Overview Comcast is a diversified media and cable operator providing broadband, video, and content services, and its financial profile combines large, stable operating cash generation with historically volatile reported earnings. Financial Strengths The company’s cash generation is a clear strength: trailing twelve‑month operating cash flow was $32.24B while trailing net income was $18.80B , and o
Comcast is a diversified media and cable operator providing broadband, video, and content services, and its financial profile combines large, stable operating cash generation with historically volatile reported earnings.
The company’s cash generation is a clear strength: trailing twelve‑month operating cash flow was $32.24B while trailing net income was $18.80B, and operating cash flow has exceeded net income by a factor of roughly 1.68x — evidence of robust cash conversion and recurring cash generation (Earnings Quality Analysis, Revenue & Net Income).
Profitability metrics are also strong on a recent basis, with a reported net margin near 16.2%, an operating margin reported at 50.8%, and trailing‑12‑month return on equity around 23.3%, reflecting both high margin capture and elevated shareholder returns in the latest periods (Profit Margin Trends, Return on Equity (ROE)).
Valuation multiples have compressed materially; the trailing P/E sits in the low single digits around 5.3x, a notable move from mid‑teens/20x levels seen in prior years (Price-to‑Earnings (PE) Ratio Trend).
Material areas of concern include short‑term liquidity and top‑line momentum. The reported current ratio is below 1.0 at 0.8824, indicating tighter near‑term liquidity coverage of short‑term obligations. Top‑line per‑share growth has been essentially flat, with revenue per share at $32.81 and one‑year revenue‑per‑share growth of roughly 0.0%, even as diluted EPS has shown large quarter‑to‑quarter swings (most recent diluted EPS $5.30 after a mid‑2025 peak of $6.08), underscoring volatility in earnings quality despite strong cash flow (EPS Diluted & Revenue per Share, Revenue & EPS Growth).
Capital allocation is producing persistent cash outflows: investing cash flow was about –$16.12B TTM and financing cash flow roughly –$15.28B TTM, which together compress free liquidity even as operating cash flow covers those uses (Strategic Capital Allocation).
[Earnings Quality Analysis], [Profit Margin Trends], [Revenue & Net Income], [Price-to‑Earnings (PE) Ratio Trend], [EPS Diluted & Revenue per Share]
The foundation of business quality and long-term value creation
COMCAST CORP's revenue has been largely stable in the low $30 billion range over the past several years, rising from the mid‑$20 billions in 2019 to roughly $29–32B more recently. Quarterly revenue showed a high of $32.31B in 2025-12-31 and modestly declined to $31.46B in 2026-03-31, keeping overall top‑line activity within a narrow band over the last several quarters.
Net income has been more variable than revenue, with a notable loss of -$4.60B in 2022-09-30 and a pronounced spike to $11.12B in 2025-06-30; outside those inflection points, net income has generally ranged from about $2B to $4B per quarter. In the two most recent reported quarters (2025-12-31 and 2026-03-31), net income was $2.17B. The most recent quarterly revenue was $31.46B. The most recent quarterly net income was $2.17B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Apr 2025 to Mar 2026
Revenue composition by disclosure category for the latest period
Including broadband access, wireless service for handsets and connected devices, access to a network of Wi-Fi hotspots, and residential wireline voice services delivered using VoIP technology.
That combine broadband, wireless, video and voice services and separately marketed prepaid broadband offerings.
Residential and business video services delivered via set-top based platforms, streaming devices and internet streaming services (including branded DTC streaming offerings).
Across linear television networks and digital platforms, including sales of allocated scheduled advertising time and sales under representation agreements on behalf of third parties.
For consumers, including proprietary wireless gateways, set-top and streaming devices, and related software tools and mobile apps for network and device management.
Of television and streaming programming to multichannel video providers, virtual providers, DTC platforms and other licensees.
From the company’s direct-to-consumer streaming service and from third parties who sell the streaming service on the company’s behalf.
Of film and television content from studio production and distribution operations, including theatrical distribution, home entertainment (physical and digital) sales, and licensing to broadcasters and streaming services.
From television studio operations, including original content licensing beyond initial broadcast windows.
Revenue from guest spending, including admissions, food and beverage, merchandise, and consumer products licensing and related third-party services.
Including small business broadband, wireline voice and wireless services, ethernet and wide area networking, advanced voice services, software-defined networking, cloud-based cybersecurity and other managed network services.
Related to wireless offerings.
Sold to advertisers and other customers in the media industry.
From licensing technology platforms to other multichannel video providers and distribution of Sky-branded networks to third-party video service providers.
