CHTR · Q2 FY2026
CHARTER COMMUNICATIONS, INC. /MO/ Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $13.526B | $13.766B (yr ago) | Miss |
| EPS | $10.66 diluted | $9.18 diluted (yr ago) | Beat |
| Free Cash Flow | $969M | $1.046B (yr ago) | Miss |
| Gross Margin | Not disclosed; not meaningful for this analysis | Not disclosed (yr ago) | Miss |
| Operating Margin (pre-tax margin field) | 22.6% | 23.8% (yr ago) | Miss |
What changed
Revenue declined 1.7% year over year, Adjusted EBITDA fell 4.3%, and the supplied pre-tax margin field contracted 120 basis points to 22.6%. Diluted EPS rose 16.1% to $10.66 because the diluted share count declined 14.4%, while free cash flow fell 7.4% and Internet customer losses widened to 172,000.
Impact on the investment thesis
With no prior company coverage, we establish fair value at $173 per share rather than record a change. The quarter supports a low multiple because core broadband customers and EBITDA declined, although share repurchases, mobile growth and higher pre-tax income preserve material value above the current price.