Akcie společnosti Verizon klesly o 4,71 % poté, co Bloomberg uvedl, že SpaceX jedná o přístupu k nejméně 80 000 lokalitám mobilních vysílačů v USA pro čtvrtého celostátního operátora.
Verizon Communications Inc. (NYSE:VZ) shares are trading lower after a Bloomberg report that SpaceX is in talks to access at least 80,000 U.S. cell sites for a fourth nationwide wireless network, with Verizon reporting third-quarter earnings Monday.
Verizon stock is feeling bearish pressure. What’s weighing on VZ shares? SpaceX Reportedly Is in Talks to Access 80,000 U.S. Cell Sites for a Fourth Wireless CarrierAccording to Bloomberg, which cited people familiar with the matter, SpaceX aims to secure at least 80,000 cell sites across the U.S. and is in talks with at least one major cellular infrastructure company, including Crown Castle. Bloomberg said the agreements would solidify SpaceX’s path toward a fourth nationwide carrier and could be worth billions of dollars. Crown Castle CEO Chris Hillabrant said on his company’s earnings call that “you can assume that we’re talking to all parties,” without naming customers. Verizon, AT&T and T-Mobile shares each fell about 5% on concerns about the new competition, while Crown Castle shares jumped as much as 10% in late trading.
The report follows SpaceX’s recent acquisition of low-band spectrum and its FCC approval to launch 15,000 satellites designed to serve mobile phones directly. “We will be building out our terrestrial networks so there’s broad-based connectivity anywhere that SpaceX and Starlink are allowed to operate,” Musk said on SpaceX’s earnings call this week.
Earnings Preview & HistoryVerizon is scheduled to report third-quarter earnings on October 26 before the market opens. Analysts estimate earnings per share of $1.27 along with revenue of $34.74 billion. For the prior quarter, Verizon reported earnings per share of $1.30, beating the consensus estimate of $1.27. The company also posted revenue of $34.25 billion, missing the consensus estimate of $35.11 billion.
What to Watch: Postpaid Phone Additions, Churn and FY GuidanceInvestors will be closely tracking postpaid phone net additions, which were 184,000 in the second quarter, the best consumer second-quarter result in five years. Verizon expects the full year to land in the upper half of its 750,000 to 1 million range, with 239,000 in the first half, so the pace needed in the second half is high.
Full-year guidance will also be in focus after Verizon raised it for a second straight quarter, now calling for adjusted earnings per share growth of 6% to 7% and free cash flow growth of 9% to 10%. Churn will be watched as well, with consumer postpaid phone churn at 84 basis points in the second quarter. Revenue, which fell 0.7% in the second quarter and missed estimates, will also be watched.
Read Next
Verizon Shares Edge LowerVZ Price Action: At the time of publication, Verizon shares are trading 4.71% lower at $43.07, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
Analytici očekávají, že Verizon ve čtvrtletí vykáže zisk na akcii ve výši 1,27 USD, což představuje meziroční nárůst o 5 %, při tržbách 34,81 miliardy USD.
Analysts on Wall Street project that Verizon Communications (VZ - Free Report) will announce quarterly earnings of $1.27 per share in its forthcoming report, representing an increase of 5% year over year. Revenues are projected to reach $34.81 billion, increasing 2.9% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Verizon metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Operating Revenues- Wireless equipment revenues' to reach $5.45 billion. The estimate indicates a change of -3% from the prior-year quarter.
It is projected by analysts that the 'Operating Revenues- Service revenues and other' will reach $29.29 billion. The estimate suggests a change of +3.9% year over year.
The consensus among analysts is that 'Operating revenues- Consumer' will reach $26.90 billion. The estimate suggests a change of +3% year over year.
The average prediction of analysts places 'Operating revenues- Business' at $7.19 billion. The estimate points to a change of +0.7% from the year-ago quarter.
Analysts' assessment points toward 'Operating revenues- Consumer- Other' reaching $2.40 billion. The estimate suggests a change of +140.1% year over year.
The consensus estimate for 'Operating revenues- Consumer- Wireless equipment' stands at $4.71 billion. The estimate indicates a year-over-year change of -1.2%.
According to the collective judgment of analysts, 'Wireless - Retail Prepaid Connections' should come in at 19.40 million. The estimate compares to the year-ago value of 19.06 million.
Analysts predict that the 'Wireless - Retail postpaid Connections' will reach 126.85 million. The estimate is in contrast to the year-ago figure of 125.91 million.
Analysts expect 'Wireless - Retail Connections - End of Period' to come in at 147.27 million. The estimate compares to the year-ago value of 146.12 million.
The collective assessment of analysts points to an estimated 'Operating Income (Loss)- Business' of $969.00 million. Compared to the present estimate, the company reported $637.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Operating Income (Loss)- Consumer' will likely reach $8.04 billion. Compared to the present estimate, the company reported $7.66 billion in the same quarter last year.
View all Key Company Metrics for Verizon here>>>
Shares of Verizon have demonstrated returns of -4.1% over the past month compared to the Zacks S&P 500 composite's +1% change. With a Zacks Rank #3 (Hold), VZ is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Společnost Verizon má za čtvrtletí vykázat EPS ve výši 1,27 USD, meziročně o 5 % více, a tržby ve výši 34,81 miliardy USD, což představuje růst o 2,9 %.
Wall Street expects a year-over-year increase in earnings on higher revenues when Verizon Communications (VZ - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 26, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis largest U.S. cellphone carrier is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +5%.
Revenues are expected to be $34.81 billion, up 2.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.06% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Verizon?For Verizon, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.68%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Verizon will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Verizon would post earnings of $1.27 per share when it actually produced earnings of $1.30, delivering a surprise of +2.36%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Verizon doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAT&T (T - Free Report) , another stock in the Zacks Wireless National industry, is expected to report earnings per share of $0.61 for the quarter ended September 2026. This estimate points to a year-over-year change of +13%. Revenues for the quarter are expected to be $31.68 billion, up 3.2% from the year-ago quarter.
The consensus EPS estimate for AT&T has been revised 4.4% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.77%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that AT&T will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Verizon Communications (VZ - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this largest U.S. cellphone carrier have returned -16.6%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Wireless National industry, which Verizon falls in, has gained 3.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Verizon is expected to post earnings of $1.28 per share, indicating a change of +5.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.04 points to a change of +7% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $5.29 indicates a change of +5% from what Verizon is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Verizon is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Verizon, the consensus sales estimate for the current quarter of $34.8 billion indicates a year-over-year change of +2.9%. For the current and next fiscal years, $140.94 billion and $143.86 billion estimates indicate +2% and +2.1% changes, respectively.
Last Reported Results and Surprise HistoryVerizon reported revenues of $34.25 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $1.3 for the same period compares with $1.22 a year ago.
Compared to the Zacks Consensus Estimate of $35.31 billion, the reported revenues represent a surprise of -3%. The EPS surprise was +2.36%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Verizon is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Verizon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Akcie společnosti Verizon v poslední obchodní seanci klesly o 8,75 %, nejvíce od roku 2002, poté co SpaceX oznámila plán rozšířit Starlink o služby mobilního operátora v USA.
SpaceX just handed Verizon its worst single-day drop since 2002, yet one Wall Street firm sees the selloff as an opportunity that could reward patient investors far more than the broader market consensus suggests.
Verizon Communications (NYSE:VZ | VZ Price Prediction) is priced at $41.65. Wall Street’s average price target is $51.12, which places the stock about 22.7% below where analysts think it should be.
Verizon runs one of the country’s largest wireless networks. After buying Frontier, it also has a fiber business with 10.9 million fiber connections. Wall Street has been watching because CEO Dan Schulman’s turnaround is finally delivering subscriber growth.
Arete Research is the most bullish firm on the stock. It rates Verizon a Buy with a $62.00 target, the Street high. That target means 48.9% upside.
SpaceX Hits a Turnaround Story in Mid-Stride
Starlink’s Carrier Ambitions Sparked Verizon’s Worst Day Since 2002
The main reason for the drop is SpaceX’s plan to turn Starlink into a major U.S. mobile carrier. Verizon fell 8.75% in the latest session, its worst day since 2002. The stock is down 14.84% over the past month and 5.18% over six months. Most of the damage came in a few days.
The whole sector took the hit. AT&T (NYSE:T) dropped 9.85% and T-Mobile US (NASDAQ:TMUS) dropped 13.27% in the same session, while the S&P 500 rose 0.6%. Verizon’s own results were mixed. Adjusted EPS of $1.30 beat the $1.27 estimate. But ARPA fell 1.4% and fixed wireless net additions fell 30.6%.
Arete’s $62 Target Depends on Cash Flow and Churn
Arete cut its target from $71.00 but kept its Buy rating. Its case has three parts: winning broadband share through fixed wireless, rising free cash flow as spending declines, and pricing power backed by low churn.
The cash flow numbers support the bulls. Free cash flow reached $6.426 billion last quarter, up 27.12%. Full-year guidance now calls for $21,940-$22,140 million. Verizon added 184,000 postpaid phone customers, compared with a loss of 9,000 a year earlier. Churn improved to 0.92%. Management raised EPS guidance to $4.99-$5.04 and expects service revenue growth of about 3.0% in Q3 and 4.0% in Q4. Those quarterly reports are the next tests. Schulman put it this way: “We are no longer predominantly reliant on expensive promotions to drive our growth.”
Arete’s broadband part leans on fixed wireless, the same segment where additions are slowing. Starlink also goes after rural and home internet customers. The wider Street is more cautious. Verizon has 3 Strong Buy ratings, 8 Buy ratings, 15 Hold ratings and no Sells.
All Three Carriers Fell, and T-Mobile Shows the Widest Gap
The peer group sold off together. Verizon fell alongside its rivals.
AT&T trades at $22.17. It is down 10.71% over the past month. Its $28.80 average target means 29.9% upside. Ratings tip bullish: 16 Buy-side ratings, 9 Holds and 1 Sell. Verizon does not offer as much consensus upside.
T-Mobile trades at $148.58. It is down 25.22% this year. Its $241.24 target means 62.4% upside, with 23 Buy-side ratings and 5 Holds.
T-Mobile has the largest potential upside in the group. Verizon’s consensus gap is the lowest of the three, and only Arete’s outlier target brings it near 50%. Price targets are estimates and can be wrong for any of these stocks.
Verizon Gains This Year but Lags the S&P 500
At $41.65, Verizon sits 22.7% below the $51.12 average target set by 26 analysts. The stock is up 9.23% this year. The S&P 500 is up 14.17% over the same period.
The stock trades at about 9x forward earnings and yields 6.12%.
Verizon’s Bull Case Comes With a Starlink Risk Attached
Optimism builds if churn keeps falling, service revenue growth reaches about 4% by year-end, and free cash flow lands within guidance while leverage moves toward the 2.0 to 2.25 times target. The bear case gains weight if Starlink pushes down rural wireless and home internet pricing and forces Verizon back into expensive promotions while carrying $136.5 billion in unsecured debt.
On balance, the data tip positive. The consensus gap of 22.7% looks more realistic than Arete’s 48.9%. A single-digit earnings multiple and a 6% yield pay investors while the satellite threat plays out.
Contact [email protected] for any questions or corrections.
Společnost SpaceX se dohodla na akvizici licencí v pásmu 800 MHz od společnosti Grain Management, aby posílila Starlink Mobile. Transakce vyžaduje schválení FCC.
Space Exploration Technologies Corp.‘s (NASDAQ:SPCX) push into wireless is creating an unexpected split in the stock market: traditional telecom carriers are under pressure, while the companies that own their physical infrastructure are climbing.
The distinction matters because even a satellite-powered mobile network may need plenty of equipment on the ground, potentially turning a threat to Verizon Communications Inc. (NYSE:VZ) into an opportunity for cell-tower owners.
SpaceX Raises the StakesOn Oct. 8, SpaceX agreed to acquire Grain Management’s nationwide portfolio of 800 MHz wireless spectrum licenses, a move designed to help Starlink Mobile become a major U.S. carrier. The deal covers up to 14 megahertz of paired spectrum and requires approval from the Federal Communications Commission, according to Grain Management’s announcement.
The market wasted little time reacting. Verizon, AT&T Inc. (NYSE:T) and T-Mobile Inc (NASDAQ:TMUS) fell between 5.5% and 7.4% in premarket trading on Oct. 9, while SpaceX shares rose. The sell-off reflected investor concerns that Starlink could eventually compete for wireless subscribers, particularly in rural markets where satellite connectivity has an advantage.
Low-band spectrum can travel farther and penetrate buildings more effectively than higher-frequency signals. Combined with satellites, it could help SpaceX extend connectivity beyond traditional coverage gaps and challenge established carriers’ pricing and customer relationships.
Read Next
Why Tower Stocks Are RisingThe surprising beneficiaries are American Tower Corp. (REIT) (NYSE:AMT), Crown Castle Inc. (NYSE:CCI) and SBA Communications Corp (NASDAQ:SBAC). Their shares rose as investors considered a possibility that the carrier sell-off obscures: SpaceX may disrupt wireless service without eliminating the need for terrestrial infrastructure.
Satellites can provide broad coverage, but ground-based networks remain important for capacity in densely populated areas. Towers, rooftops and small-cell equipment can help connect devices and manage traffic where demand is concentrated.
Reuters cited Morgan Stanley analysts describing the spectrum transaction as potentially constructive for tower operators. A hybrid network could require additional ground deployments, particularly if SpaceX competes beyond rural coverage and targets urban subscribers.
That is an opportunity, not a guaranteed windfall. Tower companies would benefit only if SpaceX or its partners actually lease infrastructure or deploy equipment that generates additional revenue. The acquisition alone does not establish that contracts are coming.
What Investors Should WatchThe next catalyst is execution. Investors should look for FCC approval, details of Starlink Mobile’s rollout and evidence of tower-leasing agreements that could translate the market’s optimism into revenue. Verizon and its peers face a potential new competitor, but the threat will depend on coverage, pricing and how quickly SpaceX can build a reliable service.
For tower owners, the investment case is more nuanced than simply betting against telecom carriers. If SpaceX expands its terrestrial network, infrastructure providers could gain a new customer even as existing tenants face competitive pressure. Until leasing commitments emerge, however, the rally remains a bet on what SpaceX may need — not revenue it has already secured.
Verizon zveřejní výsledky 26. října 2026; analytici očekávají zisk na akcii (EPS) ve výši 1,28 USD a tržby 34,8 miliardy USD, což představuje meziroční růst o 5,79 %, respektive o 2,89 %.
Verizon Communications (VZ - Free Report) closed at $46.35 in the latest trading session, marking a +1.27% move from the prior day. This move outpaced the S&P 500's daily loss of 0.47%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%.
