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Shares of Verizon Communications (VZ +5.84%) rose on Friday after the telecom giant highlighted its new AI-fueled expansion plans.
Image source: Verizon Communications.
Robust subscriber growth and surging free cash flow Verizon added 184,000 postpaid phone customers in the second quarter, including its biggest Q2 gains in lucrative postpaid consumer accounts in half a decade.
The wireless carrier also added 348,000 broadband accounts, including 193,000 fixed wireless customers and 155,000 fiber clients.
CEO Dan Schulman said Verizon's new flat-rate unlimited mobile plans and bundled offerings are helping it attract and retain subscribers "based on real value rather than subsidized promotions."
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Lower customer acquisition costs and churn rates are also boosting Verizon's profit margins and cash flow generation.
The telecom titan's adjusted earnings rose 6.6% to $1.30 per share. Its operating and free cash flow surged 16.3% and 24.4%, respectively, to $10.4 billion and $6.4 billion.
Artificial intelligence could boost Verizon's profits These solid results prompted Verizon to lift its full-year financial forecast. Management now sees adjusted earnings per share growing by 6% to 7% to between $4.99 and $5.04 in 2026.
During a conference call with analysts, Schulman disclosed that Verizon recently signed a deal with Alphabet's Google valued at more than $1 billion. The search giant will use Verizon's dark fiber -- unused optical infrastructure that's available for lease or purchase -- to connect its AI data centers.
Schulman said that the deal with Google was "just the beginning" of its new AI-focused growth strategy.
"We have other deals that we expect to announce by year-end that, taken together, are expected to be worth multiple billions of dollars in revenue over the next several years," Schulman said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Verizon (VZ +5.84%) reported second-quarter results on Friday morning, July 24, and the numbers themselves gave income investors plenty to like. But the most interesting disclosure came on the earnings call. CEO Dan Schulman said the telecom giant has signed an agreement worth more than $1 billion to supply dark fiber to Google, the search and cloud company owned by Alphabet, which will use it to connect its data centers.
Dark fiber is fiber-optic cable that the customer leases and lights up with its own equipment, giving it dedicated capacity between facilities. And demand for it is coming from exactly the customers with the deepest pockets in the market right now: companies building out data centers for AI (artificial intelligence).
Meanwhile, at about $46 per share, the stock's dividend yield sits near 6.3%. This makes it a great dividend stock for income. So the question for income investors is whether a new AI infrastructure revenue stream changes the case for owning a high-yield telecom.
I think it does, and in the right direction.
Image source: Verizon.
A growth business Verizon is expanding Schulman told analysts the Google agreement is only the start. He said Verizon expects to announce additional deals by year-end that, taken together, could be worth multiple billions of dollars in revenue over the next several years. The company's low-latency fiber network, he argued, has become exactly the kind of asset AI data centers need.
Management clearly wants investors to see a turning point.
"Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon's growth trajectory," Schulman said in the company's second-quarter earnings release.
Of course, some perspective keeps this honest. Verizon generated $34.3 billion of total revenue in the second quarter alone, so a fiber agreement worth more than $1 billion spread over several years is small.
But it lands in the right place. Verizon's business segment, which has spent years as the company's sleepiest corner, grew revenue just 2.6% year over year to $7.2 billion in the quarter, though the segment's operating income jumped 37%. A multibillion-dollar pipeline of long-duration fiber contracts would give that segment a reason to grow that it hasn't had in years.
The dividend math got better again Now for the part income investors care about most.
Free cash flow for the first half of 2026 came in at $10.2 billion, up 16% from $8.8 billion a year earlier. Dividends paid over the same six months totaled $5.9 billion. In other words, the payout consumed less than 60% of the company's free cash flow, leaving billions for debt reduction and buybacks.
And the guidance is moving the right way. Management raised its full-year outlook for the second consecutive quarter, now calling for free cash flow growth of 9% to 10% and adjusted earnings per share between $4.99 and $5.04, or growth of 6% to 7%. Additionally, second-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $13.7 billion, up 7.2% year over year, was the highest the company has ever reported.
The trajectory may matter even more than the levels. Mobility and broadband service revenue grew 2.8% year over year in the second quarter, and management expects growth to approach 3% in the third quarter and about 4% in the fourth -- an acceleration, not a plateau.
Subscriber momentum supports the forecast. Verizon delivered 184,000 total postpaid phone net additions, along with its best consumer second-quarter postpaid phone result in five years, and more than 550,000 total mobility and broadband additions.
Of course, this is still a slow-growing business. Total revenue actually fell 0.7% year over year, dragged down by a nearly 20% drop in equipment revenue as upgrade volumes fell and Verizon pulled back on device subsidies. Earnings per share also fell 22%, mostly on special items (the largest a $746 million loss tied to classifying its international wireline connectivity and managed network services business as held for sale), though adjusted earnings per share rose 6.6%.
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But that's exactly why Friday's disclosure matters. For years, the dividend case rested on cost discipline and a slow-growing connectivity business. Now cash flow guidance is rising, subscribers are coming in, and there's a new revenue stream attached to the biggest spending wave in technology. The payout was already well covered. If Schulman delivers the deals he's promising, the conversation starts to shift from covering the dividend to growing it.
