Telecommunications and media company Comcast (NASDAQ:CMCSA) met Wall Street’s revenue expectations in Q1 CY2025, but sales were flat year on year at $29.89 billion. Its non-GAAP profit of $1.09 per share was 10.1% above analysts’ consensus estimates.
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Revenue: $29.89 billion vs analyst estimates of $29.8 billion (flat year on year, in line)
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Adjusted EPS: $1.09 vs analyst estimates of $0.99 (10.1% beat)
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Adjusted EBITDA: $9.53 billion vs analyst estimates of $9.13 billion (31.9% margin, 4.4% beat)
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Operating Margin: 18.9%, in line with the same quarter last year
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Free Cash Flow Margin: 18.1%, up from 15.1% in the same quarter last year
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Domestic Broadband Customers: 31.64 million, down 545,000 year on year
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Market Capitalization: $127.9 billion
Comcast’s first quarter results reflected the impact of shifting industry dynamics, with flat year-on-year sales and ongoing competitive pressure in the domestic broadband market. Management attributed the muted top-line to intense competition, especially from fiber and fixed wireless providers, as well as a slight uptick in customer churn. CFO Jason Armstrong emphasized the company’s continued investment in its six key growth areas, including residential broadband, wireless, business services, and theme parks, noting that these segments now represent nearly 60% of total revenue.
Looking ahead, management’s guidance is shaped by a combination of new go-to-market strategies and further investment in product and pricing simplification. CEO Brian Roberts acknowledged the urgency of addressing customer pain points in broadband, while COO David Watson described new initiatives—such as a five-year price guarantee and integrated wireless offers—that are expected to take several quarters to show meaningful results. The company also highlighted upcoming milestones, including the opening of Epic Universe in Orlando and continued expansion of its streaming service Peacock, as key drivers of future performance.
Comcast’s management focused on operational changes and product launches targeting improved customer retention and long-term growth. Multiple initiatives are underway to address competitive pressures, especially in broadband, and to leverage expanding business lines.
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Broadband Pricing Overhaul: Comcast launched its first nationwide price guarantee for broadband, offering a five-year fixed price with unlimited data and no annual contract. Management believes this addresses consumer concerns over pricing predictability and should reduce churn over time.
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Wireless Bundle Emphasis: The company introduced new wireless promotions, including a free unlimited line for broadband customers, and debuted a premium unlimited wireless plan. Management highlighted that mobile penetration is still low within its broadband base, presenting significant growth potential.
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Business Services Expansion: Comcast’s business services segment, now nearing $10 billion in annual revenue, continues to grow through advanced service adoption and recent acquisitions. The completed acquisition of Nitell is expected to enhance network aggregation and expand the company’s presence in the enterprise market.
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Theme Parks Investment: The grand opening of Epic Universe in Orlando, scheduled for May, was cited as a transformative event for the parks segment. Early ticket sales and hotel bookings have been strong, and management is optimistic about the long-term impact on the division’s growth.
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Streaming and Content Pivot: Peacock, the company’s streaming service, delivered double-digit revenue growth and a substantial year-over-year improvement in EBITDA losses. Management attributed progress to improved monetization, subscriber growth through bundling, and upcoming content additions such as NBA coverage.
Management expects the coming quarters to be shaped by the rollout of new pricing models, continued investment in wireless and streaming, and a focus on customer experience improvements. The outlook incorporates significant execution risk as the company transitions its go-to-market approach amid a highly competitive environment.
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Go-to-Market Strategy Shift: New pricing and packaging for broadband and wireless are designed to enhance customer retention and lifetime value but may pressure margins and EBITDA in the near term as investments ramp up.
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Wireless Growth Opportunity: With mobile service currently reaching only a minority of broadband customers, management sees substantial upside in cross-selling wireless, supported by new premium plans and device offers.
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Theme Park Expansion: The launch of Epic Universe and international park developments are expected to diversify revenue streams and provide insulation from broader shifts in media consumption.
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Craig Moffett (Oppenheimer): Asked about the impact of international travel trends and anti-American sentiment on theme park attendance. Management reported stable trends in Orlando, with strong ticket and hotel bookings for Epic Universe, and noted that any travel shifts have yet to impact results.
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Jonathan Chaplin (New Street Research): Requested details on the benefits of network upgrades under Project Genesys. Management highlighted increased speeds and device connectivity but stated that meaningful churn benefits are expected over time as new pricing and operational changes take effect.
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Michael Ng (Goldman Sachs): Inquired about drivers of broadband ARPU growth and the sustainability of 3–4% long-term ARPU increases. Management pointed to packaging simplicity and price locks as supportive of future ARPU but acknowledged near-term EBITDA pressure from these investments.
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Michael Rollins (Citibank): Questioned the balance between industry maturation and market share loss in broadband customer declines, and the influence of new mobile promotions. Management responded that competitive intensity remains high, with fixed wireless and fiber overbuilds as ongoing challenges, while new wireless bundle offers show early promise.
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Benjamin Swinburne (Morgan Stanley): Sought clarity on the path to profitability for Peacock and the near-term margin impact of go-to-market changes. Management expects continued improvement in Peacock’s monetization and a prudent approach to margin trade-offs as the business model evolves.
Looking forward, the StockStory team will be tracking (1) the adoption and effectiveness of Comcast’s new broadband pricing and wireless bundling strategies, (2) the operational and financial ramp-up of Epic Universe and new theme park ventures, and (3) sustained subscriber and revenue growth in Peacock, especially with the addition of NBA content. Additional drivers include further developments in business services and ongoing competitive responses in the connectivity segment.
Comcast currently trades at a forward P/E ratio of 7.8×. Should you load up, cash out, or stay put? Find out in our free research report.
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