Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | Flat | Versus a year earlier |
| Adjusted EBITDA | Increased approximately 1% | Versus a year earlier |
| Adjusted EPS | $1.07 | Not stated |
| Free Cash Flow | $4.2 billion | Not stated |
| Peacock EBITDA | $261 million | $478 million improvement year-over-year |
Guidance and outlook
- The company expects performance to strengthen as it moves through 2027 with a return to growth in the second half of the year.
- Management expects further slight improvement in underlying financial trends in the fourth quarter.
- The company expects to take a significant charge of over $1 billion in the fourth quarter related to transformation efforts.
How management sounded
Balanced (+3 on our -10 to +10 scale). Management expressed confidence in their long-term strategy and the upcoming separation, but acknowledged near-term financial pressure from competitive headwinds and theme park softness. Management sounded more upbeat than on 1% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Competitive Environment
Asked: Craig Moffett asked if recent broadband price increases by competitors have impacted the market.
Answer: Management noted that while the environment remains competitive, they are competing with discipline and focusing on product differentiation rather than just price.
Wireless Strategy
Asked: Michael Rollins asked about the tipping point for converged revenue performance given 18% broadband penetration.
Answer: Management emphasized that wireless is a capital-light growth opportunity and they are successfully converting free lines into paying relationships.
Peacock Strategy
Asked: John Hodulik asked about the sustainability of Peacock profitability and the impact of the YouTube bundle.
Answer: Management expects to drive annual profitability for Peacock and views the YouTube bundle as a way to reach incremental, younger audiences.
Theme Parks
Asked: Michael Ng asked about the timeline for improvement in Orlando and the ROI of new attractions.
Answer: Management expects Orlando softness to persist through the first half of 2027 before lapping initial headwinds, while noting that new attractions are long-duration investments.
What to watch before the next call
- The progress of the separation of NBCUniversal and Sky, which is on track for the middle of next year.
- The impact of the $1 billion-plus transformation charge on fourth-quarter results and 2027 efficiency.
- The performance of Orlando theme parks and the ability to improve guest throughput and demand.
