million new equivalent shares will be issued, with the total share count projected at roughly 177 million after associated transactions.
Chief Executive Chris Winfrey said it is “hard to predict” when broadband growth will pick up again. Charter is maintaining its 2026 capital spending outlook at about $11.4 billion. Management anticipates a steep reduction in spending once its network upgrade projects are completed. StockAnalysis
Risks exist on both sides. Quicker broadband stabilization and benefits from Cox synergies have the potential to boost cash flow. On the other hand, continued customer attrition, setbacks in integration, or a slower pace of deleveraging could widen the valuation discount.
The decline reflects investors distinguishing operating growth from EPS growth. Charter now faces the challenge of demonstrating that cash flow and merger benefits can outpace broadband losses.
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