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

Uniti Group (NASDAQ:UNIT) announced 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 analysts’ expectations 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%

UNIT traded down $1.08 during trading on Thursday, hitting $9.29. The company’s stock had a trading volume of 5,637,228 shares, compared to its average volume of 2,024,876. Uniti Group has a 12 month low of $5.30 and a 12 month high of $12.94. The stock has a market capitalization of $2.26 billion, a price-to-earnings ratio of 2.77 and a beta of 1.40. The firm’s 50 day moving average price is $11.24 and its two-hundred day moving average price is $9.88.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on UNIT shares. Wells Fargo & Company upped their price objective on Uniti Group from $8.00 to $9.00 and gave the company an “equal weight” rating in a research note on Tuesday, May 12th. TD Cowen upped their price target on Uniti Group from $10.00 to $12.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. Royal Bank Of Canada increased their price objective on Uniti Group from $6.50 to $7.50 and gave the stock a “sector perform” rating in a research note on Monday, April 13th. Williams Trading set a $12.00 price objective on Uniti Group in a report on Tuesday, May 12th. Finally, Barclays boosted their target price on shares of Uniti Group from $11.00 to $13.00 and gave the company an “equal weight” rating in a research note on Wednesday, July 1st. One investment 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 MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $11.14.

Institutional Investors Weigh In On Uniti Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Mackenzie Financial Corp raised its stake in shares of Uniti Group by 12.5% in the fourth quarter. Mackenzie Financial Corp now owns 12,202 shares of the real estate investment trust’s stock worth $84,000 after acquiring an additional 1,352 shares during the last quarter. Daiwa Securities Group Inc. increased its holdings in shares of Uniti Group by 2.0% in the second quarter. Daiwa Securities Group Inc. now owns 84,017 shares of the real estate investment trust’s stock valued at $363,000 after purchasing an additional 1,629 shares in the last quarter. Osaic Holdings Inc. raised its position in Uniti Group by 20.6% in the 2nd quarter. Osaic Holdings Inc. now owns 10,511 shares of the real estate investment trust’s stock worth $46,000 after purchasing an additional 1,795 shares during the last quarter. Xponance LLC raised its position in Uniti Group by 17.3% in the 4th quarter. Xponance LLC now owns 13,169 shares of the real estate investment trust’s stock worth $92,000 after purchasing an additional 1,944 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey lifted its holdings in Uniti Group by 12.8% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 44,783 shares of the real estate investment trust’s stock worth $314,000 after buying an additional 5,099 shares in the last quarter. Institutional investors own 87.51% of the company’s stock.

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.