So I'd be comfortable owning the stock here for the income. The 6.3% yield pays investors well today -- and Verizon finally has a growth story worth watching while they collect it.
Revenue: Total revenue for Q2 was $34.3 billion, down 0.7% year over year.Mobility and Broadband Service Revenue: $23.4 billion, up 2.8% year over year.Adjuste
Verizon signed an over $1 billion artificial intelligence (AI) infrastructure deal with Google, and the company expects to sign several similar deals by the end of the year, Verizon CEO Dan Schulman said Friday (July 24) during a second quarter earnings call.
In the recently signed agreement, Verizon dark fiber will be used to connect Google’s data centers. In the other deals that the company expects to announce by year’s end, Verizon will earn “multiple billions of dollars in revenue” over the next several years, Schulman said.
“These are long-duration, high-quality contracted revenue streams from some of the most demanding infrastructure customers in the world,” Schulman said.
“We believe that this is just the beginning,” Schulman added. “The build-out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime.”
Verizon is uniquely positioned to participate in this build-out because it owns an extensive long-haul and metro fiber footprint and it has built the carrier-grade, low-latency, highly resilient transport network that hyperscalers need to connect compute, models and regions, Schulman said.
The company has also begun retrofitting many of its central offices into data centers for inference edgecomputing, and it is already talking with multiple partners who are eager to use these power-ready and permitted locations, he said.
“We are moving quickly to expand our TAM [total addressable market] in the rapidly growing AI infrastructure market,” Schulman said. “The agreements we have signed are the leading edge of a strategy that will become a meaningful, incremental leg of growth for Verizon.”
Verizon announced in a January 2025 press release that it launched a strategy and suite of products and solutions called Verizon AI Connect that is designed to serve hyperscalers, cloud providers and global enterprises by managing AI resource-intensive workloads.
The company said at the time that Google Cloud and Meta were among the early adopters of these solutions.
In a Friday earnings release, Schulman said: “Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
PYMNTS reported Wednesday that during Google parent company Alphabet’s second-quarter earnings call, the company announced that it had raised its 2026 capital spending forecast from the previous $180 billion to $190 billion to the new forecast of $195 billion to $205 billion.
Verizon (VZ) shares are rising after the company announced its Q2 earnings today. While the telecom giant reported a slight earnings per share (EPS) beat, reve
Verizon Communications (VZ) fell 0.36% premarket after reporting second-quarter adjusted earnings of $1.30 a share, ahead of the $1.28 analysts expected, while
U.S. stocks traded mixed midway through trading, with the Dow Jones index gaining more than 100 points on Friday.
The Dow traded up 0.20% to 51,815.71 while the NASDAQ declined 0.13% to 25,105.02. The S&P 500 also rose, gaining, 0.04% to 7,411.02.
Leading and Lagging Sectors
Real estate shares jumped by 2.3% on Friday.
In trading on Friday, information technology stocks fell by 0.8%.
Top Headline
Verizon Communications Inc. (NYSE:VZ) reported better-than-expected second-quarter earnings, while revenue narrowly missed expectations.
Adjusted earnings came in at $1.30 per share, above the analyst consensus estimate of $1.27, according to Benzinga Pro. Revenue totaled $34.25 billion, missing the $35.11 billion estimate. GAAP diluted earnings per share fell 22% year over year to 92 cents, while net income declined 22.9% to $3.9 billion.
Verizon raised its full-year adjusted EPS guidance to a range of $4.99 to $5.04 from its previous forecast of $4.95 to $4.99. The updated outlook is above the analyst consensus estimate of $4.96.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 4.3% to $88.26 while gold traded up 0.5% at $4,070.10.
Silver traded up 1.5% to $58.94 on Friday, while copper rose 0.2% to $6.3565.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 rose 0.5%, while Spain’s IBEX 35 Index gained 1.2% London’s FTSE 100 rose 0.6%, Germany’s DAX gained 0.8%, while France’s CAC 40 gained 0.4%.
Asia Pacific Markets
Asian markets closed lower on Friday, with Japan’s Nikkei 225 falling 2.73%, Hong Kong’s Hang Seng index falling 0.98%, China’s Shanghai Composite dipping 1.61% and India’s BSE Sensex falling 0.43%.
Economics
U.S. building permits declined 2.6% month-over-month to an annual rate of 1.374 million in June, above the preliminary reading of 1.367 million. The S&P Global composite PMI climbed to 53.6 in July from 51.9 in the previous month, recording its highest reading since November. The S&P Global manufacturing PMI slipped to 53.8 in July from 53.9 in June, down from market expectations of 54.3. Photo via Shutterstock
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Key Takeaways Verizon beat Q2 EPS estimates, delivered record adjusted EBITDA and raised 2026 guidance.VZ added 184,000 postpaid phone users and 348,000 broadband subscribers, led by wireless and fiber growth.VZ expanded adjusted EBITDA margin to 40.1% as stronger service revenues. Verizon Communications Inc. (VZ - Free Report) reported adjusted earnings of $1.30 per share for the second quarter of 2026, up 6.6% year over year and ahead of the Zacks Consensus Estimate of $1.27 by 2.4%. Revenues of $34.25 billion declined 0.7% year over year and missed the consensus estimate of $35.26 billion by 2.9%.
