Track market-moving stories before they get noisy

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Travis Hoium, Lou Whiteman, and Dan Caplinger discuss:

SpaceX's wireless ambitions.Telecom's competitive threats.PepsiCo's pricing problems.Consumer spending pressures.Lessons from 2022.AI's uneven impact.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on Oct. 12, 2026.

Travis Hoium: Is Elon Musk going to disrupt wireless? Motley Fool Hidden Gems Investing starts now? Welcome to Motley Fool Hidden Gems Investing. I'm Travis Hoium. I'm joined today by Lou Whiteman and Dan Caplinger, new crew from Monday. We'll see how this goes. We're all getting up a little earlier than we normally do for the podcast, but guys, we have not had a chance to talk about the latest from SpaceX, disrupting at least the stock market in the telecom industry late last week. Stocks like Verizon down about 10% after Elon Musk announced that they had acquired some spectrum, or there's an agreement to acquire some spectrum, and now they're getting into wireless. Lou, the story for this for quite a while has been like, eventually, we're all just going to be signed up for SpaceX. Doesn't this seem like we're pushing this a little bit too far from a disruption perspective? Because I tested what my services here. It was about eight times faster than the offering for $55 from SpaceX. Not sure I'm willing to give up the slower speeds, the slower ping time, just to get my connection from a satellite.

Lou Whiteman: I don't think anybody is going to take slower for satellite. The idea is that one day it might be better. But I'm very skeptical here. There's a lot of physics that you have to solve for latency, distance, all of these things. What this is what this spectrum purchase signals, though, is that Starlink, to some extent or the other, is interested in at least trying this. I'll tell you why because this spectrum is very good for terrestrial cellular. It's not as great for satellites. This is spectrum that will go through walls, which we all like to use our cellphones inside. But look, this is SpaceX saying that they will build out a terrestrial network to go with the satellites. That's going to cost 10 billion or more. We are not going to be around the corner. This is not a today thing. This is not a cheap thing, but I think it does signal some intent. Whether it'll work, I don't know. Be careful what you wish for, Elon, because we know how to value mobile businesses. We value them at less than two times sales. I think we can get into it. I think there is more going on here than that. But on the surface, it's a weird place to go.

Travis Hoium: Dan, that's what struck me. I have been an investor in Verizon over a long period of time. The best thing that's really come out of that is you get a really nice dividend. But you don't necessarily get a lot of growth. You find out that you're fighting for customers based on price. You're subsidizing cellphones. These are all things that are huge headwinds for the telecom industry, which just has been a bad business. Is there a case to be made that somehow SpaceX can make this into a good business or is this just I don't know, one of those things where we get really excited, and then five years later, look back and go, it didn't work out as planned.

Dan Caplinger: I wonder if SpaceX is really trying to diversify its business for one reason or another. You've got the satellite business. I did a lot of traveling this summer in Northern Canada and in Alaska, and the use case for Starlink up there is obvious. There's no land-based wireless. You go hundreds of miles without being able to get signal, and these folks with the SpaceX minis, they attach them to their camper or something like that, and they're in business. Because it's low density use up there, plenty of bandwidth to handle all of their needs. The challenge comes in when you get Starlink into more populated areas where the use of the bandwidth is going to be denser, and you have some of these issues. I think what Lou says about, does this mean a pivot to ground-based wireless, that's an answer to that.

Now, did SpaceX really have to do this yet? Maybe, maybe not. The late version satellites that SpaceX is putting up, estimates give each satellite enough bandwidth for about 40,000 users. It's roughly 11,000 satellites in orbit right now. That is not all the latest generation. Some of them are older ones that have lower bandwidth. But theoretically, a constellation that size, you're talking about hundreds of millions of users. SpaceX has plenty of growth room for startling under those capacity areas. But the question is speed and also the questions capital expenditure because these satellites, you can't just drive a repair truck up and fix the satellite like you can with a ground-based installation. Those satellites fail after 5-7 years. You got to spend another million bucks or so to launch another one, and so huge amounts of capex, but not necessarily that much huger than what you're talking about with land-based stuff. The big benefit of space is you don't have to pay anybody to put something into space the same way that you have to pay a landowner to get a tower up or to bring the trucks in to do the repairs and stuff like that.

Lou Whiteman: That's a funny thing here, Dan, is that if we were all starting from scratch today, you might be able to make an economic case for why satellite plus a little terrestrial SpaceX could do better. But the point is, as you say, we have already spent the billions we needed for towers for these incumbents. You know, you're fighting the entrenched base, not from scratch. The question for me is, then what is SpaceX doing? Because we know this, they must know this too. I think the answer is, AT&T, T-Mobile, Verizon combined to generate over $300 billion in revenue last year. As Travis says, they pay pretty good dividends. They are free cash flow positive. If I'm SpaceX and I have just massive capex needs down the line, I am looking at this as not as the business I want to be in, not as the end goal, but it sounds derogatory, and I don't mean it that way, but this is revenue hunting. This is positioning assets that you have in a way to generate as much cash as possible that you can then use to fund the business. In that way, it's not too dissimilar from the Rocket Lab deal for Iridium that is also, on some level, about gaining cash flow to invest in the business. I think that's what's going on here. They see mobile is not the end, but a means to fund a lot of their goals. I do think they're serious about pursuing.

Travis Hoium: It's going to be interesting to see how this plays out. The other company that I mentioned here is AST Space Mobile. They have deals with some of these other companies. I know that I think Verizon and AT&T both invested in them. Going to be using them as a service provider, using their spectrum. It'll be interesting to see how all this plays out, because as we find out in Telecom, having more than one competitor always brings a little bit of pricing and margin pressure. When we come back, we're going to talk about Pepsi's latest results. You're listening to Motley Fool Hidden Gems Investing.

Welcome back to the show. Pepsi reported earnings late last week and said that revenue grew about as expected, nothing earth-shattering from a company like Pepsi, but margins are going to be down. Their guidance was a little bit weaker on the bottom line than expected. We're seeing commodity prices rise across the board, and it doesn't seem like they're able to pass these on. What did we learn, Dan?

Dan Caplinger: Boy, I sure hope that they can't pass any more of them on because they've already done a great job of passing them on so far. I pulled up stats from the Federal Reserve's economic data database. The average one-pound bag of potato chips cost $4.50 in 2020. We're at 6:50 now, up almost 50%. Average price of a 12-ounce can of a soft drink up even greater $0.35 six years ago, now $0.60. The rates of inflation far, far higher than the 30% increase in the overall CPI, and they reflect the passing through of a whole bunch of costs, including everything from the actual ingredient costs of making the product to the distribution network costs of transporting it to stores and things like that. But you can tell even with those price increases that the companies are quibbling over every penny that they can.

