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

Uniti Group (NASDAQ:UNIT) issued its quarterly earnings results on Thursday. The real estate investment trust reported ($0.68) EPS for the quarter, missing analysts’ consensus estimates of ($0.43) by ($0.25), Zacks reports. The business had revenue of $909.70 million for the quarter, compared to analyst estimates 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 Trading Up 0.8%

Shares of NASDAQ:UNIT traded up $0.07 during mid-day trading on Friday, hitting $9.37. 211,283 shares of the company traded hands, compared to its average volume of 2,341,482. The stock has a 50-day moving average price of $11.24 and a two-hundred day moving average price of $9.88. Uniti Group has a 12-month low of $5.30 and a 12-month high of $12.94. The stock has a market cap of $2.27 billion, a P/E ratio of 2.81 and a beta of 1.40.

Institutional Trading of Uniti Group

Institutional investors have recently made changes to their positions in the company. Mercer Global Advisors Inc. ADV bought a new position in shares of Uniti Group during the fourth quarter valued at about $72,000. Osaic Holdings Inc. lifted its position 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 buying an additional 1,795 shares in the last quarter. Cibc World Markets Corp purchased a new position in shares of Uniti Group in the 4th quarter worth approximately $78,000. Cibc World Market Inc. bought a new position in shares of Uniti Group in the fourth quarter valued at approximately $81,000. Finally, Mackenzie Financial Corp increased its position in shares of Uniti Group by 12.5% during the fourth quarter. Mackenzie Financial Corp now owns 12,202 shares of the real estate investment trust’s stock valued at $84,000 after acquiring an additional 1,352 shares during the last quarter. Institutional investors own 87.51% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently commented on UNIT. JPMorgan Chase & Co. raised their target price on Uniti Group from $8.00 to $12.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 12th. Williams Trading set a $12.00 price objective on shares of Uniti Group in a research note on Tuesday, May 12th. Wells Fargo & Company increased their target price on shares of Uniti Group from $8.00 to $9.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 12th. UBS Group set a $12.00 price target on shares of Uniti Group in a research note on Tuesday, May 12th. Finally, Zacks Research upgraded shares of Uniti Group from a “strong sell” rating to a “hold” rating in a report on Friday, April 3rd. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $11.14.

Uniti Group Company Profile

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.