Canada's Cogeco Q1 revenue misses analyst expectations, reaffirms annual outlook

Cogeco Communications

15/01/2026 01:06

Corrects throughout to reflect full company name: Cogeco Communications

Overview

Telecom provider's fiscal Q1 revenue missed analyst expectations

Adjusted EBITDA for fiscal Q1 decreased due to lower American telecom segment revenue

Company continues network upgrades, including 2.5 Gigabit speeds in U.S.

Outlook

Cogeco Communications reaffirms fiscal 2026 financial guidelines

Company anticipates improved financials in second half of fiscal year

Cogeco Communications to launch new digital brand in U.S. next month

Result Drivers

U.S. SUBSCRIBER TRENDS - Cogeco Communications reported improved U.S. subscriber trends for the second consecutive quarter, per CEO Frédéric Perron

CANADIAN GROWTH - Canadian telecom revenue remained stable, with high-speed Internet service additions offsetting declines in video and wireline phone services

CAPITAL EXPENDITURES - Net capital expenditures increased by 4.2% due to higher spending on customer premise equipment in the Canadian telecom segment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$707.20 mln
C$714.28 mln (6 Analysts)
Q1 Adjusted EBITDA
C$353.80 mln
Q1 Free Cash Flow
C$125.50 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy"

Wall Street's median 12-month price target for Cogeco Communications Inc is C$70.50, about 3.1% above its January 14 closing price of C$68.41

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nCNWnnWmLa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)