The stock of largest U.S. cellphone carrier has fallen by 7.98% in the past month, lagging the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2026. On that day, Verizon Communications is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 5.79%. Simultaneously, our latest consensus estimate expects the revenue to be $34.8 billion, showing a 2.89% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.04 per share and revenue of $140.94 billion, which would represent changes of +7.01% and +1.99%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. As of now, Verizon Communications holds a Zacks Rank of #2 (Buy).
Digging into valuation, Verizon Communications currently has a Forward P/E ratio of 9.09. For comparison, its industry has an average Forward P/E of 11.09, which means Verizon Communications is trading at a discount to the group.
Meanwhile, VZ's PEG ratio is currently 1.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Wireless National industry stood at 1.55 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Verizon ve druhém čtvrtletí roku 2026 získal 184 000 zákazníků mobilních tarifů s měsíčním vyúčtováním a 348 000 zákazníků širokopásmového připojení, avšak vysoké investice a dluh zůstávají rizikem.
Key Takeaways Verizon added 184,000 postpaid phone customers as churn and acquisition costs declined.Broadband growth and Verizon One are strengthening customer retention and lifetime value.High capital spending and debt remain challenges despite improving operating trends. Verizon Communications Inc. (VZ - Free Report) has declined 6.5% in six months against the Wireless National industry’s growth of 131.2%. The stock has underperformed the Zacks Computer & Technology sector during this period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Shares of AT&T have declined 14.1%, while T-Mobile has declined 18.5% during this period.
Key Growth Drivers for VerizonVerizon added 184,000 postpaid phone customers in the second quarter of 2026, up 193,000 year over year, while Consumer postpaid phone churn declined to 0.84% compared with 0.90% in the first quarter and 0.95% in the fourth quarter of 2025. Promotional acquisition and retention costs declined approximately 15% and 17%, respectively, year over year. The combination of stronger net additions, lower churn and better acquisition economics is improving operating leverage.
Broadband expansion remains another major growth catalyst for the company. Verizon added 348,000 broadband subscribers in the second quarter, taking its total broadband base above 17.1 million. The company remains on track to reach more than 32 million fiber passings by year-end. The Frontier acquisition is also creating opportunities to cross-sell mobility and broadband services.
The newly launched Verizon One plan, which combines Mobility and Broadband into a single offering, is also gaining traction. Management believes bundled mobility and broadband offerings improve retention and customer lifetime value by encouraging households to consolidate services. Verizon continues to compete with AT&T, which is also investing heavily in converged wireless and fiber offerings, making customer retention an increasingly important differentiator.
One of the most significant longer-term opportunities is Verizon's plan to leverage its extensive fiber infrastructure to support the rapid expansion of AI-related data centers. The company has signed an agreement worth more than $1 billion with Google to use Verizon's dark fiber to connect data centers. Verizon is also positioning itself for the next generation of wireless technology through its expanded 6G Innovation Forum, which added nine major technology companies, including AWS, NVIDIA, Intel and Cisco. Verizon has already conducted real-world trials involving integrated sensing and communications, as well as AI-enabled applications and wearables.
Key ChallengesVerizon operates in a highly competitive wireless market where pricing, promotional offers and network quality can quickly influence customer decisions. It faces competition from major players such as AT&T, T-Mobile and Charter. Although Verizon has improved postpaid churn and customer acquisition economics, maintaining that momentum without resorting to aggressive promotions will be critical.
Verizon continues to invest heavily in fiber, wireless spectrum and network infrastructure while simultaneously returning capital to shareholders. Capital expenditures reached $8.2 billion in the first half of 2026, with full-year capital spending guided at $16-$16.5 billion. These investments will likely support growth in the long run, but this is putting pressure on free cash flow in the near term.
Verizon reduced debt and paid off substantially all of Frontier's debt six months ahead of schedule. However, its net unsecured debt-to-adjusted EBITDA ratio stood at 2.5X at the end of the second quarter. At the end of second-quarter 2026, total unsecured debt stood at $136.5 billion, while net unsecured debt totaled $128.7 billion.
Estimate Revision Trend of VZEarnings estimates for VZ for 2026 have remained unchanged for the past 60 days while for 2027 it has increased.
Image Source: Zacks Investment Research
Key Valuation Metric of VZFrom a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry and its mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.75, lower than 37.6 for the industry.
Image Source: Zacks Investment Research
End NoteImproving wireless customer trends and broadband expansion are the primary growth engines for Verizon. Its convergence strategy is strengthening retention, while cost reductions are expanding margins. However, Verizon's improving operating trends do not eliminate the risks facing the company. Stiff competition and high debt burden remain major concerns. Verizon must execute its transformation and Frontier integration, manage a substantial investment program and convert its emerging AI infrastructure opportunity into durable revenue. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon zvýšil celoroční upravený výhled EPS na 4,99 až 5,04 USD a přidal nové růstové tahouny: optickou síť Frontier a rané tržby z AI infrastruktury.
Verizon's stock has cooled sharply after a strong year, yet two fresh growth catalysts are quietly stacking up behind a 6% yield that already pays you to wait. Whether those drivers can actually move the needle depends on a debt…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Verizon (NYSE:VZ | VZ Price Prediction) pays a dividend yielding 6.01%. It now has two new growth drivers on top of that: the Frontier fiber network and early AI infrastructure revenue. Our 24/7 Wall St. price target for Verizon is $55.02 over the next 12 months.
24/7 Wall St. Price Target Summary Metric Value Current Price $47.35 24/7 Wall St. Price Target $55.02 Upside/Downside 16.2% Recommendation BUY Confidence Level 90% Our model’s confidence is high. Verizon trades at about 9x forward earnings, and management raised full-year adjusted EPS guidance to $4.99 to $5.04. The yield pays shareholders while they wait for fiber and AI revenue to show up in the numbers.
Six Straight Beats, Yet Shares Cooled in September VZ is up 21.46% year to date but has fallen 6.27% over the past month and 2.55% over the past week. It also lagged competitors on Tuesday (MarketWatch). Shares sit about 8.4% below the $51.67 52-week high and 29.5% above the $36.55 low.
Second-quarter adjusted EPS of $1.30 beat the $1.27 consensus, making it the sixth consecutive beat. Revenue fell 0.7% to $34.25 billion because Verizon by design pulled back on device subsidies. Service revenues rose 3.5%, and free cash flow grew 27.12%.
Why Bulls See $57 and Beyond Verizon closed the Frontier deal on January 20, 2026, which extended its fiber reach to 30M+ homes and businesses. Management expects more than 32 million fiber passings by year-end and more than $1 billion in run-rate cost savings by 2028. Churn is almost 30% less on converged plans.
AI adds the second drivers. Earlier this year, management said hyperscaler talks carried “the potential for multi billions in revenues.” CEO Dan Schulman said in the second quarter that “with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
Among analysts, 2 rate the stock Strong Buy, 7 Buy and 16 Hold, with no Sell ratings. Our bull case is $57.39.
Debt and Softer ARPA Could Cap the Rally Unsecured debt totals $136.5 billion, and leverage rose to 2.5x from 2.2x. Postpaid ARPA (average revenue per account) fell 1.4%, and GAAP net income dropped 21.07%.
That decline largely reflects $1.8 billion in pre-tax special items. Management also expects to repay substantially all of Frontier’s debt by the end of the year. Our bear case is $48.38.
Verizon Screens Cheaper Than AT&T and T-Mobile Company Forward P/E Dividend Yield Verizon 9x 6.01% AT&T 10x 4.39% T-Mobile 12x 2.46% AT&T (NYSE:T) is Verizon’s closest rival in fiber-plus-wireless bundles. It added 432,000 postpaid phones last quarter, ahead of Verizon’s 184,000. The market pays a slightly higher multiple for that momentum and gets a lower yield in return.
T-Mobile (NASDAQ:TMUS) is the growth contrast, with service revenue up 9%. Our target implies about 11x forward EPS, which sits between AT&T and T-Mobile. That places the 24/7 Wall St. price target at a reasonable spot within the peer group.
Verizon Price Prediction 2026-2030 Our 24/7 Wall St. price target of $55.02 carries a buy rating at 90% confidence. What tips the scale for me is free cash flow guidance of $21.94 billion to $22.14 billion, which well funds the dividend.
The setup looks compelling to me if Verizon keeps paying down Frontier debt on schedule and puts numbers on AI deals. I’d grow conservative if ARPA keeps slipping while leverage stalls. On balance, I think the risk-reward favors shareholders.
Year 24/7 Wall St. Price Target 2026 $47.88 2027 $55.07 2028 $61.74 2029 $66.79 2030 $71.86 These projections assume Verizon keeps executing on convergence and cutting debt. AI infrastructure contracts could push results above this path, while pricing pressure from rivals could pull them below it.
Contact [email protected] for any questions or corrections.
Verizon ve 2. čtvrtletí zvýšil volný peněžní tok o 24,4 % na 6,4 miliardy USD. Firma zároveň zvýšila výhled růstu volného peněžního toku pro rok 2026 na 9–10 %.
Key Takeaways Verizon's Q2 free cash flow rose 24.4% year over year to $6.4 billion on stronger profitability.Verizon raised its 2026 free cash flow growth outlook to 9%-10%, up from about 7% previously.Verizon faces substantial capital needs as fiber expansion and wireless network upgrades pressure cash flow. Verizon Communications Inc. (VZ - Free Report) is benefiting from strong free cash flow growth. In the second quarter of 2026, Verizon generated $6.4 billion of free cash flow, up 24.4% year over year. It was one of the strongest quarterly cash flow performances.
Strong free cash flow is supported by improving profitability. Adjusted EBITDA increased 7.2% year over year to $13.7 billion in the second quarter, while the adjusted EBITDA margin expanded to 40.1% from 37.1% a year ago. Verizon’s strategy to improve customer acquisition and retention economics while reducing costs is boosting operating leverage and driving cash flow.
Verizon's ongoing transformation program is another potential source of cash flow improvement. Management said the company remains on track to achieve at least $9 billion of operating and capital expenditure savings. Backed by strong first-half performance, Verizon has increased its expectations for full-year free cash flow growth. Management now expects 9-10% year-over-year free cash flow growth in 2026, compared with its earlier outlook of approximately 7%.
The company expects increased AI infrastructure-related revenues in 2027. Better customer economics and cost efficiencies will continue to drive cash flow for Verizon. However, despite the improvements, Verizon's free cash flow trajectory remains closely linked to its investment requirements. The company is continuing to fund fiber expansion and wireless network upgrades. The key question is whether the structural improvements can offset Verizon's substantial capital needs and support free cash flow growth in the near term.
How Are Competitors Faring?Verizon faces competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) in the telecommunications space. AT&T generated $4.7 billion of free cash flow in the second quarter of 2026, up from $4.4 billion a year earlier. Operating cash flow increased to $10.8 billion from $9.8 billion, while capital expenditures rose to $5.7 billion from $4.9 billion. AT&T benefited from lower cash tax payments and working-capital timing.
T-Mobile reported $4.8 billion of Adjusted Free Cash Flow in the second quarter of 2026, representing a 4% year-over-year increase. Operating cash flow rose 7% to $7.5 billion, while cash purchases of property and equipment increased 13% to $2.7 billion. T-Mobile also witnessed higher capital spending during the quarter.
VZ’s Price Performance, Valuation & EstimatesVerizon shares have gained 11.5% over the past year compared with the industry’s growth of 97.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 9.21, significantly below the industry average of 38.35.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 1% to $5.03 per share, while the same for 2027 have risen 0.2% to $5.29 over the past 60 days.
Image Source: Zacks Investment Research
Verizon stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon letos obrací trend: ve 2. čtvrtletí přidal 184 000 čistých přírůstků paušálních telefonních linek a akcie od začátku roku vzrostly o více než 25 %.
Verizon Communications' (VZ -2.87%) stock has been somewhat disappointing over the last several years. As a business, the telecom giant lagged its competitors, and investors saw minimal growth in its metrics and in its stock.
All that has changed in 2026, and Verizon has real potential to be the top-performing telecom stock this year.
Premium Feature
Moneyball Superscore
70/100
Today's Change
(
-2.87
%) $
-1.43
Current Price
$
48.33
Verizon's turnaround story is impressive. Under new CEO Dan Schulman, Verizon is now consistently beating quarterly expectations. Schulman became the CEO in October 2025 after serving on the board of directors since 2018. In the second quarter of 2026, Verizon reported 184,000 in postpaid net phone additions, a stunning reversal from a loss just a year ago.
Image source: The Motley Fool.
Verizon also acquired Frontier Communications, which has increased its fiber broadband connections by more than 43% year over year. Verizon is reducing costs significantly, targeting $5 billion in cuts in 2026 alone. Verizon's stock has responded to the improvements -- including expanding earnings before interest, taxes, depreciation, and amortization (EBITDA) and margins -- rising more than 25% this year as of this writing.
Verizon's biggest competitors, T-Mobile and AT&T, are both performing solidly but don't have the momentum Verizon has right now in the market or operationally. Verizon's growing dividend and successful execution of its turnaround make it a compelling investment. The stock is also still fairly priced, perhaps even slightly undervalued, if it can continue posting strong growth numbers. For those interested in comeback stories, it's worth a closer look.
Catie Hogan has positions in AT&T. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Verizon rozšířila 6G Innovation Forum o devět technologických firem a testuje nové 6G funkce včetně snímání hustoty davu a sledování dronů. Představila také AI Sports Companion pro živé sportovní informace.
Key Takeaways Verizon added nine major technology companies to its 6G Innovation Forum, broadening its ecosystem.VZ is testing wireless sensing for crowd density, drones and ground vehicles alongside 5G communications.AI Sports Companion uses Meta AI glasses, edge computing and NVIDIA technology for real-time sports insights. Verizon Communications (VZ - Free Report) is expanding its efforts toward next-generation wireless technology through the Verizon 6G Innovation Forum and real-world trials of emerging 6G capabilities. The company is focused on building an artificial intelligence (AI)-native network designed to support advanced applications, connected devices and future digital experiences.
Verizon has added nine major technology companies to the forum, including Amazon Web Services, Cisco, Intel, Keysight Technologies, MediaTek, NVIDIA, Palo Alto Networks, Rohde & Schwarz and VIAVI Solutions. They join founding members Ericsson, Samsung, Nokia, Meta and Qualcomm Technologies, strengthening Verizon’s ecosystem across cloud computing, AI, semiconductor technology, cybersecurity and network testing.
The company has demonstrated Integrated Sensing and Communication (ISAC) through trials with Samsung and Qualcomm, highlighting wireless networks' ability to provide real-time sensing. Verizon and Samsung tested crowd-density monitoring using wireless signals, while a separate trial with Qualcomm successfully tracked drones and ground vehicles alongside high-speed 5G communications.
