GET DAILY SIGNALSCharter Communications (CHTR) Reports +9.1% Revenue Growth in Q3 2026 Following Cox Acquisition
Key Takeaways
- Charter reported third-quarter 2026 revenue of $14.92 billion, up 9.1% year over year, ahead of consensus estimates of roughly $13.5 billion, largely reflecting the completed Cox Communications acquisition.
- On a GAAP basis, the company posted a diluted loss of $20.50 per share, versus earnings of $8.34 a year earlier, driven by a $6.33 billion non-cash franchise impairment.
- Adjusted EBITDA reached $5.94 billion, slightly below the consensus estimate of about $6.06 billion, with a 39.8% margin.
- Broadband remained a pressure point, with 233,000 pro forma internet customer losses, while Spectrum Mobile added 508,000 lines and grew mobile lines 15.4% year over year.
- Management announced a new operating model targeting an incremental $2 billion in annualized operating expense savings over the next 18 months, on top of more than $1 billion in expected Cox transaction synergies.
- Shares fell about 5.8% to $117.93 immediately after the release, as investors weighed the impairment and subscriber losses against the revenue beat.
Earnings Context and Integration Impact
Charter’s third-quarter report provided the first full view of combined operations after the Cox Communications acquisition closed on August 19, 2026. That deal brought in roughly 11 million passings and more than 5 million customers. The quarter served as an early test of integration benefits and the company’s capacity to address ongoing broadband subscriber declines amid rising competition. I’m watching this closely because the larger scale, mobile momentum, and newly announced cost initiatives could help offset margin pressures and the sizable non-cash impairment. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Financial Results
Total revenue increased 9.1% year over year to $14.92 billion, exceeding consensus estimates of approximately $13.5 billion. The gain stemmed mainly from the Cox acquisition, which was consolidated for part of the period. On a pro forma basis, treating Cox as owned in both periods, revenue declined 1.5% to $16.51 billion, with residential revenue down 4.1%.
Results reflected a $6.33 billion franchise impairment tied to the sustained share-price decline, partly offset by a $1.4 billion gain on debt extinguishment. GAAP net loss attributable to Charter shareholders reached $2.4 billion, producing a diluted loss per share of $20.50 compared with income of $8.34 per share a year earlier.
Adjusted EBITDA rose 6.9% to $5.94 billion, just below the consensus of roughly $6.06 billion, and the margin narrowed to 39.8%. Free cash flow dropped 58.4% to $674 million due to tax-payment timing and one-time Cox transaction costs.
On the subscriber side, Charter lost 233,000 internet customers on a pro forma basis, compared with 171,000 a year earlier, finishing the quarter with 34.31 million internet customers. Spectrum Mobile added 508,000 lines, reaching 13.45 million total mobile lines and delivering 15.4% year-over-year growth. Video customer losses improved to 77,000 from 121,000.
Market Reaction and Investor Sentiment
Shares declined about 5.8% to $117.93 right after the release. While the revenue beat drew attention, investors focused on the large non-cash impairment, the GAAP loss, and continued broadband subscriber erosion. The modest adjusted EBITDA miss and steep free-cash-flow drop also pressured sentiment, along with notes that Cox’s legacy internet losses ran higher than Charter’s on a size-adjusted basis. Management highlighted an improving trajectory, including higher internet sales since the September “Spectrum Day” launch and a roughly halved run-rate of Cox internet losses, yet near-term subscriber and margin trends shaped the initial response.
Forward Outlook and Items to Monitor
Looking ahead, the key question is whether the new operating model will produce clearer gains in broadband subscriber trends. Management’s priorities center on winning more internet customers and simplifying the organization through four imperatives: growing internet connects, improving customer service, upgrading the network, and increasing efficiency.
Cost-savings execution will be important to track. Beyond the more than $1 billion in expected Cox synergies, Charter is targeting an incremental $2 billion in annualized operating-expense savings over the next 18 months. These savings are not aimed at frontline service and sales roles, but timing and delivery will receive close scrutiny.
Subscriber metrics, especially monthly internet net additions, churn, and ARPU, along with continued mobile-line growth, will stay in focus. Cox integration into the Spectrum brand, including offer and go-to-market adjustments, represents another variable. Capital efficiency and the balance sheet also matter, with network capital expenditures expected to decline after next year and improved cash flow supporting debt reduction.
AI Tools in My Research Process
One tool I find particularly useful for this kind of analysis is Tickeron’s AI Screener. It helps filter stocks and ETFs by technical patterns, fundamentals, trends, and AI-driven signals, allowing quicker identification of comparable names and shifting market conditions when evaluating results like these.
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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 MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for CHTR turned positive on October 13, 2026. Looking at past instances where CHTR's MACD turned positive, the stock continued to rise in 26 of 40 cases over the following month. The odds of a continued upward trend are 65%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on CHTR as a result. In 48 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
Following a +10.61% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHTR advanced for three days, in 176 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The 10-day RSI Indicator for CHTR moved out of overbought territory on November 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In 19 of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at 76%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
CHTR moved below its 50-day moving average on November 06, 2026 date and that indicates a change from an upward trend to a downward trend.
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%.
CHTR broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CHTR entered a downward trend on October 30, 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 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 57 (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 (0.797) is normal, around the industry mean (2.290). P/E Ratio (3.035) is within average values for comparable stocks, (-7.234). Projected Growth (PEG Ratio) (0.631) is also within normal values, averaging (8.005). Dividend Yield (0.000) settles around the average of (0.123) 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 59 (best 1 - 100 worst), indicating steady price growth. CHTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 90 (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 82, placing this stock worse than average.
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General Information
a provider of broadband communications services
Industry MajorTelecommunications
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