Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Charter Communications reported a modest revenue decline of 1.0% YoY to $13.60B in Q1 2026, but EPS surged 8.9% to $9.17 (diluted) driven by share buybacks, while operating cash flow grew 1.6% to $4.30B despite ongoing high leverage.
Revenue
$13.6B
-1.00% YoY
EPS (Diluted)
$9.17
+8.91% YoY
Operating Income
$3.21B
-0.90% YoY
Source: SEC XBRL
Charter Communications (CHTR) reported Q1 FY2026 revenue of $13.6B, down 1.0% year over year. Operating margin was 23.6%, essentially unchanged from a year earlier. Operating cash flow was $4.3B, up 1.6% year over year. CHTR's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 10.66 | 10.35 | Beat +3.0% |
| Mar 2026This filing | 9.17 | 10.40 | Miss -11.8% |
| Dec 2025 | 10.34 | 9.98 | Beat +3.6% |
| Sep 2025 | 8.34 | 9.52 | Miss -12.4% |
Reported EPS of $9.17 versus the $10.40 analyst consensus — a -11.8% miss for Mar 2026.
Compiled by AI from this SEC filing
Total revenue fell 1.0% YoY from $13.74B to $13.60B in Q1 2026, reflecting ongoing competitive headwinds in the cable and broadband market, including pressure from fixed wireless access and fiber overbuilders.
Source: 10-Q Financial Data, Income Statement
Operating income declined modestly by 0.9% YoY to $3.21B, but operating margin held nearly flat at 23.6% (vs. 23.6% prior year), indicating disciplined cost management that offset the revenue shortfall.
Source: 10-Q Financial Data, Income Statement & Key Ratios
Despite a 4.4% decline in net income to $1.16B, diluted EPS rose 8.9% YoY to $9.17, reflecting the significant reduction in share count from $1.03B in share buybacks during the quarter — up 27.9% YoY.
Source: 10-Q Financial Data, Income Statement & Cash Flow
Operating cash flow grew 1.6% YoY to $4.30B, providing a solid foundation for capital expenditures and shareholder returns, even as free cash flow (operating cash flow minus investing outflows of $2.97B) remained positive at approximately $1.33B.
Source: 10-Q Financial Data, Cash Flow Statement
Long-term debt stood at $94.41B as of Q1 2026, up slightly from $93.77B a year ago, resulting in a debt-to-equity ratio of approximately 5.8x, which is characteristic of Charter's capital-intensive, leveraged business model.
Source: 10-Q Financial Data, Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Charter carries $94.41B in long-term debt against stockholders' equity of $16.39B, implying a debt-to-equity ratio of roughly 5.8x. This level of leverage leaves the company highly sensitive to interest rate increases and limits financial flexibility. Refinancing risk and interest expense burden remain significant concerns for investors.
Source: 10-Q Financial Data, Balance Sheet
Revenue fell 1.0% YoY to $13.60B, reflecting intensifying competition from fiber overbuilders and fixed wireless access providers. Continued subscriber losses or pricing pressure could accelerate revenue erosion and compress margins over time.
Source: 10-Q Financial Data, Income Statement
Charter's current ratio stands at just 0.40, with current assets of $4.96B against current liabilities of $12.38B, suggesting the company relies heavily on operating cash flows and debt markets to meet short-term obligations. Cash and equivalents declined 35.1% YoY to $517M, further tightening near-term liquidity.
Source: 10-Q Financial Data, Balance Sheet & Key Ratios
Net income fell 4.4% YoY to $1.16B, even as EPS rose due to share buybacks. The underlying earnings decline signals that operational performance is under pressure, and the EPS improvement is largely a financial engineering effect rather than organic profit growth.
Source: 10-Q Financial Data, Income Statement
Investing cash outflows of $2.97B in Q1 2026 reflect Charter's ongoing heavy capital expenditure requirements for network upgrades and expansion. While operating cash flow of $4.30B currently covers these needs, any deterioration in operating performance could compress free cash flow and challenge the company's ability to sustain buybacks and debt service simultaneously.
Source: 10-Q Financial Data, Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 13.60 $B | 13.74 $B | -1.00% |
Operating Income $B | 3.21 $B | 3.24 $B | -0.90% |
Net Income $B | 1.16 $B | 1.22 $B | -4.44% |
EPS (Basic) $ | 9.27 $ | 8.59 $ | +7.92% |
EPS (Diluted) $ | 9.17 $ | 8.42 $ | +8.91% |
Answers draw on this SEC filing and the data on this page
Charter Communications' Q2 FY2026 revenue declined 1.7% YoY to $13.53B and operating income fell 6.6% to $3.06B amid continued Internet and video customer losses, though diluted EPS rose 16.1% to $10.66 driven by aggressive share buybacks that shrank diluted shares outstanding by ~14%.
Charter Communications (CHTR) reported a modest revenue decline of 0.6% to $54.77B in FY2025, but delivered strong operating cash flow growth of 11.4% to $16.08B and significantly accelerated share buybacks of $5.13B, driving EPS higher by 3.9% despite lower net income.
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