Comcast (Comcast (CMCSA)) shares slipped on Thursday even though the company beat Wall Street's second-quarter estimates. The problem? Its broadband business keeps losing customers, and the market isn't thrilled.

Revenue came in at $29.94 billion, down 1.2% from last year but above the $29.30 billion analysts were looking for. Adjusted earnings hit $1.04 per share, beating the 97-cent consensus. But the stock dropped 3.57% to $22.68 as of Thursday afternoon, according to market data.

Broadband Bleeding Continues

The core issue is cord-cutting and competition from cheaper 5G home internet services. Comcast lost 167,000 broadband customers in the quarter, slightly more than the 165,300 analysts had expected. Video subscribers also fell by 280,000 as more people ditch traditional cable for streaming.

Mobile, however, continues to be a growth story. Comcast added 448,000 mobile lines, bringing its total wireless customer base to 10 million for the first time.

Peacock Finally Profitable

The media segment was a bright spot, with revenue jumping 25.3% to $5.69 billion, fueled by higher advertising and distribution revenue from the FIFA World Cup and NBA programming. Peacock, Comcast's streaming service, reported its first quarterly profit: $189 million in pretax income, compared to a loss a year ago. Revenue surged to $1.9 billion from $1.2 billion.

Peacock added 2 million paid subscribers during the quarter, nearly four times what analysts expected, bringing the total to 48 million. While still smaller than Netflix (Netflix (NFLX)), Disney+ (Disney (DIS)), and Prime Video (Amazon (AMZN)), the results show that Comcast's live sports strategy is paying off.

Studio and Theme Parks

Studio revenue climbed 25% to $3.04 billion, driven by strong theatrical performances from The Super Mario Galaxy Movie, Obsession, and international distribution of Michael. Theme parks revenue rose 2.7% to $2.41 billion, helped by the continued success of Epic Universe in Orlando, which opened in May 2025. But international parks struggled due to geopolitical tensions and China's weak economy, causing adjusted EBITDA for the segment to fall 5.1%.

Connectivity & Platforms adjusted EBITDA declined 5.7% to $7.96 billion, with margins narrowing 120 basis points to 40.2%. Capital expenditures in that segment rose 19.9% to $2.3 billion as Comcast invested in customer equipment and network infrastructure.

Cash Flow and Shareholder Returns

Comcast generated $4.6 billion in free cash flow during the quarter. It returned $2.1 billion to shareholders through $1.2 billion in dividends and $900 million in share repurchases, buying back 33.8 million shares.

The company is also preparing to spin off NBCUniversal and Sky, which would leave it more focused on its connectivity business—a business that's facing increasing competition from fixed wireless and expanding fiber networks.

For now, Comcast's earnings beat wasn't enough to offset concerns about broadband losses. But with Peacock finally in the black and mobile growing fast, there are at least a few reasons for optimism.