Comcast (CMCSA) earnings Q3 2025

Comcast topped Wall Avenue earnings and income estimates for the third quarter on Thursday, however revealed widespread pressures in its broadband unit that spooked buyers.

The corporate mentioned it misplaced 104,000 home broadband clients through the interval, bringing its whole subscriber base to roughly 31.4 million. This marked the fourth quarter in a row that Comcast failed to develop its broadband buyer base. 

Earlier this yr the corporate outlined initiatives meant to drive broadband development — the cornerstone of Comcast’s enterprise — because it has confronted fraught competitors from different suppliers, specifically 5G corporations. The corporate, quickly to be led by co-CEOs Brian Roberts and Mike Cavanagh, will probably be much more reliant on connectivity within the new yr after its deliberate Versant transaction to offload cable community belongings. 

Throughout Thursday’s name with buyers, Cavanagh reiterated the “broadband setting stays intensely aggressive.”

Comcast management mentioned the broadband enterprise will expertise a decline in earnings as its technique to give attention to the cellular enterprise, simplify pricing bundles and improve broadband-related merchandise and WiFi is put in force. That lower started this quarter and can carry via future quarters, the mentioned.

CFO Jason Armstrong additionally mentioned the division’s common income per person, or ARPU, wasn’t anticipated to develop as the corporate focuses on initiatives to keep up and develop its buyer base. As broadband subscriber additions have slowed or reversed, Comcast has usually centered on the corporate’s rising ARPU, which is pushed by worth will increase and upselling packages.

The change in broadband playbook means the vibrant spot that was as soon as rising ARPU would not exist within the close to time period for Comcast.

“As we have mentioned from the start, this pivot carries a number of prices, together with charge reinvestment via pricing simplicity, which carries income dilution in addition to funding in buyer expertise, which carries extra working prices,” Armstrong mentioned on Thursday’s name.

This marked the primary quarter during which these prices hit Comcast’s outcomes, Armstrong mentioned. It translated to a 3.5% decline in earnings earlier than curiosity, taxes, depreciation and amortization throughout the corporate’s connectivity and platforms enterprise – made up broadband, cellular, pay TV and different companies.

Income for the corporate’s total connectivity and platforms enterprise got here in at $20.18 billion, down practically 1% from the identical interval final yr. 

“On the opposite aspect of this, we’re positioning ourselves for development with a extra sturdy broadband buyer base,” Armstrong mentioned.

The refocusing of the broadband technique additionally aligned with a management change for the unit.

On Thursday, Comcast introduced Steve Croney would take over as CEO of the connectivity and platforms division, succeeding longtime chief Dave Watson. Croney has been serving because the chief working officer of the group amid its new strategic push.

Whereas Comcast has moved towards cellular, that buyer base has grown. Comcast mentioned Thursday it added a document variety of cellular clients – 414,000 through the third quarter, bringing its whole to eight.9 million strains.

In the meantime, the exodus from the pay TV bundle continued, with Comcast reporting the section misplaced 257,000 clients through the interval. As of Sept. 30, Comcast had 11.5 million home pay TV clients. 

Shares of the corporate closed down 4% on Thursday. Within the final yr, Comcast shares have fallen about 35%.

Here is how Comcast carried out for the interval in contrast with common analyst estimates, in accordance with LSEG:

• Earnings per share: $1.12 adjusted vs. $1.10 anticipated
• Income: $31.2 billion vs. $30.70 billion anticipated

For the quarter ended Sept. 30, web earnings attributable to Comcast decreased 8% to $3.33 billion, or 90 cents per share, in contrast with $3.63 billion, or 94 cents per share, a yr earlier. 

Adjusting for one-time objects, corresponding to curiosity expense and the worth of sure belongings, Comcast reported earnings per share of $1.12 for the quarter. 

The corporate’s adjusted EBITDA was down roughly 1% to $9.7 billion. 

General income fell practically 3% to $31.2 billion, in contrast with $32.1 billion in the identical interval final yr. 

Income for the corporate’s media unit, which homes NBCUniversal, was $6.6 billion, down virtually 20% through the interval. 

Excluding the influence of the Summer time Olympics, which passed off throughout the identical interval final yr, income was up 4% yr over yr. 

The media division reported EBITDA of $832 million, up 28% yr over yr, pushed partially by streaming service Peacock. 

Peacock, which had 41 million subscribers as of Sept. 30 — primarily flat for the final three quarters — reported losses of $217 million for the quarter, an enchancment from $436 million in losses throughout the identical interval final yr. 

In October NBCUniversal’s media rights cope with the NBA kicked off, bringing skilled basketball again to broadcast community NBC and introducing it to Peacock. The addition of the NBA is anticipated to offer Peacock a increase. 

In the meantime, income for the movie studio was up 6% to $3 billion – boosted by the discharge of “Jurassic World Rebirth” in July. 

Theme park income elevated practically 19% to $2.72 billion, with EBITDA for that unit up 13% to $958 million because of the opening of Epic Universe in Might. 

Disclosure: Comcast is the guardian firm of NBCUniversal, which owns CNBC. Versant would turn into the brand new guardian firm of CNBC upon Comcast’s deliberate spinoff of Versant.