Charter Communications (CHTR): Q1 2026 Revenue Edges Out Estimates but EPS Miss Triggers -24.6% Plunge
Key Takeaways
- Total revenue fell 1.0% year-over-year to $13.597 billion, slightly beating consensus estimates of $13.56 billion.
- GAAP earnings per basic share rose to $9.27 from $8.59, but missed analyst expectations around $9.97-$10.07.
- Adjusted EBITDA declined 2.2% to $5.637 billion, with margin at 41.5%.
- Broadband subscribers dropped by 120,000 quarter-over-quarter; mobile lines added 368,000.
- Shares plunged 24.6% to $182.17 following the release.
- 2026 capital expenditures guidance set at approximately $11.4 billion.
Why Charter's Earnings Matter Right Now
As the largest cable operator in the U.S., Charter Communications is up against stiff competition from fiber providers, fixed wireless access, and streaming platforms. The Q1 2026 results point to ongoing difficulties in retaining broadband customers amid aggressive pricing and macroeconomic strains, even as mobile growth stands out as a positive. Investors like me keep a close eye on subscriber trends, ARPU, and free cash flow generation, since these factors are central to valuation in a pay-TV market that's maturing quickly. One thing that stands out here is how this report illuminates Charter's network investments and positioning ahead of potential regulatory changes and telecom M&A activity.
Breaking Down the Q1 Reported Results
Charter reported total revenue of $13.597 billion for the first quarter ended March 31, 2026, marking a 1.0% decline from $13.728 billion in Q1 2025, yet it still came in ahead of consensus expectations of $13.56 billion. Residential revenue decreased 2.7% to $10.494 billion, reflecting lower video revenue (down 9.2%), though this was partly offset by 15.1% growth in mobile service revenue. Commercial revenue increased 1.0% to $1.839 billion.
Net income attributable to shareholders totaled $1.163 billion, down 4.4% year-over-year, which translated to GAAP EPS of $9.27 per basic share—below the consensus range of around $9.97-$10.07. Adjusted EBITDA fell 2.2% to $5.637 billion. Customer relationships reached 31.683 million, a 1.5% drop YoY, with broadband subscribers at 29.560 million following a loss of 120,000 in the quarter. Mobile lines grew to 12.134 million, up 17.1% YoY, including 368,000 quarterly adds.
Capital expenditures rose 19.0% to $2.855 billion, tied to network expansions. The company repurchased 4.3 million shares for $963 million and provided full-year 2026 capex guidance (excluding certain items) of about $11.4 billion. I also checked these figures against industry peers using Tickeron’s AI Screener, which highlighted Charter's relative positioning on subscriber growth and margins.
Market Reaction and Investor Sentiment
Shares of CHTR tumbled 24.6% to $182.17 on April 24, 2026, erasing substantial market value in reaction to the broadband subscriber losses and EPS miss, despite the revenue beat. The focus sharpened on accelerating residential customer declines and margin pressures, which overshadowed mobile gains and share buybacks. From what I see, sentiment has shifted to cautious, with discussions centering on competitive pricing pressures and churn risks.
A Tool I Rely On: Tickeron’s AI Screener
In my analysis of stocks like CHTR, I often turn to Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs. It lets me filter thousands of assets based on technical patterns, fundamentals, trends, volatility, and AI-driven signals, using customizable criteria like industry, market cap, indicators, price patterns, and performance metrics. This approach uncovers trade ideas, breakout candidates, and opportunities far more efficiently than manual screening, and it's become a staple in streamlining my research process.
Forward Outlook and Key Metrics to Track
Charter management highlighted its advanced network upgrades and product enhancements in the wake of Q1 results, aiming to slow broadband losses. I'm watching subscriber trends closely, especially residential internet retention against expanding fiber networks and bundled offers from rivals.
Mobile line growth continues as a bright spot, with postpaid adds demonstrating solid wireless traction. ARPU movements, excluding one-time items like programmer fees, will reveal pricing power. Free cash flow came in at $1.372 billion for Q1 (down 12.3% YoY), providing support for buybacks and debt management, with $94.3 billion in principal outstanding.
Key catalysts ahead include rural buildouts, network upgrades, and any impacts from the potential Cox transaction on capex. Broader factors like 5G competition and video cord-cutting will shape Q2 guidance. This is important because tracking Adjusted EBITDA margins will show operational efficiency amid elevated capex.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CHTR's Stochastic Oscillator is staying in oversold zone for 13 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
Following a +0.63% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHTR advanced for three days, in 177 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
CHTR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CHTR as a result. In 58 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
CHTR moved below its 50-day moving average on September 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CHTR crossed bearishly below the 50-day moving average on September 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 59%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHTR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for CHTR entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 29 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 34 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.752) is normal, around the industry mean (10.715). P/E Ratio (2.899) is within average values for comparable stocks, (33.181). Projected Growth (PEG Ratio) (0.631) is also within normal values, averaging (8.005). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (0.318) is also within normal values, averaging (5.777).
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. CHTR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHTR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
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General Information
a provider of broadband communications services
Industry MajorTelecommunications
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