Comcast Corp (CMCSA) delivered a tale of two businesses in its fourth-quarter earnings on Thursday, with wireless and streaming momentum offsetting the steady erosion of its traditional broadband and cable video operations.
The Philadelphia-based telecom giant reported revenue of $32.31 billion, just shy of the analyst consensus of $32.36 billion, though that still represented 1.2% growth year-over-year. The earnings picture looked brighter, with adjusted earnings per share hitting 84 cents and handily beating the 76-cent estimate.
But the subscriber numbers tell a more complicated story about where consumers are heading. Comcast shed 181,000 broadband customers during the quarter as telecom rivals continue to apply competitive pressure. Video subscribers fell by 245,000 as the cord-cutting trend shows no signs of stopping. These losses aren't exactly shocking anymore, but they highlight the challenge of managing legacy businesses in decline.
The bright spot? Wireless. Comcast added 364,000 domestic wireless lines in the quarter, contributing to what co-CEOs Brian L. Roberts and Mike Cavanagh described as the company's strongest wireless year on record, with 1.5 million net line additions for 2025 and more than 9 million total lines now in service.
Streaming Growth and Theme Park Magic
Comcast's media segment posted solid growth, with revenue climbing 5.5% year-over-year to $7.62 billion. That increase came from higher international networks revenue, domestic distribution, and domestic advertising revenue. Domestic advertising got a boost from Peacock, which benefited from the launch of NBA coverage this quarter.
Speaking of Peacock, the streaming service continues to be a growth engine. Revenue surged 23% year-over-year to $1.6 billion, while paid subscribers increased 22% to reach 44 million. Management highlighted momentum in sports and entertainment programming, including the NBA launch on NBC and Peacock.
The Studios segment wasn't as fortunate, with revenue declining 7.4% to $3.03 billion due to lower content licensing and theatrical revenue. The theatrical comparison was particularly tough given prior-year blockbusters like Wicked and The Wild Robot versus current releases including Wicked: For Good and Black Phone 2.
Theme Parks delivered impressive results with revenue jumping 21.9% to $2.89 billion, driven largely by the successful May 2025 opening of Epic Universe at the domestic parks. The co-CEOs noted that Epic Universe is driving higher per-capita spending and attendance across Orlando properties.
Not everything sparkled, though. Connectivity & Platforms adjusted EBITDA fell 4.3% to $7.50 billion, with margins declining 120 basis points to 37.1%.
Capital Allocation and Strategic Moves
Comcast generated $4.37 billion in free cash flow during the quarter, which management described as record performance despite increased investments across multiple growth initiatives. The company returned $2.7 billion to shareholders through $1.2 billion in dividends and $1.5 billion in share repurchases, buying back 53.6 million shares.
Capital expenditures in the Connectivity & Platforms segment increased 9.8% to $2.9 billion, primarily reflecting higher spending on support capital, customer premise equipment, and scalable infrastructure.
The co-CEOs highlighted several strategic milestones beyond the numbers. They pointed to the launch of what they called the most significant broadband go-to-market shift in company history, though they didn't elaborate on specifics. They also noted the completion of the Versant Media spin-off, which they said creates a more focused NBCUniversal centered on streaming, live sports, and premium content.
Looking ahead, Comcast announced it's maintaining its dividend at $1.32 per share on an annualized basis for 2026, signaling confidence in its cash generation despite the business mix shift underway.
Price Action: Comcast shares were trading up 5.02% at $29.83 at the time of publication on Thursday.
