Track market-moving stories before they get noisy

By PYMNTS  |  July 24, 2026

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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.

Key Highlights: 

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.

Media contacts:
Katie Magnotta
201-602-9235
[email protected]

Jamie Serino
201-401-5460
[email protected]

Non-GAAP Reconciliations – Consolidated VerizonConsolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)Unaudited 3 Mos. Ended 6/30/26 3 Mos. Ended 3/31/26 3 Mos. Ended 12/31/25 3 Mos. Ended 9/30/25 3 Mos. Ended 6/30/25 3 Mos. Ended 3/31/25             Consolidated Net Income $3,949  $5,146  $2,448  $5,056  $5,121  $4,983 Add:            Provision for income taxes  1,325   1,638   615   1,471   1,488   1,490 Interest expense(1)  1,985   1,940   1,759   1,664   1,639   1,632 Depreciation and amortization expense(2)  5,008   4,892   4,519   4,618   4,635   4,577 Consolidated EBITDA $12,267  $13,616  $9,341  $12,809  $12,883  $12,682              Add/(subtract):            Other (income) expense, net(3) $(36) $(477) $185  $(92) $(79) $(121)Equity in (earnings) losses of unconsolidated businesses  (44)  (5)  (3)  6   3   (6)Severance charges  397   —   1,715   —   —   — Acquisition and integration related charges  135   261   39   52   —   — Asset and business rationalization  258   —   583   —   —   — Loss on disposition of business  746   —   —   —   —   —    1,456   (221)  2,519   (34)  (76)  (127)Consolidated Adjusted EBITDA $13,723  $13,395  $11,860  $12,775  $12,807  $12,555 Consolidated Operating Revenues $34,253        $34,504   Consolidated Net Income Margin  11.5%        14.8%  Consolidated Adjusted EBITDA Margin  40.1%        37.1%  Consolidated Adjusted EBITDA – Year over year change %  7.2%          
Footnotes:
(1) Includes a portion of the Acquisition and integration related charges, where applicable.
(2) Includes Amortization of acquisition-related intangible assets.
(3) Includes Pension and benefits remeasurement adjustments, where applicable.
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
(dollars in millions)Unaudited 12 Mos. Ended 6/30/26
 12 Mos. Ended 12/31/25     Consolidated Net Income $16,599  $17,608 Add:    Provision for income taxes  5,049   5,064 Interest expense(1)  7,348   6,694 Depreciation and amortization expense(2)  19,037   18,349 Consolidated EBITDA $48,033  $47,715      Add/(subtract):    Other income, net(3) $(420) $(107)Equity in losses of unconsolidated businesses  (46)  — Severance charges  2,112   1,715 Acquisition and integration related charges  487   91 Asset and business rationalization  841   583 Loss on disposition of business  746   —    3,720   2,282 Consolidated Adjusted EBITDA $51,753  $49,997      Footnotes:(1) Includes a portion of the Acquisition and integration related charges, where applicable.(2) Includes Amortization of acquisition-related intangible assets.(3) Includes Pension and benefits remeasurement adjustments, where applicable.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited 6/30/26
 3/31/26
 12/31/25
          Debt maturing within one year $21,783  $28,229  $18,618 Long-term debt  143,448   144,231   139,532 Total Debt  165,231   172,460   158,150 Less: Secured debt  28,760   29,962   27,067 Unsecured Debt  136,471   142,498   131,083 Less: Equity credit for junior subordinated notes(1)  6,037   4,079   1,982 Less: Cash and cash equivalents  1,752   8,366   19,048 Net Unsecured Debt $128,682  $130,053  $110,053 Consolidated Net Income (LTM) $16,599     $17,608 Unsecured Debt to Consolidated Net Income Ratio 8.2x    7.4xConsolidated Adjusted EBITDA (LTM) $51,753     $49,997 Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio 2.5x    2.2x          Footnote:
(1) Represents a fifty percent equity credit related to junior subordinated notes outstanding.
Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited 3 Mos. Ended 6/30/26 3 Mos. Ended 6/30/25
  Pre-tax
TaxAfter-Tax
  Pre-tax
TaxAfter-Tax
 EPS      $0.92       $1.18 Amortization of acquisition-related intangible assets $274 $(69)$205  0.05  $192 $(49)$143  0.03 Severance charges  397  (98) 299  0.07   —  —  —  — Acquisition and integration related charges  135  (18) 117  0.03   —  —  —  — Asset rationalization  258  (63) 195  0.05   —  —  —  — Loss on disposition of business  746  29  775  0.19   —  —  —  —   $1,810 $(219)$1,591 $0.38  $192 $(49)$143 $0.03 Adjusted EPS      $1.30       $1.22 Year over year change %       6.6%                        Footnote:
Adjusted EPS may not add due to rounding.
Free Cash Flow
(dollars in millions)Unaudited 3 Mos. Ended 6/30/26 3 Mos. Ended 6/30/25 6 Mos. Ended 6/30/26 6 Mos. Ended 6/30/25         Net Cash Provided by Operating Activities $10,435  $8,975  $18,419  $16,757 Capital expenditures (including capitalized software)  (4,009)  (3,808)  (8,210)  (7,953)Free Cash Flow $6,426  $5,167  $10,209  $8,804 Year over year change %  24.4%    16.0%   Free Cash Flow Forecast for Full Year 2026      (dollars in millions)
   Revised  OriginalUnaudited  Forecast  Forecast       Net Cash Provided by Operating Activities Forecast $37,940 - 38,640 $37,500 - 38,000Capital expenditures forecast (including capitalized software)  (16,000 - 16,500)  (16,000 - 16,500)Free Cash Flow Forecast $21,940 - 22,140 $21,500Net Cash Provided by Operating Activities Growth Forecast %  2.2 % - 4.0 %  1.0 % - 2.3 %Free Cash Flow Growth Forecast %  9.0 % - 10.0 %  6.80 % Non-GAAP Reconciliations – SegmentsSegment EBITDA and Segment EBITDA Margin
         Consumer        (dollars in millions)Unaudited 3 Mos. Ended 6/30/26 3 Mos. Ended 6/30/25 6 Mos. Ended 6/30/26 6 Mos. Ended 6/30/25         Operating Income $8,032  $7,643  $15,746  $15,067 Add: Depreciation and amortization expense  3,787   3,582   7,517   7,125 Segment EBITDA $11,819  $11,225  $23,263  $22,192 Year over year change %  5.3%    4.8%           Total operating revenues $26,242  $26,648  $52,695  $52,266 Operating Income Margin  30.6%  28.7%  29.9%  28.8%Segment EBITDA Margin  45.0%  42.1%  44.1%  42.5% Business        (dollars in millions)Unaudited 3 Mos. Ended 6/30/26 3 Mos. Ended 6/30/25 6 Mos. Ended 6/30/26 6 Mos. Ended 6/30/25         Operating Income $991  $724  $1,947  $1,470 Add: Depreciation and amortization expense  1,091   998   2,140   1,987 Segment EBITDA $2,082  $1,722  $4,087  $3,457 Year over year change %  20.9%    18.2%           Total operating revenues $7,155  $6,973  $14,285  $13,975 Operating Income Margin  13.9%  10.4%  13.6%  10.5%Segment EBITDA Margin  29.1%  24.7%  28.6%  24.7%                 Footnote:
In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. Where applicable, historical segment results have been reclassified to conform to the current period presentation.

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%.

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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.

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.

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From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.24, below the industry average of 47.66.

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Earnings estimates for 2026 and 2027 have remained static at $4.96 and $5.25 per share, respectively, over the past 60 days.

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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 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.

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.