Verizon Communications (NYSE:VZ) Trading 2.1% Higher on Better-Than-Expected Earnings

Key Points

• Verizon beat quarterly earnings expectations, reporting EPS of $1.30 versus the $1.27 consensus estimate. However, revenue of $34.25 billion fell short of estimates and declined 0.7% year over year.
• The stock rose 2.1% following the results, while analysts raised several price targets; TD Cowen set the highest cited target at $56. Overall, MarketBeat’s consensus rating remains “Hold,” with a target price of $50.97.
• Verizon declared a quarterly dividend of $0.7075, equivalent to $2.83 annually and a 6.0% yield. Investors remain focused on the company’s improved cash flow and broadband growth, balanced against weak revenue growth, heavy debt and intensifying competition.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) rose 2.1% during trading on Monday following a better than expected earnings announcement. The stock traded as high as $47.56 and last traded at $47.3480. Approximately 30,145,364 shares changed hands during trading, an increase of 3% from the average daily volume of 29,164,730 shares. The stock had previously closed at $46.38.

The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The business had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. During the same quarter in the previous year, the company posted $1.22 earnings per share. The company's revenue for the quarter was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS.

Verizon Communications Announces Dividend

The company also recently disclosed 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 dividend on an annualized basis and a yield of 6.0%. The ex-dividend date is Friday, July 10th. Verizon Communications's dividend payout ratio (DPR) is 73.70%.

More Verizon Communications News

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

• Positive Sentiment: Verizon raised its 2026 financial outlook after reporting stronger-than-expected quarterly EPS, improved cash flow, lower wireless churn, reduced device-subsidy costs and broadband growth. These trends suggest better operating momentum and helped offset the company’s revenue shortfall. Is VZ Stock a Buy After Verizon Raises Its 2026 Financial Outlook?
• Positive Sentiment: Investors are increasingly viewing Verizon as an AI-infrastructure opportunity rather than only a wireless carrier. Its more than $1 billion dark-fiber transaction with Alphabet, along with investments in fiber networks and converged connectivity, could support long-term growth as data-center and AI demand expands. Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight
• Positive Sentiment: Analyst sentiment improved, with TD Cowen raising its price target to $56 and maintaining a buy rating. Scotiabank also lifted its target to $52.50 and kept a sector-outperform rating. Analyst price-target updates
• Neutral Sentiment: Morgan Stanley raised its target to $52 but retained an equal-weight rating. RBC increased its target to $47 and kept a sector-perform view, while Wells Fargo and Barclays also raised targets but remained neutral. The revisions imply limited upside from some analysts despite the broader target increases. Analyst price-target updates
• Negative Sentiment: Concerns remain about Verizon’s weak revenue growth, heavy debt load, intense wireless competition and potential pressure from satellite providers such as Starlink. Critics argue that cost reductions and buybacks may be masking limited underlying demand and could constrain future investment flexibility. Verizon: Structural Problems Persist

Analysts Set New Price Targets

A number of equities analysts have commented on VZ shares. TD Cowen upped their price objective on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a "buy" rating in a research report on Monday. JPMorgan Chase & Co. lifted their target price on shares of Verizon Communications from $49.00 to $52.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Royal Bank Of Canada boosted their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a "sector perform" rating in a research note on Monday. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a report on Friday, May 29th. Finally, Morgan Stanley raised their price objective on shares of Verizon Communications from $50.00 to $52.00 and gave the company an "equal weight" rating in a research report on Monday. Nine analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $50.97.

Institutional Investors Weigh In On Verizon Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of Verizon Communications by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 379,402,347 shares of the cell phone carrier's stock valued at $15,453,058,000 after purchasing an additional 5,497,598 shares during the period. State Street Corp grew its position in Verizon Communications by 3.5% during the fourth quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock worth $9,080,810,000 after buying an additional 7,461,335 shares during the period. Charles Schwab Investment Management Inc. increased its holdings in Verizon Communications by 5.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier's stock valued at $4,747,930,000 after buying an additional 5,851,715 shares in the last quarter. Geode Capital Management LLC increased its holdings in Verizon Communications by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 102,632,509 shares of the cell phone carrier's stock valued at $4,168,080,000 after buying an additional 867,694 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Verizon Communications by 15.4% during the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock valued at $3,117,471,000 after acquiring an additional 8,289,877 shares during the period. Institutional investors and hedge funds own 62.06% of the company's stock.

Verizon Communications Stock Performance

The stock's 50-day moving average price is $45.39 and its 200-day moving average price is $46.24. The company has a market capitalization of $197.70 billion, a price-to-earnings ratio of 12.33, a P/E/G ratio of 1.13 and a beta of 0.26. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.57 and a current ratio of 0.60.

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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