Verizon has also showcased its AI Sports Companion prototype, which uses Meta AI glasses, edge computing and NVIDIA technology to deliver real-time sports statistics and insights through voice commands. It plans to use the 2028 Los Angeles Olympics as a key testing ground for 6G technologies such as AI, ISAC, robotics and smart wearables. These initiatives reinforce the company’s position as the wireless industry advances toward 6G and more intelligent connectivity.
How Are Competitors Advancing in 6G?Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . AT&T is exploring 6G-related technologies that combine wireless connectivity with real-time sensing capabilities. The company demonstrated drone detection using its 5G network in collaboration with Ericsson, highlighting technologies that could support future 6G networks. AT&T is advancing Open RAN and cloud-based network technologies as it prepares for the next phase of wireless connectivity.
T-Mobile is accelerating its work toward 6G by collaborating with technology partners on future wireless technologies. The company is exploring wider bandwidths, Giga-MIMO radios and AI-native network capabilities as it prepares for the evolution from 5G to 6G. T-Mobile is using Nokia’s 6G equipment to explore new spectrum capabilities that could support future wireless networks.
VZ’s Price Performance, Valuation & EstimatesVerizon’s shares have gained 17.3% over the past year compared with the industry’s growth of 94.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 9.83, significantly below the industry average of 38.33.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 1% to $5.03 per share, while the same for 2027 have risen 0.2% to $5.29 over the past 60 days.
Image Source: Zacks Investment Research
Verizon stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AT&T má podle článku bezpečnější dividendu než Verizon, protože její výplata po capexu spotřebuje menší část volného cash flow. Verizon sice nabízí vyšší výnos a 19 let růstu dividendy, ale AT&T má větší rezervu.
Verizon flaunts 19 straight years of dividend raises while AT&T just slashed its payout, yet one closely watched coverage ratio flips the safety story in a direction most income investors never see coming.
For retirement-focused investors who lean on telecom dividends, the choice comes down to Verizon (NYSE:VZ | VZ Price Prediction) versus AT&T (NYSE:T), and the real question is which payout is actually safer. Headline yield is the trap. Payout coverage after enormous network capital spending, balance sheet leverage, and the direction of the underlying business decide whether the check keeps coming. Judged that way, one of these dividends has a clearly bigger cushion behind it.
Dividend Safety and Payout Coverage Verizon carries the richer headline of the two. Its trailing dividend is $2.795 per share for a yield of 5.59%, backed by a raise streak the company describes as 19 consecutive annual increases and an annualized forward payout of $2.83. AT&T yields 4.34% on a $1.11 annualized dividend that has been held flat since the WBD spinoff reset, with management committed to holding that level through 2028.
Cash coverage is where the story flips. Verizon paid $11.481 billion in common dividends on $37.137 billion of operating cash flow against $17.011 billion of capex in its last fiscal year. AT&T paid only $8.18 billion in dividends on $40.284 billion of operating cash flow against $20.842 billion of capex. The reset cut AT&T’s payout obligation nearly in half from the $15.068 billion it distributed in fiscal 2021, and that cushion is precisely what a retiree wants sitting between the dividend and a bad quarter. Edge: AT&T.
Balance Sheet and Debt Load Both carriers just closed transformative fiber deals that pushed leverage higher. Verizon reports net unsecured debt to adjusted EBITDA of 2.5x, with total unsecured debt of $136.5 billion and a plan to walk leverage back into the 2.0 to 2.25 times range during the 2027 timeframe. AT&T sits at 2.68x net debt to adjusted EBITDA on $144 billion of total debt, and CFO Pascal Desroches told investors leverage will climb further into the 3.2 times range after the EchoStar spectrum acquisition closes, then take roughly three years to return to target. Verizon is delevering. AT&T is about to relever. Edge: Verizon.
Growth Trajectory of the Underlying Business Dividend safety over a retirement horizon depends on the business getting bigger. Verizon guides full-year adjusted EPS of $4.99 to $5.04, service revenue growth of 2.5 to 3.0%, and free cash flow of $21.94 to $22.14 billion. AT&T guides adjusted EPS of $2.25 to $2.35, EBITDA growth of 3 to 4% accelerating to 5%+ by 2028, and a double-digit adjusted EPS three-year CAGR through 2028, with free cash flow scaling to $21 billion+ in 2028. Operationally, AT&T posted 432,000 postpaid phone net adds in its latest quarter against Verizon’s 184,000, and advanced connectivity service revenue grew 5.1% year-over-year. AT&T is also pulling forward buybacks to roughly $10 billion, which Stankey framed against a “disparity between our operating fundamentals and the valuation of our stock.” Edge: AT&T.
The Verdict For an income investor whose primary worry is that the dividend gets cut again, AT&T is the safer telecom payout. It wins two of the three dimensions that matter: the payout consumes a smaller share of free cash flow after capex, and the earnings power funding that payout is growing faster. Trading at a forward P/E of 10 against Verizon’s 9, you are not paying up for the extra safety by much. A 5%-plus yield still deserves a gut check either way, and we listed the seven warning signs that a big payout is about to be cut in a free dividend trap guide.
Verizon wins for one specific profile: the retiree who prioritizes a higher current yield and the psychological comfort of a long, unbroken raise streak, and who is willing to trust management’s delevering plan. What would flip the verdict to Verizon outright is a clean glide back to the 2.0 to 2.25 times leverage target on schedule while AT&T’s post-EchoStar leverage stalls above 3.2 times. Until then, AT&T is the dividend with the bigger margin of safety.
Contact [email protected] for any questions or corrections.
Verizon zvýšil celoroční výhled upraveného EPS na 6 % až 7 % a volného cash flow na 9 % až 10 %. Ve druhém čtvrtletí rostly tržby z mobilních služeb a broadbandu o 2,8 %.
AST SpaceMobile Stock Soared 12%—This Was the CatalystVerizon Communications NYSE: VZ Chief Financial Officer Tony Skiadas said the company is focused on growing its mobility and broadband businesses while maintaining spending discipline, improving customer retention, reducing costs and increasing cash returns to shareholders.
Speaking at Citi's Global TMT Conference, Skiadas said Verizon's first-half performance reflected what management views as a structural improvement in its business. The company added more than 1 million mobility and broadband net additions during the first half, while phone net additions improved by more than 500,000 from the prior year, he said.
Get Verizon Communications alerts:
AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can BeIn the second quarter, Verizon reported an adjusted EBITDA margin of 40.1%, adjusted earnings per share growth of 6.6%, and cash-flow growth of 24%, according to Skiadas. First-half cash flows increased 16%. Verizon returned $9.4 billion to shareholders through dividends and share repurchases in the first half, up 60% year over year, he said.
Revenue growth and customer retention Skiadas said Verizon is pursuing a “growth transformation, not just a cost transformation,” centered on its customer value proposition, simplified plan offerings and loyalty programs. He said the company’s churn declined by 5 basis points year over year and that retention gains are an important driver of its volume-growth plans.
AST SpaceMobile’s Latest BlueBird Launch Raises the Stakes Ahead of Q2 EarningsMobility and broadband service revenue grew 2.8% in the second quarter, an improvement of 120 basis points sequentially, Skiadas said. Verizon expects its growth rate to approach 3% in the third quarter and reach approximately 4% in the fourth quarter.
While Verizon continues to expect wireless service revenue to be around flat for the full year, Skiadas said the company expects wireless service revenue to grow in the second half. He cited improved phone net additions and easing promotional-amortization headwinds as contributors to the outlook.
The company’s Simplicity offering, launched in mid-June alongside Verizon’s World Cup-related marketing efforts, separates handset pricing from service pricing and gives customers device and plan choices, Skiadas said. He said the offering has performed particularly well among one-line and two-line accounts, where Verizon has historically under-indexed.
Verizon expects to finish in the upper half of its 750,000 to 1 million net-add guidance range, he said. The company also expects account growth in the third quarter.
On handset upgrades, Skiadas said Verizon’s upgrade volumes declined more than 20% in the second quarter. He attributed the decline partly to customers keeping phones longer, with the average upgrade cycle reaching about 43 months, two months longer than a year earlier. Verizon also has used more targeted retention efforts rather than broad device subsidies, he said.
Cost program and financial targets Verizon’s $9 billion cost program, consisting of $5 billion in operating-expense savings and $4 billion in capital-expenditure savings, remains on track, according to Skiadas. Cost actions include modernizing the network, removing legacy copper infrastructure, improving advertising and marketing efficiency, operating with a leaner workforce and using artificial intelligence in areas such as network operations and customer care.
Cost of acquisition fell 15% year over year in the second quarter, while cost of retention declined 17%, Skiadas said. He said the company sees additional cost-reduction opportunities in 2027 and 2028, including network modernization, Frontier-related synergies, AI deployment, technology platforms and real estate.
Skiadas said Verizon is seeking to ensure cost reductions do not undermine service quality or customer experience. The savings, he said, are intended to support operational efficiency, customer investments, the company’s revenue transition and shareholder returns.
Following its first-half results, Verizon raised its full-year adjusted EPS growth outlook to 6% to 7% and its free-cash-flow growth outlook to 9% to 10%, Skiadas said.
Broadband, fiber and AI Connect Verizon is also emphasizing convergence between wireless and broadband services following its Frontier transaction. Skiadas said customers with both Verizon mobility and broadband services have 30% lower mobility churn than customers with a single Verizon product. About 20% of Verizon’s mobility base currently has a Verizon broadband service, leaving room for further cross-selling, he said.
The company recently introduced Verizon One, a converged offering priced at $70 that includes mobility and broadband, taxes and fees, according to Skiadas.
Verizon expects to exceed 32 million fiber passings this year and remains on track toward its medium-term goal of 40 million to 50 million passings. Its capital-spending plan for the year remains $16 billion to $16.5 billion, including investments related to AI infrastructure opportunities in 2026, Skiadas said.
He highlighted AI Connect as a new revenue stream beyond Verizon’s core operations. Verizon announced a long-term Google agreement valued at more than $1 billion and has additional opportunities in its pipeline, Skiadas said. The business can include power, space and cooling in central offices, dark-fiber routes, and wave or lit services.
Management views AI Connect as a multibillion-dollar opportunity that could become meaningful to results in 2027, although Skiadas cautioned that deal economics vary by customer.
Capital allocation Skiadas said Verizon’s capital-allocation priorities are investment in the business and spectrum, the dividend, balance-sheet improvement and share repurchases. The company acquired $3.2 billion of AWS-3 spectrum in Auction 113, he said.
Verizon has raised its dividend for 20 consecutive years, and Skiadas described its commitment to the dividend as “ironclad.” The company had repurchased $3.5 billion of stock through June as part of a plan to repurchase up to $4.5 billion during the year.
Verizon also paid down Frontier-related debt six months early and expects to reach its 2.5-times long-term leverage target in the 2027 timeframe, Skiadas said.
About Verizon Communications (NYSE:VZ)Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and related technology services. Its offerings include mobile voice and data plans, 5G connectivity, fixed wireless access, fiber-optic internet through Verizon Fios, home services, and connected-device solutions.
Through Verizon Business, the company serves enterprises, government agencies, and other organizations with communications networks, managed connectivity, cybersecurity, cloud and edge-computing services, unified communications, and Internet of Things solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Verizon Communications Right Now?Before you consider Verizon Communications, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verizon Communications wasn't on the list.
While Verizon Communications currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Verizon uvedl, že jeho tržby nabírají tempo díky nižším promo nákladům, škrtům a růstu širokopásmového připojení i AI infrastruktury. Firma také očekává, že letos zakončí na horní hraně výhledu 750 000 až 1 milion čistých přírůstků postpaid telefonů.
AST SpaceMobile Stock Soared 12%—This Was the CatalystVerizon Communications NYSE: VZ CEO Dan Schulman said the company is gaining momentum in its turnaround efforts through a customer-focused strategy, lower promotional spending, cost reductions and an expanding broadband and AI-infrastructure opportunity.
Speaking at the Goldman Sachs Communacopia + Technology Conference, Schulman said he entered the role with four priorities: improving customer retention and subscriber additions, changing Verizon’s culture, building a more efficient operating model and improving returns for investors.
Get Verizon Communications alerts:
AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be“We are on the right track right now,” Schulman said, while adding that the company still has “a hell of a lot more” work to do to meet his expectations.
Customer Experience and Subscriber Growth Schulman said Verizon has invested billions of dollars in its end-to-end customer experience and recently reached an all-time high in consumer customer satisfaction. The company’s internal initiative, called “Every Customer Has a Name,” is intended to emphasize treating customers with respect throughout interactions ranging from retail stores and billing to customer-service calls.
AST SpaceMobile’s Latest BlueBird Launch Raises the Stakes Ahead of Q2 EarningsHe said churn, which had risen for three consecutive years before his arrival, is now declining year over year. Verizon’s churn was down by 5 basis points year over year in the quarter, according to Schulman, and its cost of retention has declined by double digits.
Schulman attributed prior churn pressure in part to price increases that were not matched by added value for consumers. Verizon halted further price increases upon his arrival, he said, and has sought to simplify its offerings and reduce inconsistencies between customer expectations, promotions and billing.
The company’s Simplicity plans, developed after six months of customer research and financial modeling, have helped drive stronger net additions, Schulman said. He said the plans target one- and two-line accounts and younger consumers, an area where Verizon had been underrepresented.
Schulman said Simplicity plan additions are accretive to average revenue per account, or ARPA. He said the majority of Verizon’s net additions are now coming through Simplicity offerings. Customer migration from Verizon’s existing base to the plans has been below the company’s model assumptions, which Schulman said could provide upside. Cost of acquisition has fallen to a three-year low, while retention costs have also declined. Schulman said Verizon expects to finish at the high end of its full-year guidance for 750,000 to 1 million postpaid phone net additions. He also said the company expects to report positive phone net accounts for the first time in at least three years.
Rather than pursuing subscriber growth through free lines or heavily subsidized handsets, Schulman said Verizon is emphasizing additions that generate revenue. “If we are going to win a customer, it has got to be real,” he said. “It has got to be because of our value proposition.”
Moving Away From Free Phones Schulman said Verizon does not plan to offer “phones on us,” including around new device launches, arguing that wireless service pricing can be separated from device financing. Customers are keeping devices longer, he said, while Verizon can still provide financing alternatives or let customers bring their own devices.
The CEO said the traditional carrier model of using handset subsidies to acquire and retain subscribers has become industry dogma but is not necessary for Verizon’s strategy. He said the company can compete with simpler mobile pricing and device optionality while remaining fiscally responsible.
Schulman said he expects ARPA to rise year over year in 2027 and indicated that growth could begin as soon as the fourth quarter. Verizon’s mobile and broadband service revenue growth has increased each quarter this year, he said, from 1.6% in the first quarter to an expected roughly 4% in the fourth quarter.
Verizon One, the company’s converged offering, is also supporting ARPA, according to Schulman. More than half of customers using the offer are upgrading to gigabit or faster service, he said.
