Comcast (CMCSA) Q1 2025 Earnings Report: EPS Beats Expectations, Revenue Flat

Comcast (CMCSA) Q1 2025 Earnings Report: EPS Beats Expectations, Revenue Flat

Highlights – Q1 2025 Earnings (CY):

• Revenue: $29.89 billion vs $29.8 billion expected (Flat YoY, in line)

• Adjusted EPS: $1.09 vs $0.99 expected (9.9% beat)

• Adjusted EBITDA: $9.53 billion vs $9.13 billion expected (31.9% margin)

• Operating Margin: 18.9% (unchanged YoY)

• Free Cash Flow Margin: 18.1%, up from 15.1% last year

• Domestic Broadband Customers: 31.64 million, down 545,000 YoY

• Market Cap: $130.3 billion

“We had strong financial results in the first quarter, growing Adjusted EPS mid-single digits and generating $5.4 billion of free cash flow while investing in our six growth businesses and returning $3.2 billion to shareholders," said Brian L. Roberts, Chairman and CEO.

Industry Context: Wireless, Cable, and Streaming

The telecom and cable industry continues to face major structural shifts as more consumers move from traditional cable to wireless services and streaming platforms. Comcast, despite its strong infrastructure in broadband and wireless, is not immune to this trend. The company lost over half a million broadband subscribers year-over-year, reflecting increased competition and changing viewer habits.

Sales Growth Analysis

Over the last five years, Comcast has recorded a modest 2.6% CAGR in revenue — a signal that long-term growth has lagged behind industry benchmarks. While this weak sales growth challenges its long-term investment narrative, Comcast’s strong profit margins and cash generation offer some support for its value proposition.