There was a Federal Trade Commission lawsuit late last year that alleged collusion between PepsiCo and Walmart, which allegedly gave Walmart preferential supplier pricing over the smaller retailers that Pepsi serves. I think, regardless of the merits of the suit, which way it's going to end up, what settlement it might result in, it just highlights the pressure that PepsiCo and the retail community are seeing to keep those consumer price increases under control. You've seen a lot of consumers resort to store brands, but let's face it, some store brands are just perfectly fine. But others, it's just a real sacrifice to have to deal with that. Pepsi is trying to keep people in the premium brands without running too far afoul of this growing sense of an affordability crisis across the economy.

Travis Hoium: Lou, it seems like Pepsi is running into a number of different challenges we could peel apart and spend an entire show on, but you have the supply dynamics where suddenly these smaller brands are available. That gives you a little less pricing power. One of the things that I've noticed just shopping we saw this towards the end of the pandemic those price increases are really noticeable when you're going and buying something that you identify with what the price of the product is $0.50 for a can of soda when you went to the vending machine when I was a kid. That doesn't exist anymore.

Lou Whiteman: That's why we carried quarters.

Travis Hoium: That's why we carried quarters. But there's this price ingrained in you; Doritos was the thing that I always bought as a kid. The size of the family size of Doritos bag today is smaller than the normal Doritos bag when I was a kid. It is one of those things where it seems like even over decades, they just have a really hard time raising prices, unless the bags keep getting smaller.

Lou Whiteman: The bags apparently do keep getting smaller. This full disclosure, I am not the target audience for either soda or Doritos, I guess, because I don't really follow this to be the target, but as a consumer. I don't know. I'm just, I don't know. Eat your Sun Chips. They're at least a little better for you. But here's the deal, guys. I'm going to have to hold my nose and do this, and I'm not there yet. But Dan, I agree with everything you say about all of the issues they're facing and all of that. I also believe in these brands. We're down to about 15 times expected earnings. We got a dividend yield hovering near 4.7% and going up. I look, near term, I don't know what they do, but long term, if we're investors, this is beginning to look more appetizing than maybe a lot of their products to me because at some point, I think they are a survivor and long-term winner here, and a lot of the negativity seems to be priced in at this point. I guess I need to be interested in that even if I don't want to take a bite, I don't know. What am I doing here?

Travis Hoium: Too many puns here, Lou. It is going to be interesting to see how this plays out because they've had a lot of these companies that used to have massive brands in the 80s and 90s have had a struggle over the past 20 years. It doesn't seem like that pricing power is coming back anytime soon. When we come back, we're going to look back four years on the market bottom. We'll be back in a moment. Welcome back to the show. Four years ago was the market bottom from the pandemic highs to then the pandemic lows. What did we learn, guys, over the last four years? Because, Lou, it seems like that was 100 years ago while also being almost the blink of an eye, and everything has changed in that four years.

Lou Whiteman: What did we learn? That's such a fascinating question because we were talking about this offline. It's like I hardly recall the 2022 bottom, if I'm honest. If you talk about Lou recent crashes, I'm going to go to COVID, and I'm going to skip right over that, and part of it was the nature of it. It was just a slow, and it wasn't even really a song. It wasn't a slog. It wasn't down every day. We went down, went up a bit. But look at the lows in Oct. 22, we were basically where we were at in December 2021. I think what we learned, or my takeaway, and I hate to be half empty here or negative here, is I doubt we learned much. That wasn't really a market crash. It was just a market downdraft.

Travis Hoium: There was a lot of hype coming out of the market at that point. That was when PTO really crashed the related companies, the SPAC companies, completely fell apart.

Lou Whiteman: Here's my concern here: there are a lot of investors in the market who believe they have weathered a crash, and they know what to do, and they can take it. I hope so, because with the collective, we tend to make some of our worst decisions in the panic of a crash, but it scares me that I think that there is a good percentage of the people who are investors today who haven't been through 2008 or a more severe crash. I think all we can do is point that out and try and steer people towards be ready. It can get worse and make sure you don't make panic decisions then, because I don't think surviving 2022 really gives you your combat stripes.

Dan Caplinger: I share the same concerns, but at the same time, I do think that investors who managed to stay the course and not panic in the drop that we saw in late 2021 that just persisted and continued to slog downward in 2022, the folks who stuck around through that in the S&P 500 amply rewarded. Four-year average annual return 21.6%. That's more than a double in four years, which is really good even by recent standards for the stock market. Kudos, if you manage to survive that behavioral pressure and stay in the market. Now, that said, one thing that I paid attention to is participation. It's been a theme that we've seen over and over again in recent years, where it seems like so many of the gains in the stock market have come from an increasingly small number of stocks.

If you go back those 3-5 years, go back five years because, as Lou says, bottom at 2022 was basically where we were December 2021. Out of the current S&P 500, nearly 150 stocks are still down over the past five years, not just trailing the market, but actually down. That's 30% of the current S&P 500. That doesn't even include the stocks that were down that have gotten kicked out of the S&P 500 over that interim time. The question I'm looking at going forward is that we've seen AI-related stocks do really well. We've seen some stocks that aren't really directly tied to AI not do as well.

The question, how many of these sectors that have not yet benefited from AI? Are they going to benefit from AI-type innovation in the years to come? Is that going to help them catch up? Because that's one possible outcome is all these laggards catch up. If that doesn't happen as much as people expect, then it's a different story. But I think it highlights the importance of really looking at individual companies and particular industries and trying to figure out, OK, yeah, is this going to benefit from these favorable trends? Is this going to get left behind? Maybe it makes stock picking that much more important. For folks that have, up until now, really focused more on just index investing and trying to buy the market.

Travis Hoium: Well, and what disruption story is real and what's not? Because that's one of the things that I keep seeing over and over, some of the companies that I own, and I go, hey, wait a second. I look at the numbers. We're compounding year over year. Margins are getting better, but there's a story behind it that, well, AI is coming for this company or this industry, and you're going to be toast eventually. Sometimes that's going to be real, and sometimes it's not, and that's the values that we're ultimately looking for.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so it'll buy or sell stocks based solely on what you hear. All personal finance content follows The Motley Fool's editorial standards, and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our shows. For Lou Whiteman, Dan Caplinger, and Dan Boyd behind the glass, I'm Travis Hoium. Thanks for listening. We'll see you here tomorrow.