The quarter reflected continued strength in profitability and subscriber trends. Verizon delivered 184,000 retail postpaid phone net additions, 348,000 broadband net additions and record adjusted EBITDA while raising its full-year 2026 guidance for the second consecutive quarter.
VZ Revenue Mix Shows Service-Led GrowthMobility and broadband service revenues increased 2.8% year over year to approximately $23.4 billion, supported by continued wireless and broadband momentum. However, total operating revenues slipped to $34.25 billion as wireless equipment revenues declined sharply amid lower upgrade activity and the company's disciplined approach to promotional spending.
Management noted that equipment revenues fell nearly 20%, or more than $1.2 billion, primarily because customers are holding onto devices longer and Verizon is reducing device subsidy spending. The improvement in higher-quality service revenue continued to offset part of this pressure.
Verizon Expands Profitability Despite Revenue PressureAdjusted EBITDA climbed 7.2% year over year to a record $13.7 billion, while adjusted EPS increased 6.6% to $1.30. The adjusted EBITDA margin expanded to 40.1% from 37.1% a year ago, reflecting stronger operating leverage and disciplined execution.
Reported profitability, however, reflected sizable special items. Net income declined 22.9% year over year to $3.95 billion, while GAAP EPS fell to 92 cents from $1.18. The decline primarily stemmed from $1.8 billion of pretax special charges, including losses related to business dispositions, asset rationalization and severance expenses.
VZ Subscriber Trends Continue to ImproveVerizon posted 184,000 postpaid phone net additions during the quarter, marking its strongest consumer second-quarter performance in five years. Core prepaid net additions totaled 73,000, extending the company's streak of positive prepaid subscriber growth to eight consecutive quarters.
Broadband remained another bright spot. The company added 348,000 broadband subscribers, including 193,000 fixed wireless access customers and 155,000 fiber broadband customers. Verizon ended the quarter with approximately 17.1 million fixed wireless access and fiber broadband connections while generating more than 550,000 combined mobility and broadband net additions during the quarter.
Verizon Generates Strong Cash FlowCash generation remained robust during the first half of 2026. Cash flow from operations increased 9.9% year over year to $18.4 billion, while free cash flow rose 16.0% to $10.2 billion. Second-quarter cash flow from operations advanced 16.3%, and free cash flow climbed 24.4%, underscoring the company's improving earnings quality.
Capital expenditures totaled $8.2 billion through the first half as Verizon continued investing in network expansion. The company also completed $3.5 billion of share repurchases year to date and raised its full-year buyback target to as much as $4.5 billion. Net unsecured debt stood at $128.7 billion at quarter-end, with the net unsecured debt-to-adjusted EBITDA ratio at 2.5 times.
VZ Raises 2026 Earnings Outlook AgainEncouraged by strong second-quarter execution, Verizon raised its full-year adjusted EPS outlook to $4.99-$5.04, representing 6-7% annual growth compared with its prior expectation of approximately $4.90-$4.95. The company also increased its mobility and broadband service revenue growth outlook to 2.5-3% from the prior 2-3% range.
Management now expects total retail postpaid phone net additions to finish in the upper half of its 750,000 to 1 million range. Verizon reaffirmed its capital expenditure outlook of $16-$16.5 billion while projecting cash flow from operations growth of approximately 2-4% and free cash flow growth of 9-10% for 2026.
VZ’s Zacks RankVZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated (GLW - Free Report) is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.
Verizon Communications (VZ), the largest U.S. wireless provider, reported second-quarter earnings above analysts' expectations and raised parts of its full-year
Telecom Earnings Reveal a Sector That Finally Looks HealthierVerizon Communications NYSE: VZ raised its full-year 2026 outlook for mobility and broadband service revenue, adjusted earnings per share and free cash flow after reporting improved subscriber trends, lower churn and stronger operating leverage in the second quarter.
Chief Executive Officer Dan Schulman said the company’s customer-focused transformation was producing “a structural and meaningful inflection” in operating and financial performance. Verizon reported 184,000 postpaid phone net additions during the quarter, including its strongest consumer postpaid phone net-add result in five years. Total mobility and broadband net additions exceeded 550,000.
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No Space For Panic: T-Mobile Shrugs Off The Starlink ThreatThe company also reported 348,000 broadband net additions, comprising 193,000 fixed wireless access additions and 155,000 fiber additions. Verizon ended the quarter with more than 17.1 million broadband subscribers and said it remained on track to reach more than 32 million fiber passings by year-end.
Subscriber Growth and Churn Improvement Consumer postpaid phone churn was 0.84% in the second quarter, down from 0.90% in the first quarter and 0.95% in the fourth quarter of 2025. The result marked a six-basis-point improvement from a year earlier. Overall postpaid phone churn improved five basis points year over year.
