Why Cogent Communications Stock Crashed Today
The Motley Fool
by newsfeedback@fool.com (Anders Bylund)February 20, 2026
AI-Generated Deep Dive Summary
Cogent Communications (NASDAQ: CCOI) experienced a significant stock drop today, with shares falling as much as 33.8%. Despite beating earnings expectations, the company's mixed financial results led to investor concern. In Q4 2025, the multinational internet service provider reported net losses of $0.64 per share, an improvement from the previous year's $0.91 per share loss and better than the expected $1.03 per share deficit. However, revenues fell short, dropping 4.7% year-over-year to $240.5 million compared to the projected $243.7 million. This combination of a revenue miss and lackluster growth outlook has spooked investors, driving down the stock price.
The company's performance highlights the challenges in the competitive internet service provider market. Cogent's ability to generate consistent revenue growth is under scrutiny, with the latest figures suggesting potential pricing pressures or slower demand. While the net loss improvement is positive, it does not seem to have offset concerns about the broader financial health of the business.
This situation underscores the importance for investors to consider both top-line and bottom-line metrics when evaluating a company's performance. Cogent's experience demonstrates that even meeting earnings expectations may not be enough to satisfy investors if other key indicators, such as revenue growth, are
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Originally published on The Motley Fool on 2/20/2026