Both telecom giants just raised guidance, but retirees collecting dividend checks face a stark choice between a yield that keeps climbing and one frozen after a painful cut. The math behind each payout tells a very different story about which…

Verizon (NYSE:VZ | VZ Price Prediction) and AT&T (NYSE:T) both raised guidance in their latest earnings reports. Retirees, however, get very different checks. Verizon offers a forward yield near 6.26% and keeps raising it. AT&T yields about 4.88% on a payout frozen since its 2022 cut. Income durability now matters more than headline yield.

Verizon Raises the Check While AT&T Holds It Flat Verizon raised its quarterly dividend to $0.7075 from $0.69 this year, extending a record that began at $0.565 in 2016. That steady ladder helps a retiree keep pace with inflation.

AT&T paid $0.52 per quarter until early 2022, then cut to $0.2775, where it has stayed. Management plans to hold $1.11 annualized through 2028. Predictable, yes. Yet a flat check loses purchasing power every year.

Income Lens Verizon AT&T Quarterly Dividend $0.7075 $0.2775 Forward Yield 6.26% 4.88% Track Record 19 consecutive yearly raises Flat since 2022 cut Leverage 2.5x 3.13x 2026 Free Cash Flow Outlook $21.94B to $22.14B $18B+ Fewer Subsidies Fund Verizon’s Payout Verizon paid $5.9 billion in first-half dividends against $10.2 billion of free cash flow, about 58% of free cash flow. The source is operational: equipment revenue fell nearly 20% as subsidies shrank, while EBITDA margin hit 40.1%. Customers still came, with 184,000 postpaid phone net adds. Management summed it up: “We’re growing our dividend, and we are paying down our debt.”

AT&T’s dividend used about 40% of third-quarter free cash flow, a smaller load. The pressure sits elsewhere. AT&T targets ~$10B of 2026 buybacks and $23-24B of capex, and leverage rose after the $23 billion EchoStar (NASDAQ:SATS) spectrum purchase. The growth engine works: a record 769,000 Advanced Connectivity internet net adds and fiber reaching 39M+ locations.

Verizon’s Upcoming Report Tests the Momentum Verizon reports again soon, and I’ll focus on fixed wireless, where net adds fell 30.6%. Account revenue also slipped 1.4%, a crack worth monitoring. For AT&T, Barron’s highlighted Starlink fears weighing on shares, and fiber ARPU dropped 4%. Deleveraging back to 2.5x does not arrive until 2029.

Why Verizon’s Income Profile Stands Out for Retirees For income investors, Verizon holds the edge on the data in this comparison: a higher yield, a payout that still increases, lower leverage, and comfortable cash coverage built on cheaper customer acquisition. That edge would weaken if leverage falls short of the 2027 target range or subscriber gains stall without subsidies. Total-return investors who value heavy buybacks and fiber expansion may prefer AT&T and its $24B+ repurchase plan through 2028. Retirees leaning on these checks should think in ladder terms rather than single names, the approach we laid out in a free guide on building lifetime income without selling shares: here.

Contact [email protected] for any questions or corrections.

SpaceX just locked up $8 billion worth of 800 MHz spectrum, and Verizon reports earnings days later with a turnaround story that now faces a hard deadline before a well-funded rival shows up.

Verizon (NYSE:VZ | VZ Price Prediction) reports third-quarter results on October 26, days after SpaceX (NASDAQ:SPCX) announced a roughly $8 billion deal for nationwide 800 MHz spectrum. I think the deal makes this report more important. It shows how much momentum Verizon carries into a harder fight.

A Turnaround Faces Its First Real Test
Last quarter, Verizon posted adjusted EPS of $1.30 against a $1.27 consensus, its sixth straight beat. Revenue slipped 0.7% to $34.25 billion as equipment revenue fell nearly 20%, a deliberate pullback on subsidies. The core business strengthened: 184,000 postpaid phone net adds, churn down to 0.92%, and a record 40.1% adjusted EBITDA margin.

Management raised full-year adjusted EPS guidance to $4.99 to $5.04 and lifted the buyback target to up to $4.5 billion. Shares are up 16.94% year to date but down 4.89% over the past month. SpaceX’s spectrum announcement put Verizon, AT&T (NYSE:T), and T-Mobile (NASDAQ:TMUS) among the top decliners in the S&P 500 the day it landed.

Consensus Calls for Steady Growth

Metric
Consensus
Prior Year
YoY Growth

Q3 2026 EPS
$1.2743
$1.21
5.31%

Q3 2026 Revenue
$34.85 billion
$33.82 billion
3.05%

FY 2026 EPS
$5.0179
$4.71
6.54%

FY 2026 Revenue
$140.80 billion
$138.19 billion
1.89%

The Q3 EPS consensus has moved lower from $1.2925 90 days ago.

Service Revenue and Churn Will Answer the Starlink Question
Management guided mobility and broadband service revenue growth to approach 3% in Q3 and reach approximately 4% in Q4. I’ll be watching that number first. Hitting it would show the subsidy-light Simplicity and Verizon One strategy can grow revenue while maintaining price.

Churn comes next. Consumer postpaid phone churn fell to 84 basis points, which management called “a step change for Verizon.” For comparison, Q3 2025 delivered just 36,000 postpaid net adds with churn of 0.98%. You should look at whether retention holds now that a deep-pocketed entrant has a credible path into U.S. mobile.

The spectrum deal should close in the first half of 2027, and SpaceX plans to turn on service in early 2028. SpaceX said the spectrum could make Starlink Mobile “a major mobile carrier in the U.S.” In July, Verizon estimated satellite’s U.S. addressable market at 6 million to 8 million homes, mostly rural. I want to hear whether that framing changes now that SpaceX holds low-band spectrum built for indoor coverage.

Finally, AI Connect. The Google (NASDAQ:GOOGL) dark fiber agreement is valued at over $1 billion, and management flagged more deals by year-end.

Verizon Needs Proof Before Starlink Arrives
SpaceX’s threat is real, yet it sits more than a year away. That makes this report Verizon’s chance to show that lower churn, combined bundles, and Frontier’s fiber build a moat before a new carrier shows up. If service revenue speeds up and churn holds, Verizon heads into 2027 with its pricing power intact. If either slips, the market will treat it as early erosion, and the Starlink story will start to drive the stock.

Contact [email protected] for any questions or corrections.