Broadband, Satellite and AI Infrastructure Schulman said Verizon added about 350,000 broadband subscribers in the prior quarter and is taking share in broadband. He described fixed wireless access and fiber as parts of a broader broadband offering, rather than as distinct products from the customer’s viewpoint.
Verizon has more fixed wireless capacity available for sale than ever, he said, and is experimenting with spectrum holdings from low-band through millimeter-wave frequencies. The company expects to pass at least 32 million homes with fiber this year and remains on track toward its medium-term target of 40 million to 50 million homes passed.
On satellite competition, Schulman said Verizon has seen “zero discernible impact” from low-Earth-orbit providers, including Starlink, on broadband growth. He characterized satellite as complementary to terrestrial networks, particularly in rural markets where building a Verizon network may not be economically viable.
He said satellite providers cannot compete efficiently in urban and suburban areas, which account for 95% to 98% of Verizon’s revenue, in his view. Schulman cited a comparison between Starlink’s $130 offering for 400-megabit home broadband and Verizon’s $70 offering combining 500-megabit broadband with mobile service.
Schulman also highlighted AI infrastructure as a potential new growth area. Verizon recently announced a more than $1 billion dark-fiber connectivity deal with Google, and Schulman said demand is growing for connections between data centers as computing needs expand.
He said Verizon’s network assets, including metro and long-haul fiber, position it to participate in that demand. The company also announced a deal with Corning intended to secure fiber supply for its builds. In addition, Schulman said Verizon is repurposing decommissioned, power-ready central offices for edge inference-computing applications, such as robotics, gaming, autonomous driving and remote surgery.
Schulman said Verizon expects noticeable revenue from those edge-computing opportunities to begin next year.
Looking ahead, he said Verizon expects to continue pursuing operational efficiencies in 2027 and 2028. The company cut nearly 13,000 jobs in his second month as CEO and expects to exit the year with more than $5 billion in annualized operating-expense savings, he said. Verizon has also targeted $4 billion in capital-expenditure savings.
“No company cost cut its way to greatness,” Schulman said, adding that savings are intended to support reinvestment and shareholder returns.
About Verizon Communications (NYSE:VZ)Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and related technology services. Its offerings include mobile voice and data plans, 5G connectivity, fixed wireless access, fiber-optic internet through Verizon Fios, home services, and connected-device solutions.
Through Verizon Business, the company serves enterprises, government agencies, and other organizations with communications networks, managed connectivity, cybersecurity, cloud and edge-computing services, unified communications, and Internet of Things solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Verizon Communications Right Now?Before you consider Verizon Communications, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verizon Communications wasn't on the list.
While Verizon Communications currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Verizon schválil čtvrtletní dividendu 70,75 centu na akcii, stejně jako v předchozím čtvrtletí. Splatná je 2. listopadu 2026 pro akcionáře k 9. říjnu 2026.
NEW YORK, Sept. 09, 2026 (GLOBE NEWSWIRE) -- The Board of Directors at Verizon Communications Inc. (NYSE, Nasdaq: VZ) today declared a quarterly dividend of 70.75 cents per outstanding share, consistent with the prior quarter's dividend rate. The quarterly dividend is payable on November 2, 2026 to Verizon shareholders of record at the close of business on October 9, 2026.
“Verizon's reliability and consistency in returning capital to shareholders is a result of our focused operational execution and our ability to drive sustainable cash flow," said Dan Schulman, CEO of Verizon. "The strength of our business allows us to maintain our unwavering commitment to the dividend and deliver for our shareholders, while continuing to invest for long-term growth."
Verizon has approximately 4.2 billion shares of common stock outstanding. The company made approximately $11.5 billion in cash dividend payments in 2025.
This announcement was originally published by Verizon. Read the original press release.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/about/news. For images and logos, visit verizon.com/about/news/media-resources. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Verizon letos vzrostl o 29,5 % a je blízko 52týdenního maxima. Společnost zároveň zvýšila výhled upraveného EPS na FY26 a vykázala šesté po sobě jdoucí překonání odhadů.
Verizon has quietly staged one of the year's most surprising large-cap comebacks, but the real question is whether the stock's best days are still ahead or already priced in.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Shares of Verizon (NYSE:VZ | VZ Price Prediction) have quietly become one of the year’s most interesting large-cap turnaround stories. The stock has climbed 29.5% year to date and sits within striking distance of its 52-week high.
Even so, our proprietary model still sees room to run. Our 24/7 Wall St. price target for Verizon is $56.60, implying 11.6% additional upside from the current $50.78 quote. The model rates this a buy with high confidence.
Metric Value Current Price $50.78 24/7 Wall St. Price Target $56.60 Upside 11.6% Recommendation BUY Confidence Level 90% A Turnaround That Is Actually Working Verizon’s Q2 2026 report, delivered on July 24, 2026, marked its sixth consecutive earnings beat. Adjusted EPS came in at $1.30 versus a $1.27 consensus, on revenue of $34.25 billion.
Adjusted EBITDA margin expanded to 40.1% from 37.1%, postpaid phone net adds swung to 184,000 from a loss of 9,000 a year earlier, and free cash flow jumped 27.12% to $6.426 billion.
Management raised FY26 adjusted EPS guidance to $4.99 to $5.04 and lifted the buyback target to $4.5 billion. CEO Dan Schulman called it “a structural inflection point across our entire business.”
Why Bulls See a Breakout Above $60 The bull case is grounded in three levers. First, fiber. Verizon expects to exceed 32 million fiber passings by year-end, with a medium-term goal of 40 to 50 million. Fiber-broadband connections already grew 43.3% YoY to 10.9 million.
Second, AI infrastructure. Schulman flagged discussions with hyperscalers around dark fiber, lit fiber, and 5G assets that could unlock “multi billions in revenues.” Carriers are only one slice of that buildout, and we profiled seven other companies powering, cooling, and connecting AI data centers in a free report here.
Third, churn. Postpaid phone churn improved to 0.92%, and every basis point compounds. If the AI-revenue narrative materializes, our bull-case path lands at $63.82.
What Could Go Wrong Verizon carries $136.5 billion in unsecured debt and net leverage rose to 2.5x from 2.2x post-Frontier. GAAP net income fell 21.07% on $1.8 billion in special items, wireless retail postpaid ARPA slipped 1.4% to $168.35, and FWA net adds dropped 30.6%.
Bulls would counter that the special items are non-recurring and adjusted EBITDA still grew 7.2%. In a bear scenario, our model floor is $49.49.
How Verizon Stacks Up Against AT&T and T-Mobile AT&T (NYSE:T) is the closest strategic analog. Its Q2 2026 adjusted EPS of $0.65 beat by 10.71%, with fiber reaching 38.6 million locations and postpaid phone net adds of 432,000.
AT&T’s $179 billion market cap trades at a modest discount to Verizon’s $210.98 billion, but AT&T is guiding to $45 billion+ in shareholder returns through 2028, roughly matching Verizon’s return profile on a smaller base.
T-Mobile US (NASDAQ:TMUS) is the growth benchmark. Q2 revenue rose 7.85% to $22.79 billion, with Core Adjusted EBITDA margin at 50.2%. Postpaid ARPA of $152.91 and a market cap of $202.7 billion imply investors pay a premium for growth.
That premium is exactly why Verizon’s yield-and-turnaround setup at a lower implied multiple makes the 24/7 Wall St. price target look reasonable rather than aggressive.
Verizon Price Prediction 2026-2030 The model’s verdict: Buy, with a 24/7 Wall St. price target of $56.60 and 90% confidence. Margin expansion, six straight beats, and a $2.83 forward dividend that funds patience.
The bull thesis strengthens if Verizon delivers Q3 service revenue growth near the guided 3% and continues repaying Frontier debt. The thesis weakens if leverage climbs above 2.7x or postpaid churn ticks back above 1%.
Year 24/7 Wall St. Price Target 2026 $52.17 2027 $56.35 2028 $61.67 2029 $66.40 2030 $70.53 These projections assume Verizon executes on its fiber build-out, extracts Frontier synergies, and captures early AI-infrastructure revenue. Meaningful upside or downside would come from either a hyperscaler-scale AI network deal or a resurgence in promotional wireless competition.
Contact [email protected] for any questions or corrections.
Verizon uzavřel s Corningem smlouvu na dodávky optických vláken do roku 2032 v objemu 80 milionů mil. Pokrývá rozšiřování domácího širokopásmového připojení i infrastrukturu pro datová centra s AI.
Verizon just signed a supply agreement with Corning that runs through 2032, and the scale of the commitment reveals exactly how aggressively the carrier plans to rewire its growth around fiber and AI infrastructure.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
80 Million Miles of Glass 80 million miles. That is the volume of high-density optical fiber and connectivity solutions Verizon (NYSE:VZ | VZ Price Prediction) has committed to buy from Corning (NYSE:GLW) under a multi-billion dollar agreement running 2027 to 2032, according to terms revealed alongside a Tuesday announcement covered by Barron’s. The deal names Corning Contour Flow Cable as a supplied product and deepens an existing 30-year Verizon-Corning relationship. The agreement spans both use cases: Verizon has locked in supply for consumer broadband and fiber-to-the-home buildout as well as the long-haul backbone for AI data centers.
What It Means Operationally Verizon is buying certainty. On its most recent call, CEO Hans Vestberg said the carrier is “solidly on track to have more than 32 million fiber passings by the end of this year” and is still “very focused on driving our fiber footprint 40 to 50 million over the medium term.” Reaching that medium-term footprint requires glass, and lots of it. An 80 million mile commitment covers both the fiber-to-the-home push and the dark and lit fiber Verizon plans to sell into AI infrastructure, where management has flagged “potentially multi billions in revenues” from hyperscalers and enterprises.
Verizon closed Q2 FY2026 with 10.9 million fiber broadband connections, up 43.3% year over year, and 348,000 broadband net adds, up 12.3% year over year. The Frontier Communications acquisition closed Jan 20, 2026, pushing the fiber footprint to 30 million-plus homes and businesses. Locking in supply through 2032 removes a bottleneck at exactly the moment Corning is telling investors “if we could make more, we could sell more.” Corning is one of the quieter names powering the AI data-center buildout, and we profiled seven suppliers like it, from power to cooling to fiber, in a free report you can grab here.
Market Reaction Verizon shares traded at $50.37 on Tuesday morning, up 0.46% on the session. The stock is up 8.39% over the past month and 29.89% year to date. Corning, the supplier side of the trade, traded at $161.46, up 8.58% over the past week and 85.38% year to date.
Bull Case For long-term Verizon holders, this contract does three things at once. It underwrites the network Verizon needs to hit its 40 to 50 million fiber-passings goal, it hard-wires the physical layer for the AI infrastructure revenue Dan Schulman flagged when he said “with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory”, and it does so alongside a balance sheet already funding the raised FY2026 buyback target of up to $4.5B and a $0.7075 quarterly dividend.
The operating results back the strategy. Q2 FY2026 delivered adjusted EPS of $1.30 versus a $1.27 consensus, the sixth straight EPS beat. Adjusted EBITDA margin expanded to 40.1% from 37.1%. Free cash flow reached $6.426 billion, up 27.12% year over year. Postpaid phone churn improved to 0.92% from 0.97%, and postpaid phone net adds swung to 184,000 from a loss of 9,000 a year earlier. Management has told investors converged customers show “almost 30% less” churn. More fiber, sold into more homes, alongside wireless, is the bull thesis, and Verizon just secured six years of the raw material to execute it.
Bottom Line An 80 million mile supply commitment through 2032 is the kind of number long-term holders should weigh heavier than any single quarter. It aligns Verizon’s capex plan, its $16.0 to $16.5 billion FY2026 capex range, its Frontier integration, and its AI infrastructure ambitions behind one physical asset base. Management has told investors more specifics on AI infrastructure revenue are due “in the next three to six months.” That is the next catalyst. The glass is already ordered.
Contact [email protected] for any questions or corrections.
Key Takeaways Verizon's consumer strategy is driving user growth while reducing acquisition and retention costs.Verizon targets $9 billion in savings as adjusted EBITDA rose 7.2% to $13.7 billion in Q2.Verizon sees AI infrastructure potential, while high capex, debt and competition remain concerns. Verizon Communications Inc. (VZ - Free Report) has gained 23.3% year to date compared with the Wireless National industry’s growth of 118.2%. The stock has outperformed the Zacks Computer & Technology sector during this period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Shares of AT&T have gained 4.4%, while T-Mobile has declined 7.8% during this period.
VZ Gains on Customer-Oriented Strategy, Cost Efficiency and AI FocusVerizon's new consumer strategy is driving user growth. The company introduced a broad loyalty program alongside its simplified Simplicity wireless plan. The strategy is designed to reduce customer friction, improve retention and attract new customer segments. The company has reported a 15% year-over-year decline in consumer promotional acquisition costs and a 17% reduction in promotional retention costs in the second quarter. Such an approach is expected to boost operating margin over time.
Verizon's transformation program is also improving profit. The company is targeting at least $9 billion in combined operating and capital expense savings. For that, VZ has taken several initiatives focused on lowering the cost to serve customers, improving productivity and streamlining customer interactions. The overall cost structure is already improving, backed by these initiatives. Second-quarter adjusted EBITDA increased 7.2% year over year to $13.7 billion, while the adjusted EBITDA margin reached 40.1%.
The company is increasing investment in improving its network to deliver reliable services. VZ is integrating AI to identify and resolve network issues. It recently acquired AWS-3 spectrum to enhance network capacity and customer experience.
Verizon's entry into the rapidly expanding AI infrastructure market will likely bring long-term benefits. The company is leveraging its extensive long-haul and metro fiber networks to serve hyperscalers, cloud providers and enterprises. VZ has already signed a dark-fiber agreement with Google worth more than $1 billion. The company expects to sign additional agreements in upcoming quarters.
Stiff Competition, Elevated Debt Burden are ConcernsVerizon operates in highly competitive wireless and broadband markets. Here, pricing, promotions, network quality and customer experience can significantly influence subscriber trends. The company faces competition from other major players, such as AT&T and T-Mobile.
Verizon's new Simplicity plans, Verizon One offering and expanded loyalty program are intended to improve customer retention without materially increasing promotional spending. However, aggressive responses from competitors could slow subscriber growth, pressure margins and reduce the benefits of Verizon's improving customer economics.
Verizon remains a capital-intensive business. The company expects 2026 capital expenditures of approximately $16-$16.5 billion, while continuing to invest in fiber, wireless infrastructure and spectrum. It also spent about $3.2 billion to acquire 82 AWS-3 spectrum licenses. High capex can impact free cash flow in the near term.
Its net unsecured debt-to-adjusted EBITDA ratio stood at 2.5 times at the end of the second quarter. At the end of second-quarter 2026, total unsecured debt stood at $136.5 billion, while net unsecured debt totaled $128.7 billion. Verizon is working to reduce leverage, but a substantial debt burden can limit financial flexibility.
