Charter Communications (CHTR.O): Updating Model on Charter for 2Q26 Results

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Charter Communications (CHTR.O): Updating Model on Charter for 2Q26 Results

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27 Jul 2026 06:58:00 ET │ 19 pages

Charter Communications (CHTR.O)

Updating Model on Charter for 2Q26 Results

CITI'S TAKE

Charter 2Q results underwhelmed, with weaker-than-expected broadband

trends and a softer 2026 EBITDA outlook. However, Charter is targeting

sequential broadband ARPU improvement on the heels of a July price Buy

action. When taken with additional cost actions and stronger political Price (24 Jul 26 16:00) US$123.31

advertising, Charter is targeting slight EBITDA growth in the 2H26. Charter

also announced an updated capital allocation plan to target net debt Target price US$180.00↓

leverage at 3.5x EBITDA, while returning capital to shareholders through from US$190.00

buybacks. While the competitive environment has been challenging, Expected share price return 46.0%Charter is making forward progress at increasing converged penetration

with mobile, sustaining better video trends with its new platform, Expected dividend yield 0.0%

upgrading its network for enhanced symmetrical broadband service and Expected total return 46.0%

improving its service experience that should help overall account retention. Market Cap US$15,165MWe maintain our Buy on Charter largely on valuation, as FCF should start to

significantly improve in 2027 on receding capital investment. We reduce our

target to $180 largely on our estimate revisions.

Price PerformanceModel Update — We are updating our model to reflect 2Q results and management

commentary. We are incorporating some sequential improvement in ARPU in the (RIC: CHTR.O, BB: CHTR US)

back half of the year on a dollar basis. We also adjusted our 2026 EBITDA outlook

lower to reflect 2Q underperformance and recent commentary on 2H targets. We