Key Takeaways VZ's Q3 earnings, set to report on Oct. 26, are expected to be $1.27 per share on revenues of $34.81 billion.Verizon's fiber expansion, customer retention gains and AI investments support growth prospects.VZ trades at 8.5 times forward earnings, but stiff competition, high debt and capital costs remain concerns.
Verizon Communications, Inc. (VZ - Free Report) is scheduled to report third-quarter 2026 earnings before the opening bell on Oct. 26. The Zacks Consensus Estimate for sales and earnings is pegged at $34.81 billion and $1.27 per share, respectively. Earnings estimates for VZ in 2026 have remained unchanged over the past 60 days, while 2027 estimates have risen 0.19%.

VZ Estimate Trend
Image Source: Zacks Investment Research

Earnings Surprise HistoryThe communication services provider has a solid trailing four-quarter earnings surprise history, having exceeded expectations on each occasion. It delivered a four-quarter earnings surprise of 2.9%, on average. In the last reported quarter, the company pulled off an earnings surprise of 2.3%.

Image Source: Zacks Investment Research

Earnings WhispersOur proven model does not conclusively predict an earnings beat for Verizon for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Verizon currently has an ESP of -0.68% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping Upcoming ResultsDuring the quarter, Verizon’s subsidiary, Total Wireless, announced an expanded partnership with Western Union, bringing money transfers, bill pay and money orders to its retail locations nationwide. The rollout will begin in select stores and is expected to expand through the end of 2026. The initiative broadens Total Wireless’ value proposition beyond wireless connectivity and supports Verizon’s efforts to strengthen its value-brand offerings.

In the to-be-reported quarter, Verizon inked a multi-year, multi-billion-dollar supply agreement with Corning to support broadband expansion and next-generation AI infrastructure. The deal will strengthen Verizon’s fiber network capabilities and support growing connectivity and data demands across its network.

Verizon is advancing its 6G initiatives by adding nine technology companies to its 6G Innovation Forum and conducting real-world trials of integrated sensing and communications. The company is also exploring AI-native technologies for future connectivity and network applications.

The company has partnered with SPECS Inc. to introduce new SPECS AR Glasses that combine augmented reality with Verizon’s connectivity capabilities. The collaboration aims to enhance connected wearable experiences and expand AR use across consumer and enterprise applications. Such innovations are expected to positively impact upcoming results.

However, it is to be noted that Verizon operates in a highly competitive and saturated U.S. telecom market. The company faces competition from major players such as AT&T, Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . This is likely to weigh on margins.

Price PerformanceOver the past year, VZ has gained 11.9% compared with the industry’s growth of 108.1%. It has outperformed its peers like AT&T and T-Mobile US over this period. Shares of AT&T and T-Mobile have plunged 8.4% and 30.7%, respectively, in the same time frame.

Image Source: Zacks Investment Research

Key Valuation MetricFrom a valuation standpoint, Verizon appears attractive relative to the industry and is trading below its mean. Going by the price/earnings ratio, the company's shares currently trade at 8.5 forward earnings, lower than 33.85 for the industry and the stock’s mean of 8.77.

Image Source: Zacks Investment Research

Investment ConsiderationsVerizon is delivering strong consumer metrics, highlighted by robust postpaid phone net additions and sequentially lower customer churn. Strategic offerings like simplified rate plans and focused loyalty incentives are successfully retaining users without requiring high promotional costs.

The integration of Frontier Communications has significantly broadened Verizon's fiber reach across multiple states. Total fixed wireless and fiber connections continue to rise, driven by lower churn among customers who bundle mobility and broadband services.

The domestic telecommunications sector remains intensely competitive, with aggressive pricing and promotional bundling from rival carriers and cable operators posing continuous pressure on market share and margins. Maintaining a leadership position in 5G, fiber expansion and AI-related infrastructure requires heavy upfront capital spending. Delays in realizing returns on these multi-billion-dollar investments could weigh on near-term financial flexibility.

End NoteVerizon’s long-term strategy remains centered on combining wireless and broadband services to improve customer retention and lifetime value. The company continues to broaden its addressable market through fiber expansion and broadband growth while strengthening convergence opportunities. However, intense competition and a high debt burden remain major concerns. VZ appears to be treading the middle of the road, and new investors could be better off if they trade with caution.

Verizon Communications (VZ - Free Report) closed the most recent trading day at $44.10, moving -1.54% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 6.86% in the past month. In that same time, the Computer and Technology sector lost 0.92%, while the S&P 500 gained 1.46%.

The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2026. The company is predicted to post an EPS of $1.27, indicating a 4.96% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.81 billion, up 2.93% from the year-ago period.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $5.03 per share and revenue of $140.97 billion. These results would represent year-over-year changes of +6.79% and +2.01%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Verizon Communications presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Verizon Communications currently has a Forward P/E ratio of 8.9. This indicates a discount in contrast to its industry's Forward P/E of 10.63.

One should further note that VZ currently holds a PEG ratio of 1.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 1.67.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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.

When paychecks stop, a portfolio has to pull its own weight, and the 10-year Treasury now sets a brutally high bar for any dividend stock trying to justify its place in a retirement account.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Retirement changes the math on a portfolio. During the working years, a 10% drop is a paper loss you can wait out. Once the paychecks stop, the question becomes simpler and more urgent: how much cash does this money throw off every year without selling a single share? For many retirees, that number decides whether a nest egg lasts.

The benchmark has become harder. The 10-year Treasury yield stood at 5.27% as of October 6, 2026, so any dividend stock now has to justify its yield against a risk-free alternative. The trade-off is growth. A Treasury coupon stays fixed, while a company that raises its dividend year after year can push its income stream past inflation.

Putting $200,000 into each of five well-known S&P 500 dividend payers, for a total of $1,000,000, would generate about $50,921 of dividend income per year, topping the $50,000 mark. A $200,000 stake in each name would produce the following, ordered from lowest forward yield to highest. Each yield below is the annualized forward dividend divided by the current share price.

Philip Morris

Forward Yield: 3.22%
Shares for $200,000: 1,006.95
Annual Passive Income: ~$6,444

Philip Morris International (NYSE:PM | PM Price Prediction) sells Marlboro outside the U.S. and is building one of the largest smoke-free portfolios in the industry through IQOS heated tobacco, ZYN nicotine pouches and VEEV e-vapor. Revenue rose 10.4% in the second quarter to $11.19 billion, and the FDA granted modified-risk authorization to 20 ZYN variants on June 30, 2026.

