Verizon Communications (NYSE:VZ) Trading 1.4% Higher After Strong Earnings

Key Points

• Q1 beat and guidance raise: Verizon reported $1.28 EPS versus $1.23 expected, delivered record adjusted EBITDA, and raised FY‑2026 adjusted EPS guidance to $4.95–$4.99, sending the stock up about 1.4% intraday.
• Subscriber momentum and AI opportunity: Management noted surprise wireless subscriber gains and said it's in advanced talks with hyperscalers to deploy fiber and 5G for AI infrastructure—a potential multi‑billion dollar new revenue stream.
• Higher dividend but insider selling: Verizon increased its quarterly dividend to $0.7075 (annualized $2.83, ~6.0% yield), while insiders have sold roughly 218,148 shares in the past three months.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares traded up 1.4% during mid-day trading on Monday following a stronger than expected earnings report. The company traded as high as $48.65 and last traded at $47.0410. 37,736,657 shares changed hands during trading, an increase of 22% from the average session volume of 30,869,502 shares. The stock had previously closed at $46.38.

The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.05. Verizon Communications had a net margin of 12.43% and a return on equity of 19.03%. The company had revenue of $34.44 billion for the quarter, compared to the consensus estimate of $34.79 billion. During the same quarter in the previous year, the firm posted $1.19 EPS. The business's revenue was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS.

Verizon Communications Increases Dividend

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

Verizon Communications News Roundup

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

• Positive Sentiment: Beat on profit and margin strength — Verizon reported $1.28 EPS, topping estimates, and achieved record quarterly adjusted EBITDA, which underpinned the stronger near‑term outlook. Verizon's Turnaround Story Gets Its Best Quarter Since 2021
• Positive Sentiment: Surprise subscriber gains and guidance raise — Management reported unexpected first‑quarter wireless additions and raised FY‑2026 adjusted EPS guidance to $4.95–$4.99, boosting confidence in the recovery under the new CEO. Verizon lifts annual profit forecast after surprise rise in wireless subscribers
• Positive Sentiment: Potential new revenue streams from AI/enterprise deals — Verizon said it's in advanced talks with hyperscalers and cloud providers to deploy fiber and 5G for AI infrastructure, a multi‑billion dollar opportunity if it materializes. Verizon lifts profit guidance after solid Q1
• Neutral Sentiment: Revenue narrowly missed estimates — Q1 revenue of ~$34.4B was slightly below consensus, but the market is currently emphasizing margin/EBITDA strength and subscriber trends over the top‑line shortfall. Verizon stock: why are investors ignoring Q1 revenue miss
• Neutral Sentiment: Broad market backdrop — The broader market (Dow) was softer intraday, which caps upside for cyclical names even as VZ outperforms on company‑specific news. Stock Market Today: Dow Dips But Nvidia Gains; Google Stock, Chemicals Play Test Entries (Live Coverage)
• Negative Sentiment: Operational headwinds remain — Management acknowledged a January network outage that weighed on revenue, and some investors may watch whether top‑line growth normalizes without promotional pressure. Verizon Adds Wireless Subscribers in First Full Quarter Under New CEO

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Evercore boosted their price objective on shares of Verizon Communications from $48.00 to $50.00 and gave the stock an "outperform" rating in a report on Monday, February 2nd. Scotiabank upgraded shares of Verizon Communications from a "sector perform" rating to a "sector outperform" rating and boosted their price objective for the stock from $50.25 to $54.50 in a report on Monday, March 9th. Royal Bank Of Canada boosted their price objective on shares of Verizon Communications from $44.00 to $48.00 and gave the stock a "sector perform" rating in a report on Tuesday, February 3rd. KeyCorp restated a "sector weight" rating on shares of Verizon Communications in a report on Monday, January 26th. Finally, Morgan Stanley assumed coverage on shares of Verizon Communications in a report on Thursday, April 16th. They set an "equal weight" rating and a $49.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $50.56.

Insider Activity

In other news, EVP Joseph J. Russo sold 9,579 shares of Verizon Communications stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $44.88, for a total transaction of $429,905.52. Following the sale, the executive vice president directly owned 44,045 shares in the company, valued at approximately $1,976,739.60. The trade was a 17.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Hans Erik Vestberg sold 200,000 shares of Verizon Communications stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $49.61, for a total transaction of $9,922,000.00. Following the sale, the director owned 145,069 shares in the company, valued at approximately $7,196,873.09. This trade represents a 57.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 218,148 shares of company stock worth $10,780,356. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of Verizon Communications

Several institutional investors have recently made changes to their positions in the business. Baer Investment Advisory LLC acquired a new position in Verizon Communications in the first quarter valued at about $638,000. First Dallas Securities Inc. boosted its position in Verizon Communications by 1.8% in the first quarter. First Dallas Securities Inc. now owns 24,815 shares of the cell phone carrier's stock valued at $1,246,000 after buying an additional 445 shares in the last quarter. Carter Financial Group INC. acquired a new position in Verizon Communications in the first quarter valued at about $214,000. Turtle Creek Wealth Advisors LLC boosted its position in Verizon Communications by 82.2% in the first quarter. Turtle Creek Wealth Advisors LLC now owns 26,327 shares of the cell phone carrier's stock valued at $1,322,000 after buying an additional 11,875 shares in the last quarter. Finally, Flagstone Financial Management acquired a new position in Verizon Communications in the first quarter valued at about $332,000. 62.06% of the stock is currently owned by institutional investors and hedge funds.

Verizon Communications Stock Performance

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 quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 1.32. The stock's 50-day simple moving average is $49.06 and its 200 day simple moving average is $43.86.

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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