RCI
Rogers Communications Inc (RCI) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Article Summary
HOLD- Rogers Communications Inc. (NYSE: RCI) reported strong Q2 2026 revenue growth driven by 8% consolidated service revenue growth and 3% adjusted EBITDA, with cable margins expanding and free cash flow rising 6%.
- Free cash flow grew 6% year-over-year, and capital expenditures decreased 16% as Rogers Communications maintained its lowest capital intensity ratio since 2008.
- Media revenue increased 53% to CAD1.2 billion with 13% organic growth, driven by Toronto Blue Jays-related revenue and new channel launches, while cable margins expanded to 58% with a 10-basis-point increase in cable margins to 58%.
- The company posted a CAD1 billion non-cash loss related to the negotiated purchase price and settlement of MLSE's remaining 25% stake in Maple Leaf Sports & Entertainment, reflecting ongoing pressure from satellite TV, which continues to pressure cable revenue growth.
- Liquidity remained strong with CAD6 billion in cash and CAD4.4 billion in credit facilities, with leverage reduced to 3.8 times from 4.8 at the end of 2025.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 8.1% | 25% | 35.0 ptsBelow Screener (8.1%) - Weak growth |
| EPS Growth Next 5Y ? | -0.1% | 25% | 0.0 ptsNegative (-0.1%) - Declining expectations |
| Target Price Upside ? | 28.3% | 20% | 75.0 ptsSignificant Upside (28.3%) - Target: $42.29 vs Current: $32.95 |
| Gross Margin % ? | 22.8% | 15% | 40.0 ptsModerate (22.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -19.9% | 15% | 40.0 ptsMild Pullback (-19.9%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About RCI
- Rogers Communications Inc. operates as a communications, sports, and entertainment company in Canada.
- It operates through Wireless, Cable, and Media segments.
- The company offers mobile internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and pickup services; satellite-to-mobile service; and wireless solutions under the Rogers, Fido, and chatr brands.
- It also provides Internet access, Internet protocol-based (IP) television, applications, online viewing, phone, home monitoring, and advanced home WiFi services to consumer and businesses.
- In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, restart, and integrated apps; linear and time-shifted programming; digital specialty channels; and 4K television programming.
- Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; video and audio programming; voice, data networking, IP, and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices.
- Additionally, the company owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and HGTV television networks, as well as AM and FM radio stations.
- It also offers Rogers and the Rogers Red World Elite Mastercard.
- The company was founded in 1960 and is headquartered in Toronto, Canada.