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 (Basic)
$9.27
++7.92% YoY
Operating Income
$3.21B
-0.90% YoY
Filed · Source: SEC EDGAR 10-Q 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: 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: 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: Source: 10-Q Financial Data, Income Statement & Cash Flow
2 more insights available
Upgrade to unlockCharter 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: Source: 10-Q Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $9.17 versus the $10.40 analyst consensus — a -11.8% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $13.6B | $13.73B | -1.00% |
Operating Income | $3.21B | $3.24B | -0.90% |
Net Income | $1.16B | $1.22B | -4.44% |
EPS (Basic) | $9.27 | $8.59 | +7.92% |
EPS (Diluted) | $9.17 | $8.42 | +8.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $154.64B | $150.95B | +2.44% |
Current Assets | $4.96B | $4.97B | -0.16% |
Current Liabilities | $12.38B | $13.67B | -9.49% |
Stockholders' Equity | $16.39B | $16.25B | +0.85% |
Cash & Equivalents | $517M | $796M | -35.05% |
Long-Term Debt | $94.41B | $93.77B | +0.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.3B | $4.24B | +1.61% |
Investing Cash Flow | $-2.97B | $-2.8B | -6.06% |
Financing Cash Flow | $-1.31B | $-1.07B | -21.83% |
Share Buybacks | $1.03B | $802M | +27.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 23.6% | 23.6% | +0.03% |
Net Margin | 8.6% | — | — |
ROE | 7.1% | — | — |
ROA | 0.8% | — | — |
Current Ratio | $0.401 | — | — |
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Charter Communications reported Q1 2026 revenue of $13.60B, down 1.0% YoY, and net income of $1.16B, down 4.4% YoY. However, diluted EPS rose 8.9% to $9.17 due to share buybacks, and operating cash flow grew 1.6% to $4.30B.
Charter repurchased $1.03B worth of shares in Q1 2026, up 27.9% from the prior year, which significantly reduced the share count. This buyback-driven reduction in shares outstanding caused diluted EPS to rise 8.9% to $9.17 even as net income declined 4.4% to $1.16B.
Charter's most significant risks include its $94.41B long-term debt load (debt-to-equity of ~5.8x), which creates vulnerability to interest rate changes and limits financial flexibility. Additionally, intensifying competition from fiber overbuilders and fixed wireless providers is pressuring revenue, which fell 1.0% YoY in Q1 2026.
Charter generates strong operating cash flow of $4.30B and maintains a stable operating margin of 23.6%, but its financial health is constrained by $94.41B in long-term debt and a very low current ratio of 0.40. The company relies heavily on consistent cash generation and debt market access to manage its obligations.
No, Charter's revenue declined 1.0% YoY to $13.60B in Q1 2026, compared to $13.74B in Q1 2025. This reflects ongoing competitive pressure in the broadband and cable market from fiber and fixed wireless access providers.