Its yield is the lowest in this group because the market prices it for growth. The stock has risen 27.04% year to date to $198.62, and that rally pushes the yield down. Coverage is solid. The quarterly dividend rose to $1.60 from $1.47, and the $6.40 forward payout equals roughly 76% to 77% of raised 2026 adjusted EPS guidance of $8.26 to $8.41.

Kinder Morgan

Forward Yield: 3.69%
Shares for $200,000: 6,203.47
Annual Passive Income: ~$7,382

Kinder Morgan (NYSE:KMI) runs one of North America’s largest natural gas pipeline networks, including Tennessee Gas Pipeline and El Paso Natural Gas. It is a C-corp, which means IRA holders face no UBTI issue. Pipelines earn fee-based revenue under long-term contracts and need little reinvestment once built, so most cash flows directly to shareholders.

Management says it can fund its $9.6 billion backlog “almost completely with our internally generated cash flow while continuing to pay a solid and growing dividend.” In the first half of the year, operating cash flow reached $3.45 billion, while dividends paid totaled $1.315 billion. The $1.19 annualized dividend equals about 87.5% of the original $1.36 adjusted EPS target, and the company is tracking more than 12% above that target. Leverage of 3.6x and a Moody’s upgrade to Baa1 give the balance sheet extra room.

Realty Income

Forward Yield: 6.09%
Shares for $200,000: 3,739.72
Annual Passive Income: ~$12,184

Realty Income (NYSE:O) is the largest net-lease REIT, with more than 15,600 properties and occupancy of 98.8%. Tenants pay taxes, insurance, and maintenance, giving the company regular rent checks. As a REIT, it must distribute at least 90% of its taxable income, and it pays that income monthly.

The ultra-high-yield reading partly reflects a 12.25% slide in the share price over the past month as Treasury yields rose. On the measure that fits a REIT, the payout looks comfortable: the $3.258 forward dividend equals about 73% of 2026 AFFO guidance of $4.44 to $4.45 per share. The company has now raised its dividend for 115 consecutive quarters and carries an ‘A’ rating from Fitch.

Verizon

Forward Yield: 6.16%
Shares for $200,000: 4,355.40
Annual Passive Income: ~$12,326

The largest U.S. wireless carrier, Verizon Communications (NYSE:VZ) now runs a much larger fiber network after closing its Frontier acquisition on January 20, 2026. The yield is high because telecom is capital-intensive, revenue growth is slow, and the company carries $136.5 billion in unsecured debt.

Earnings coverage is the strongest in this group. The $2.83 annualized dividend equals roughly 56% to 57% of raised 2026 adjusted EPS guidance of $4.99 to $5.04. On the July call, CFO Tony Skiadas said, “The dividend is still ironclad for us,” and 2026 marked Verizon’s 20th consecutive year of dividend increases. Verizon also expanded its buyback authorization to up to $4.5 billion.

Altria

Forward Yield: 6.29%
Shares for $200,000: 2,834.47
Annual Passive Income: ~$12,585

Altria (NYSE:MO) is the largest U.S. tobacco company. Marlboro anchors its smokeable division, which brought in $4.66 billion of second-quarter revenue, and Copenhagen, Skoal, and more! make up its oral tobacco business. The yield tops this group because cigarette volumes are in secular decline, and investors demand more income to own a shrinking business that returns most of its cash to shareholders.

Earnings still cover the payout. The company raised its quarterly dividend to $1.11 from $1.06, and the $4.44 forward rate equals about 78% to 79% of 2026 adjusted EPS guidance of $5.61 to $5.72. Investors should watch for erosion: second-quarter adjusted EPS of $1.48 missed expectations, and Marlboro’s retail share slipped to 39.5%. Altria returned about $3.9 billion to shareholders in the first half and has $665 million left on its buyback.

Five Positions, One Income Stream Above $50,000

Name
Forward Yield
Annual Dividend Income

Philip Morris
3.22%
$6,444

Kinder Morgan
3.69%
$7,382

Realty Income
6.09%
$12,184

Verizon
6.16%
$12,326

Altria
6.29%
$12,585

Total
5.09%
$50,921

Together, these five positions would generate $50,921 in annual passive income from a $1,000,000 investment, with a combined yield of 5.09%. Altria contributes $12,585, Verizon adds $12,326, Realty Income provides $12,184, Kinder Morgan supplies $7,382, and Philip Morris rounds out the group with $6,444.

The payment calendar matters as much as the total. Realty Income pays every month, and the four quarterly payers spread their checks across different weeks, so cash arrives on a regular schedule that maps neatly onto monthly living expenses. That consistency allows a retiree to budget around dividends rather than market timing, and all five companies have raised their payouts within the past year.

Contact [email protected] for any questions or corrections.

 | Source: Verizon Communications, Inc.

At a glance:

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Goodbye activation and upgrade fees: All postpaid customers on all phone and connected device plans can opt into Verizon’s Loyalty program and say goodbye to activation and upgrade fees—that’s up to $40 in fees per device.Verizon Dollars: A program that rewards customers with 3% back in Verizon Dollars every single month, just for being a customer. Verizon Dollars can be redeemed for devices (including the latest smartphones), accessories, gift cards or use them on hotel rewards. Opt-in into Verizon Dollars in one simple step through the My Verizon app.Verizon Shine, every Monday, every day, all year-round: The loyalty program that gives customers a reason to look forward to Monday, all year-round. Verizon customers can enter weekly for a chance to win once-in-a-lifetime experiences, alongside daily drops including tickets to concerts and sporting events, exclusive merchandise, gift cards and more. Terms apply. Check out Verizon Shine for details. Check out a sneak peek of the upcoming epic Shine experiences dropping in the app: 10/19: Hex-traordinary visit to Walt Disney Studios10/26: Radio City Rockettes Experience11/2: Join Caleb Pressley for a Sundae Conversation11/9: Hit a Jonas Brothers show and hang with Joe
By combining powerful protective tools, premium digital perks and exclusive customer rewards into every plan, Verizon continues to demonstrate that being a customer comes with unmatched benefits. To learn more about these products and more, visit Verizon.com.

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 $134.8 billion in 2024. 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 contact:
George Koroneos
[email protected]

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.

For decades, AT&T (T -0.16%) and Verizon Communications (VZ +0.26%) have fought for dominance in the American wireless landscape. As both companies pivot toward deep fiber integration and 5G expansion, choosing between them remains a key decision for value-oriented investors.

