Verizon Communications (NYSE:VZ) Announces Earnings Results

Verizon Communications (NYSE:VZ - Get Free Report) announced its quarterly earnings results on Friday. The cell phone carrier reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.03, Briefing.com reports. The company had revenue of $34.25 billion for the quarter, compared to analysts' expectations of $35.16 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The business's quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the firm posted $1.22 earnings per share. 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

Verizon Communications stock traded up $0.95 during mid-day trading on Monday, reaching $47.33. The company had a trading volume of 11,031,265 shares, compared to its average volume of 29,070,316. Verizon Communications has a fifty-two week low of $38.39 and a fifty-two week high of $51.68. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The company has a market cap of $197.63 billion, a P/E ratio of 12.32, a P/E/G ratio of 1.13 and a beta of 0.26. The business has a fifty day simple moving average of $45.39 and a 200 day simple moving average of $46.24.

Verizon Communications Announces Dividend

The company 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 dividend of $0.7075 per share. The ex-dividend date is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.0%. Verizon Communications's dividend payout ratio (DPR) is currently 73.70%.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Analysts raised price targets. Wells Fargo increased its target from $43 to $47, while maintaining an “equal weight” rating. The move suggests improved valuation support following Verizon’s results, although the new target implies limited upside from recent trading levels. Benzinga
• Positive Sentiment: Barclays also lifted its target. The firm raised its price objective from $45 to $46 and kept an “equal weight” rating, indicating modestly improved expectations but no strong bullish conviction. Tickerreport.com
• Positive Sentiment: Second-quarter earnings exceeded expectations. Verizon reported adjusted EPS of $1.30, above the $1.27 consensus estimate, and maintained fiscal 2026 EPS guidance of $4.99 to $5.04. The earnings beat and continued focus on cost controls appear to be supporting the stock. Verizon Q2 2026 Earnings Call Summary
• Neutral Sentiment: Valuation remains supported but cautious. Verizon trades at a relatively modest earnings multiple, while both Wells Fargo and Barclays retain neutral ratings. This suggests analysts see limited near-term catalysts despite the recent earnings momentum.
• Negative Sentiment: Revenue weakness remains a concern. Quarterly revenue of $34.25 billion missed estimates of $35.16 billion and declined 0.6% year over year. Critics say the EPS beat was driven largely by cost reductions rather than stronger underlying demand. Verizon Structural Problems Persist
• Negative Sentiment: Long-term financial and competitive risks persist. Verizon faces intensifying competition from wireless rivals and satellite providers, while its substantial debt, dividend commitments and buybacks may constrain investment flexibility.

Wall Street Analysts Forecast Growth

Several research firms recently commented on VZ. Scotiabank boosted their price objective on shares of Verizon Communications from $51.50 to $52.50 and gave the company a "sector outperform" rating in a research report on Monday. Wells Fargo & Company boosted their price target on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a research report on Monday. Freedom Capital raised shares of Verizon Communications to a "hold" rating in a research report on Friday, June 12th. Morgan Stanley boosted their price target on shares of Verizon Communications from $49.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Tuesday, April 28th. Finally, Dbs Bank cut shares of Verizon Communications from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Nine equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $50.50.

Hedge Funds Weigh In On Verizon Communications

Hedge funds have recently modified their holdings of the business. Mcguire Capital Advisors Inc. bought a new position in shares of Verizon Communications during the 4th quarter worth approximately $123,000. Compound Planning Inc. boosted its holdings in shares of Verizon Communications by 1.7% during the 4th quarter. Compound Planning Inc. now owns 58,409 shares of the cell phone carrier's stock worth $2,379,000 after buying an additional 970 shares in the last quarter. Claris Financial LLC bought a new position in shares of Verizon Communications during the 4th quarter worth approximately $365,000. Invesco Ltd. boosted its holdings in shares of Verizon Communications by 3.9% during the 4th quarter. Invesco Ltd. now owns 23,474,094 shares of the cell phone carrier's stock worth $956,100,000 after buying an additional 881,634 shares in the last quarter. Finally, Axxcess Wealth Management LLC boosted its holdings in shares of Verizon Communications by 37.8% during the 4th quarter. Axxcess Wealth Management LLC now owns 243,079 shares of the cell phone carrier's stock worth $9,901,000 after buying an additional 66,625 shares in the last quarter. Institutional investors and hedge funds 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.

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