Comcast Q3 Earnings Exceed Expectations, Media Segment Drives Growth Amid Connectivity Headwinds

Comcast beat Wall Street’s expectations for third-quarter earnings despite headwinds in its theme parks business, thanks to continued strength in its media unit.

The company’s Peacock streaming service reported a quarterly profit for the second time since its 2020 launch, posting $261 million in adjusted earnings before interest, taxes, depreciation and amortization on $1.8 billion in revenue.

Peacock maintained 48 million paid subscribers, flat from the prior quarter and up 17 percent year over year, demonstrating strong retention despite subscription price increases in August.

The platform benefited from record-high viewership for the FIFA World Cup, with final games airing at the start of the quarter on NBCUniversal’s Telemundo and Peacock.

Revenue in Comcast’s media division, which includes the streaming service, rose 13 percent year over year to $5.4 billion. The overall content and experiences unit, encompassing the film studio and theme parks, saw revenue increase 6.5 percent.

Comcast’s connectivity and platforms sector continued to face pressure, with revenue declining 2.7 percent year over year.

The company reported a net loss of 144,000 domestic broadband residential customers and a net loss of 274,000 cable customers during the period. Its mobile business added 368,000 customers.

Following a period of stagnating broadband growth and heightened competition from wireless providers, Comcast announced in January 2025 that it would refocus on its mobile business and pursue more competitive pricing plans.

“Mobile remains a tremendous growth opportunity for us. It’s a capital light model that leverages our existing customer broadband base,” said Steve Croney, CEO of Comcast’s connectivity and platforms division, on an earnings call.

Shares of Comcast closed up over 3 percent on Thursday.

Here is how Comcast performed for the period ended Sept. 30 compared with analyst expectations, according to LSEG:

• Earnings per share: $1.07 adjusted versus 98 cents expected
• Revenue: $29.3 billion versus $29.28 billion expected

In June, Comcast announced plans to spin off NBCUniversal and its European media business Sky from its core cable, wireless and business services units. The separation, expected to take about a year, will create two separate publicly traded companies.

Comcast co-CEO Mike Cavanagh said on the earnings call that the company is “on track” to complete the transaction by mid-2027.

“While there is still significant work ahead, we have a clear path to completion and remain focused on creating two companies with the strategic flexibility, financial strength and leadership to compete and grow independently,” Cavanagh said. “We have tremendous confidence in the future of both companies.”

For the third quarter, Comcast’s revenue was 6 percent lower than the year-ago period. However, adjusting for the impact of the Versant spin, revenue was essentially flat year over year, the company said.

Net income for the period was $3.45 billion, or 97 cents per share, compared with $3.33 billion, or 90 cents per share, in the prior-year quarter. Adjusting for one-time items, including investments and the value of certain intangible assets, Comcast reported adjusted earnings per share of $1.07.

Theme park revenue fell 4.4 percent during the period to $2.6 billion, which the company attributed to “cyclical headwinds” and lower admissions revenue, dented by promotional activity. Adjusted EBITDA for the division sank 17 percent.

Theme park rival Disney reported record quarterly revenue in its park division in August.

Cavanagh said on the earnings call that, in addition to macroeconomic factors, Universal’s theme parks struggled due to superior marketing from competitors and technological challenges at Epic Universe. Cavanagh cited the new hire of Luc Bondar to the role of chief brand and commercial officer for Universal Destinations and Experiences as a step the company was taking to address these challenges.

“Looking ahead, we expect performance to strengthen as we move through 2027, with a return to growth in the second half of the year,” Cavanagh said. “We remain confident in the underlying strength of the business.”

Comcast’s studios division reported revenue of $2.97 billion, down 1.1 percent from the third quarter last year. Adjusted EBITDA for the segment, however, increased 18.6 percent to $402 million, thanks to lower operating expenses.

The July theatrical release of “The Odyssey,” which became Universal’s highest-grossing film of all time, boosted the division. Meanwhile, content licensing revenue was down 23.7 percent from the comparable quarter, leading to the decrease in studio revenue, according to Comcast.

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