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COMCAST CORP (CMCSA)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue and EPS modestly beat S&P Global consensus as results benefited from Theme Parks, improved Media profitability, and record mobile additions; Q3 revenue $31.20B vs consensus $30.68B, Adjusted EPS $1.12 vs $1.10* .
  • Year-over-year comps were pressured by lapping the Paris Olympics; total revenue -2.7% YoY (ex-Olympics +~3%), while Adjusted EBITDA was essentially flat and free cash flow jumped 45% to $4.95B .
  • Connectivity & Platforms EBITDA fell 3.5% YoY as management leaned into a deliberate investment phase (simpler national pricing, free wireless line promo, CX/AI), with CFO flagging pressure to persist “over the next several quarters” .
  • Wireless was a standout with record 414K net line adds and >14% penetration; Parks revenue +18.7% and EBITDA +13.1% on Epic Universe ramp; Media EBITDA +28% with Peacock losses improving to a $217M loss .
  • Management catalysts: convergence strategy (broadband + wireless) and upcoming sports slate (NBA on NBC/Peacock, Super Bowl, Olympics) to bolster ad and distribution; buybacks paced at ~$1.5B in Q3 with net leverage at 2.3x .

What Went Well and What Went Wrong

What Went Well

  • Wireless momentum: record 414K net line adds; total lines reached ~8.94M and penetration surpassed 14%, supported by free-line promotions and premium unlimited plans .
  • Theme Parks strength: Revenue +18.7% and EBITDA +13.1% YoY with Epic Universe driving higher per-cap spend and attendance across Universal Orlando .
  • Media profitability: Media EBITDA +28% YoY; Peacock losses improved to a $217M loss as sports and distribution strengthened (ex-Olympics comps) .
  • Management tone: “We’re making steady progress as we reposition the company for long-term, sustained growth,” focusing on wireless as a growth engine and sustained convergence savings for customers .
  • Product/experience: Launch of XB10 gateway, AI-enabled network optimization, and simpler national pricing with 1- and 5‑year guarantees to improve value proposition and experience .

What Went Wrong

  • Connectivity profitability: Connectivity & Platforms Adjusted EBITDA -3.5% YoY, with residential EBITDA -5.1% as pricing simplification and free-line promos diluted ARPU and elevated OpEx (marketing, CX) .
  • Broadband trends: Domestic broadband customers -104K in Q3 despite seasonal benefits, reflecting intense competition (fiber and fixed wireless) and near-term ARPU growth deceleration to 2.6% .
  • Studios margin: Studios EBITDA -21.9% YoY on higher marketing and production costs despite revenue growth; video subscriber losses persisted (-257K) albeit better than last year .

Financial Results

Consolidated performance (chronological: oldest → newest)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Billions)$32.070 $30.313 $31.198
Adjusted EBITDA ($USD Billions)$9.735 $10.283 $9.669
Diluted EPS (GAAP) ($)$0.94 $2.98 $0.90
Adjusted EPS ($)$1.12 $1.25 $1.12
Free Cash Flow ($USD Billions)$3.406 $4.501 $4.945

Segment breakdown

SegmentMetricQ3 2024Q3 2025
Connectivity & PlatformsRevenue ($B)$20.291 $20.176
Adjusted EBITDA ($B)$8.295 $8.008
Adj. EBITDA Margin (%)40.9% 39.7%
Residential C&PRevenue ($B)$17.866 $17.601
Adjusted EBITDA ($B)$6.904 $6.554
Adj. EBITDA Margin (%)38.6% 37.2%
Business Services ConnectivityRevenue ($B)$2.425 $2.576
Adjusted EBITDA ($B)$1.391 $1.454
Adj. EBITDA Margin (%)57.4% 56.4%
MediaRevenue ($B)$8.231 $6.589
Adjusted EBITDA ($B)$0.650 $0.832
StudiosRevenue ($B)$2.826 $3.000
Adjusted EBITDA ($B)$0.468 $0.365
Theme ParksRevenue ($B)$2.289 $2.717
Adjusted EBITDA ($B)$0.847 $0.958

KPIs and operating metrics

KPIQ2 2025Q3 2025
Domestic broadband net adds (000s)(226) (104)
Total domestic wireless line net adds (000s)378 414
Total domestic wireless lines (MM)8.527 8.941
Total domestic video net adds (000s)(325) (257)
Peacock revenue ($B)$1.2 $1.4
Peacock Adjusted EBITDA ($MM)($101) ($217)

Actuals vs S&P Global consensus (Q3 2025)

MetricConsensusActual
Revenue ($USD Billions)30.682*31.198
EPS (Adjusted/Normalized) ($)1.101*1.12
# of Estimates (Revenue / EPS)24* / 23*—

Values marked with * are from S&P Global.

