Oct 22, 2026 earnings call — NBCUniversal and Sky separation and company transformation
Company expects a fourth-quarter transformation charge of over $1 billion.
Revenue $29.3B (est $29.2B) · EPS $1.07 (est $0.99)
Key quotes
"We are on track to complete the transaction by the middle of next year and are well into the execution phase, which includes building the standalone public company infrastructure."
"Building on the organizational changes Steve has made, including strategic external hires, we've embarked on the most significant operating and cost transformation in our company's history, with an opportunity we believe will ultimately amount to billions of dollars over time."
"We ended the quarter with 10.6 million total wireless lines, up 18% year-over-year and 40% over two years."
Analyst Q&A 9
Have recent broadband price hikes helped results
Q (Craig Moffett · MoffettNathanson): Craig asked whether recent broadband price increases in the market have changed the competitive dynamics and whether competition is becoming less irrational.
A: Management said the market remains competitive and there are still pockets of irrational pricing. They do not see the last couple of weeks as a real change in trend. They also defended their wireless moves as rational because free lines deploy zero capital and often convert to paying customers.
"As we really assess the marketplace, we maintain that gig pricing at $30-$40, in some cases even less, is going to be really hard to sustain." — Steve Croney
Will mobile scale improve bundle results
Q (Michael Rollins · Citi): Michael asked if there is a tipping point as mobile penetration grows where converged revenue and broadband performance improve meaningfully.
A: Management said mobile is a capital-light growth opportunity that leverages their broadband base and Wi-Fi offload. They noted 18% penetration and said there is a lot of upside, pointing to nearly 370,000 lines added and that 70% of free-line customers roll to paid. They are leaning into premium and multi-line attach to deepen relationships.
"We still added close to 370,000 lines, and in 2026, it will be our best mobile line net add year in the company's history." — Steve Croney
Peacock profitability and YouTube bundle
Q (John Hodulik · UBS): John asked if strong Peacock profitability will continue, whether there are target margins, and if the YouTube agreement should boost profitability.
A: Management said quarters can be lumpy depending on timing, but they expect to continue to drive profitability on an annual basis. They described the YouTube Premium bundle as a way to reach a younger, incremental audience and to be additive while avoiding cannibalization of existing business.
"What makes YouTube particularly attractive is that we already have a significant amount of NBC clips and content consumed there." — Mike Cavanagh
Advertising market and Peacock scale/partners
Q (Jessica Reif Ehrlich · BofA): Jessica asked for an update on the advertising market, any World Cup benefits, and whether Peacock has enough scale or other potential bundling partners.
A: Management said advertising was relatively stable once you normalize for the World Cup, with strength around live programming and sports. They said Peacock has scale and they pursue both direct-to-consumer and bundling strategies, and they are open to more partnerships as part of their new NBCUniversal strategy.
"But overall, pretty stable and strength obviously around live programming and sports, and so our portfolio performs very well in that regard." — Mike Cavanagh
Transformation plan costs and reinvestment focus
Q (Kutgun Maral · Evercore): Kutgun asked for more detail on the operating and cost transformation: the financial impact beyond the Q4 charge, 2027 EBITDA and free cash flow trends, and what reinvestments might look like.
A: Management said this is a transformation to simplify and free capacity to invest, not just cost cutting, and that they will take a $1 billion+ charge in Q4 to accelerate actions. They listed reinvestment areas including pushing into wireless and premium, business services, and longer-term opportunities like edge compute using their headends and capacity.
"What we said is we'll take $1 billion+ charge in the fourth quarter." — Jason Armstrong
AI impact and satellite partnerships
Q (Sean Diffley · Morgan Stanley): Sean asked whether AI agents could be deflationary or an opportunity for connectivity pricing and retention, and whether they would partner wholesale with satellite players using CBRS and Wi-Fi.
A: Management said connectivity usage is growing and the industry is well positioned for increased device use; differentiation and better customer experience help protect pricing. They described tactical AI steps like a Cresta agentic front end, joining a Personal Agent Protocol Group, and said they already partner with Starlink in Comcast Business and remain open to strategic partnerships with MVNOs.
"To your second part of your question, today we do partner with Starlink today in Comcast Business." — Steve Croney
Orlando parks timing and coaster ROI
Q (Michael Ng · Goldman Sachs): Michael asked when Orlando trends might improve and whether new attractions like the Fast Coaster drive attendance, pricing, or both.
A: Management said Orlando softness should trend similarly at least next quarter and in the first half of next year and then begin to lap. They are investing in marketing, promotional packages, and operational fixes for Epic capacity. They said new attractions are long-duration investments that can lift attendance and pricing above baseline and are modeled for ROI.
"I think in Orlando, I would expect to see the softness there just trend similarly at least next quarter and in the first half of next year and start to lap from there." — Mike Cavanagh
Customers facing promotional roll-off
Q (Sebastiano Petti · JPMorgan): Sebastiano asked what the ‘higher than typical volume of customers facing transition’ referred to and whether it was legacy customers or new pricing and packaging.
A: Management said this mainly refers to two-year promotional roll-offs in their legacy base and acknowledged it has been a pain point. They said they have done better but still had an unusually high volume rolling off this quarter amid aggressive competitive pricing.
"What we are referring to there is it is largely two years promotional roll-off, which would refer back to our legacy base." — Jason Armstrong
Closing comments on strategy and progress
Q (Brian Roberts): No analyst question here; this is a closing set of remarks rather than a question.
A: Management (Brian Roberts) said there is energy and excitement around the proposed separation and that the teams are executing plans across broadband, wireless, business services, Peacock, and parks. He highlighted progress in wireless and Peacock, emphasized long-term ideas for parks, and said they will keep discipline on the balance sheet while investing.