Rogers Communications Q3 2026 Earnings Miss: What Went Wrong
As seen on the 24/7 Wall St. homepage on October 23, 2026.
Growth in Rogers' wireless business has nearly stopped: postpaid net additions fell to 6,000 from 62,000 a year ago as CRTC fee restrictions and price competition bite, and the quarter missed expectations on both lines. Management is now counting on a minority stake sale in its sports assets by the first half of 2027 to shrink the debt load taken on in the MLSE buyout.
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Rogers reported adjusted diluted EPS of $0.92 for the third quarter of 2026, missing expectations, with revenue also missing expectations even as it edged higher compared to the same period a year ago. The gap between what analysts expected and what Rogers delivered is one of the widest the company has seen in recent quarters.
Wireless postpaid net additions collapsed to just 6,000 from 62,000 a year earlier. Wireless service revenue slipped as CRTC fee restrictions, including the prohibition of activation and modification fees, combined with intense competition to choke off the subscriber growth that had previously underpinned Rogers' core growth story. With Cable revenue flat year over year, the Media segment provided a rare bright spot on higher sports revenue.
The quarter was shaped heavily by Rogers completing its $4.35 billion acquisition of the remaining 25% interest in MLSE on October 1, 2026, giving it full ownership of the Toronto Maple Leafs, Toronto Raptors, and Scotiabank Arena. That deal, financed through newly drawn credit facilities, pushed finance costs sharply higher and contributed to a steep decline in net income, leaving long-term debt elevated.
To bring that debt load down, management is targeting a sale of a minority interest in its consolidated sports, media, and entertainment assets by the first half of 2027. Rogers also intends to redeem $2.0 billion of subordinated notes due 2081 in December 2026. CEO Tony Staffieri pointed to record free cash flow and improving leverage, with the debt ratio moving to 3.7 times from 4.0 times at year-end 2025, as evidence the balance sheet is moving in the right direction despite the headline misses.
Rogers reaffirmed its full-year 2026 guidance across total service revenue, adjusted EBITDA, capital expenditures, and free cash flow. Capital expenditure guidance was revised downward earlier in the year, reflecting both the competitive and regulatory environment and a deliberate shift toward deferring or cancelling certain projects. For investors, the key variable to track is whether the sports asset minority stake sale closes on schedule and at a valuation sufficient to materially reduce the debt burden taken on in the MLSE buyout.