SpaceX Achieves Escape Velocity With Nasdaq Fast-TrackSchulman said the company has begun growing both accounts and lines, with net new accounts positive for the past two months. During the question-and-answer session, he said Verizon expects positive new account growth in the third quarter as well.
Verizon also continued to grow its prepaid business. Prepaid net additions totaled 73,000, representing the company’s eighth consecutive quarter of positive prepaid additions. Prepaid revenue rose about $90 million, or nearly 5%, from the prior-year period.
The company attributed its improving customer economics partly to reduced promotional spending. Schulman said consumer promotional acquisition costs declined approximately 15% year over year, while promotional retention costs fell about 17%. Chief Financial Officer Tony Skiadas added that upgrade volumes declined nearly 27% from the prior year.
Financial Results and Higher Outlook Mobility and broadband service revenue totaled $23.4 billion in the second quarter, rising 2.8% year over year and improving from 1.6% growth in the first quarter. Wireless service revenue declined 0.7% to $20.8 billion, while total revenue fell 0.7% to $34.3 billion. Skiadas said lower equipment revenue, which declined by more than $1.2 billion, reflected the company’s lower upgrade volumes.
Adjusted EBITDA was $13.7 billion, up 7.2% year over year, and adjusted EBITDA margin reached 40.1%, which Skiadas said was Verizon’s highest reported level. Adjusted EPS increased 6.6% to $1.30.
Free cash flow was $6.4 billion in the quarter and $10.2 billion for the first half, up 16% from the prior-year period. Cash flow from operations for the first six months totaled $18.4 billion, up nearly 10%, while capital expenditures were $8.2 billion.
Verizon now expects:
Full-year mobility and broadband service revenue growth of 2.5% to 3%, the upper half of its prior 2% to 3% range. Third-quarter mobility and broadband service revenue growth approaching 3% year over year. Fourth-quarter mobility and broadband service revenue growth of approximately 4%. Full-year adjusted EPS growth of 6% to 7%. Free cash flow growth of 9% to 10%, up from its prior outlook of about 7% or more. Share repurchases of up to $4.5 billion for 2026, compared with its previous commitment of at least $3 billion. The company repurchased $1 billion of shares in the quarter, bringing year-to-date buybacks to $3.5 billion. It also paid $5.9 billion in dividends during the first half, for total year-to-date shareholder returns of $9.4 billion, according to Skiadas.
New Consumer Offers and Convergence Strategy In mid-June, Verizon introduced a loyalty program available to all customers, along with new Simplicity and Verizon One offerings. Simplicity is a $45 wireless plan that separates device subsidies from wireless pricing. Verizon One combines mobility and broadband for $70, including taxes and fees, on one bill.
Schulman said the new offers are designed to reduce complexity, improve customer retention and lower customer-acquisition costs. He said gross additions since the launch were about 16% above Verizon’s forecasts, while net new accounts were 31% above forecast. He also said migration from the existing base has been about one-third of what the company expected and that Simplicity has been average-revenue-per-account accretive.
Skiadas said app traffic grew by double digits after the launches, which he described as a potential leading indicator of improved churn. Verizon said its loyalty program is funded within its existing operating budget.
Fiber, AI Infrastructure and International Wireline Verizon said it sees an additional growth opportunity in AI infrastructure connectivity. The company recently signed an agreement valued at more than $1 billion with Google to use Verizon dark fiber to connect data centers. Schulman said other expected agreements could collectively represent multiple billions of dollars of revenue over the coming years.
The company said the contracts may involve either dark or lit fiber, depending on customer requirements, and that associated margins are expected to be equal to or greater than Verizon’s existing margin structure. Schulman said the AI infrastructure initiative is expected to begin contributing noticeably to revenue in 2027.
Verizon is also retrofitting certain central offices for inference edge computing. Schulman said a small initial trial of that capability sold out within 24 hours.
Separately, Verizon previously announced an agreement to form a 50-50 joint venture with BT Group plc combining their international wireline operations. The venture is expected to serve more than 3,000 joint enterprise customers and have roughly $4 billion in combined revenue at formation. Verizon expects the transaction to close in the second half of 2027 and generate approximately $200 million in annualized savings versus its current course and speed.
Verizon acquired 82 AWS-3 spectrum licenses for approximately $3.2 billion in FCC Auction 113. Skiadas said the spectrum complements Verizon’s existing holdings and can be deployed without additional capital investment once licenses are issued. The company also said it had paid off substantially all of Frontier’s debt six months ahead of schedule and ended the quarter with net unsecured debt-to-consolidated adjusted EBITDA of 2.5 times.
Finally, Verizon said its board extended Schulman’s employment contract through Dec. 31, 2028.
