Comcast (CMCSA) Q1 2026 earnings summary

Executive summary

• Revenue grew 5.3% year-over-year to $31.5 billion, with pro forma revenue up 10.9% after the Versant separation, driven by Content & Experiences and major events.

• Net income attributable to shareholders fell 35.6% to $2.2 billion; adjusted EPS dropped 27.5% to $0.79.

• Adjusted EBITDA declined 16.8% to $7.9 billion, reflecting higher programming costs and event-driven expenses.

• Free cash flow was $3.9 billion, with $2.5 billion returned to shareholders via dividends and buybacks.

• Leadership changes, operational restructuring, and the Versant Media Group spin-off created new momentum and impacted segment results.

Financial highlights

• Pro forma revenue was $31.5 billion in 1Q26, up 10.9% year-over-year; operating income dropped 26.9% to $4.1 billion.

• Adjusted EBITDA was $7.9 billion, down 8.8% year-over-year; adjusted EPS was $0.79, down 27.5%.

• Free cash flow reached $3.9 billion; net cash from operating activities was $6.9 billion, down from $8.3 billion.

• Programming and production costs surged 29.3% to $10.9 billion, mainly due to the Olympics and Super Bowl.

• Debt reduced to $82.0 billion as of March 31, 2026, down from $87.4 billion a year earlier.

Outlook and guidance

• Management expects incremental broadband ARPU pressure in Q2, with relief anticipated as free wireless lines convert to paid in the second half.

• Peacock is expected to approach profitability in Q2, with ongoing and durable profitability targeted.

• Focus remains on growing higher-margin connectivity businesses, investing in network expansion, and maintaining disciplined capital allocation.

• Forward-looking statements highlight risks from competition, consumer behavior, advertising market, and regulatory changes.

• Continued declines expected in video revenue due to shifting consumption patterns.