Estimate Revision Trend of VZVZ’s earnings estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of VZFrom a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry but trading above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 9.65, lower than 37.6 for the industry.
Image Source: Zacks Investment Research
End NoteVerizon's growth outlook is increasingly supported by a combination of improving wireless and broadband subscriber trends. Beyond its traditional telecom operations, the company's extensive fiber assets provide an opportunity to capitalize on the rapid buildout of AI infrastructure. Focus on cost optimization is a positive. However, despite an improving outlook, intense competition continues to impact margins. High debt burden remains a concern. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
XLC carries the word "communication" in its name, but the fund's actual portfolio has almost nothing to do with phone bills, fiber lines, or fat dividend checks. Before you assume you own telecom income, check what you actually hold.
Investors reaching for telecom-style income through the Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) often discover a mismatch between the name and the portfolio. XLC sits inside the S&P 500’s communication services sector, and the label suggests dividend-paying phone companies. The portfolio tells a different story. XLC is dominated by mega-cap tech and media, with Meta at 19.9% and two Alphabet share classes together accounting for another roughly 23% of net assets. If you bought XLC for reliable telecom yield, you own something closer to a growth-and-advertising fund. There is a cleaner way to get the exposure you actually wanted.
Why XLC Disappoints Income Seekers XLC holds legacy telecom names in modest sleeves: AT&T at 4.09%, Verizon at 4.14%, Comcast at 4.70%, and T-Mobile at 4.15%. The rest is Meta, Alphabet, Netflix, Electronic Arts, Take-Two, Disney, Warner Bros. Discovery, and media names. Those companies pay little or no dividend, which is why the fund’s distributable income is thin. It also explains XLC’s price action: shares are down 3.46% year to date as the ad-driven mega-caps have wobbled, while the telecom sleeve inside the fund has quietly done the heavy lifting.
For an investor who wants current yield, direct exposure to fiber and wireless convergence, and specific capital returns, the swap is straightforward: holding the three telecom-adjacent components directly isolates the yield without the tech ballast.
AT&T: Cash Flow Now Funding a Buyback Surge AT&T (NYSE:T | T Price Prediction) trades at $26.01 with a 4.36% dividend yield, roughly five times what XLC’s underlying portfolio kicks off. The payout looks well covered. Q2 2026 free cash flow reached $4.7 billion, and management reiterated $18 billion-plus in full-year free cash flow.
The capital return pace stands out. CFO Pascal Desroches said “Together, our planned share repurchases and expected dividend payments will total approximately $18 billion this year, which is essentially 100% of our outlook for free cash flow.” The buyback was pulled forward to approximately $10 billion in 2026, up from a prior $8 billion target. At a trailing P/E of 8, every dollar of repurchase removes shares cheaply. That is the mechanism XLC cannot deliver: AT&T shareholders capture 100% of the buyback impact, while XLC holders see it diluted by a 4% weight.
Verizon: The Yield Anchor With Fiber Growth Attached Verizon Communications (NYSE:VZ) offers the highest headline yield of the three at 5.65%, backed by 20 consecutive years of dividend increases. Shares are up 29.19% year to date, and the story behind that move matters. The Frontier deal closed January 20, 2026, and Verizon expects more than 32 million fiber passings by year-end. Management raised full-year adjusted EPS growth guidance to 5% to 6% and lifted the buyback authorization.
CFO Tony Skiadas said plainly, “The dividend is still ironclad for us, and we raised the dividend.” With $21.5 billion or more in full-year free cash flow guidance and a forward P/E of 10, Verizon skews toward yield first and modest growth second.
Comcast: A Cheaper Setup With an Optionality Kicker Comcast (NASDAQ:CMCSA) trades at $26.67 and a forward P/E of 8, with a 5% dividend yield. Wireless net additions of 448,000 were the best quarter on record, and Peacock reached profitability with $189 million of EBITDA. Q2 free cash flow was $4.6 billion.
Comcast paused its buyback as of July 1 pending the NBCUniversal and Sky spin-off, and adjusted EBITDA fell 13.4% year over year. The dividend continues, and holders receive shares of the standalone media company when the separation closes in roughly a year. That is optionality XLC cannot replicate.
How to Think About the Swap The three stocks together deliver a blended yield in the mid-5% range, versus the sub-1% distribution profile of XLC’s underlying holdings. You give up direct exposure to Meta, Alphabet, and Netflix, and you accept single-name risk on three balance sheets carrying meaningful debt: AT&T’s net leverage of 2.68 times is above its 2.5 times target, and Verizon sits at roughly 2.6 times. That blended yield is also close to what a mid six-figure balance needs to throw off a real monthly check (we sketched the full math for turning $250K into $1,500 a month in a free report: here). If you hold XLC in a taxable account, selling triggers capital gains. Redirecting new contributions into the three telecom names, rather than selling existing XLC shares, avoids triggering those gains.
Reading the Fit Before You Act Investors who own XLC for mega-cap tech and media exposure with a modest income tilt are getting what the fund is built to deliver. If you bought it thinking it was a telecom income vehicle, this direct trio delivers materially more yield, cleaner exposure to fiber and wireless convergence, and specific capital-return programs you can track quarter by quarter. That is a different job, and it deserves a different tool.
Contact [email protected] for any questions or corrections.
Bank of Nova Scotia ve 2. čtvrtletí snížila podíl ve společnosti Verizon o 14,9 % na 2 229 826 akcií. Verizon zároveň oznámil EPS 1,30 USD, nad odhadem 1,27 USD.
Bank of Nova Scotia cut its holdings in Verizon Communications Inc. (NYSE:VZ – Free Report) by 14.9% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,229,826 shares of the cell phone carrier’s stock after selling 391,941 shares during the quarter. Bank of Nova Scotia owned approximately 0.05% of Verizon Communications worth $94,410,000 as of its most recent SEC filing.
Other large investors also recently bought and sold shares of the company. Strengthening Families & Communities LLC raised its stake in Verizon Communications by 490.0% during the fourth quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock valued at $26,000 after buying an additional 539 shares during the last quarter. Robinswood Financial LLC bought a new position in Verizon Communications in the 1st quarter worth about $27,000. Lam Group Inc. purchased a new stake in Verizon Communications during the 1st quarter valued at about $28,000. EQ Wealth Advisors LLC bought a new stake in Verizon Communications during the 4th quarter valued at about $29,000. Finally, Sarver Vrooman Wealth Advisors raised its holdings in Verizon Communications by 173.0% in the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier’s stock worth $29,000 after buying an additional 448 shares during the last quarter. 62.06% of the stock is owned by hedge funds and other institutional investors.
Verizon Communications Stock Performance NYSE VZ opened at $50.11 on Friday. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. Verizon Communications Inc. has a 1-year low of $38.39 and a 1-year high of $51.68. The business has a 50 day simple moving average of $45.91 and a two-hundred day simple moving average of $47.42. The stock has a market capitalization of $208.20 billion, a PE ratio of 13.05, a P/E/G ratio of 1.38 and a beta of 0.25.
Verizon Communications (NYSE:VZ – Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analysts’ expectations of $35.16 billion. During the same period in the prior year, the firm earned $1.22 EPS. The company’s revenue for the quarter was down .7% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, research analysts predict that Verizon Communications Inc. will post 5.03 EPS for the current fiscal year. Verizon Communications Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were given a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a yield of 5.6%. The ex-dividend date of this dividend was Friday, July 10th. Verizon Communications’s dividend payout ratio is 73.70%.
Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on VZ. TD Cowen upped their target price on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a “buy” rating in a research note on Monday, July 27th. Morgan Stanley raised their price target 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, July 27th. Erste Group Bank reaffirmed a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Weiss Ratings reiterated a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday. Finally, Scotiabank boosted their target price on Verizon Communications from $51.50 to $52.50 and gave the stock a “sector outperform” rating in a research report on Monday, July 27th. Nine analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, Verizon Communications currently has a consensus rating of “Hold” and a consensus price target of $50.84.
Check Out Our Latest Stock Report on Verizon Communications
Insider Buying and Selling at Verizon Communications In related news, CEO Kyle Malady sold 1,100 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $50.06, for a total transaction of $55,066.00. Following the completion of the sale, the chief executive officer directly owned 108,766 shares of the company’s stock, valued at approximately $5,444,825.96. This trade represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.03% of the company’s stock.
Verizon Communications Company Profile (Free Report)
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.
Further Reading Five stocks we like better than Verizon Communications 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding VZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Verizon Communications Inc. (NYSE:VZ – Free Report).
Receive News & Ratings for Verizon Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Verizon Communications and related companies with MarketBeat.com's FREE daily email newsletter.
Affinity Investment Advisors zvýšila ve 2. čtvrtletí podíl ve společnosti Verizon Communications o 24,8 % na 69 115 akcií. Verizon zároveň oznámil zisk na akcii 1,30 USD, nad odhadem 1,27 USD.
Affinity Investment Advisors LLC lifted its holdings in Verizon Communications Inc. (NYSE:VZ – Free Report) by 24.8% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 69,115 shares of the cell phone carrier’s stock after buying an additional 13,749 shares during the quarter. Verizon Communications makes up about 1.5% of Affinity Investment Advisors LLC’s portfolio, making the stock its 17th biggest position. Affinity Investment Advisors LLC’s holdings in Verizon Communications were worth $2,926,000 as of its most recent SEC filing.
A number of other large investors also recently bought and sold shares of the business. KBC Group NV increased its stake in Verizon Communications by 7.8% in the 2nd quarter. KBC Group NV now owns 1,657,363 shares of the cell phone carrier’s stock worth $70,173,000 after buying an additional 119,808 shares during the period. Bayforest Capital Ltd purchased a new position in Verizon Communications in the second quarter valued at about $149,000. Janney Montgomery Scott LLC grew its stake in Verizon Communications by 5.3% in the second quarter. Janney Montgomery Scott LLC now owns 2,036,896 shares of the cell phone carrier’s stock valued at $86,242,000 after purchasing an additional 103,199 shares during the last quarter. North Dakota State Investment Board raised its holdings in Verizon Communications by 1.6% in the second quarter. North Dakota State Investment Board now owns 125,587 shares of the cell phone carrier’s stock worth $5,317,000 after purchasing an additional 1,988 shares in the last quarter. Finally, Aviso Wealth Management raised its holdings in Verizon Communications by 2.6% in the second quarter. Aviso Wealth Management now owns 17,209 shares of the cell phone carrier’s stock worth $729,000 after purchasing an additional 441 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company’s stock.
Verizon Communications Stock Up 0.3% Verizon Communications stock opened at $49.34 on Friday. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. The stock has a market capitalization of $205.00 billion, a PE ratio of 12.85, a price-to-earnings-growth ratio of 1.38 and a beta of 0.25. The business has a 50 day simple moving average of $45.52 and a 200-day simple moving average of $47.29. Verizon Communications Inc. has a 12 month low of $38.39 and a 12 month high of $51.68.
Verizon Communications (NYSE:VZ – Get Free Report) last released its earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share for the quarter, beating the consensus estimate of $1.27 by $0.03. The business had revenue of $34.25 billion for the quarter, compared to the consensus estimate of $35.16 billion. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The business’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the business posted $1.22 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, analysts anticipate that Verizon Communications Inc. will post 5.03 EPS for the current fiscal year. Verizon Communications Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were issued a $0.7075 dividend. This represents a $2.83 annualized dividend and a yield of 5.7%. The ex-dividend date was Friday, July 10th. Verizon Communications’s payout ratio is 73.70%.
Insider Transactions at Verizon Communications In other news, CEO Kyle Malady sold 1,100 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $48.68, for a total value of $53,548.00. Following the sale, the chief executive officer directly owned 109,866 shares of the company’s stock, valued at approximately $5,348,276.88. The trade was a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades Several brokerages have recently commented on VZ. Barclays increased their price objective on Verizon Communications from $45.00 to $46.00 and gave the company an “equal weight” rating in a report on Monday, July 27th. Erste Group Bank restated a “hold” rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Scotiabank upped their target price on Verizon Communications from $51.50 to $52.50 and gave the company a “sector outperform” rating in a research report on Monday, July 27th. Freedom Capital upgraded Verizon Communications to a “hold” rating in a research note on Friday, June 12th. Finally, Royal Bank Of Canada boosted their price target on Verizon Communications from $46.00 to $47.00 and gave the stock a “sector perform” rating in a research note on Monday, July 27th. Nine analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $50.84.
Read Our Latest Report on VZ
Verizon Communications Company Profile (Free Report)
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.
Featured Stories Five stocks we like better than Verizon Communications 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding VZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Verizon Communications Inc. (NYSE:VZ – Free Report).
Receive News & Ratings for Verizon Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Verizon Communications and related companies with MarketBeat.com's FREE daily email newsletter.
Odhad zisku na akcii (EPS) společnosti Verizon pro fiskální roky 2026 a 2027 za posledních 60 dní vzrostl na 5,03 USD a 5,29 USD. Firma zároveň těží z nižšího churnu a dohody s Googlem za více než 1 miliardu USD.
Key Takeaways VZ's postpaid gains, lower churn and new offerings are improving customer economics and retention.VZ's $1 billion-plus Google deal and edge data centers could fuel AI infrastructure growth.VZ faces slower FWA growth, heavy debt and intense competition despite improving earnings estimates. Earnings estimates for Verizon Communications Inc. (VZ - Free Report) for fiscal 2026 and fiscal 2027 have moved up 1.21% to $5.03 and 0.38% to $5.29, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
Verizon’s Wireless and Broadband Growth Gains MomentumVerizon’s wireless business is showing solid subscriber momentum. During the second quarter, the company posted 184,000 postpaid phone net additions during the quarter, marking its strongest consumer second-quarter performance in five years. Core prepaid net additions totaled 73,000, extending the company's streak of positive prepaid subscriber growth to eight consecutive quarters.
Consumer postpaid phone churn declined to 84 basis points from 95 basis points in the fourth quarter of 2025. Verizon disclosed that promotional customer acquisition costs declined about 15% year over year and retention costs fell about 17%. Hence, the important driver is not only higher gross adds but also lower churn. This shows improving customer economics and greater operating leverage for Verizon.
Verizon has taken several approaches to further boost customer economics. In the second quarter, the company launched its Simplicity wireless plan, Verizon One and a companywide loyalty program. These offerings are designed to reduce churn and increase customer lifetime value. Verizon is increasingly using its wireless and broadband assets together. The Verizon One offering combines mobility and broadband into a single offering. The bundled offering also simplifies the customer experience. By opting for a single service provider for all internet requirements, users can bypass the billing, service and customer support-related complexities from several vendors. For Verizon, it increases customer stickiness, bringing significant cross-selling opportunities.
