Verizon Communications (NYSE:VZ) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Verizon beat quarterly earnings expectations, reporting adjusted EPS of $1.30 versus the $1.27 consensus, though revenue of $34.25 billion came in below estimates and was down 0.6% year over year.
• Management raised full-year 2026 guidance for adjusted EPS, mobility and broadband service revenue growth, and free cash flow, signaling improving business momentum.
• Verizon also highlighted stronger operating trends, including 184,000 postpaid phone net additions and 348,000 broadband additions, while expanding its share buyback target to as much as $4.5 billion.

Verizon Communications (NYSE:VZ - Get Free Report) announced its earnings results on Friday. The cell phone carrier reported $1.30 EPS for the quarter, topping the consensus estimate of $1.27 by $0.03, Briefing.com reports. The firm had revenue of $34.25 billion for the quarter, compared to the consensus estimate of $35.16 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business's quarterly revenue was down .6% on a year-over-year basis. During the same quarter last year, the firm posted $1.22 EPS. Verizon Communications updated its FY 2026 guidance to 4.990-5.040 EPS.

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

• Verizon said Q2 marked a clear inflection, with postpaid phone net adds of 184,000, consumer churn improving to 84 basis points, and broadband net additions of 348,000.
• The company raised full-year guidance for mobility and broadband service revenue to 2.5%-3%, adjusted EPS growth to 6%-7%, and free cash flow growth to 9%-10%.
• Management highlighted early success from its new consumer offers, including Simplicity, Verizon One, and the loyalty program, saying they are driving better gross adds, more new accounts, and lower acquisition and retention costs.
• Verizon emphasized its expanding growth vectors beyond the core wireless business, including a BT joint venture for international wireline assets and new AI infrastructure deals such as the announced Google contract.
• Capital returns remain strong, with $3.5 billion of buybacks year to date and a raised full-year repurchase target of up to $4.5 billion, supported by record-style cash flow generation and an improved balance sheet.

Verizon Communications Price Performance

NYSE:VZ traded up $1.52 during mid-day trading on Friday, hitting $45.34. The company's stock had a trading volume of 15,678,573 shares, compared to its average volume of 29,016,045. The company has a market capitalization of $189.32 billion, a price-to-earnings ratio of 11.07, a P/E/G ratio of 1.08 and a beta of 0.26. The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38. Verizon Communications has a fifty-two week low of $38.39 and a fifty-two week high of $51.68. The stock has a fifty day moving average of $45.39 and a 200-day moving average of $46.20.

Verizon Communications Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a $0.7075 dividend. This represents a $2.83 annualized dividend and a yield of 6.2%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications's dividend payout ratio is 69.02%.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon beat Q2 earnings estimates with adjusted EPS of $1.30 versus $1.27 expected, and management raised full-year 2026 guidance for adjusted EPS, mobility revenue growth, broadband revenue growth, and free cash flow. Reuters: Verizon lifts annual forecasts as new mobile plans spur subscriber gains
• Positive Sentiment: The company also expanded its full-year share buyback target to as much as $4.5 billion, which signals confidence in cash generation and supports shareholder returns. RTT News: Verizon Lifts FY26 View Despite Weak Q2, Expands Buyback
• Positive Sentiment: Operational trends looked better, with stronger-than-expected postpaid phone net additions and improving mobility and broadband momentum, which suggests Verizon’s new plans are gaining traction with customers. Reuters: Verizon signs deal with Google worth over $1 billion
• Neutral Sentiment: Verizon also disclosed a more than $1 billion dark-fiber deal with Google, a positive long-term business win, but it is less likely to move the stock today than earnings and guidance. Reuters: Verizon signs deal with Google worth over $1 billion
• Negative Sentiment: Revenue for the quarter missed consensus, which may temper enthusiasm because it shows Verizon is still facing top-line pressure even as profitability and cash flow improve.

Institutional Investors Weigh In On Verizon Communications

Several large investors have recently modified their holdings of the stock. Sumitomo Life Insurance Co. lifted its holdings in shares of Verizon Communications by 0.7% during the fourth quarter. Sumitomo Life Insurance Co. now owns 35,023 shares of the cell phone carrier's stock valued at $1,426,000 after purchasing an additional 227 shares during the last quarter. Monetary Management Group Inc. raised its holdings in Verizon Communications by 0.8% during the 2nd quarter. Monetary Management Group Inc. now owns 30,400 shares of the cell phone carrier's stock worth $1,315,000 after buying an additional 250 shares during the period. American Trust raised its holdings in Verizon Communications by 3.7% during the 4th quarter. American Trust now owns 8,697 shares of the cell phone carrier's stock worth $354,000 after buying an additional 314 shares during the period. Adams Wealth Management lifted its stake in Verizon Communications by 4.3% during the fourth quarter. Adams Wealth Management now owns 8,324 shares of the cell phone carrier's stock valued at $339,000 after buying an additional 340 shares in the last quarter. Finally, CacheTech Inc. lifted its stake in Verizon Communications by 4.3% during the fourth quarter. CacheTech Inc. now owns 8,324 shares of the cell phone carrier's stock valued at $339,000 after buying an additional 340 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

VZ has been the topic of several research analyst reports. Barclays lowered their price target on Verizon Communications from $47.00 to $45.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 8th. Royal Bank Of Canada lowered their target price on Verizon Communications from $48.00 to $46.00 and set a "sector perform" rating on the stock in a report on Monday. Dbs Bank downgraded Verizon Communications from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Weiss Ratings reiterated a "buy (b)" rating on shares of Verizon Communications in a report on Friday, May 29th. Finally, JPMorgan Chase & Co. increased their price objective on Verizon Communications from $49.00 to $52.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Nine investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $50.03.

Verizon Communications Company Profile

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.

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