Comcast Posts Q3 EBITDA Beat On Media Upside, Faces Threat From AI Tools Like Muse
Comcast Corp (NASDAQ:CMCSA) shares were under pressure Friday morning after the company’s third-quarter results. Here are some key analyst takeaways:
- TD Cowen analyst Gregory Williams reiterated a Buy rating, but cut the price target from $39 to $36.
- Rosenblatt Securities analyst Barton Crockett maintained a Buy rating and price target of $31.
Check out other analyst stock ratings.
TD Cowen: Comcast reported revenue in line with expectations, while EBITDA came in better than estimates, Williams said in a note. He highlighted:
- Upside in the Media segment
- Lower-than-expected mobile additions
- Broadband subscriber losses
The analyst noted that management cited stiff competition and expiring two-year promotional discounts as reasons for the broadband subscriber losses. AI tools like Meta Platforms Inc’s (NASDAQ:META) Muse make it easier for long-time subscribers to find better promotional deals from fiber competitors, forcing cable companies to cut prices, he added.
Rosenblatt Securities: Comcast continued to experience pressure in broadband and parks in the third quarter, Crockett said. He added that:
- With the competitive environment for broadband worsening in the back half of 2026, Comcast cited $30-$40 per month fiber gig pricing in some markets.
- In Parks, trends weakened due to softness in Orlando and comps due to the 2025 Epic Universe opening.
"A large operating and cost transformation is underway, that is expected to drive a $1B charge in 4Q26," the analyst wrote.
The planned split from NBCUniversal remains on track for mid-2027, which may unlock studio value and drive upside, he further stated.
CMCSA Price Action: Shares of Comcast had declined by 1.05% to $22.60 at the time of publication on Friday.
Read More: Comcast Calls Rival Broadband Pricing ‘Irrational’ As Competition Heats Up
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