About Verizon Communications (NYSE:VZ)Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
For the quarter ended June 2026, Verizon Communications (VZ - Free Report) reported revenue of $34.25 billion, down 0.7% over the same period last year. EPS came in at $1.30, compared to $1.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $35.31 billion, representing a surprise of -3%. The company delivered an EPS surprise of +2.36%, with the consensus EPS estimate being $1.27.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Retail postpaid ARPA: $168.35 versus the three-analyst average estimate of $162.64.Wireless - Retail Prepaid Connections: 19.35 million versus the three-analyst average estimate of 19.34 million.Churn rate - Total Wireless - Postpaid Phone: 0.9% versus 0.9% estimated by three analysts on average.Wireless - Retail postpaid Connections: 126.62 million compared to the 126.72 million average estimate based on three analysts.Operating Revenues- Wireless equipment revenues: $5.02 billion versus $6.16 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -19.7% change.Operating Revenues- Service revenues and other: $29.23 billion versus the four-analyst average estimate of $29.06 billion. The reported number represents a year-over-year change of +3.5%.Total reportable segments operating revenues: $34.25 billion versus the four-analyst average estimate of $34.98 billion.Operating revenues- Consumer: $26.24 billion versus the four-analyst average estimate of $27.38 billion. The reported number represents a year-over-year change of -1.5%.Operating revenues- Business: $7.16 billion versus $7.45 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change.Operating revenues- Business- Other: $2.58 billion versus the three-analyst average estimate of $2.77 billion.Operating revenues- Business- Wireless equipment: $846 million versus the three-analyst average estimate of $908.48 million.Operating revenues- Consumer- Mobility and broadband service: $19.64 billion versus the three-analyst average estimate of $19.5 billion.View all Key Company Metrics for Verizon here>>>
Shares of Verizon have returned -4.9% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
SummaryVerizon Communications Inc. delivered mixed Q2 results, with revenue missing expectations but record adjusted EBITDA and EPS exceeding forecasts.VZ's dividend remains well-covered, with a Q2 free cash flow payout ratio of 45% and strong operating cash flow supporting ongoing distributions.Despite a significant debt load rising to $165 billion, the net debt-to-adjusted EBITDA ratio stands at 2.5x, which is standard for the sector.Looking ahead, VZ expects 2026 service revenue growth of 2.5-3.0%, adjusted EPS growth of 6.0-7.0%, and free cash flow up 9-10%.Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More » RiverNorthPhotography/iStock Unreleased via Getty Images
This season's Q2 earnings cycle is officially underway. Having already reviewed several major financial institutions that traditionally kick off the reporting period, we are now entering the thick of the season. Today, we turn our attention to our
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Verizon Communications Inc. (VZ) Q2 2026 Earnings Call July 24, 2026 8:30 AM EDT
Company Participants
Colleen Ostrowski - Senior Vice President of Investor Relations
Daniel Schulman - Director & CEO
Anthony Skiadas - Executive VP & CFO
Conference Call Participants
Sean Diffley - Morgan Stanley, Research Division
Michael Rollins - Citigroup Inc., Research Division
John Hodulik - UBS Investment Bank, Research Division
Michael Ng - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Good morning, and welcome to Verizon's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.
I would now like to turn the call over to Colleen Ostrowski, Senior Vice President, Investor Relations.
Colleen Ostrowski
Senior Vice President of Investor Relations
Thanks, Brad. Good morning, and welcome to our second quarter 2026 earnings call. I'm Colleen Ostrowski, and on the call with me this morning are our Chief Executive Officer, Dan Schulman; and Tony Skiadas, our CFO.
Before we begin, I'd like to point you to our safe harbor statement, which can be found in the earnings presentation and on our Investor Relations website. Our comments this morning may include forward-looking statements, which are subject to risks and uncertainties. Factors that may affect future results are discussed in our SEC filings. This presentation also contains non-GAAP financial measures, and you can find reconciliations of these measures in the materials on our website.
As a reminder, on June 29, 2026, we filed an 8-K with the Securities and Exchange Commission, which disclosed our agreement to form a joint venture with BT Group plc to combine our international wireline businesses. As such, the net assets that Verizon will contribute to the JV are now classified as assets and liabilities held for sale and have been moved from Verizon Business Group to Corporate and
Index Dow Jones +0,27 % na 51848,77 b., S&P 500 +0,11 % na 7416,35 b., Nasdaq Composite -0,47 % na 25018,65 b.
Americké akcie se v úvodu páteční seance obchodují smíšeně, když investoři vyhodnocují další várku kvartálních výsledků. Zatímco indexy Dow Jones a S&P 500 mírně rostou, technologický Nasdaq ztrácí, přičemž pod tlakem zůstávají informační technologie. Naopak se daří realitnímu, energetickému a zdravotnickému sektoru.
Telekomunikační společnost Verizon reportovala za 2Q očištěný zisk na akcii ve výši 1,30 USD, čímž překonala očekávání analytiků na úrovni 1,27 USD. Volné peněžní toky meziročně vzrostly o 24,4 % na 6,4 mld. USD a počet nových zákazníků širokopásmového připojení dosáhl 348 tis. Společnost zvýšila celoroční výhled očištěného zisku na akcii na 4,99 až 5,04 USD (z 4,95 až 4,99 USD) a očekává růst volných peněžních toků o 9 až 10 %. Analytici pozitivně hodnotili nižší odchodovost zákazníků a příznivý vývoj hospodaření. Akcie Verizonu přidávají 2,94 %.