While both enterprises provide essential connectivity, AT&T has recently shed non-core media assets to focus on its network. Verizon, conversely, has leaned into aggressive acquisitions to bolster its broadband capabilities. This comparison explores which strategy is creating more value for shareholders today.

The case for AT&TAT&T provides integrated telecommunications and technology services, specifically focusing on its nationwide 5G wireless and fiber broadband networks. The company operates in the competitive landscape of communication stocks, serving a massive base of consumer, business, and government customers. In a significant move to simplify its business, AT&T completed the sale of its remaining stake in DIRECTV to TPG (TPG -0.61%) in July 2025.

In its 2025 fiscal year (FY), revenue reached $125.65 billion, representing a year-over-year revenue growth of 2.7%. The company reported net income of $21.95 billion for the same period. This resulted in a net margin of 17.4%, which reflects a substantial increase in profitability compared to the previous fiscal year.

As of its December 2025 balance sheet, the debt-to-equity ratio, which compares total debt to shareholder equity, was 1.6x. The current ratio, a measure of how easily a company can pay its short term obligations with assets, stood at 0.9x. During FY 2025, free cash flow was $19.4 billion, which is the cash remaining after the company pays for its capital expenditures.

Verizon Communications offers wireless, wireline, and broadband services to a global customer base, including nearly all of the Fortune 500. The company recently strengthened its market position by completing the acquisitions of Frontier Communications and Starry Group Holdings in early 2026. These moves aim to enhance its fiber broadband and fixed wireless access capabilities across the United States.

In FY 2025, the company generated revenue of $138.19 billion, indicating revenue growth of 2.5% over the prior year. Net income for the period was close to $17.17 billion, yielding a net margin of 12.4%. This performance highlights the company's ability to maintain steady earnings while managing a larger total connection base than its primary rivals.

As of its December 2025 balance sheet, the debt-to-equity ratio reached 1.9x. The current ratio was 0.9x. Verizon produced free cash flow of $20.1 billion in FY 2025.

Risk profile comparisonAT&T faces intense competition from wireless and cable providers, which creates persistent pressure on pricing and net margin. The company is managing supply chain risks related to 5G and fiber components, alongside regulatory scrutiny regarding the environmental impacts of lead-clad cables. Cybersecurity remains a constant threat, as any compromise of sensitive customer data could lead to significant financial and reputational damage.

Verizon Communications contends with fierce competition from national carriers like T-Mobile US (TMUS +0.54%) and cable companies such as Charter Communications (CHTR +0.83%) and Comcast (CMCSA +1.09%). The company also faces challenges from satellite providers like EchoStar (ECHO -2.29%). Large debt obligations may limit capital available for dividends, while the complex integration of recent acquisitions like Frontier Communications poses operational risks if expected synergies are not realized.

Valuation comparisonVerizon carries a lower valuation based on future earnings estimates, while both are about equal when considering sales over the past twelve months.

MetricAT&TVerizon CommunicationsForward P/E10.5x9.1xP/S ratio1.4x1.4xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?AT&T and Verizon are two veteran telecom titans that are not high-growth companies, but offer investors stability and reliable dividend payments thanks to their ability to produce free cash flow. AT&T is one of the first stocks I ever invested in many years ago. Even so, in 2026, I would buy Verizon shares.

One of the key reasons for picking Verizon over AT&T is the dividend. AT&T has reliably paid dividends for years, but in 2022, the conglomerate cut its payouts nearly in half. Since then, it has yet to raise its payments. The reduction was due to AT&T selling off its movie studio and DIRECTV businesses.

Verizon also has consistently made dividend payouts, but it's rewarded shareholders by raising those payments for 20 consecutive years. On top of that, its dividend yield is a beefy 6.2% compared to AT&T's 4.5%.

Verizon's debt has become elevated due to recent acquisitions, but its free cash flow remains solid, ensuring shareholders continue to benefit from a rising dividend while the telecom giant simultaneously pays down its debt. This, combined with a more attractive forward earnings multiple, make Verizon the stock to buy.

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.

A high dividend yield can make a beaten-down telecom stock look like an opportunity, but Verizon Communications Inc. (NYSE:VZ) latest numbers reveal a more complicated picture. Its indicated yield has jumped to 6.79%, near levels last seen around the start of the year, as a sharp share-price decline forces income investors to weigh a richer payout against a new competitive threat from Space Exploration Technologies Corp. (NASDAQ:SPCX).

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.

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SpaceX just bought something it cannot launch, and the move sent two of America's biggest wireless carriers into a sudden selloff. Here is what the spectrum purchase means for anyone holding carrier stock.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A nationwide spectrum purchase by SpaceX (NASDAQ:SPCX | SPCX Price Prediction) is reshaping the competitive map for U.S. wireless, and the established carriers are taking the hit. SpaceX stock is at $166.89, up 4% in morning trading, as the deal opens a new revenue path for Starlink. The move drives the company further from satellite broadband into a cellular business the carriers have long controlled.

Meanwhile, Verizon Communications (NYSE:VZ) shares are at $43, down 7%, as the market prices in a well-funded rival for wireless subscribers. AT&T (NYSE:T) stock is at $22.97, also down 7%.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.38%, so the carrier selloff is unfolding against a stronger broad market. The Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) is flat, since that fund leans on large internet platforms rather than the carriers.

Spectrum Deal Turns Starlink Into a Wireless Rival SpaceX said late Thursday it will acquire a nationwide low-band spectrum portfolio. The purchase positions Starlink, the company’s satellite broadband business, to run as a standalone cellular network in the U.S., a step beyond serving as a direct-to-cell add-on for existing carriers. Low-band spectrum penetrates buildings, and that property is what makes a satellite operator competitive against terrestrial networks.

Starlink’s mobile ambitions have been building. Before this deal, SpaceX had secured U.S. spectrum through an approved EchoStar license transfer and lined up international Starlink Mobile partners including SoftBank, NTT Docomo and Spark NZ. The nationwide coverage turns a partnership model into a head-to-head threat.

Satellite Constellation Meets Terrestrial Towers SpaceX is vertically integrated across launch, spacecraft and satellite broadband, and its connectivity business owns the constellation itself. Verizon and AT&T own terrestrial networks and licensed spectrum. A satellite operator buying land-based spectrum reaches the same subscribers from a different asset base.

That asymmetry anchors the bear case, as a well-capitalized competitor moving into direct competition for wireless subscribers could pressure both carriers’ customer bases over time, and the selloff reprices competitive risk while reported results stand where they did before the announcement.

