A month has gone by since the last earnings report for Rogers Communication (RCI). Shares have added about 11.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Rogers Communication due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Rogers Communications Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Rogers Communications reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.

In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.

Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.

Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter.

Q2 Segmental Details of RCI

Wireless Details

Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.

Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.

As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.

As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.

Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion.

Cable Details

Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.

Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.

As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.

As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.

Cable segment operating costs increased 0.6% year over year to C$826 million.

Media Details

Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.

Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind.

Consolidated Results

Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.

Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%.

RCI’s Q2 Balance Sheet & Cash Flow Details

As of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.

Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.

Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.

Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026.

RCI Reaffirms 2026 Outlook

For 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.

Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

The consensus estimate has shifted 9.56% due to these changes.

VGM Scores

Currently, Rogers Communication has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Rogers Communication has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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Rogers Communication, Inc. (RCI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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