AI Infrastructure Investment is Becoming a New Growth VectorGoogle has signed an agreement worth more than $1 billion to use Verizon’s dark-fiber routes to connect its data centers. Verizon boasts an extensive metro fiber network that can offer low-latency and resilient connectivity needed to link data centers. Verizon is also converting some of its existing central offices into edge data centers to support AI inference closer to end users. The company is reportedly exploring deals with other hyperscalers as well. These AI infrastructure-related initiatives can become a major revenue-generating source for the next several years.
Major Challenges for VerizonFixed wireless access (FWA) remains an important growth engine for the company. However, FWA net additions fell 30.6% year over year to 193,000 in the second quarter. Clearly, growth momentum has weakened to some extent.
At the end of the second quarter of 2026, total unsecured debt stood at $136.5 billion, while net unsecured debt totaled $128.7 billion. Although both balances improved from the first quarter through stronger cash generation and debt reduction, net unsecured debt to adjusted EBITDA remained 2.5x. As of 2026, Verizon’s current ratio stood at 0.60, while its quick ratio was 0.57. A current ratio of lower than 1 suggests that the company might face difficulties in paying off short-term obligations.
Verizon continues to operate in a mature U.S. wireless market where national carriers and cable competitors compete aggressively on pricing, promotions and bundled offerings. The company faces competition from other major players, such as AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T is rapidly expanding its fiber infrastructure and has also undertaken a convergence strategy to drive user growth.
Price PerformanceVerizon has gained 8.2% in the past year compared with the Wireless National industry’s growth of 79%. The stock has underperformed the Zacks Computer & Technology sector during this time period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T and T-Mobile. Shares of AT&T have declined 13.7%, while T-Mobile has declined 28.8% during this period.
Key Valuation Metric of VZFrom a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry but trading above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 9.11, lower than 38.13 for the industry.
Image Source: Zacks Investment Research
End NoteVerizon continues to strengthen its long-term investment case through improving customer acquisition, lower churn, broadband expansion and disciplined execution. Upward estimate revision underscores growing investor confidence. Verizon's new Simplicity plans, Verizon One offering and loyalty program are designed to improve customer retention without materially increasing promotional spending, but sustained competitive responses from rivals could slow margin expansion and reduce the benefits of improving customer economics over time. High debt burden remains a major concern. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon podle článku zrychluje růst díky novému vedení a AI infrastrukturním projektům, včetně dohody s Google za více než 1 mld. USD. Očekává se vyšší růst marží a tržeb od druhé poloviny roku 2026.
SummaryVerizon Communications Inc. remains a Buy, with a resilient core business, robust cash flows, and a well-covered 6%+ dividend yield.VZ’s new CEO has accelerated growth, improved churn, and launched AI-driven infrastructure initiatives, including a $1B+ Google dark fiber deal.AI infrastructure and data center retrofits are expected to drive higher-margin, multi-year revenue growth starting in H2 2026.Despite Starlink’s perceived threat, Verizon's spectrum advantage and new AI-driven growth opportunities support a VZ valuation re-rating to 9–10x EV/EBITDA. AoZaaStudio/iStock via Getty Images
Intro Back in January, when I made my first call on Verizon Communications Inc. (VZ), the stock was yielding just over 7%, and my Buy rating rested on the view that the dividend was
1.01K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Verizon rozšiřuje AI infrastrukturu prostřednictvím partnerství v oblasti optické sítě s Google a Project Glasswing od Anthropic; nové dohody by mohly začít přispívat k růstu tržeb v roce 2027.
Key Takeaways Verizon is expanding AI infrastructure through fiber partnerships and enterprise connectivity initiatives.VZ expects AI infrastructure agreements to begin contributing to revenue growth starting in 2027.Verizon is investing in 5G, broadband, automation and Frontier integration to support long-term growth. Communications providers are expanding beyond traditional wireless services into artificial intelligence infrastructure, fiber networks and converged connectivity. Verizon Communications (VZ - Free Report) is investing across these areas to diversify future growth opportunities.
While these initiatives could strengthen long-term earnings potential, investors should also consider the execution, competitive and capital investment risks that accompany a multi-year transformation.
How Verizon is Building AI InfrastructureVerizon is expanding its AI infrastructure strategy through a dark fiber agreement with Google and participation in Anthropic's Project Glasswing. Management also expects additional AI infrastructure agreements that could begin contributing to revenue growth in 2027.
These initiatives leverage Verizon's extensive fiber assets to connect AI data centers and enterprise workloads. The company views AI connectivity as an incremental growth opportunity alongside its core mobility and broadband businesses.
Why VZ is Expanding Enterprise ServicesVerizon's planned joint venture with BT Group is intended to strengthen international enterprise connectivity by combining complementary wireline assets. The strategy is designed to improve global networking capabilities for multinational customers.
Cloud-focused networking services and Verizon's broad fiber footprint create additional opportunities to diversify revenue beyond consumer wireless. Lumen Technologies, Inc. (LUMN - Free Report) also targets enterprise networking and fiber connectivity, highlighting the growing strategic importance of fiber infrastructure.
How Verizon is Driving ConvergenceVerizon continues combining wireless, fiber broadband and fixed wireless access into integrated offerings such as Verizon One. Management believes converged customers exhibit lower churn and stronger lifetime value than single-product subscribers.
Cross-selling mobility and broadband services also improves customer economics while increasing the value of Verizon's expanding fiber network. AT&T Inc. (T - Free Report) is pursuing a similar convergence strategy, reinforcing the importance of bundled connectivity across the industry.
How Verizon is Investing for Long-Term GrowthVerizon continues investing in network modernization, automation, 5G leadership and broadband expansion while integrating Frontier's assets. These investments are expected to support capacity, service quality and long-term competitiveness.
Management acknowledges that returns from AI infrastructure and network investments are likely to develop over several years, making disciplined capital allocation and operational execution critical to achieving targeted financial benefits.
How VZ Ratings Reflect These Industry TrendsThe bottom line is that Verizon is aligning its strategy with long-term industry trends through AI connectivity, enterprise networking and converged broadband services. Even so, competition, leverage and continued investment needs remain important factors for investors.
Verizon carries a Neutral long-term recommendation and a Zacks Rank #3 (Hold). Its Value Score of A, Momentum Score of A and VGM Score of A reflect attractive valuation and improving execution, while the Growth Score of C suggests a measured growth profile as these longer-term initiatives mature. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon snížil churn u spotřebitelských telefonů na 0,84 % a zvýšil výhled růstu tržeb ze služeb na 2,5–3 %. Zároveň zvedl odhad upraveného EPS na 4,99–5,04 USD.
Key Takeaways Verizon cut consumer phone churn to 0.84% while adding 184,000 postpaid phone customers.VZ raised service revenue growth guidance to 2.5-3% and adjusted EPS to $4.99-$5.04.Verizon added 348,000 broadband customers and signed a $1 billion-plus dark fiber deal with Google. Verizon Communications Inc. (VZ - Free Report) used its second-quarter 2026 earnings call to argue that lower churn, disciplined customer acquisition and broadband expansion are creating a more durable growth model.
Management raised several full-year targets while detailing a sharper shift away from handset subsidies. Adjusted earnings of $1.30 topped the Zacks Consensus Estimate of $1.27, while revenues of $34.25 billion missed the $35.31 billion consensus.
VZ Sees a Structural Shift in Customer EconomicsCEO Daniel Schulman said Verizon’s transformation is producing a meaningful change in operating performance. He emphasized that subscriber gains are coming alongside lower churn and reduced acquisition and retention spending.
Consumer postpaid phone churn was 0.84%, down 6 basis points year over year. Verizon added 184,000 postpaid phone customers, while total mobility and broadband net additions exceeded 550,000.
Schulman said promotional acquisition costs fell about 15% and retention costs declined roughly 17%. Management views this combination of stronger volumes, improved retention and lower unit costs as a central driver of earnings and cash flow growth.
Verizon Raises Its Growth OutlookCFO Anthony Skiadas said mobility and broadband service revenues grew 2.8% to $23.4 billion, accelerating by 120 basis points from the first quarter.
Verizon raised its 2026 mobility and broadband service revenue growth outlook to 2.5-3%. Management expects growth to approach 3% in the third quarter and reach approximately 4% in the fourth quarter.
The company also raised adjusted earnings guidance to $4.99-$5.04 per share, representing 6-7% growth. Free cash flow is now expected to increase 9-10%, supported by EBITDA growth and lower equipment-related working-capital requirements.
VZ Reduces Its Reliance on Device SubsidiesManagement repeatedly highlighted a strategic move away from subsidy-heavy customer acquisition. Equipment revenues declined nearly 20%, or more than $1.2 billion, as upgrade volumes fell nearly 27%.
Schulman said each new account joining the Simplicity offering is effectively subsidy-free. The plan separates device financing from wireless pricing, which management expects to improve transparency and margins.
In the analyst discussion, a Morgan Stanley representative asked how the new value proposition was affecting customer growth. Schulman said gross additions were about 16% above internal forecasts, while new account additions were 31% better than expected.
Verizon Builds on Broadband ConvergenceVerizon added 348,000 broadband customers, including 193,000 fixed wireless and 155,000 fiber additions. Its broadband base reached approximately 17.1 million connections.
Schulman said 58% of broadband customers also use Verizon mobility services. Management sees these converged relationships as valuable because customers taking both products generate higher revenue and lower churn.
A UBS analyst questioned slowing fixed wireless additions and competition from satellite providers. Schulman said Verizon expects its broadband mix to shift toward fiber as coverage expands, while fixed wireless remains important in areas without fiber availability.
VZ Positions Fiber for AI Infrastructure DemandManagement introduced AI Connect as an additional long-term growth opportunity. Verizon signed an agreement valued at more than $1 billion to provide Google with dark fiber connecting data centers.
Schulman said other potential agreements could generate several billion dollars of revenues over the coming years.
Customers may purchase either dark or lit fiber, depending on whether they want Verizon to provide the supporting electronics and services.
Verizon is also converting selected central offices into edge data-center locations. Management expects AI infrastructure revenues to begin contributing in 2027, with margins equal to or above the company’s existing margin profile.
Verizon Expands Shareholder ReturnsSecond-quarter free cash flow increased 24.4% to $6.4 billion. First-half free cash flow rose 16% to $10.2 billion.
Verizon repurchased $1 billion of shares during the quarter, bringing first-half repurchases to $3.5 billion. Management raised its full-year repurchase target to as much as $4.5 billion.
Skiadas said net unsecured leverage improved to 2.5 times adjusted EBITDA. Verizon remains focused on investing in fiber and spectrum while reducing debt and maintaining its dividend.
VZ Management Maintains an Execution FocusManagement’s tone centered on operational discipline rather than promotional spending. Lower churn, convergence and cost reductions remain the immediate priorities.
Schulman said the second half of 2026 should outperform the first half, while 2027 should improve on 2026 as core service revenues accelerate and AI Connect begins contributing.
What Zacks Rank and Style Scores SignalVZ currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-estimate revision outlook. Value, Momentum and VGM Scores of A point to favorable characteristics in those styles, while the C Growth Score reflects a more balanced growth profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Style Scores are designed to complement the Zacks Rank, with stronger combinations generally associated with Zacks Rank #1 and #2 (Buy) stocks. Verizon’s Rank may change as analysts revise estimates following the reported results and updated guidance.
Verizon uzavřel s Googlem AI infrastrukturu za více než 1 miliardu USD a čeká další podobné dohody do konce roku. Firma z nich očekává v příštích letech „několik miliard dolarů“ výnosů.
Verizon signed an over $1 billion artificial intelligence (AI) infrastructure deal with Google, and the company expects to sign several similar deals by the end of the year, Verizon CEO Dan Schulman said Friday (July 24) during a second quarter earnings call.
In the recently signed agreement, Verizon dark fiber will be used to connect Google’s data centers. In the other deals that the company expects to announce by year’s end, Verizon will earn “multiple billions of dollars in revenue” over the next several years, Schulman said.
“These are long-duration, high-quality contracted revenue streams from some of the most demanding infrastructure customers in the world,” Schulman said.
“We believe that this is just the beginning,” Schulman added. “The build-out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime.”
Verizon is uniquely positioned to participate in this build-out because it owns an extensive long-haul and metro fiber footprint and it has built the carrier-grade, low-latency, highly resilient transport network that hyperscalers need to connect compute, models and regions, Schulman said.
The company has also begun retrofitting many of its central offices into data centers for inference edgecomputing, and it is already talking with multiple partners who are eager to use these power-ready and permitted locations, he said.
“We are moving quickly to expand our TAM [total addressable market] in the rapidly growing AI infrastructure market,” Schulman said. “The agreements we have signed are the leading edge of a strategy that will become a meaningful, incremental leg of growth for Verizon.”
Verizon announced in a January 2025 press release that it launched a strategy and suite of products and solutions called Verizon AI Connect that is designed to serve hyperscalers, cloud providers and global enterprises by managing AI resource-intensive workloads.
The company said at the time that Google Cloud and Meta were among the early adopters of these solutions.
In a Friday earnings release, Schulman said: “Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
PYMNTS reported Wednesday that during Google parent company Alphabet’s second-quarter earnings call, the company announced that it had raised its 2026 capital spending forecast from the previous $180 billion to $190 billion to the new forecast of $195 billion to $205 billion.
Verizon Communications vykázala za čtvrtletí EPS ve výši 1,3 USD, což překonalo odhad 1,27 USD. Tržby 34,25 miliardy USD ale za odhadem zaostaly o 3 %.
Verizon Communications (VZ - Free Report) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.36%. A quarter ago, it was expected that this largest U.S. cellphone carrier would post earnings of $1.22 per share when it actually produced earnings of $1.28, delivering a surprise of +4.92%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Verizon, which belongs to the Zacks Wireless National industry, posted revenues of $34.25 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3%. This compares to year-ago revenues of $34.5 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Verizon shares have added about 7.6% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Verizon?While Verizon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Verizon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.30 on $34.98 billion in revenues for the coming quarter and $4.98 on $142.32 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Uniti Group (UNIT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This real estate investment trust is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -975%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Uniti Group's revenues are expected to be $883.47 million, up 193.8% from the year-ago quarter.
Verizon ve 2. čtvrtletí 2026 zvýšil upravený zisk na akcii na 1,30 USD a tržby z mobility a širokopásmového připojení vzrostly o 2,8 % na zhruba 23,4 mld. USD. Firma zároveň zvýšila celoroční výhled.
