One thing is clear: AI and the coming generation of technology will demand more data, more bandwidth, lower latency, and smarter networks and platforms. That's also why this is the right time for Michael Angelakis to return. He knows this company, and his return will help accelerate the work Steve and the team already have underway. These actions are intended to address the areas we need to improve while leaning on the structural advantages we already have: a scaled network, industry-leading Wi-Fi, and a capital-efficient mobile platform.
Despite these near-term pressures, our outlook for the long-term opportunity in parks is unchanged. We have great brands, great locations, and a proven playbook for investing behind attractions and experiences that create real consumer demand and strong returns. park moving toward construction, we continue to see a long runway for growth. Before I hand it over to Jason, I want to touch on Sky's proposed acquisition of ITV's media and entertainment business, which will strengthen Sky's long-term position in the U.K.
For context, Sky Germany generated over $2 billion in annual revenue but had an immaterial EBITDA contribution and had previously been reflected within corporate and other. In the second quarter, revenue increased 5%, in part benefiting from Telemundo and Peacock's successful airing of the FIFA World Cup. In Content & Experiences, we are still in the first year of the NBA rights cycle and absorbing the full cost of that contract while the revenue opportunity builds over time. Adjusted earnings per share were $1.04, and we generated $4.6 billion of free cash flow in the quarter, of which we returned $2.1 billion to shareholders, including $900 million in share repurchases.
| Metric | Period | Current guidance |
|---|---|---|
| Connectivity & Platforms ARPU / EBITDA trend | H2 2026 | Modest improvement expected starting in Q3 as free wireless lines convert to paid and early go-to-market investments are lapped |
| Business separation | ~1 year | Targeting completion in approximately one year, with both companies set up with strong investment-grade balance sheets |
| Peacock profitability | Annual | Expected to keep improving on an annual basis, though profitability will vary quarter to quarter with sports/content timing |
| Parks | Near term | Orlando softness viewed as temporary (fuel/sentiment), with long-term outlook unchanged and a long growth runway (Universal Kids Resort open, U.K. park progressing) |
| Share repurchases | Through separation | Paused as of July 1 through the separation |
| Metric | YoY | Note |
|---|---|---|
| Revenue | $29.94B reported (-1.2%); +4.7% pro forma | Pro forma growth (excluding divested Sky Germany) aided by the FIFA World Cup on Telemundo and Peacock. |
| Operating income | $5,160M (17.2% margin) | Down from $5,992 million on broadband pivot investment and first-year NBA rights costs. |
| GAAP diluted EPS | $0.99 (-66.9%) | Net income of $3.5 billion versus $11.1 billion a year ago that included a large gain. |
| Adjusted EPS | $1.04 (-16.7%) | Lower adjusted EBITDA from the go-to-market pivot and NBA rights; adjusted EBITDA $8,902 million (-13.4%; -5.3% pro forma). |
| Wireless net line additions | +448,000 (record); 10.2M total | Stronger gross adds and improved churn, roughly half of residential postpaid connects from free lines; YTD net adds up 25%. |
| Broadband subscribers / ARPU | -167,000 (improved 34K YoY); ARPU -3.8% | Go-to-market pivot (no rate increase, simplified lower price points, dilutive free lines) improving losses but pressuring ARPU. |
| Peacock | EBITDA $189M (first profit); revenue +54%; 48M subs | Distribution revenue up over 50% (subs +7M YoY) and advertising up nearly 70% on the World Cup simulcast, NBA playoffs, and 'Love Island.' |
| Studios | Revenue +25%; EBITDA +$141M | 'Super Mario Galaxy,' 'Obsession,' and international distribution of 'Michael'; breadth across animation, specialty, and filmmaker-driven titles. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Business separation | Announced ~3 weeks prior | Splitting NBCUniversal/Sky media from Connectivity & Platforms within roughly a year; management reports overwhelmingly positive reaction, is finalizing capital structure for two investment-grade companies, and brought Michael Angelakis back to accelerate the work. | — |
| Broadband go-to-market pivot | Launched ~a year ago | Simpler, transparent pricing, no rate increase, improved experience, and aggressive wireless (free lines) are pressuring ARPU (-3.8%) and C&P EBITDA (-5.8%) now, but improving subscriber losses and NPS, with modest improvement expected from Q3. | — |
| Wireless and convergence | Scaling | Record 448K net adds and 10.2M lines with premium unlimited ~30% of connects; convergence ARPA ~$85 (well below telecom peers) signals long runway; free-line cohorts converting to paid in line with expectations, a future tailwind; T-Mobile business MVNO launched. | — |
| Integrated media / Peacock | Building scale | First-ever Peacock profitability ($189M) validates a dual-revenue model; management manages the media segment as one integrated business (NBC, Telemundo, Bravo, Peacock) rather than for standalone Peacock profit, expecting annual profitability improvement with quarterly lumpiness. | — |
| Studios strength | — | A strong year across franchise animation, specialty, and filmmaker-driven titles, headlined by Minions & Monsters ($6B franchise), 'Obsession' ($400M+), and 'The Odyssey' (Nolan's biggest global opening). | — |
| Parks | Epic Universe ramp | Epic performing well and lifting per-cap spend, but broader Orlando attendance softened in June into Q3 on fuel and sentiment; Osaka pressured by China travel restrictions; management views softness as temporary with an unchanged long-term outlook (U.K. park progressing). | — |
| Competition (fiber/fixed wireless/Starlink) | Fiber and fixed wireless | Management expects satellite (Starlink) to become more of a competitor over time, mainly in rural/underserved areas, but is confident in 'a wire into the home' plus best-in-class Wi-Fi and an active, multi-gig symmetrical network roadmap; already partners with Starlink in Comcast Business. | — |
| Sky / ITV | — | Sky's proposed acquisition of ITV's media and entertainment business would strengthen Sky's U.K. position, enhancing streaming and advertising and creating operating efficiencies. | — |