Cogeco Posts Soft Q1 Revenue but Signals U.S. Turnaround and Network Push

Cogeco Inc. SV ( (TSE:CGO) ) just unveiled an update.

Cogeco Inc. reported first-quarter 2026 results broadly in line with expectations, showing a 3.8% year-on-year revenue decline to $735.6 million and a 2.5% drop in adjusted EBITDA, largely due to weaker performance in its U.S. telecommunications business, where revenue fell 8.6% amid a smaller subscriber base, a shift toward internet-only packages, and intense price competition. Despite this pressure, the company highlighted a marked improvement in U.S. subscriber trends for a second straight quarter, its best U.S. subscriber metrics in 15 quarters, and ongoing network upgrades including the rollout of 2.5 Gigabit speeds and the planned launch of an oxio-like digital brand in the U.S. next month. In Canada, Cogeco continues to grow its customer base, supported by wireless and rural network expansion, while its media segment delivered an 8.1% revenue increase on strong digital advertising, and cost efficiencies from a three-year transformation program helped lift Canadian telecom EBITDA. The company reaffirmed its fiscal 2026 financial guidance and noted improved credit outlooks for Cogeco Communications from both S&P and Moody’s, underscoring external confidence in its capital allocation discipline and the progress of its operational turnaround, particularly in the U.S. market.

The most recent analyst rating on (TSE:CGO) stock is a Hold with a C$65.00 price target. To see the full list of analyst forecasts on Cogeco Inc. SV stock, see the TSE:CGO Stock Forecast page.

Spark’s Take on TSE:CGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:CGO is a Neutral.

The score is driven by stable operating profitability and cash flow but meaningfully capped by very high leverage and weak/declining recent revenue. Technicals are supportive (price above key moving averages with positive momentum), and valuation is compelling (low P/E and high yield), while earnings-call guidance remains mixed due to expected near-term revenue/EBITDA declines and U.S. pressures.

To see Spark’s full report on TSE:CGO stock, click here.

More about Cogeco Inc. SV

Cogeco Inc., headquartered in Montréal and listed on the Toronto Stock Exchange, operates primarily in telecommunications and media. Through its Canadian and American telecom segments, the company provides internet, video, and wireline phone services, with a growing emphasis on high-speed internet and rural network expansion in Ontario, and is introducing higher-speed offerings such as 2.5 Gigabit services in the U.S. Its media arm, Cogeco Media, runs radio and digital advertising operations, leveraging a strong market position and increasingly focusing on digital solutions.

Average Trading Volume: 22,188

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$635.7M

Find detailed analytics on CGO stock on TipRanks’ Stock Analysis page.