Five of six communication services firms beat earnings forecasts this week

what happened

Seeking Alpha reports that five of the six communication services companies reporting this week beat earnings per share estimates. The sector is down more than 11% so far this year, while the S&P 500 has risen 7%.

Fox shares rose over 6% on Tuesday after first-quarter fiscal 2027 results: revenue climbed 22% to $4.57 billion against a $4.32 billion consensus, and adjusted EPS came in at $2.54 versus $2.01 expected. The FIFA Men's World Cup, political advertising and digital growth lifted the top line.

Charter Communications posted revenue of $14.92 billion, above the $13.74 billion estimate, but lost 233,000 internet customers on a pro forma basis, compared with a 171,000 loss a year earlier. AppLovin's revenue rose 55% to $2.18 billion, and its shares surged after fourth-quarter guidance topped expectations.

why it matters

The sector's weakness persists despite frequent beats, so investors will watch whether operators can return to subscriber growth and cut costs, as Charter plans. Take-Two Interactive is the next key communication services name on the earnings calendar.

market impact

Communication services and media: earnings above forecasts support shares, but the sector's year-to-date slump persists

• ↔US communication services sector mixed — strong earnings are offset by subscriber losses and the sector's year-to-date decline

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