Comcast 2025 Q3 Earnings Revenue Declines as Net Income Falls 9.1%

Comcast (CMCSA) reported mixed Q3 2025 results, beating revenue expectations while missing on earnings. The company's total revenue dropped 2.7% year-over-year to $31.2 billion, with no formal guidance adjustments provided for the coming quarters. Analysts had forecast $30.68 billion in revenue, making the actual figure a modest beat. However, the 3.2% EPS decline and 9.1% net income drop indicate operational challenges despite revenue resilience.

Revenue

Comcast's total revenue for Q3 2025 fell to $31.2 billion, a 2.7% decrease from $32.07 billion in the prior-year period. The Connectivity & Platforms segment remained the largest contributor, generating $20.18 billion in revenue, driven by $17.60 billion in residential services and $2.58 billion in business services. The Content & Experiences segment contributed $12.31 billion, with theme parks driving a 19% revenue surge to $2.72 billion. Media revenue totaled $6.59 billion, while Studios and other segments added $3 billion and $752 million, respectively. Eliminations reduced the consolidated total to $31.2 billion, reflecting intersegment adjustments.

Earnings/Net Income

Comcast’s adjusted EPS declined 3.2% to $0.91, below the $0.94 reported in Q3 2024, while net income fell 9.1% to $3.25 billion from $3.58 billion. The EPS decline indicates a negative performance relative to expectations, with the net income drop further underscoring margin pressures. Both metrics highlight the company’s struggle to maintain profitability amid competitive and structural challenges.

Post-Earnings Price Action Review

The stock’s post-earnings performance revealed mixed signals. Shares rose 4.71% on the day of the report but fell 6.76% over the following week and 13.05% month-to-date as of October 31. The immediate positive reaction to revenue outperformance was offset by broader market sentiment and sector-specific headwinds. Analysts noted that while the theme parks and wireless segments showed growth, broadband subscriber losses and EBITDA pressures in Connectivity & Platforms limited long-term optimism. The stock’s volatility reflects investor uncertainty about the company’s ability to navigate competitive pressures and execute its strategic initiatives.

CEO Commentary

CEO Brian Roberts emphasized leadership transitions and strategic investments during the earnings call, highlighting Steve Croney’s appointment as CEO of Connectivity & Platforms and Dave Watson’s role as Vice Chair. Roberts praised the leadership team’s focus on innovation and customer experience, particularly in wireless expansion and theme park development. However, he acknowledged ongoing challenges in the broadband segment, including subscriber attrition and pricing pressures, which require continued investment.

Guidance

Comcast did not provide explicit forward-looking guidance for the next quarter or fiscal year. The company’s CFO, Jason Armstrong, noted EBITDA pressures in Connectivity & Platforms and outlined plans to maintain capital allocation priorities, including $2.8 billion in shareholder returns through buybacks and dividends. While no specific revenue or EPS targets were shared, management expressed confidence in the long-term growth of wireless and theme parks.

Additional News

Recent developments include leadership changes with Steve Croney taking over Connectivity & Platforms, a $2.8 billion shareholder return in Q3, and a downgrade by KeyBanc Capital Markets to "sector weight" due to spending concerns. Institutional ownership remains strong, with Strs Ohio acquiring 79,351 shares and Investment Management Associates holding $11.11 million in CMCSA. Analysts from Citigroup and Royal Bank of Canada reiterated "buy" ratings, citing long-term potential in wireless expansion and theme park growth. The company also announced expanded availability of its secure networking solutions, reinforcing its enterprise offerings.