Kabelový operátor Charter Communications vykázal za 2Q tržby ve výši 13,53 mld. USD, které meziročně poklesly o 1,7 %, ale mírně překonaly očekávání trhu. Očištěný zisk EBITDA meziročně klesl o 4,3 % na 5,45 mld. USD a zaostal za konsensem ve výši 5,58 mld. USD, přičemž nižší než očekávané byly rovněž volné peněžní toky (0,97 mld. USD oproti očekávaným 1,14 mld. USD). Počet zákazníků internetových služeb se snížil o 166 tis., zatímco počet mobilních linek vzrostl o 406 tis. Společnost nadále očekává celoroční kapitálové výdaje přibližně 11,4 mld. USD. Akcie Charter Communications odepisují 4,45 %.
Také telekomunikační a mediální konglomerát Comcast reportoval své kvartální výsledky za 2Q roku 2026. Výnosy sice meziročně poklesly o 1,2 %, překonaly však očekávání analytiků. Nad odhady se umístil rovněž očištěný zisk na akcii a volné peněžní toky. Streamovací služba Peacock poprvé vykázala kladný očištěný zisk EBITDA, když těžila mimo jiné z vysílání play-off NBA a mistrovství světa ve fotbale. Akcie Comcast +1,67 %.
Americká finanční společnost American Express reportovala za 2Q zisk na akcii ve výši 4,53 USD, nad očekáváním analytiků na úrovni 4,41 USD. Tržby meziročně vzrostly o 10 % na 19,64 mld. USD, avšak mírně zaostaly za konsensem, obdobně jako příjmy z poplatků za karty (2,86 mld. USD oproti očekávaným 3,01 mld. USD). Pozitivně překvapily nižší opravné položky na úvěrové ztráty, které meziročně poklesly o 21 % na 1,1 mld. USD. Společnost zvýšila celoroční výhled růstu tržeb na 10 %. Akcie American Express -6,06 %.
Americká společnost SLB (dříve Schlumberger), která poskytuje služby v oblasti ropného průmyslu vykázala za 2Q očištěný zisk na akcii ve výši 0,55 USD, zatímco analytici očekávali 0,51 USD. Tržby meziročně vzrostly o 5 % na 8,97 mld. USD, přičemž růst ve většině zahraničních regionů a vyšší výnosy divize Production Systems (3,77 mld. USD, +24 % meziročně) kompenzovaly slabší vývoj na Blízkém východě. Volné peněžní toky dosáhly 716 mil. USD a výrazně překonaly konsensus ve výši 327 mil. USD. Analytici vyzdvihli zejména rychlý růst segmentu datových center a přínos akvizice ChampionX. Akcie SLB přidávají 9,66 %.
Akcie výrobce paměťových medií Sandisk odepisují 8,5 %, když investoři upravovali své pozice před zveřejněním kvartálních výsledků a vybírali zisky v sektoru paměťových čipů.
Index S&P 500 +0,11 % na 7416,35 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Reality +2,5 % Informační technologie -0,7 % Energie +1,2 % Zbytná spotřeba -0,1 % Zdravotní péče +0,9 % Finanční sektor +0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Digital Realty Trust (DLR) +14 % Sandisk Corp (SNDK) -8,5 % SLB (SLB) +9,5 % Coherent Corp (COHR) -8,0 % Equinix (EQIX) +6,7 % CH Robinson Worldwide (CHRW) -6,8 % Universal Health Services (UHS) +6,3 % Lumentum Holdings (LITE) -6,7 % ServiceNow (NOW) +5,1 % Robinhood Markets (HOOD) -6,6 %
Zdroj: Bloomberg
Verizon CEO Dan Schulman said on Friday the company has secured a deal with Google , valued at more than $1 billion, to provide dark fiber connectivity for the search engine giant's data centers.
Verizon Communications (VZ - Free Report) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.36%. A quarter ago, it was expected that this largest U.S. cellphone carrier would post earnings of $1.22 per share when it actually produced earnings of $1.28, delivering a surprise of +4.92%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Verizon, which belongs to the Zacks Wireless National industry, posted revenues of $34.25 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3%. This compares to year-ago revenues of $34.5 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Verizon shares have added about 7.6% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Verizon?While Verizon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Verizon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.30 on $34.98 billion in revenues for the coming quarter and $4.98 on $142.32 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Uniti Group (UNIT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This real estate investment trust is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -975%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Uniti Group's revenues are expected to be $883.47 million, up 193.8% from the year-ago quarter.
