Comcast (CMCSA) reported its third-quarter results on Oct. 22, and the financial release showed that its streaming service is flying high. However, the company's broadband losses are broadening.
Ahead of earnings, Bloomberg News also reported that Comcast is planning significant job cuts as part of a wide-ranging restructuring. With the spinoff of NBCUniversal and Sky looming on the horizon, Comcast is evidently taking steps to downsize its workforce in order to free up cash, with the initial round of layoffs expected within weeks. The company is seeking a more efficient, nimble business structure, and the cuts will reportedly happen across its cable-TV, broadband, and wireless businesses.
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Investors overall have turned tepid on Comcast. Let's take a closer look at what's going on with CMCSA stock.
About Comcast Stock
Based in Philadelphia, Pennsylvania, Comcast is a media and technology company with operations spanning residential broadband, wireless, video, and voice through Xfinity, commercial connectivity through Comcast Business, and media, streaming, studios, and theme parks through NBCUniversal, Peacock, and Sky. Comcast has a market capitalization of $80.5 billion.
Comcast is pursuing a major restructuring, having already spun off several cable networks into Versant Media Group in January 2026 and more recently proposing to separate NBCUniversal and Sky from its broadband and telecommunications businesses. The company is investing heavily in network upgrades, simplified broadband pricing, and converged wireless offerings to counter fiber and fixed-wireless competition, while scaling Peacock, business services, and Universal theme parks.
Shares are down 23% over the past 52 weeks, mainly because investors are unsure about the economics of Comcast's core broadband business amid intensifying competition and a costly strategic transition. Over the past six months, CMCSA stock is down roughly 28%. The stock reached a 52-week low of $20.48 on Oct. 9 but is currently up 11% from that level.
www.barchart.com The selloff has made Comcast stock cheaper compared to its peers. Its forward price-to-earnings (P/E) ratio of 6.5 times is lower than the industry average of roughly 12.5 times.
Comcast Reports Q3 Results
For the third quarter, Comcast reported revenue of $29.3 billion, down 6% year-over-year (YOY) and missing the analyst estimate of $29.35 billion. The company is burning cash amid its restructuring, as free cash flow dropped 15% YOY to $4.21 billion in Q3. Adjusted EPS also fell 4% to $1.07, although that was higher than the $0.98 analysts expected.
The FIFA World Cup proved to be a blessing for the media giant as it navigates a competitive landscape. The global tournament generated $224 million in incremental revenue. Peacock, Comcast’s streaming service, saw paid subscribers climb 17% YOY to 48 million, driven in part by record-high World Cup viewership.
Revenue in the company's Media division increased 13% YOY to $5.36 billion. Peacock also delivered its second consecutive profitable quarter, generating $261 million in adjusted EBITDA on $1.8 billion in revenue.
On top of that, “The Odyssey” became Universal’s highest-grossing film ever, surpassing $5 billion at the global box office in 2026. Total Content and Experiences revenue, which includes its studios and theme parks, increased 6.5% YOY to $10.54 billion.
However, Comcast’s Connectivity and Platforms segment faces headwinds from a declining user count. Total domestic broadband residential customer net losses were 144,000, while total domestic video customer net losses were 274,000.
Domestic broadband revenue fell almost 5% YOY to $6.24 billion, driven by lower average rates and a decline in domestic broadband customers, while domestic wireless service revenue increased almost 15% YOY to $1.05 billion. Total Connectivity and Platforms adjusted EBITDA dropped more than 4% to $7.59 billion.
Wall Street analysts have a mixed outlook on Comcast’s earnings trajectory. The company’s EPS is expected to decline 18% YOY to $3.52 in fiscal 2026 before improving by a little more than 1% to $3.57 in fiscal 2027.
What Do Analysts Think About Comcast Stock?
Recently, Rosenblatt analyst Barton Crockett maintained a “Buy” rating on CMCSA stock with a $31 price target, indicating considerable potential upside from current levels. This rating reiteration comes as analyst sentiment around Comcast has turned a bit tepid. In line with the stock's more mixed evaluations, Scotiabank analyst Maher Yaghi maintained a “Sector Perform” rating in early October while lowering the price target from $29 to $27.50, reflecting a cautious outlook amid a challenging market environment.
Wall Street analysts are taking a cautious stance overall. Comcast stock has a consensus “Hold” rating on Wall Street, down from a consensus “Moderate Buy” rating a month ago. Of the 30 analysts covering CMCSA stock, nine have a "Strong Buy” rating, 16 analysts have a “Hold,” and five have a “Strong Sell” rating. The average price target of $28.66 implies potential upside of 26% from current levels, while the Street-high price target of $44 reflects potential upside of 94% from here.
www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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