Verizon Communications (NYSE:VZ) Issues Earnings Results

Key Points

• Verizon beat Q1 EPS estimates with $1.28 vs. $1.21 and raised FY‑2026 EPS guidance to $4.95–$4.99, while reporting its first positive Q1 postpaid phone net adds in 13 years (55,000) and a record adjusted EBITDA of $13.4B.
• The recently closed Frontier acquisition expands Verizon’s broadband scale and targets >32M passings this year and ~$1B run‑rate synergies by 2028, but pushed leverage to ~2.6x net unsecured debt/EBITDA with a plan to reduce to 2.0–2.25x in 2027.
• Verizon raised its quarterly dividend to $0.7075 (annualized $2.83), representing a ~6.0% yield, up from the prior quarterly payout of $0.69.

Verizon Communications (NYSE:VZ - Get Free Report) posted its quarterly earnings data on Monday. The cell phone carrier reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.07, Zacks reports. The company had revenue of $34.44 billion during the quarter, compared to analysts' expectations of $34.79 billion. Verizon Communications had a net margin of 12.43% and a return on equity of 19.03%. The firm's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. Verizon Communications updated its FY 2026 guidance to 4.950-4.990 EPS.

Here are the key takeaways from Verizon Communications' conference call:

• We delivered clear momentum with 55,000 postpaid phone net adds (first positive Q1 in 13 years), nearly 500k total mobility/broadband net adds, and raised full‑year adjusted EPS growth guidance to 5%–6% while guiding phone net adds to the upper half of the 750k–1M range.
• Unit economics improved materially — consumer postpaid churn fell to below 85 bps in March, cost of acquisition/retention fell ~35% (March vs. Q4), and adjusted EBITDA hit a record $13.4B with margin expansion, supporting the company’s $5B OpEx savings target for 2026.
• The Frontier acquisition (closed Jan 20) expands broadband scale and convergence opportunities with >$1B run‑rate cost synergies targeted by 2028 and an accelerated fiber build ( >32M passings targeted this year), but leverage rose to ~2.6x net unsecured debt/EBITDA with repayment plans to reach the 2.0–2.25x target in 2027.
• Management is executing a company‑wide transformation (10 workstreams) and an AI‑first push — examples include 85% of network issues autonomously resolved, ~$200M energy savings, strong customer satisfaction gains, and expected further cost and revenue benefits that support ~7%+ free cash flow growth guidance.

Verizon Communications Stock Performance

Shares of Verizon Communications stock opened at $47.04 on Tuesday. The business has a 50-day moving average of $49.02 and a 200 day moving average of $43.90. Verizon Communications has a 12 month low of $38.39 and a 12 month high of $51.68. The stock has a market capitalization of $196.63 billion, a price-to-earnings ratio of 11.62, a price-to-earnings-growth ratio of 1.19 and a beta of 0.29. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.91 and a quick ratio of 0.87.

Verizon Communications Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be issued a $0.7075 dividend. The ex-dividend date is Friday, April 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.0%. This is a boost from Verizon Communications's previous quarterly dividend of $0.69. Verizon Communications's dividend payout ratio (DPR) is presently 69.88%.

Analyst Upgrades and Downgrades

VZ has been the subject of several analyst reports. Erste Group Bank upgraded Verizon Communications from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 2nd. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $48.00 target price on shares of Verizon Communications in a research note on Monday, February 2nd. KeyCorp reissued a "sector weight" rating on shares of Verizon Communications in a research note on Monday, January 26th. William Blair upgraded Verizon Communications to an "outperform" rating in a report on Monday, February 2nd. Finally, Citigroup increased their price objective on Verizon Communications from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $50.22.

Trending Headlines about Verizon Communications

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Beat-and-raise: Verizon reported Q1 adjusted EPS above estimates and raised FY‑2026 EPS guidance to $4.95–$4.99, giving investors confidence in cash flow and earnings visibility. Verizon lifts annual profit forecast (Reuters)
• Positive Sentiment: Subscriber and margin surprise: Verizon delivered its first positive Q1 postpaid phone net adds since 2013 and reported record adjusted EBITDA and stronger margins — a core reason traders are rewarding the stock despite a modest revenue miss. Verizon's Turnaround Story (Yahoo Finance)
• Positive Sentiment: Large‑addressable AI/5G opportunity: Management said it is in advanced talks with hyperscalers, cloud providers and large enterprises to deploy fiber + 5G for AI infrastructure — a potential multibillion-dollar revenue stream if commercialized. Verizon lifts profit guidance after solid Q1 (Proactive)
• Neutral Sentiment: Revenue slight miss: Q1 revenue of ~$34.4B narrowly missed consensus (~$34.8B); investors are focusing on margins, EBITDA and subs instead of the top‑line shortfall. Why investors are ignoring the revenue miss (Invezz)
• Neutral Sentiment: Broader market backdrop: The Dow was softer while chip/AI names drove market moves; sector and index action may amplify or temper VZ’s intraday reaction. Stock Market Today: Dow Dips (Yahoo Finance)
• Negative Sentiment: Revenue headwinds from outage: Management noted that a January network outage weighed on revenue — a reminder that operational incidents can blunt top‑line momentum even as costs and margins improve. Verizon adds wireless subscribers but outage affected revenue (WSJ)

Insiders Place Their Bets

In related news, EVP Joseph J. Russo sold 9,579 shares of Verizon Communications stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $44.88, for a total value of $429,905.52. Following the completion of the transaction, the executive vice president owned 44,045 shares in the company, valued at approximately $1,976,739.60. The trade was a 17.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Hans Erik Vestberg sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $49.61, for a total transaction of $9,922,000.00. Following the sale, the director directly owned 145,069 shares in the company, valued at approximately $7,196,873.09. The trade was a 57.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 218,148 shares of company stock worth $10,780,356 over the last three months. Company insiders own 0.03% of the company's stock.

Institutional Trading of Verizon Communications

A number of large investors have recently modified their holdings of VZ. Brighton Jones LLC raised its position in Verizon Communications by 61.2% in the 4th quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier's stock valued at $1,759,000 after purchasing an additional 16,704 shares in the last quarter. Compass Capital Corp MA ADV purchased a new stake in shares of Verizon Communications during the fourth quarter worth approximately $177,000. Beaird Harris Wealth Management LLC raised its holdings in Verizon Communications by 18.1% in the third quarter. Beaird Harris Wealth Management LLC now owns 3,752 shares of the cell phone carrier's stock valued at $165,000 after acquiring an additional 575 shares in the last quarter. Prosperity Bancshares Inc acquired a new stake in Verizon Communications in the fourth quarter valued at approximately $129,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in Verizon Communications in the fourth quarter worth approximately $123,000. Hedge funds and other institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.