Comcast rises after quarterly results that beat earnings estimates

What happened

Comcast (CMCSA) rose 3.4% on October 22, 2026, after third-quarter adjusted EPS topped estimates as streaming and film strength offset weakness in broadband and pay-TV. The stock closed at $22.84, opened 1.6% above the previous close and traded at 1.8 times its 20-day average. Reuters and CNBC reported adjusted EPS of $1.07 versus $0.99 expected and revenue of $29.3 billion.

How big was the move

The stock’s 3.4% gain was 1.8 times a typical daily move for this stock and outpaced the Communication Services sector median by 2.8 percentage points while the S&P 500 fell 1.2% that day. Over the last five sessions Comcast rose 4.9% as the S&P 500 fell 1.0% over the same period. In the past five years the stock had 20 sessions with a gain of at least 3.4% and twenty trading days later the median result was a decline of 0.2%, with 9 of 20 higher.

The technical picture

The stock traded 5.8% above its 20-day moving average but remained 4.3% below its 50-day moving average and 13.0% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index over 14 days stood at 56, inside a neutral range between 30 and 70. The shares sat 30.5% below the 52-week high, were up 1.3% over one month and up 2.4% over three months, but had fallen 23.8% over one year and were 37.6 percentage points behind the S&P 500 year to date. Volatility was 31% annualized over 60 days, higher than 67% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026 Comcast reported revenue of $123.00 billion, a decline of 0.2% from a year earlier, and diluted earnings per share of $3.16, which fell 47.3% versus a year earlier. Gross margin was 69.8% compared with 71.9% a year earlier, and operating margin was 14.7% versus 18.0% a year earlier. Free-cash-flow margin was 14.4% and return on invested capital was 6.1%. The company carries net debt of 2.4 times EBITDA and share count over one year decreased by 4.6%.

The stock trades at 7.2 times trailing earnings and 6.6 times expected forward earnings, with a free-cash-flow yield of 22.9%. Its price-to-trailing-earnings reading is lower than 76% of its own readings over the past five years; the five-year median is 10.8 times earnings. PromtFinance scores show Value 93 (Exceptional), Growth 23 (Very weak), Quality 80 (Strong), Momentum 31 (Weak), Revisions 72 (Positive) and Stability 74 (Positive).

Earnings and analyst expectations

Comcast reported October 22, 2026, adjusted EPS of $1.07 against $0.99 expected, an 8.5% beat, and adjusted EBITDA around $9.1 billion, with revenue of $29.3 billion, according to Reuters and CNBC. The company has beaten consensus estimates for 15 consecutive quarters and average surprise over the last four reports is 10.1% above estimates. Typical two-day reactions after recent reports have been a fall of 1.2%. The next report is scheduled for February 4, 2027. Analysts’ consensus price target is $27.23, 19.2% above the closing price, based on 61 analysts; 56% rate the stock Buy or Strong Buy and the consensus rating is Buy.

What to watch

• February 4, 2027: next quarterly report date.
• The announced restructuring charge exceeding $1 billion in the current fourth quarter tied to a revamp of the connectivity business, which will include layoffs, as reported by Reuters and The Motley Fool.
• Dividend payable January 27, 2027, of $0.33 per share to shareholders of record as of January 6, 2027, as declared by the board and reported by Business Wire.
• Trends in domestic residential broadband and video subscribers, which declined during the quarter, versus streaming, film operations and Peacock, which were cited as bright spots by reporters.
• Market reaction and short-term price behavior following earnings, given the company’s history of a typical two-day reaction of falling 1.2% after recent reports.