Why Did Charter Communications Inc-A (CHTR) Plunge 13.42% On Earnings Miss?

On July 25, 2025, Charter Communications Inc-A (NASDAQ:CHTR) experienced a significant drop of 13.42% in pre-market trading, reflecting a sharp negative market reaction to its second-quarter 2025 earnings report.

Charter Communications reported its second-quarter 2025 earnings, delivering revenue in line with analyst expectations but falling short on profitability. The company posted Q2 revenue of $13.77 billion, matching Wall Street estimates but showing no year-over-year growth. However, the earnings per share (EPS) came in at $9.18, missing the consensus estimate of $9.96 by approximately 5%. This miss, combined with higher-than-expected internet subscriber losses, attributed to increasing competition from 5G mobile providers and fiber-based home internet services, drove the sell-off.

The market reaction was sharply negative, with shares dropping more than 8% in pre-market trading, reflecting investor disappointment over subscriber losses and weaker-than-expected earnings per share (EPS). The immediate pre-market decline suggests investors were particularly concerned about the company’s ability to retain broadband customers in a highly competitive environment. While revenue stability was a neutral factor, the EPS miss and subscriber erosion appear to have driven the sell-off. Over the past month, CHTR shares have declined nearly 4.7%, underperforming broader market trends.

Charter’s earnings announcement reiterated its Spectrum-branded services, including broadband, TV, mobile, and voice offerings. However, the report did not provide new strategic initiatives to counter competitive pressures, which may have contributed to the negative market reaction. The lack of a forward outlook in the press release leaves investors without management’s guidance on whether the company expects to stabilize subscriber losses or improve margins in the coming quarters.