Uniti Group (NASDAQ:UNIT) Posts Quarterly Earnings Results, Misses Estimates By $0.25 EPS

Uniti Group (NASDAQ:UNIT) issued its earnings results on Thursday. The real estate investment trust reported ($0.68) EPS for the quarter, missing the consensus estimate of ($0.43) by ($0.25), Zacks reports. The company had revenue of $909.70 million for the quarter, compared to the consensus estimate of $884.82 million.

Here are the key takeaways from Uniti Group’s conference call:

• Fiber infrastructure demand reached record levels, with bookings MRR of approximately $2.2 million, up nearly 30% from the prior record. Demand was broad-based across hyperscalers, neoclouds, superscalers, and other customer segments, with waves and lit capacity representing more than half of quarterly bookings.
• Kinetic achieved record fiber expansion and subscriber growth, passing 141,000 additional homes and adding 38,000 net fiber subscribers in the quarter. The company raised its 2026 target to 475,000–525,000 new fiber homes constructed and now expects 675,000–700,000 fiber subscribers by year-end.
• Uniti raised its 2026 Fiber Infrastructure revenue outlook to approximately $1 billion at the midpoint, reflecting stronger hyperscale and AI-related activity. Management also highlighted attractive build economics, including blended anchor lease-up cash yields of 37% and a potential approximately $500 million of recurring revenue from new infrastructure.
• Kinetic consumer fiber ARPU declined 2.6% year over year and is expected to decrease by a low-single-digit percentage in the third quarter due to competitive promotions, rate-plan timing, and retention initiatives. Management expects ARPU to stabilize and return to low-single-digit growth in the fourth quarter, but noted that fiber material costs may rise from mid-2027 onward.
• Consolidated second-quarter revenue and adjusted EBITDA declined 5% and 10%, respectively, as legacy copper, TDM, and Uniti Solutions operations continued to contract. Uniti increased 2026 net CapEx guidance by $100 million to approximately $1.525 billion, partly to accelerate fiber construction, while some large Fiber Infrastructure deals could shift from late 2026 into early 2027.

Uniti Group Stock Down 10.4%

Shares of NASDAQ:UNIT traded down $1.08 on Thursday, hitting $9.29. The company had a trading volume of 5,637,228 shares, compared to its average volume of 2,024,876. The firm’s 50-day simple moving average is $11.24 and its two-hundred day simple moving average is $9.88. The firm has a market capitalization of $2.26 billion, a price-to-earnings ratio of 2.77 and a beta of 1.40. Uniti Group has a 1 year low of $5.30 and a 1 year high of $12.94.

Institutional Trading of Uniti Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Osaic Holdings Inc. grew its holdings in shares of Uniti Group by 20.6% during the 2nd quarter. Osaic Holdings Inc. now owns 10,511 shares of the real estate investment trust’s stock worth $46,000 after acquiring an additional 1,795 shares during the period. Mercer Global Advisors Inc. ADV bought a new stake in shares of Uniti Group during the fourth quarter valued at approximately $72,000. Cibc World Markets Corp bought a new stake in shares of Uniti Group during the fourth quarter valued at approximately $78,000. United Services Automobile Association purchased a new stake in Uniti Group in the first quarter worth $80,000. Finally, Cibc World Market Inc. purchased a new stake in Uniti Group in the fourth quarter worth $81,000. 87.51% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on UNIT shares. JPMorgan Chase & Co. raised their price target on shares of Uniti Group from $8.00 to $12.00 and gave the stock a “neutral” rating in a report on Tuesday, May 12th. Zacks Research raised shares of Uniti Group from a “strong sell” rating to a “hold” rating in a research note on Friday, April 3rd. Royal Bank Of Canada increased their target price on shares of Uniti Group from $6.50 to $7.50 and gave the stock a “sector perform” rating in a report on Monday, April 13th. TD Cowen raised their target price on Uniti Group from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. Finally, Williams Trading set a $12.00 price target on Uniti Group in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $11.14.

About Uniti Group

Uniti Group Inc is a real estate investment trust that owns, operates and acquires communications infrastructure assets across the United States. Established in September 2015 through a spin-off from Windstream Holdings, Uniti Group focuses on leasing fiber, small cell networks, cell towers and related infrastructure to service providers, wireless carriers and other enterprises requiring high-capacity connectivity. The company’s assets are designed to support the growing data demands of residential, business and governmental customers, with an emphasis on long-term contractual lease arrangements.

Uniti’s portfolio encompasses an extensive fiber network that spans metropolitan and rural markets, as well as a portfolio of wireless towers and small cell nodes that facilitate mobile network densification and help carriers deploy 5G services.