Comcast Q4 EPS of $0.84 Beats, Free Cash Flow Jumps 34%
Comcast reported Q4 adjusted EPS of $0.84, beating consensus by $0.11 on revenue of $32.31B in line with forecasts. Adjusted EBITDA grew 10.3% to $7.9B, free cash flow rose 34% to $4.37B and wireless net additions reached 1.5M lines, while dividend remains at $1.32 annually.
1. Fourth-Quarter Earnings Beat and Revenue Performance
Comcast reported adjusted earnings per share of $0.84 for the fourth quarter, surpassing the consensus estimate of $0.73, while consolidated revenue of $32.31 billion was narrowly below expectations of $32.35 billion. On a year-over-year basis, revenue grew 1.2%, driven by strength in theme parks and streaming, even as the legacy cable video unit saw a 5.6% decline in revenue. Net income attributable to Comcast declined 54.6% to $2.17 billion, reflecting a prior-year $1.9 billion tax benefit, but adjusted net income of $3.06 billion remained within analyst ranges.
2. Wireless and Connectivity Segment Momentum
The Connectivity & Platforms division generated $20.24 billion in revenue, down 1.1% year-over-year, with residential broadband revenue of $6.32 billion (–1.1%) offset by an 18.0% increase in domestic wireless revenue to $1.40 billion. Comcast added 364,000 net wireless lines in the quarter, bringing total domestic wireless lines to 9.3 million and surpassing 15% penetration of its broadband base. Business services connectivity revenue rose 5.8% to $2.59 billion, while international residential connectivity revenue grew 5.8% to $1.34 billion.
3. Free Cash Flow and Capital Allocation
Fourth-quarter free cash flow jumped 34% to $4.37 billion, supported by operating cash flow of $8.84 billion and a $2.0 billion cash tax benefit. Adjusted EBITDA totaled $7.90 billion, down 10.3%. Comcast returned $2.7 billion to shareholders through $1.2 billion in dividends and $1.5 billion in share repurchases. For the full year, free cash flow reached $19.24 billion and total capital returned was $11.7 billion, including $6.8 billion of buybacks, reducing share count by 5%.
4. Dividend Policy and Outlook for 2026
The Board of Directors declared a quarterly cash dividend of $0.33 per share, maintaining the annualized dividend at $1.32 for 2026. Co-CEOs Brian Roberts and Mike Cavanagh highlighted 2025 as a year of strategic shifts—launching simplified broadband plans with a five-year price guarantee, expanding converged connectivity offers, and spinning off Versant Media—to position Comcast for sustainable growth while preserving a strong balance sheet and disciplined capital allocation.