Mobility and broadband service revenue grew by 2.8 percent in second-quarter 2026, and forecasted to rise to approximately 4.0 percent growth in fourth-quarter 2026Delivered 184,000 postpaid phone net additions, with the best Consumer second-quarter postpaid phone net additions in the past five yearsGenerated more than 550,000 total mobility and broadband net additions in second-quarter 2026, an increase of more than 230,000 compared to second-quarter 2025Delivered more than 1 million mobility and broadband net additions in first-half of 2026, more than doubling the mobility and broadband net additions in first-half of 2025Built account momentum, achieving new postpaid account growth over the past 60 daysGrew cash flow from operations in first-half of 2026 by 9.9 percent compared to first-half of 2025 to fuel a 16.0 percent surge in free cash flow1. Second-quarter 2026 cash flow from operations grew by 16.3 percent and free cash flow1 grew by 24.4 percentExecuted with strict operational discipline and delivered solid consolidated net income performance to drive the highest adjusted EBITDA1 and adjusted EBITDA margin1 ever reportedRaised full year guidance for mobility and broadband service revenue, cash flow from operations, free cash flow1 and adjusted earnings per share (EPS)1Returned $9.4 billion in total capital to shareholders in first-half of 2026 while expanding the full-year share buyback target to up to $4.5 billion NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced exceptional second-quarter 2026 financial and operational results, showcasing how its customer-first strategic transformation is driving sustainable growth and momentum. Intense operational discipline and improved unit economics translated directly into subscriber growth, lower churn, strong operating cash flow and industry-leading free cash flow¹ generation. With these results, Verizon raised its full-year guidance for the second consecutive quarter. Verizon also expanded its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” said Dan Schulman, Verizon CEO. “With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions. Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business. We are accelerating across our key metrics, achieving a step-change in churn reduction while lowering our customer acquisition and retention costs. By compounding lower churn with healthier unit economics, we have generated the strongest operating position we have seen in years. Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
2Q 2026 Highlights
Mobility and Broadband
Mobility and broadband service revenue reached approximately $23.4 billion, representing a 2.8 percent increase year-over-year.In second-quarter 2026, Verizon reported total postpaid phone net additions of 184,000, with the best Consumer second-quarter postpaid phone net additions in five years.Total core prepaid2 net additions were 73,000, representing eight consecutive quarters of positive net additions.Verizon delivered 348,000 broadband net additions in second-quarter 2026, a year-over-year increase of 12.3 percent. This includes total fixed wireless access net additions of 193,000 and 155,000 fiber broadband net additions.Verizon now has approximately 17.1 million fixed wireless access and fiber broadband connections. Consolidated Financial Results
Total operating revenue was $34.3 billion, down 0.7 percent year-over-year, as sequential improvement in mobility and broadband service revenue was offset by a nearly 20 percent, or over $1.2 billion, decline in equipment revenue. This decline resulted primarily from significantly lower upgrade volumes, as the average time customers keep their mobile devices continues to increase, and the company's strategic decision to reduce spending on device subsidies. It is another demonstration of Verizon’s more disciplined approach as the company structurally evolves its business model.Consolidated net income was $3.9 billion, a 22.9 percent decrease year-over-year. This decrease was primarily driven by $1.8 billion in pre-tax special items, including, among others, a $746 million loss on disposition of business in connection with the classification of the net assets representing Verizon's international wireline connectivity and managed network services business as assets and liabilities held for sale; asset rationalization charges of $258 million; and severance charges of $397 million.Consolidated adjusted EBITDA1 grew 7.2 percent year-over-year to $13.7 billion, the highest the company ever reported.Consolidated net income margin was 11.5 percent compared to 14.8 percent in second-quarter 2025.Consolidated adjusted EBITDA1 margin grew from 37.1 to 40.1 percent, the highest the company ever reported.EPS was $0.92 in second-quarter 2026, a 22.0 percent decrease compared to $1.18 in second-quarter 2025; adjusted EPS1, excluding special items, was $1.30 in second-quarter 2026, a 6.6 percent increase compared to $1.22 in second-quarter 2025.Cash flow from operations was $18.4 billion for the first-half of the year compared to $16.8 billion for the first-half of 2025, representing a growth rate of 9.9 percent.Capital expenditures were $8.2 billion through the end of the second quarter, as the company continues to invest strategically for network excellence and future growth opportunities within mobility and broadband.Free cash flow1 was $10.2 billion for the first-half of 2026 compared to $8.8 billion for the first-half of 2025, representing a growth rate of 16.0 percent.In second quarter 2026, strong cash from operations was $10.4 billion, up 16.3 percent year-over-year. Free cash flow1 was $6.4 billion, up 24.4 percent year-over-year, marking one of the strongest free cash flow¹ quarters ever reported.Verizon's total unsecured debt as of the end of second-quarter 2026 was $136.5 billion, compared to $142.5 billion at the end of first-quarter 2026. The company's net unsecured debt1 at the end of second-quarter 2026 was $128.7 billion compared to $130.1 billion at the end of first-quarter 2026. At the end of second-quarter 2026, Verizon's ratio of unsecured debt to consolidated net income (LTM) was 8.2 times and its net unsecured debt to consolidated adjusted EBITDA ratio1 was 2.5 times.Verizon successfully completed $1.0 billion of share repurchases in second-quarter 2026, bringing year-to-date repurchases to $3.5 billion. The full-year share repurchase target has been raised to up to $4.5 billion. Outlook and Guidance
Verizon does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
Given the strong second-quarter performance and visibility into the second half of the year, Verizon is raising guidance as follows:
Mobility and broadband service revenue growth for 2026 to be 2.5 to 3.0 percent, with wireless service revenue growth approximately flat in 2026 as the company transitions to sustainable volume-based growth. Total mobility and broadband service revenue growth is expected to approach 3.0 percent in third-quarter 2026 and approximately 4.0 percent in fourth-quarter 2026, accelerating from the 2.8 percent increase reported in the second-quarter 2026.Adjusted EPS1 of $4.99 to $5.04, or year-over-year growth of 6.0 to 7.0 percent, representing a significant acceleration compared to recent historical performance.Cash flow from operations growth of approximately 2.0 to 4.0 percent year-over-year.Free cash flow1 growth of 9.0 to 10.0 percent year-over-year. In addition, for 2026, Verizon continues to expect the following:
Total retail postpaid phone net additions are expected to be in the upper half of the 750,000 to 1.0 million range, which is approximately 2 to 3 times the 2025 reported result.Capital expenditures of $16.0 billion to $16.5 billion. 1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Represents total prepaid results excluding our SafeLink brand.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/about/news. For images and logos, visit verizon.com/about/news/media-resources. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets,” "will" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives, network performance and quality, and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology, including artificial intelligence, and address changes in consumer demand; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; our ability to implement business transformation initiatives and achieve their anticipated benefits; system failures and disruptions to our networks and operations and any resulting financial, reputational or business impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, public health crises, natural disasters or extreme weather conditions; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; significant amount of outstanding debt; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to return capital to shareholders, including the amount, timing, and effect of share repurchases and dividends; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to obtain cost savings and other synergies and anticipated benefits of completed transactions within the expected time period or at all.
Verizon Communications Inc. (NYSE:VZ) will release its second quarter earnings report before the opening bell on Friday, July 24.
Analysts expect the New York-based company to report quarterly earnings of $1.27 per share, up from $1.22 per share in the year-ago period. The consensus estimate for Verizon’s quarterly revenue is $35.11 billion. It reported $34.5 billion last year, according to Benzinga Pro.
On June 29, Verizon disclosed that it expects a second-quarter loss of $700 million to $800 million due to the classification of assets from its Contributed Business as assets and liabilities held for sale.
Shares of Verizon fell 1% to close at $43.82 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying VZ stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Verizon prodá 274 vlastních prodejen franšízám a zruší asi 500 korporátních pozic, přičemž změny se dotknou zhruba 3 000 zaměstnanců. Firma zároveň uvedla, že její dividendový výnos činí přibližně 6,5 %.
Verizon (VZ +0.59%) spent last week doing what it has done all year under CEO Dan Schulman: getting smaller. The telecom giant said it will sell 274 company-owned retail stores to franchise operators and cut about 500 corporate positions, moves that affect roughly 3,000 employees in total. The changes take effect in mid-August and come on top of the more than 13,000 job cuts Verizon announced in November.
Headlines like these can spook income investors. But does it make sense to be fearful? At the stock's current price near $44, shares yield about 6.5% -- one of the largest payouts among major U.S. companies.
So, with second-quarter earnings due Friday morning, July 24, is a dividend this big still safe at a company this focused on cutting?
I believe it is. If anything, the restructuring is part of why.
Image source: Getty Images.
Shrinking by design Schulman took over in October and has moved quickly to build a leaner company. The November restructuring was Verizon's largest-ever round of layoffs, and it included handing 179 stores to franchisees.
Last week's move extends the same strategy, leaving Verizon with about 1,000 corporate-owned stores. Most of the affected retail employees' jobs shift to the franchise operators taking over their locations rather than disappearing outright.
So far, the approach has coincided with better results, not worse. First-quarter revenue rose 2.9% year over year to $34.4 billion, and cash flow from operations came in at $8 billion. And adjusted earnings per share climbed 7.6% to $1.28 -- an acceleration the company said was its best quarterly growth on that measure since 2021.
The subscriber trends have turned as well. Verizon added 55,000 postpaid phone customers in the first quarter, its first positive result on that metric in a first quarter since 2013. Broadband remained a growth engine, adding 341,000 net customers, including 214,000 fixed wireless access connections.
Additionally, management raised its full-year guidance, now calling for adjusted earnings-per-share growth of 5% to 6%.
Today's Change
(
0.59
%) $
0.26
Current Price
$
43.76
A dividend is only as safe as the cash flow behind it. And Verizon's cash flow is heading in the right direction.
Verizon generated $3.8 billion of free cash flow during the period, up 4% year over year. For the full year, management guided for free cash flow of at least $21.5 billion, or growth of about 7%, even while spending $16 billion to $16.5 billion on capital expenditures.
The dividend costs Verizon a little over $11 billion a year. The company paid $11.2 billion in cash dividends in 2024, for instance. In other words, guided free cash flow covers the payout nearly twice over.
That's a comfortable cushion. It's also what lets a company keep raising its dividend straight through a restructuring -- Verizon has increased its payout for 20 consecutive years, a streak management extended in January.
And the valuation adds another layer of support. Shares trade at about 10 times earnings and about 9 times consensus earnings-per-share estimates for the next 12 months. Even measured against earnings rather than cash flow, the payout ratio sits near two-thirds -- elevated for most companies, but ordinary for a telecom. Nobody is paying a premium here for growth that doesn't exist.
There is an important caveat, though: growth is thin. Mobility and broadband service revenue rose just 1.6% year over year in the first quarter, growth management said was dented by a January network outage.
Of course, cost cuts can fund a dividend for a long time. But they can't grow one forever. Eventually, the leaner Verizon has to deliver sustained subscriber and revenue gains, not just a smaller expense base.
That's what makes Friday's report worth watching. The items I'd check first are free cash flow, postpaid phone additions against the company's full-year target of 750,000 to 1 million (management expects the upper half of that range), and service revenue growth with the outage noise gone.
Unless those numbers crack, the dividend looks well protected. A payout covered nearly twice over by free cash flow, backed by improving subscriber trends and a management team attacking the cost base, is not a payout in danger.
For income investors, I think the dividend stock remains a solid option at today's price. Collect the 6.5% yield, and let Schulman keep shrinking the company into better shape.
The latest implementation of a shifting retail strategy was the spark that lit the fuse under Verizon Communications (VZ +2.37%) stock on Thursday. Cheered by the move, investors pushed the big telecom's stock up by more than 2%, on a day when the S&P 500 index only ticked up by 0.4%.
Franchises on the rise Verizon announced that it aims to sell 274 of its stores around the U.S., and cut roughly 500 corporate jobs as part of a broader restructuring program.
Image source: Verizon Communications.
All told, this round of store transitions will affect around 3,000 of the company's retail and corporate employees. The stores are to be sold to third parties that will operate them under franchise agreements; many of the affected workers would likely be retained by those entities.
Increasingly, Verizon's retail outlets are being managed under the franchise model. Currently, around 5,000 company stores are run in this manner. Following the sale announced on Thursday, Verizon will directly operate only about 1,000 of its outlets.
Just after current CEO Dan Schulman took the reins last October, the company announced plans to cut roughly 15% of its workforce, or around 13,000 people. This is partly in anticipation of artificial intelligence (AI) taking over certain functions, such as aspects of customer service.
Other components of this corporate makeover include a recently introduced, simplified service plan for clients and a refreshed loyalty program.
Today's Change
(
2.37
%) $
1.02
Current Price
$
43.85
The dividend difference While it's never heartening to learn of potential job cuts, the silver lining is that the current program could result in a genuinely leaner, more efficient Verizon if done well. Shareholders would currently welcome the return of solid growth for the company, but as it stands, it's a reliable (if unspectacular) performer that pays a handsome, high-yield dividend (over 6%).
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Verizon bude pro nově vyráběné vozy BMW Group v USA dodávat 5G Standalone a LTE konektivitu. Podpoří tím ConnectedDrive, telematiku, infotainment i bezpečný přenos dat.
Key Takeaways Verizon will provide 5G Standalone and LTE connectivity for newly built BMW Group vehicles in the U.S.VZ's network will support ConnectedDrive with telematics, infotainment and secure data transmission.Verizon expands its automotive portfolio through a stronger KDDI partnership and 5G Standalone rollout. Verizon Communications (VZ - Free Report) has partnered with KDDI Corporation (KDDIY - Free Report) to provide connectivity for newly manufactured BMW Group vehicles in the United States. The agreement strengthens the company’s position in enterprise wireless services while expanding its presence in the connected vehicle market.
Under the agreement, Verizon will provide 5G Standalone and LTE connectivity for new BMW, MINI and other BMW Group vehicles in the United States, supporting the automaker's ConnectedDrive platform. Its nationwide 5G infrastructure will power advanced telematics, remote functions, digital infotainment and app-based services. In collaboration with KDDI's Global Communications Platform, Verizon’s network will ensure secure, reliable data transmission, helping the automaker efficiently manage its vehicle connectivity services.
The collaboration also introduces Verizon's nationwide 5G Standalone offering for connected vehicles. Newly manufactured BMW Group vehicles will be the first to operate on the platform, powered by its 5G core and built-in 3GPP Release 16 industry standards. It further strengthens Verizon’s long-standing relationship with KDDI and expands its automotive portfolio, which includes telematics services for Volkswagen Group brands.
As vehicles become increasingly software-driven, Verizon's advanced wireless network capabilities are expected to enable connected services, real-time communication and next-generation mobility solutions.
How Are Competitors Advancing in the Automotive Industry?Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T has expanded its automotive business by bringing 5G connectivity to Rivian's upcoming R2 electric vehicle. The company has partnered with Mitsubishi Motors to bring 5G connectivity to the Outlander. AT&T continues to expand its Connected Car platform, helping automakers deliver seamless in-vehicle connectivity, infotainment and digital services through its 5G network.
T-Mobile is strengthening its presence in the automotive sector with 5G and IoT solutions for connected vehicles. The company works with automakers to support telematics, over-the-air software updates, and in-car infotainment through its nationwide 5G network. T-Mobile is advancing its 5G Standalone technology to enable faster and more reliable connectivity for future vehicles.
