Comcast's Q2 Earnings Surpass Estimates, Revenues Decrease Y/Y

The quarter was shaped by continued traction in the company's go-to-market reset in Connectivity & Platforms, highlighted by the best wireless quarter on record alongside Peacock reaching quarterly profitability for the first time. Comcast also announced its intention to separate NBCUniversal and Sky into two publicly traded companies through a tax-free spin-off.

CMCSA Connectivity Pivot Shows Early Traction

Connectivity & Platforms revenues (66.1% of revenues) decreased 3% year over year to $19.8 billion in the reported quarter as pressure in Residential Connectivity & Platforms outweighed continued gains in Business Services Connectivity.

Under the segment, Residential Connectivity & Platforms revenues decreased 4% year over year to $17.12 billion. Business Services Connectivity revenues increased 3.7% year over year to $2.67 billion.

Total Residential Connectivity & Platforms customer relationships decreased 230,000 to 47.7 million, reflecting decreases in both domestic and international customer relationships. Total domestic broadband residential customer net losses were 167,000. Total domestic wireless line net additions were 448,000, marking the company's best quarterly result on record, with total wireless lines rising to 10.2 million. Total domestic video customer net losses were 280,000.

Content & Experiences revenues (35.8% of revenues) increased 22.9% year over year to $10.73 billion, driven primarily by Media and Studios.

Under the segment, Media revenues increased 25.3% year over year to $5.69 billion, including $440 million of incremental revenues from the FIFA World Cup. Peacock reached quarterly profitability for the first time with EBITDA of $189 million, increasing $290 million year over year, while paid subscribers rose by 2 million net additions in the quarter to 48 million, driven by the NBA Playoffs, the FIFA World Cup and Love Island USA.

Studios revenues increased 25% year over year to $3.04 billion, driven by higher theatrical revenues from The Super Mario Galaxy Movie, Obsession and the international distribution of Michael. Theme Parks revenues increased 2.7% year over year to $2.41 billion, reflecting higher revenues at Orlando theme parks, partially offset by lower revenues at international parks.

CMCSA’s Operating Details

Costs and expenses in the second quarter of 2026 increased 1.9% year over year to $24.78 billion.

Programming and production costs increased 10.7% from the year-ago quarter to $8.39 billion. Marketing and promotion expenses increased 4.2% year over year to $2.26 billion while other operating and administrative expenses rose 0.2% to $10.45 billion.

Adjusted EBITDA decreased 13.4% year over year to $8.9 billion. On a pro forma basis, reflecting the Versant separation and the Sky Germany sale, adjusted EBITDA declined 5.3% year over year.

Total Connectivity & Platforms adjusted EBITDA declined 5.7% year over year to $7.96 billion. Residential Connectivity & Platforms adjusted EBITDA decreased 8% year over year to $6.45 billion, reflecting investment in the new go-to-market strategy. Business Services Connectivity adjusted EBITDA increased 5% year over year to $1.52 billion, with an adjusted EBITDA margin of 56.7%.

Content & Experiences adjusted EBITDA increased 7.1% year over year to $1.33 billion. Media adjusted EBITDA increased 3.7% year over year to $708 million. Studios adjusted EBITDA increased to $202 million from $61 million, driven by strong theatrical performance. Theme Parks’ adjusted EBITDA decreased 5.1% year over year to $609 million.

CMCSA's Cash Flow & Liquidity

As of June 30, 2026, cash and cash equivalents totaled $7.66 billion, which decreased from $9.47 billion as of March 31, 2026.

As of June 30, 2026, consolidated total debt was $90.38 billion, which decreased from $94.61 billion as of March 31, 2026.

Free cash flow was $4.6 billion in the reported quarter, which increased from $4.5 billion in the prior year quarter.

In the second quarter of 2026, Comcast generated $8.09 billion in cash from operations, which increased from $7.82 billion reported in the prior year quarter.

Comcast paid dividends totaling $1.2 billion and repurchased 33.8 million of its shares for $900 million, resulting in a total return of capital to shareholders of $2.1 billion. On June 29 2026, the company announced it would pause its share repurchase program as it works through the separation of its businesses into two independent publicly traded companies.

Zacks Rank & Stocks to Consider

CMCSA currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Cimpress CMPR, The Marcus MCS and News Corporation NWSA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Cimpress have returned 45.6% in the year-to-date period. Cimpress is slated to report fourth-quarter fiscal 2026 results on July 29.

Shares of The Marcus have returned 53.5% in the year-to-date period. The Marcus is slated to report second-quarter 2026 results on July 30.

Shares of News Corporation have returned 2.8% in the year-to-date period. News Corporation is slated to report fourth-quarter fiscal 2026 results on Aug. 5.

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