The optimistic view rests on the time and capital a nationwide network takes to build, which leaves carrier subscriber bases intact in the near term. AT&T chief executive John Stankey, speaking at the Goldman Sachs Communacopia conference in September, called Starlink a strong solution for airlines, rural territories and connected vehicles, and described satellite service as partly complementary through wholesale.

What to Watch Next The open question is how quickly SpaceX can turn Starlink into a working independent cellular network across the U.S. Investors can watch for details on Starlink’s rollout timing, device support and pricing, since those specifics could decide whether the carrier selloff deepens or fades.

T-Mobile faces the same question, and any response from the three carriers on pricing or satellite partnerships could reshape the competitive picture, especially given Stankey’s wholesale framing, as AT&T’s next comments on Starlink may carry extra weight.

A repricing of competitive risk can outpace any change in subscriber numbers. Carrier shareholders should size their positions for a multiyear contest. SpaceX investors may want to watch for whether the gain holds as the cost of a nationwide build comes into focus.

Contact [email protected] for any questions or corrections.

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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.

 | Source: Verizon Communications, Inc.

At a glance

Network Response: Verizon teams are actively staging mobile assets while monitoring conditions 24/7. Ahead of the storm, crews are topping off generators with fuel.On-the-ground Support: Members from our Dedicated Impact Response Team (DIRT) are on the ground in Florida and Alabama. The Verizon Frontline Crisis Response Team is also on standby in the area to provide mission-critical communications support to public safety agencies.Customer Resources: Verizon offers preparedness tips to help the community stay connected and secure ahead of the storm.Satellite Messaging: Verizon customers can maintain essential communications via satellite, allowing compatible phones to send text messages or connect with emergency services.
MOBILE, Ala., Oct. 07, 2026 (GLOBE NEWSWIRE) -- As Tropical Storm Isaias, forecast to become the first Atlantic hurricane this season, moves through the Gulf, Verizon’s network team is taking active measures to keep communities, businesses and first responders connected.

Verizon engineers are monitoring the storm 24/7, staging mobile assets and fuel reserves, and actively servicing and topping off permanent generators as Isaias approaches. With all macro cell sites in the region featuring built-in battery power, and nearly all macro sites equipped with permanent back-up generators, Verizon’s Gulf Coast infrastructure is built to withstand extreme weather conditions.

Network Prep in Progress:

Staging Equipment: Portable generators and mobile assets like Cell on Light Trucks (COLTs), MatSing Equipment on Wheels (MEOWs), and Business Inclusive Satellite Onboard Nomadic (BISON) have been staged across North Florida, Alabama, and Mississippi to rapidly deploy post-storm, if needed.Transport Redundancy: Backup microwave assets are prepared to re-direct network traffic if terrestrial fiber lines are impacted.Partner Coordination: Verizon teams are collaborating directly with local fuel providers and electric utility companies to support fueling, power restoration and infrastructure recovery.Specialized Field Teams: Dedicated Impact Response Team, or DIRT, is an elite-level of network engineers and technicians trained to rapidly restore wireless infrastructure following major emergencies like hurricanes, wildfires, and severe storms. DIRT is stationed on the ground across Florida and Alabama. The Verizon Frontline Crisis Response Team also stands ready to help ensure public safety agencies on the front lines of emergency response operations have the mission-critical communications capabilities they need to achieve their missions.Operations: Key regional switch facilities, including Pensacola, are staffed with round-the-clock technical operations teams and volunteers to manage network traffic dynamically.
Satellite when it matters most

In emergency situations where traditional cellular networks are impacted, satellite connections can provide a critical lifeline for Verizon customers. All Verizon customers with compatible devices can send text messages to any other customer device via satellite if terrestrial cellular network service is interrupted, ensuring continued communication with first responders, loved ones, and emergency services.

Verizon encourages customers with compatible satellite-enabled devices (such as iPhone 14 or newer running iOS 18+, Google Pixel 9 or newer or Samsung Galaxy S25 or newer) to test emergency satellite messaging features before the storm makes landfall.

How Residents and Businesses Can Prepare in Advance of a  Hurricane
In addition to preparing your device for satellite messaging, customers are urged to update their personal digital preparedness plans.

Charge up early: Keep all mobile devices, tablets, and portable power banks fully charged well before storm watches or warnings are issued for your location.Protect your gear: Place phones, chargers, and external batteries in waterproof accessories or heavy-duty zip-lock bags to safeguard them against floodwaters or rain.Establish a communication plan: Coordinate a dedicated family emergency plan and save key emergency contact numbers directly to your devices.Check on elderly family members: To ensure their devices are charged and they have an emergency communication plan in place.Secure visual backups: Take photos of your home, vehicle, and valuables for insurance purposes. Ensure these images are uploaded to the cloud so you can access them even if your phone is lost or damaged.Utilize digital resources: Download critical weather tracking, news, and American Red Cross safety apps ahead of time.Mitigate customer disruption: List critical software, equipment, service contracts and vital contacts (utilities, vendors, authorities) needed to maintain operations. Review coverage with your insurance agent to eliminate gaps.Contacts and documents are key: Centralize updated contact info for all staff (including remote and satellite offices) and family members and keep accessible, secure copies of your insurance policies.Keep track of equipment: Maintain an inventory of all corporate hardware deployed to remote employees to streamline claims for potential loss or damage.The right tech makes an impact: Secure the mobile-ready technology and infrastructure needed to maintain business connectivity if you are forced to relocate. Have a backup plan: Establish a protocol to immediately reroute workloads if remote employees lose power or face evacuation.
Verizon will continue monitoring Tropical Storm Isaias and will provide local network status updates as necessary. Customers can track real-time network status using the Check Network Status tool on Verizon’s website or directly within the My Verizon mobile app.

Visit the Emergency Resource Center for further details on Verizon’s emergency response capabilities.

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/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact: 

Verizon (VZ +0.28%) and AT&T (T +0.78%), two of the largest telecom companies in the U.S., are both popular dividend stocks. Verizon pays a forward yield of 6.2%, while AT&T pays a forward yield of 4.6%. Both stocks also look like bargains in this frothy market: Verizon trades at nine times forward earnings, while AT&T has a forward price-to-earnings ratio of 10.

But over the past 12 months, Verizon's stock dipped 4% as AT&T's stock dropped 10%. Let's see why Verizon held up better than AT&T -- and if it's the better income play for retirees.

Image source: Getty Images.