Guidance Changes

Metric/TopicPeriodPrevious GuidanceCurrent GuidanceChange
Broadband ARPU growthQ4 2025Not specifiedARPU growth to “step down more than a point” in Q4 as more customers move to simplified pricing and free-line promos ramp Lowered
Broadband rate actionEarly 2026Not specifiedPlan is to not take a broadband rate increase in the early part of 2026 New disclosure (implies pressure)
C&P EBITDA trajectoryNext several quartersNot specifiedC&P EBITDA decline expected to “build slightly” as investments continue until lapping transition Lowered near term
NBA rights amortizationFY 2026 season onsetNot applicableStraight-line amortization creates upfront dilution in first season; offset over time via ad growth and sub monetization New expense headwind
Free mobile lines monetization2H 2026Not applicableIntend to convert majority of free lines to paying; expected revenue tailwind in 2H next year Positive tailwind later
Share repurchasesNear termNot specifiedQuarterly buyback pacing reduced “a touch” to ~$1.5B in Q3 to balance headwinds Moderated
LeverageCurrentNot specifiedNet leverage at ~2.3x, providing cushion Steady balance sheet stance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Convergence (broadband + wireless)Pivot to national everyday pricing, 5‑yr guarantees; strong wireless net adds (323K in Q1, 378K in Q2); early go-to-market traction Record 414K wireless net adds; convergence revenue +2.5%; >14% penetration; free-line promo expanding funnel; premium unlimited plans for high-end users Positive momentum, investment phase
Broadband competition & ARPUC&P margins expanded in Q1; ARPU supported by tier mix; Q2 noted early ARPU impact from pricing simplification ARPU growth slowed to 2.6% with further step-down expected; no early-2026 rate hike; -104K broadband subs Near-term pressure; positioning base for stability
Media & SportsPeacock EBITDA loss improved in Q1/Q2; NBA to begin in fall; strong SNF upfront NBA returned to NBC/Peacock; sports to bolster ad/distribution; upfront strength; straight-line amortization creates near-term dilution Sports-led strategy; manage rights cost profile
Parks/Epic UniverseOpening May 22; positive reception; Q2 parks +18.9% revenue Parks +18.7% revenue/+13.1% EBITDA; Epic boosting per-caps and attendance; focus on ride capacity to full scale Strong ramp, improving leverage
Studios slate & costsQ1/Q2: higher licensing; variable theatrical; EBITDA pressured by costs Studios revenue +6.1% but EBITDA -21.9% on higher marketing/production Mixed: topline up, margins pressured
Business ServicesMid-single digit growth and high margins in Q1/Q2 Revenue +6.2%, EBITDA +4.5%, margin 56.4%; fixed wireless competition in SMB; enterprise momentum Durable growth, watch SMB competition

Management Commentary

  • Strategy and posture: “We’re making steady progress as we reposition the company for long-term, sustained growth… adding a record 414,000 wireless lines this quarter... The early success of Epic Universe contributed to 19% revenue growth at our Theme Parks” .
  • Connectivity transformation: “This is a deliberate investment phase... as reflected in the 3.7% decline in connectivity and platforms EBITDA this quarter, and we expect this decline to build slightly over the next several quarters” .
  • Customer experience and AI: Rollout of XB10 gateway, AI-enabled network optimization, and instantaneous agent access to simplify customer experience .
  • Sports strategy: “The NBA’s return to NBC and now Peacock expands both our reach and our creative opportunities… running linear and streaming as one integrated media business gives us real scale and flexibility” .
  • Capital allocation: $4.9B FCF; net leverage ~2.3x; buyback pacing moderated to ~$1.5B this quarter to balance near-term headwinds .

Q&A Highlights

  • Broadband ARPU/EBITDA trajectory: Management reiterated near-term ARPU pressure from pricing simplification and free-line promos and said they do not plan a broadband rate increase in early 2026; EBITDA pressure to persist until they lap the transition .
  • Wireless conversion quality: Team focused on bringing in high-quality connects and converting free lines to paid in 2H next year, aided by premium unlimited plans and device upgrade features .
  • NBA economics: Rights amortization straight-lined, creating initial dilution that should be offset over time by ad growth and subscriber monetization across linear and Peacock .
  • Business Services competition: SMB seeing more fixed wireless competition; enterprise solutions remain a key growth driver with expanding advanced services mix .
  • M&A stance: High bar for media M&A; Versant spin positioning NBC media for durable strategy without requiring deals .

Estimates Context

  • Revenue: $31.20B actual vs $30.68B consensus* (beat) .
  • EPS (Adjusted/Normalized): $1.12 actual vs $1.10 consensus* (beat) .
  • Consensus detail: Revenue estimates (n=24); EPS estimates (n=23).
    Values marked with * are from S&P Global.

Key Takeaways for Investors

  • Convergence is working: wireless net adds and >14% penetration are the near-term growth engine; monetization of free lines in 2H next year is a potential step-up catalyst for convergence revenue .
  • Near-term EBITDA drag is deliberate: expect several quarters of C&P EBITDA headwinds as pricing simplification and CX investments push through; positioning for a more stable base and later ARPU tailwind when free lines convert .
  • Parks and Sports provide offset: Epic Universe ramp and the expanded sports portfolio (NBA, NFL, Olympics) support Media/Parks profits and ad momentum, though NBA rights amortization introduces initial dilution .
  • Peacock path improves: losses narrowed to ($217M) with $1.4B revenue; sports and distribution should aid further improvement even as rights costs ramp .
  • Capital returns intact but paced: $2.8B returned in Q3 with moderated buybacks (~$1.5B) to navigate headwinds; balance sheet at ~2.3x leverage provides flexibility .
  • Watch broadband KPIs and ARPU: continued competitive pressure with -104K broadband subs and ARPU growth slowing to 2.6%; confirmation of stabilization and ARPU re-acceleration would be key to multiple support .
  • Stock narrative: near-term multiple could hinge on visibility into C&P EBITDA bottoming and evidence of free-line conversion; Parks strength and sports-driven ad momentum are supportive offsets .

Additional Data and Context

  • Revenue excluding Olympics grew 4.2% YoY; Domestic advertising +2.6% ex-Olympics driven by Peacock; Domestic distribution +1.5% ex-Olympics .
  • Record 20th SNF season and strong upfront tied to sports underscore ad demand resilience .
  • Capex $3.1B (C&P +19.5% to $2.3B for infrastructure/CPE; C&E -19.9% to $714M post-Epic opening) .