Mobility and broadband service revenue grew by 2.8 percent in second-quarter 2026, and forecasted to rise to approximately 4.0 percent growth in fourth-quarter 2026Delivered 184,000 postpaid phone net additions, with the best Consumer second-quarter postpaid phone net additions in the past five yearsGenerated more than 550,000 total mobility and broadband net additions in second-quarter 2026, an increase of more than 230,000 compared to second-quarter 2025Delivered more than 1 million mobility and broadband net additions in first-half of 2026, more than doubling the mobility and broadband net additions in first-half of 2025Built account momentum, achieving new postpaid account growth over the past 60 daysGrew cash flow from operations in first-half of 2026 by 9.9 percent compared to first-half of 2025 to fuel a 16.0 percent surge in free cash flow1. Second-quarter 2026 cash flow from operations grew by 16.3 percent and free cash flow1 grew by 24.4 percentExecuted with strict operational discipline and delivered solid consolidated net income performance to drive the highest adjusted EBITDA1 and adjusted EBITDA margin1 ever reportedRaised full year guidance for mobility and broadband service revenue, cash flow from operations, free cash flow1 and adjusted earnings per share (EPS)1Returned $9.4 billion in total capital to shareholders in first-half of 2026 while expanding the full-year share buyback target to up to $4.5 billion NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced exceptional second-quarter 2026 financial and operational results, showcasing how its customer-first strategic transformation is driving sustainable growth and momentum. Intense operational discipline and improved unit economics translated directly into subscriber growth, lower churn, strong operating cash flow and industry-leading free cash flow¹ generation. With these results, Verizon raised its full-year guidance for the second consecutive quarter. Verizon also expanded its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” said Dan Schulman, Verizon CEO. “With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions. Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business. We are accelerating across our key metrics, achieving a step-change in churn reduction while lowering our customer acquisition and retention costs. By compounding lower churn with healthier unit economics, we have generated the strongest operating position we have seen in years. Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
2Q 2026 Highlights
Mobility and Broadband
Mobility and broadband service revenue reached approximately $23.4 billion, representing a 2.8 percent increase year-over-year.In second-quarter 2026, Verizon reported total postpaid phone net additions of 184,000, with the best Consumer second-quarter postpaid phone net additions in five years.Total core prepaid2 net additions were 73,000, representing eight consecutive quarters of positive net additions.Verizon delivered 348,000 broadband net additions in second-quarter 2026, a year-over-year increase of 12.3 percent. This includes total fixed wireless access net additions of 193,000 and 155,000 fiber broadband net additions.Verizon now has approximately 17.1 million fixed wireless access and fiber broadband connections. Consolidated Financial Results
Total operating revenue was $34.3 billion, down 0.7 percent year-over-year, as sequential improvement in mobility and broadband service revenue was offset by a nearly 20 percent, or over $1.2 billion, decline in equipment revenue. This decline resulted primarily from significantly lower upgrade volumes, as the average time customers keep their mobile devices continues to increase, and the company's strategic decision to reduce spending on device subsidies. It is another demonstration of Verizon’s more disciplined approach as the company structurally evolves its business model.Consolidated net income was $3.9 billion, a 22.9 percent decrease year-over-year. This decrease was primarily driven by $1.8 billion in pre-tax special items, including, among others, a $746 million loss on disposition of business in connection with the classification of the net assets representing Verizon's international wireline connectivity and managed network services business as assets and liabilities held for sale; asset rationalization charges of $258 million; and severance charges of $397 million.Consolidated adjusted EBITDA1 grew 7.2 percent year-over-year to $13.7 billion, the highest the company ever reported.Consolidated net income margin was 11.5 percent compared to 14.8 percent in second-quarter 2025.Consolidated adjusted EBITDA1 margin grew from 37.1 to 40.1 percent, the highest the company ever reported.EPS was $0.92 in second-quarter 2026, a 22.0 percent decrease compared to $1.18 in second-quarter 2025; adjusted EPS1, excluding special items, was $1.30 in second-quarter 2026, a 6.6 percent increase compared to $1.22 in second-quarter 2025.Cash flow from operations was $18.4 billion for the first-half of the year compared to $16.8 billion for the first-half of 2025, representing a growth rate of 9.9 percent.Capital expenditures were $8.2 billion through the end of the second quarter, as the company continues to invest strategically for network excellence and future growth opportunities within mobility and broadband.Free cash flow1 was $10.2 billion for the first-half of 2026 compared to $8.8 billion for the first-half of 2025, representing a growth rate of 16.0 percent.In second quarter 2026, strong cash from operations was $10.4 billion, up 16.3 percent year-over-year. Free cash flow1 was $6.4 billion, up 24.4 percent year-over-year, marking one of the strongest free cash flow¹ quarters ever reported.Verizon's total unsecured debt as of the end of second-quarter 2026 was $136.5 billion, compared to $142.5 billion at the end of first-quarter 2026. The company's net unsecured debt1 at the end of second-quarter 2026 was $128.7 billion compared to $130.1 billion at the end of first-quarter 2026. At the end of second-quarter 2026, Verizon's ratio of unsecured debt to consolidated net income (LTM) was 8.2 times and its net unsecured debt to consolidated adjusted EBITDA ratio1 was 2.5 times.Verizon successfully completed $1.0 billion of share repurchases in second-quarter 2026, bringing year-to-date repurchases to $3.5 billion. The full-year share repurchase target has been raised to up to $4.5 billion. Outlook and Guidance
Verizon does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
