Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications has demonstrated a strong financial trajectory, with projections indicating that its free cash flow yield will significantly increase from approximately 14% in the current year to over 25% by 2028, as capital expenditures are expected to decrease. The company has also reported substantial growth in its mobile segment, achieving nearly 2 million net additions in 2025, which reflects a 19% year-over-year expansion and reinforces Charter’s status as the fastest-growing mobile provider in the U.S. Furthermore, ongoing cost efficiency initiatives have contributed to a 3.9% decline in customer servicing costs, highlighting the company's ability to enhance productivity and automate operations while maintaining customer satisfaction.

Charter Communications reported a decline in both revenue and EBITDA, with revenue falling by 0.9% to $13,672 million and EBITDA decreasing by 1.5% to $5,561 million, which was $27 million below expectations. The company's residential broadband net additions exhibited a negative year-over-year trend, exacerbated by increased competition from fiber and fixed wireless access (FWA) providers, raising concerns over potential continued deterioration in broadband subscriber growth. Additionally, free cash flow for the fourth quarter was $773 million, approximately $200 million lower than the previous year, influenced by working capital timing issues and high capital investment, which reflects ongoing operational challenges amidst fierce competition in the telecommunications market.