Charter Communications Stock Falls 5% After Q3 Loss and Worsening Internet Subscriber Declines

Charter Communications reported a pro forma net loss attributable to shareholders of $2.1 billion in the third quarter of 2026, a sharp reversal from net income of $1.0 billion in the same period a year earlier. On a GAAP basis, the company posted a loss per share of $20.50, missing estimates by $29.43. Revenue came in at approximately $14.92 billion, roughly in line with consensus. Adjusted EBITDA of $5.94 billion edged above the $5.86 billion estimate.

The headline loss reflected continued erosion in Charter's core subscriber base, as the company kept losing both residential internet and video customers to competition from budget wireless home internet plans offered by major carriers. The subscriber deterioration overshadowed Charter's August 2026 close of its $34.5 billion acquisition of Cox Communications, which expanded the combined company's footprint to 45 states.

Alongside the results, Charter announced a new operating model targeting $2 billion in annualized expense savings. Analysts tracking the post-Cox integration point to a broader target of more than $3 billion in total cost reductions, with capital expenditures expected to decline by roughly $2.5 billion over the next two to three years, a trajectory that would support free cash flow growth, share buybacks, and debt reduction toward a 3.5 times leverage target. The company also issued full-year pro forma capital expenditure guidance of approximately $13 billion, excluding transition-related spending.

Shares of CHTR fell roughly 5% in Friday trading as investors weighed the deepening subscriber losses against the cost-cutting roadmap and the scale benefits of the Cox deal.