Charter Communications shares gain more than 8% after third-quarter revenue tops estimates despite net loss

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Charter communications surges 8.32% today

Highlights

Charter Communications reported third-quarter 2026 revenue of $14.9 billion, beating estimates but falling 1.7% year over year with a net loss due to a $6.3 billion franchise impairment charge.
The company completed the Cox Communications acquisition and announced a $2 billion annual cost reduction program over the next 18 months to address continued internet subscriber losses.
Shares of Charter surged 8.32% to $131.55 with strong intraday buying and overbought signals, projected to trade in the $122.45 to $136.8 range in the next 5 sessions.

Revenue gains offset by net loss and subscriber weakness as cost cuts launch

Charter Communications reported third-quarter 2026 revenue of approximately $14.9 billion, surpassing consensus estimates but representing a 1.7% year-over-year decline. The company recorded a notable net loss driven by a $6.3 billion franchise impairment charge and continued to see losses in internet subscribers due to heightened competition from fiber and fixed wireless providers. Charter completed the acquisition of Cox Communications in August 2026, adding to its customer base and service area. In response to recent operating challenges, Charter announced a major cost reduction initiative targeting $2 billion in annualized savings over the next 18 months and a renewed focus on regaining internet customer growth.

Anton Kharitonov, expert at Traders Union, sees Charter Communications' recent rally as technically short-lived. He notes that trading above short-term moving averages suggests a relief bounce, not a trend reversal. Charter’s $6.3 billion impairment and persistent subscriber losses expose ongoing structural weaknesses. Overbought signals and mixed momentum indicators point to correction risk if resistance at $136.8 holds. "Despite a short-term pop, I remain wary — investors should watch for a break below $131.09 as downside could resume quickly."

Viktoras Karapetjanc, expert at Traders Union, points out that Charter’s strength lies in its resilient revenue beat and aggressive cost-cutting plan. He highlights the Cox Communications acquisition, which expands Charter’s reach and customer base. Karapetjanc views the market’s positive reaction as validating the company’s push for operational efficiency and future growth. The bullish structure remains intact if the share price holds above key short-term moving averages. "I see further growth potential as Charter’s initiatives unlock new opportunities — the outlook is promising above $131.09."

Sholanke Dele, market strategist, notes investor optimism despite ongoing subscriber declines and net losses. He is cautious on the sustainability of the rally, given the overbought state and competitive threats from fiber and wireless rivals. Dele warns that near-term upside may be limited if Charter fails to regain growth in its internet segment. "I would stay defensive here — lingering risks threaten to outweigh short-term gains if momentum fades."

Short-term gains challenged by long-term pressure and overbought signals

CHTR is currently trading above its 20-day and 50-day moving averages at $111.32 and $120.28, signaling bullish short- and medium-term momentum, but remains below the 200-day moving average at $162.76, which keeps long-term pressure intact. Support sits at $131.09 with resistance at $136.8. Momentum indicators are mixed: the MACD is neutral, the ADX signals Buy, and the Relative Strength Index and Stochastic RSI both read neutral. The Commodity Channel Index is overbought, suggesting elevated correction risk. Intraday buyer dominance is confirmed by positive Bull/Bear Power of 6.44 and ongoing strength in the Awesome Oscillator. The price is holding near today's high, and volatility is measured at 11.18%. Intraday dynamics reveal strong buying momentum toward session highs, although overbought conditions caution against assuming extended immediate gains.

Earlier, analysts noted that Charter Communications faced ongoing downside risk in its shares despite operational initiatives such as Spectrum Reach's expanded partnerships. The latest results and technical signals confirm that, while short-term momentum has improved, traders should monitor the $131.09 support and $136.8 resistance levels for any shift in directional bias.

Source of Data: CHTR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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