Operations across the United States for connectivity, media, studios and theme parks. Presence in the United Kingdom and Italy for connectivity, video services and Sky-branded networks. International media and network distribution spans Europe, Latin America and other jurisdictions. Theme parks located in the United States and Asia, including Orlando, Hollywood, Osaka and Beijing, with licensed parks in Singapore. Studio production facilities in the US and UK. Workforce and operations across multiple countries including the UK, Western Europe, East and South Asia. International broadband and voice services delivered via third-party networks outside the company's domestic footprint.
Recurring revenue includes subscription-based broadband, wireless, video, direct-to-consumer streaming fees, multiyear distribution fees, and ongoing advertising sales. Business and enterprise connectivity involve contract-based managed services. Transactional revenues include theatrical releases, home entertainment sales, theme park admissions and guest spending, and content licensing for individual pieces or rights. Multiyear programming arrangements exist, with some network fees fixed-fee. Streaming tiers vary by access and advertising, with some packages sold on monthly or daily basis.
Analyzing long-term margin stability and competitive positioning
COMCAST CORP’s margins show a pronounced improvement in the most recent twelve months. Gross margin rose sharply from 70.1% at 2024-12-31 to 85.6% at 2025-12-31, and an operating margin of 50.8% is reported for 2025-12-31. Net profit margin increased through 2024 into 2025, reaching 18.4% on 2025-06-30 and 18.3% on 2025-09-30 before moderating to 16.2% in the latest quarter.
Earlier periods include notable inflection points: gross margin was negative across several quarters in 2024 (around -0.5% to -1.0%) before the rapid recovery by year-end 2024 and further expansion in 2025. Net margin recovered from mid-2022/2023 lows (single-digit and low-teen percentages) to the mid-to-high teens in 2025. The most recent gross margin was 85.6%, operating margin was 50.8%, and net profit margin was 16.2%.
Understanding Profit Margins
Between Apr 2025 and Mar 2026, Comcast Corp converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
COMCAST CORP’s trailing‑12‑month operating cash flow has remained in the low‑$30B range over the past year, rising to $33.64B at 2025‑12‑31 before retreating slightly to $32.24B at 2026‑03‑31. Over the same recent quarters net income TTM peaked around mid‑2025 ($22.90B at 2025‑06‑30 and $22.61B at 2025‑09‑30) then moved lower to $20.00B and $18.80B in the two most recent quarter‑ends, creating a widening gap between cash flow and reported earnings in the latest data.
Looking across the longer series, operating cash flow has been relatively stable, generally in the mid‑$20B to low‑$30B range, while net income showed a pronounced step up from single‑digit/low‑teens levels in 2021–2022 to the high‑teens/low‑twenties in 2024–2025. The most recent Net Income (TTM) was $18.80B and the most recent Operating Cash Flow (TTM) was $32.24B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
COMCAST CORP's trailing twelve-month Return on Equity has climbed in the most recent quarters, rising from 18.1% at 2025-03-31 to 23.6% at 2025-06-30 and settling at 23.3% at 2025-09-30. The last two quarters show elevated ROE relative to the preceding year, with the series generally in the high-teens through 2024.
The most recent Return on Equity (ROE) was 23.3% as of 2025-09-30.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
COMCAST CORP’s trailing twelve-month operating cash flow has risen over the past several years from the mid-to-high $20s billions into the low $30s billions, with a peak at $33.64B in the TTM ending 2025-12 before a modest decline to $32.24B in the most recent TTM. Operating cash flow remains the largest of the three cash flow categories throughout the period, materially exceeding the absolute levels of investing and financing cash flows in the latest quarters.
Investing cash flow turned noticeably more negative beginning around the TTM ending 2025-03 and has since stabilized near the mid-$teens negative range, showing sustained outflows of roughly -$16B in the most recent TTM periods. Financing cash flow has been persistently negative across the full history shown, moving from deeper outflows (above $-20B in earlier periods) to lower outflows around $-11B in mid-2025, and rising back toward approximately -$15B by the TTM ending 2026-03. The latest observed values are: Operating Cash Flow (TTM) $32.24B, Investing Cash Flow (TTM) -$16.12B, and Financing Cash Flow (TTM) -$15.28B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
COMCAST CORP's trailing twelve-month price-to-earnings ratio has moved lower over the past year. After trading around 8.2×–8.3× at the end of 2024 and in Q1 2025, the P/E contracted sharply to 5.5× in Q2 2025 and 4.9× in Q3 2025 before a modest uptick to 5.3× in Q4 2025. The most recent quarters therefore show a material de-rating from the mid-single-digit to low-single-digit range.
Looking further back, the series shows larger swings: P/E peaked above 20× in several quarters of 2022 and mid‑2023 before collapsing to roughly 10× in late 2023 and then into single digits through 2024–2025. The most recent price-to-earnings (P/E) ratio was 5.3×.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.