Is There A Risk Hiding In Comcast Stock’s Latest Results?

For a Comcast (CMCSA) holder, the average revenue per broadband customer is a troubling metric. That figure fell 3.8% in the second quarter of 2026. During the same period, Comcast lost 167,000 broadband customers. This leaves the company with a shrinking internet base where each remaining user generates less revenue on average. So why is Comcast collecting less from each broadband customer?

Comcast Chose To Charge Its Broadband Customers Less

Management confirmed on the second-quarter 2026 earnings call that Comcast did not raise broadband rates. The company has also transitioned subscribers to simplified plans with lower everyday prices. Comcast is also offering free wireless lines, a tactic management said initially reduces the average broadband revenue per customer. In fact, roughly half of Comcast’s new residential phone connections in the quarter came from customers accepting a free line.

Management acknowledged that the investment required for this strategic shift is currently weighing on results. Comcast’s adjusted EBITDA, a measure of operating profit, fell 5% in the second quarter. Management cited two reasons for the decline: the broadband transition and the first year of costs for its NBA rights. Over the past twelve months, Comcast’s operating margin was 14.7%. That metric is down from 18.1% a year earlier, marking its lowest level in five years.

What Does Comcast Expect From Here?

During the second-quarter call, management projected modest improvements starting in the third quarter of 2026 as Comcast begins charging for the previously free lines. Management expects a large majority of those users to switch to paid plans once the promotional offers roll off in the second half of 2026. Customer attrition is also slowing. Broadband losses in the second quarter were 34,000 smaller than a year earlier.

Yet the operating environment remains intensely competitive. Management described the broadband market as highly competitive, noting the expansion of fiber networks, aggressive fixed wireless campaigns, and the emergence of satellite as a viable alternative. EBITDA at Comcast’s connectivity business also fell 5.8% in the quarter. Management tied this drop to spending on sales and customer experience.

How Low Is Comcast’s Valuation After A Weak Year?

Comcast stock trades at 6.6 times earnings, compared with 22.5 for the S&P 500. At this valuation, the price likely assumes the current broadband pressures will persist. The stock lost 21% over the past twelve months, while the S&P 500 gained 21%. Historical market shocks provide a mixed picture of how far Comcast might fall. During the 2022 inflation shock and Fed tightening, the stock dropped 42%, compared with 24% for the S&P 500. In the 2025 tariff shock, however, Comcast fell 9.2%, against 19.0% for the broader index.

For a holder, the falling revenue per broadband customer remains a risk to weigh rather than a reason for alarm, given that management tied the decline to Comcast’s own pricing strategies. This specific worry would ease if most free-line customers start paying and broadband customer losses keep shrinking. Ultimately, Comcast’s average revenue per broadband customer is the critical number to watch when the company reports its third quarter.

Does This Mean You Should Act On CMCSA?

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