VZ’s Price Performance, Valuation & EstimatesVerizon’s shares have gained 1.3% over the past year compared with the industry’s 94.8% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.24, below the industry average of 47.66.
Image Source: Zacks Investment Research
Earnings estimates for 2026 and 2027 have remained static at $4.96 and $5.25 per share, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon bude pro nově vyráběná vozidla BMW Group pro USA poskytovat konektivitu 5G Standalone a LTE. Jde o první vozy napojené na jeho celostátní nabídku 5G Standalone pro Connected Vehicles.
July 09, 2026 08:00 ET | Source: Verizon Communications, Inc.
At a glance:
Verizon will provide 5G Standalone and LTE connectivity directly to BMW Group vehicles in the U.S., delivering exclusive telematics support for the BMW Connected Drive system in newly manufactured vehicles The deal stems from Verizon’s long-term partnership with KDDI, which supplies its proprietary Global Communications Platform to BMW Group and global connected services to OEMs in various other industries NEW YORK and DALLAS, July 09, 2026 (GLOBE NEWSWIRE) -- Verizon Business and KDDI today announced a collaboration with BMW Group uniting Verizon’s world-class 5G and LTE networks, KDDI’s expansive Global Communications Platform, and BMW Group’s superior automotive engineering for a second-to-none connected-vehicle experience.
Verizon now provides telematics connectivity for new BMW, MINI, and other BMW Group vehicles manufactured for the U.S. market. This collaboration delivers cellular connectivity directly to BMW Group vehicles, enabling BMW Connected Drive and other digital infotainment, remote, app and telematics services.
“Verizon is committed to delivering seamless connectivity for customers. Our collaboration with BMW Group and KDDI prioritizes innovation and capability to advance the connected experience for drivers across the U.S.,” said Kyle Malady, CEO, Verizon Business.
This major launch stems from Verizon’s long-standing relationship with KDDI, who provides IoT services through its Global Communications Platform to Original Equipment Manufacturers (OEMs) in demanding industries. KDDI’s platform enables a programmable connected experience for BMW Group, giving the automaker complete control of the connectivity and data packets flowing reliably and securely through Verizon’s state-of-the-art 5G network. The service is available for all newly manufactured BMW Group vehicles in the United States.
“At KDDI, we are honored to support BMW Group’s next generation connected vehicle services with our Global Communications Platform,” said Satoshi Oishi, President & CEO, KDDI America Inc. “With over two decades of experience in connected car telecommunications, we understand the critical importance of performance and reliability. Together with BMW Group and Verizon, we are committed to delivering an exceptional connected driving experience to customers across North America.”
These vehicles are the first to be connected to Verizon’s nationwide 5G Standalone for Connected Vehicles offering using its 5G core and 3GPP Release 16 industry standards for 5G standalone.
Visit LinkedIn for more information about KDDI and its connected-vehicle subsidiary KDDI Spherience.
Visit Verizon’s connected-vehicle website to learn more about our services and capabilities or to reach out to a Verizon Business sales representative.
This announcement was originally published by Verizon. Read the original press release.
Verizon Communications uzavřela na 42,07 USD, tedy o 1,15 % níže, a za poslední měsíc klesla o 6,19 %. Trh očekává výsledky 24. července 2026, s odhadovaným EPS 1,27 USD a tržbami 35,41 miliardy USD.
Verizon Communications (VZ - Free Report) closed the most recent trading day at $42.07, moving -1.15% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.72% for the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
The stock of largest U.S. cellphone carrier has fallen by 6.19% in the past month, lagging the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on July 24, 2026. The company's upcoming EPS is projected at $1.27, signifying a 4.10% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.41 billion, indicating a 2.62% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $142.69 billion, demonstrating changes of +5.31% and +3.25%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% increase. As of now, Verizon Communications holds a Zacks Rank of #3 (Hold).
In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 8.57. Its industry sports an average Forward P/E of 10.59, so one might conclude that Verizon Communications is trading at a discount comparatively.
Also, we should mention that VZ has a PEG ratio of 1.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 1.04.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
AT&T vykázala tržby 31,51 miliardy USD a upravený EPS 0,57 USD, přičemž čistých přírůstků internetových zákazníků měla 584 000. Verizon po akvizici Frontier zvýšil počet připojení k optickým sítím o 41,9 % na zhruba 10,8 milionu a upravený EPS dosáhl 1,28 USD.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
AT&T (NYSE:T | T Price Prediction) and Verizon (NYSE:VZ) both closed transformative fiber acquisitions early this year and just delivered Q1 2026 results that show two telecom giants racing toward the same convergence prize from very different starting points.
AT&T is running an established playbook. Verizon is executing a turnaround under a brand new CEO. The quarter makes their choices unusually easy to compare.
Fiber Momentum Carries One. A Turnaround Story Carries the Other. AT&T posted $31.51 billion in revenue and adjusted EPS of $0.57, with consumer wireline broadband revenue jumping 27.3% to $2.80 billion after closing the Lumen Mass Markets fiber deal on February 2, 2026.
John Stankey told investors AT&T saw “our best first quarter ever for Advanced Connectivity internet customer net additions.” The numbers back him up: 584,000 internet net adds and 294,000 postpaid phone adds at a tight 0.89% churn. That is a well-oiled machine.
Verizon looks different. New CEO Dan Schulman inherited a franchise losing share, and Q1 delivered the first positive Q1 postpaid phone net adds since 2013, a swing of over 340,000 year over year. Revenue reached $34.44 billion with adjusted EPS of $1.28.
Fiber broadband connections climbed 41.9% to roughly 10.8 million after the Frontier deal closed January 20, 2026. Schulman called it a “turnaround” that is “gaining momentum.” A January network outage still cost 80 basis points of wireless service revenue growth, so this is momentum with scars.
Convergence Leader vs Turnaround Bet Lens AT&T Verizon Fiber footprint 37M+ locations, targeting 60M by 2030 30M+ homes and businesses post-Frontier Convergence rate Nearly 45% of home internet subs also on wireless Rebuilding under new leadership 2026 guidance Reiterated: EPS $2.25 to $2.35, FCF $18B+ Raised: EPS $4.95 to $4.99, FCF $21.5B+ Total debt $138.4B $172.5B Dividend yield 5.09% 6.27% Stankey is doubling down on bundling fiber and 5G through the AT&T Guarantee. Schulman is stripping friction, cutting SG&A by 3.1%, and pushing business EBITDA margins to 26.5% from 23.1%.
SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now.
Verizon still carries higher leverage and softer wireless economics: postpaid phone churn rose to 0.97% and ARPA slipped 1.9%.
The Next Test Is Whether Verizon Can Hold Its Gains I will be watching whether AT&T hits its 40 million fiber locations target by year-end while keeping churn under one point. For Verizon, the question is durability.
One clean quarter of phone adds is not a trend, and the Starlink mobile narrative already spooked retail traders, dragging Reddit sentiment to a bearish 32 in late June. You should also keep an eye on integration costs from Frontier and whether Verizon repays that debt on schedule.
Why I Lean Toward AT&T Today, With a Caveat Personally, I find AT&T’s story easier to trust right now. The convergence flywheel is already spinning, the fiber lead is real, and shares trade at just 7x trailing earnings after falling 25.99% over the past year.
For yield-focused investors, Verizon’s 6.27% dividend and raised guidance frame it as the turnaround story to watch, especially if Schulman keeps delivering. If input costs, Starlink pressure, or another outage rattle the group, I would rather own the operator already executing than the one still proving it can.
Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.
From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.
Verizon oznámil společný podnik s BT Group a ve 2. čtvrtletí zaúčtuje ztrátu 700 až 800 milionů USD. Akcie zároveň tlačilo i vyřazení z indexu Dow Jones Industrial Average.
Shares of Verizon (VZ 5.11%) fell on Monday, down as much as 8.1%, before recovering to a 5.8% decline as of 1:54 p.m. EDT.
There was a spate of news for Verizon today. First, the company announced it would spin off its international enterprise-focused operations into a joint venture with BT Group (OTC: BTGO.F), while also announcing headcount reductions and severance charges as part of its own cost-cutting initiatives.
Additionally, rival and partner Comcast (CMCSA +4.53%) announced its intentions to separate its broadband and mobile services from its NBCUniversal and Sky media properties. There was also a report over the weekend that Space Exploration Technologies (SPCX +7.18%) was in discussions with Charter Communications (CHTR +9.50%) to use its terrestrial network for a mobile phone service.
Finally, today was the first day Verizon began trading outside of the Dow Jones Industrial Index.
Today's Change
(
-5.11
%) $
-2.38
Current Price
$
44.16
A busy day for Verizon, but not in a good way All of these factors could be playing into Verizon's decline today, though it's not clear exactly which news item contributed, or by how much.
As part of the new joint venture with BT Group, Verizon will contribute $625 million in cash to the new entity and will also record a loss of $700 million to $800 million in the second quarter. These are the negatives of the spin-off-and-sale. However, Verizon also noted the transaction should be accretive to second-quarter adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), likely due to large expense cuts.
Meanwhile, Comcast rose on the news of its separation, and Charter rose on the news of its talks with SpaceX. Professional investors or ETFs that track telecom stocks could be selling other names in the group, such as Verizon, to raise funds to buy Comcast and Charter shares. Comcast's stock is down over 25% over the past year; Charter's stock is down a stunning 63%; and Verizon posted a small gain. Therefore, investors may be selling more fully valued Verizon shares to buy Comcast or Charter.
As for the SpaceX-Charter speculation, investors might see it as a competitive threat to Verizon's traditional mobile offering. However, it should also be noted that Charter actually uses Verizon's network on a wholesale basis to power its mobile offerings. So, the competitive implications of a potential SpaceX service, if it even happens, are more complicated.
Image source: Getty Images.
Finally, Verizon was removed from the Dow Industrial Average, replaced by Alphabet (GOOG +4.94%) (GOOGL +4.79%). The move was announced last week, but today was the first trading day in which Verizon traded outside the Dow. That could have led to selling pressure from index funds that track the index.
Verizon remains a dividend play, but watch out for disruption Despite today's downturn, Verizon's fundamentals haven't changed much. It is still part of a U.S. oligopoly of mobile wireless telecoms that dominate the industry. There isn't much growth there, but Verizon does pay a hefty 6.1% dividend.
However, there's a big trade-off for that nice dividend yield. Verizon doesn't have that much growth ahead of it, and it faces intense competition even with its traditional rivals. Add in the uncertainty over a potential SpaceX entry into the mobile industry, and Verizon's stock price seems capped for the foreseeable future.
BT Group a Verizon vytvoří společný podnik v poměru 50:50 pro mezinárodní konektivitu. Nový podnik má obsluhovat více než 3 000 zákazníků ve více než 180 zemích s kombinovanými ročními tržbami kolem 4 miliard USD.
June 29, 2026 02:00 ET | Source: Verizon Communications, Inc.
BT Group and Verizon agree to combine their respective international operations in a 50:50 joint venture, creating a new company focused on multinational connectivity.The joint venture will serve more than 3,000 customers across more than 180 countries, representing approx. $4 billion in combined annual revenue.The combination of international networking businesses creates a future-ready, scaled organization underpinned by a new platform designed for the age of cloud and AI.Martijn Blanken is appointed Chief Executive Officer-designate of the new joint venture, conditional on completion of the transaction.The transaction is expected to complete in 2027, subject to regulatory clearances and other customary closing conditions. LONDON and NEW YORK, June 29, 2026 (GLOBE NEWSWIRE) -- BT Group (BT) and Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced the signing of an agreement to combine their respective international enterprise operations into a 50:50 joint venture – in a move that is set to transform international connectivity.
The new joint venture will focus on serving multinational organizations. It is expected to serve more than 3,000 customers across more than 180 countries, representing approximately $4 billion in combined annual revenue. This breadth of operations will unlock significant scale efficiencies across the combined global network and service operations following completion.
Designed specifically for a cloud-first world in the age of AI, the joint venture brings together BT International, which serves multinational customers with secure and resilient communication and network services around the world, with Verizon’s international enterprise wireline arm, which provides secure connectivity to enterprises worldwide. Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay BT an equalization payment of $625 million.
By combining global scale with infrastructure designed and built to support local compliance and sovereignty needs, the joint venture will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms. Customers will benefit from secure and resilient connectivity designed to meet data, operational and regulatory requirements.
At the same time, the parent companies will be better able to focus on their domestic markets, while providing support to the new joint venture as equal shareholders.
BT and Verizon have also today confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. Martijn has almost three decades in senior leadership positions across telecommunications, technology and digital infrastructure at Telstra, Openwave Systems, EXA Infrastructure and KPN, and a career spanning four continents. From September 1, 2026, he will join BT and will work with both parent companies, while observing relevant regulatory requirements, as they prepare for the launch of the proposed joint venture.
Clive Selley will continue to lead BT International as CEO, ensuring continuity of BT International’s ongoing transformation in readiness for the creation of the joint venture. Verizon’s leadership remains unchanged.
Allison Kirkby, Chief Executive of BT Group, said: “The world’s leading brands and international organizations trust BT International to connect them across the world. Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner – one that has the reach, innovation and investment to succeed. Customers will benefit from new, secure and resilient connectivity platforms which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners. Today’s announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our U.K.-focused strategy.”
Dan Schulman, CEO of Verizon, said: "Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S."
The transaction is subject to regulatory clearances and consultation with employee representations in countries where required. BT and Verizon’s international businesses will continue to operate independently until the transaction officially closes with a full commitment to their respective customers.
Additional information
The new joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.On completion of the transaction, the new joint venture will establish commercial relationships with both BT and Verizon – providing a seamless, end-to-end service across borders including for our customers in the U.K. (BT) and the U.S. (Verizon).Goldman Sachs acted as lead financial advisor to BT, with Deloitte transaction services advisor and Freshfields LLP as legal counsel. Morgan Stanley & Co. LLC acted as financial advisors to Verizon and Kirkland & Ellis LLP acted as legal counsel. Verizon Forward-Looking Statements
This communication contains forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include those regarding our possible or assumed future results of operations and those regarding our ability to consummate the proposed transaction with BT Group plc and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes," "intends," "plans," "targets," “will” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
This announcement was originally published by Verizon. Read the original press release.
About BT Group
BT Group is the U.K.’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services.
BT Group consists of four customer-facing units: Consumer serves individuals and families in the U.K.; Business covers companies and public services in the U.K.; International serves multinational organisations headquartered outside the U.K. and overseas public sector customers; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers – over 700 communications providers across the U.K.
British Telecommunications Limited is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.
For more information, visit www.bt.com/about
About Verizon
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Media contacts:
Sarah Heinz (Verizon) [email protected]
347-931-6300