The differences between Verizon and AT&T Verizon and AT&T both generate most of their revenue from their wireless businesses. As of their latest quarters, Verizon served 147 million wireless subscribers, while AT&T Mobility (including FirstNet and Cricket Wireless) served 121.4 million subscribers.

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AT&T, which divested its media businesses over the past few years to focus on strengthening its core telecom business, is gaining postpaid wireless subscribers at a faster rate than Verizon.

In the second quarter of 2026, AT&T reported 432,000 postpaid phone net additions, while Verizon only reported 184,000 postpaid phone net additions in the same period.

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AT&T is capturing more subscribers with its bundled fiber-and-wireless promotions, while Verizon has reined in its promotions and focused on acquiring higher-value customers instead. That's why Verizon constantly maintains higher gross and operating margins than AT&T.

Source: YCharts

Verizon and AT&T are both expanding their broadband internet networks. Verizon is expanding its 5G Home Internet service (which complements its wireless segment), while its recent acquisition of Frontier will significantly boost its presence in the wireline and fiber markets. AT&T is also expanding its fiber-optic networks, but its strategy is more capital-intensive than Verizon's.

Why is Verizon the better investment? We've already established that Verizon pays a higher dividend yield, trades at a lower valuation, and operates at higher margins than AT&T. However, another factor that makes Verizon a stronger investment than AT&T is the 10-Year Treasury yield -- which currently sits at 5.3%.

That high yield -- which will also drive companies and banks to offer higher-yielding debt, CDs, and savings accounts to stay competitive -- will draw investors away from lower-yielding dividend stocks like AT&T. Verizon's yield remains comfortably above that level, so it should be better insulated from that pressure. Verizon might get in trouble if the Fed keeps hiking its benchmark rates to tame inflation, but it should be a safer place to park your cash than AT&T for the foreseeable future.

Verizon Communications (VZ -0.67%) stock has been falling since the Federal Reserve raised interest rates last month. In a few weeks, it'll release its quarterly earnings numbers for the third quarter. Although significant earnings growth isn't the norm for the company, a positive performance and outlook could give the stock a much-needed boost, as it has earlier this year.

Plus, Verizon is trading at a very low valuation relative to earnings; expectations may be low heading into the Q3 numbers release. Is it a good idea to buy Verizon stock before Oct. 26, when its latest results come out?

Image source: Getty Images.

The stock has risen after reporting earnings this yearWhen Verizon reported its first two rounds of earnings this year, the stock rallied afterward. Its strong, resilient results gave investors confidence that the business was in solid shape, despite the generally bearish sentiment toward telecom stocks.

It last reported earnings in July and, back then, not only did it post record numbers, but it also raised its full-year guidance. However, Verizon expects just 2.5% to 3% growth for its mobility and broadband service revenue for the full year. Business is OK, but it's not taking off by any means. But that's also what investors would typically expect to see from a company like this, which generally doesn't experience significant volatility.

If Verizon has another strong performance in Q3 and raises its guidance yet again, it could indeed give the stock another post-earnings boost.

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Verizon's a top dividend stock to buy right nowThe biggest problem for Verizon may ultimately be interest rates. While it has rallied after earnings this year, it has also gone on to fall back down afterward. Concerns about rising interest rates may inevitably weigh down the stock, regardless of how solid its financial results are. Thus, investors should brace for the possibility of further declines, even if the Q3 numbers are good.

The stock is, however, trading at a forward price-to-earnings multiple of less than nine, making it an appealing value buy today. For long-term investors, it may have compelling value, particularly given its attractive 6.2% dividend yield -- well above the S&P 500 average of 1.1%.

It may take some time for the market to become bullish on Verizon's stock, given the outlook for interest rates, but for long-term investors prepared to hang on for five-plus years, it may still be an excellent buy today. Earnings may not send the stock soaring, but given its low valuation and high, sustainable yield, Verizon's still a stock investors may want to consider buying for the long haul.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. 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.

Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.

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.

A guaranteed check for life sounds like an easy win over a dividend portfolio, but the tradeoff involves more than just monthly income, and for some retirees the math flips in a surprising direction.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Verizon Communications (VZ - Free Report) , which belongs to the Zacks Wireless National industry, could be a great candidate to consider.

This largest U.S. cellphone carrier has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.64%.

For the most recent quarter, Verizon was expected to post earnings of $1.27 per share, but it reported $1.3 per share instead, representing a surprise of 2.36%. For the previous quarter, the consensus estimate was $1.22 per share, while it actually produced $1.28 per share, a surprise of 4.92%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Verizon. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.

Verizon currently has an Earnings ESP of +0.68%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 26, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

 | Source: Verizon Communications, Inc.

NEW YORK, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced the election of Charles Phillips, Co-Founder & Managing Partner of Recognize Partners LP (“Recognize”), to the Verizon Board of Directors, effective immediately.

“Charles is an accomplished leader with distinctive experience in technology, financial and regulatory environments,” said Dan Schulman, Verizon CEO. “We look forward to his perspective and contributions on the board to help us innovate faster, delight our customers and drive sustainable, long-term value for our shareholders.”

With the addition of Mr. Phillips, the Verizon board consists of 10 directors with a broad mix of perspectives and expertise.

Mr. Phillips has served as Co-Founder and Managing Partner of Recognize, a private equity firm focused on investing in technology services businesses, since January 2020. Prior to Recognize, Mr. Phillips was the Executive Chairman of Infor, Inc., an enterprise software application provider, from 2019 to 2020 and Chief Executive Officer from 2010 to 2020. He served as President of Oracle Corporation from 2003 to 2010 and as a Managing Director in Morgan Stanley’s Technology Group from 1996 to 2003. Mr. Phillips also served as Captain in the U.S. Marine Corps.

Mr. Phillips holds a B.S. in Computer Science from the U.S. Air Force Academy, an M.B.A. from Hampton University and a J.D. from New York Law School. He also serves on the boards of directors of American Express, Bloomberg LP, Compass Inc., the Apollo Theater, and the Council of Foreign Relations.

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

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

 | Source: Verizon Communications, Inc.

NEW YORK, Sept. 28, 2026 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) will report third-quarter 2026 earnings on Monday, October 26, 2026.

The company will present results on a webcast beginning at 8:30 a.m. ET. Access instructions and presentation materials, including Verizon’s press release and financial tables, will be available at 7:00 a.m. ET on Verizon’s Investor Relations website, https://www.verizon.com/about/investors. 

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/.  

Media contact:
Jamie Serino
[email protected]

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…

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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.