Optimum Communications forecasts mid-single-digit revenue decline in 2026 but targets margin expansion through AI-driven efficiency gains.
Optimum Communications reported disciplined cost management and AI-powered operational improvements drove expanded gross and adjusted EBITDA margins in Q2 2026, despite ongoing revenue pressure. The company cited intense competition from fiber and fixed wireless providers for broadband subscriber losses in its West footprint.
Full-year 2026 revenue is expected to decline mid-single digits, while adjusted EBITDA is projected to fall low-to-mid single digits. Capital expenditure for the year is targeted between $1.2 billion and $1.5 billion, with higher spending planned in the second half.
Management highlighted a strategic pivot toward convergence, leveraging a new multiyear agreement with T-Mobile to expand into wearables and connected devices. The company also announced divestitures of noncore assets and exits from low-density markets.