Quick Read
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Charter (CHTR) plunged 6% as investors refused to credit $2 billion in planned savings while broadband keeps bleeding customers.
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Morgan Stanley trimmed its target, and T-Mobile's fixed wireless broadband is among the competitive threats Charter says are pulling away its Internet customers.
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Cox's mid-quarter arrival hides the damage: pro forma revenue fell 2% and adjusted EBITDA dropped 4%.
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Charter Communications( NASDAQ:CHTR ) fell 6.21% to close at $118.05 on November 6, 2026. The drop came after Charter reported third-quarter results and launched a leaner operating model, even as its core product continues to lose customers.
Charter Communications said it is seeking $2 billion in annualized run-rate operating expense savings over the next 18 months. Charter Communications also expects more than $1 billion in additional synergies from the Cox deal.
Those cost savings are real, but pro forma Internet customer losses, which count Cox for the full quarter, reached 233,000, and broadband is Charter's core business. Management tied the cuts to a return to Internet growth. Investors sold anyway, which means they want to see customers return before giving credit for savings that don't exist yet.
What Charter Communications' $2 Billion Plan Commits To
A run-rate target is the annual savings pace Charter hopes to reach by the end of the period, so none of it has been realized yet. The savings are supposed to come from dropping projects that don't help Internet growth, removing management layers, and using fewer vendors. President and CEO Chris Winfrey said Charter is "fundamentally rethinking how we operate and compete" and that the cuts "are not targeted at frontline service and sales employees."
Charter gave no headcount figure and no timeline for returning to broadband growth. Spectrum pricing reached Cox markets on September 16, 2026, and legacy Cox customer service will move fully back to the U.S. over 18 months. That means the cost cuts and a service overhaul will happen at the same time.
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Broadband Losses Remain the Core Problem
Legacy Charter lost 156,000 Internet customers, up from 109,000 a year earlier, and legacy Cox lost 77,000. The pro forma loss compares with 171,000 in the second quarter of 2025. It improved from 275,000 in the second quarter and leaves Charter with 34.3 million Internet customers.
Mobile added 508,000 pro forma lines, and video losses narrowed to 77,000 from 121,000, but broadband is still the core business. Charter blamed fixed wireless, fiber overlap, customers switching to mobile-only service, and aggressive competitor promotions.
Reported Growth Hides a Pro Forma Decline
Pro forma figures treat Cox as if Charter owned it in both periods. On that basis, revenue fell 1.5% to $16.5 billion, and adjusted EBITDA, a measure of cash profit, fell 4.0% to $6.6 billion.
Reported revenue rose 9.1% to $14.9 billion, and adjusted EBITDA rose 6.9% to $5.9 billion, because Cox joined partway through the quarter. The $2.4 billion net loss, or $20.50 per share, came mainly from a $6.3 billion franchise impairment. That charge is a noncash accounting write-down.
Free cash flow fell $947 million to $674 million, even though pro forma capital spending dropped to $3.2 billion from $3.6 billion. Buybacks shrank to 139,807 shares for $19 million.
How CHTR Stock Reacted to the Report
Shares swung between $110.58 and $123.66 during the session. The drop followed 5.68% gains on November 4 and 4.67% on November 5. This marked the second-largest one-day fall since late August, behind an 8.13% drop on September 9.
The stock now sits about 53.5% below its 52-week high of $254.11. On November 5, Morgan Stanley( NYSE:MS ) cut its price target to $135 from $140, which is still above the close.
What Charter's Results Mean for CHTR Investors
Optimists point to clear savings ahead, plus 2027 capital spending that Charter expects to come in at or below $11 billion. The case against it carries more weight.
Debt principal stands at $108.6 billion, free cash flow is falling, and cutting costs while losing broadband customers could weaken service. Our outlook on CHTR is negative. The savings are still a plan, while the customer losses are already showing up in the results. T-Mobile( NASDAQ:TMUS ) is worth exploring as a comparison because it sells fixed wireless broadband, one of the challenges Charter named.
Review this call if the fourth-quarter earnings report shows pro forma Internet losses shrinking compared with a year earlier. A close below the $101.11 52-week low would signal the recovery is failing.
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