Given the strong second-quarter performance and visibility into the second half of the year, Verizon is raising guidance as follows:
Mobility and broadband service revenue growth for 2026 to be 2.5 to 3.0 percent, with wireless service revenue growth approximately flat in 2026 as the company transitions to sustainable volume-based growth. Total mobility and broadband service revenue growth is expected to approach 3.0 percent in third-quarter 2026 and approximately 4.0 percent in fourth-quarter 2026, accelerating from the 2.8 percent increase reported in the second-quarter 2026.Adjusted EPS1 of $4.99 to $5.04, or year-over-year growth of 6.0 to 7.0 percent, representing a significant acceleration compared to recent historical performance.Cash flow from operations growth of approximately 2.0 to 4.0 percent year-over-year.Free cash flow1 growth of 9.0 to 10.0 percent year-over-year. In addition, for 2026, Verizon continues to expect the following:
Total retail postpaid phone net additions are expected to be in the upper half of the 750,000 to 1.0 million range, which is approximately 2 to 3 times the 2025 reported result.Capital expenditures of $16.0 billion to $16.5 billion. 1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Represents total prepaid results excluding our SafeLink brand.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/about/news. For images and logos, visit verizon.com/about/news/media-resources. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets,” "will" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives, network performance and quality, and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology, including artificial intelligence, and address changes in consumer demand; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; our ability to implement business transformation initiatives and achieve their anticipated benefits; system failures and disruptions to our networks and operations and any resulting financial, reputational or business impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, public health crises, natural disasters or extreme weather conditions; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; significant amount of outstanding debt; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to return capital to shareholders, including the amount, timing, and effect of share repurchases and dividends; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to obtain cost savings and other synergies and anticipated benefits of completed transactions within the expected time period or at all.
A contract crew from Verizon installs 5G telecommunications equipment on a tower in Orem, Utah, U.S. December 3, 2019. Picture taken December 3, 2019. REUTERS/George Frey/File Photo Purchase Licensing Rights, opens new tab
July 24 (Reuters) - Verizon (VZ.N), opens new tab raised its annual forecast for adjusted profit and free cash flow, as the network provider's latest unlimited 5G plans and rewards programs helped it add more wireless subscribers than expected in the June quarter.
Shares of the company were up 3% in premarket trading on Friday.
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The company is in the midst of a strategic transition under new CEO Dan Schulman, rolling out simplified mobile plans, a new loyalty program and bundled wireless-broadband offerings to improve customer additions after trailing rivals in subscriber growth.
Verizon gained 184,000 monthly-bill paying wireless subscribers in the second quarter, surpassing estimates of 103,900 additions by analysts polled by FactSet.
In June, Verizon overhauled its wireless offerings with the launch of Simplicity, an unlimited wireless plan that replaces a more complex lineup with transparent pricing and includes access to the company's fastest 5G network and mobile hotspot data.
The company also introduced Verizon One, a bundled offering that pairs wireless service with home internet under a single monthly bill, mirroring a broader industry push towards convergence to deepen customer relationships.
"We are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions," CEO Schulman said.
The company now expects an annual adjusted profit of $4.99 to $5.04 per share, compared with prior guidance of $4.95 to $4.99.
Free cash flow is expected to grow between 9% and 10% this year, higher than its previous estimate of about 7% or more.
Second-quarter revenue came in at $34.3 billion, below analysts' estimate of $35.16 billion, according to data compiled by LSEG, as equipment revenue fell due to slower phone upgrade activity, with customers holding on to their devices for longer.
Adjusted profit of $1.30 per share, however, beat estimates of $1.27, helped by cost controls and reduced spending on device subsidies.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HomeIndustriesTelecommunicationsEarnings ResultsEarnings ResultsThe wireless company beat subscriber expectations while pulling back on costly promotionsJuly 24, 2026, 7:08 a.m. ET
It’s a new era at Verizon Communications, and the company is upping its financial forecasts as it makes progress under the current leadership team.
Verizon VZ on Friday reported 184,000 postpaid phone net additions for the second quarter, above the 106,000 FactSet consensus view. The performance also marked a dramatic reversal from a year earlier, when Verizon posted a net loss on the metric.
Verizon Communications gained a net 184,000 postpaid phone connections in the second quarter, beating Wall Street's expectations on a metric that gauges new lucrative customers.
Verizon Communications Inc. (NYSE:VZ) will release its second quarter earnings report before the opening bell on Friday, July 24.
Analysts expect the New York-based company to report quarterly earnings of $1.27 per share, up from $1.22 per share in the year-ago period. The consensus estimate for Verizon’s quarterly revenue is $35.11 billion. It reported $34.5 billion last year, according to Benzinga Pro.
On June 29, Verizon disclosed that it expects a second-quarter loss of $700 million to $800 million due to the classification of assets from its Contributed Business as assets and liabilities held for sale.
Shares of Verizon fell 1% to close at $43.82 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying VZ stock? Here’s what analysts think:
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American Investment Services Inc. lowered its position in Verizon Communications Inc. (NYSE:VZ – Free Report) by 6.9% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 189,997 shares of the cell phone carrier’s stock after selling 13,994 shares during the period. Verizon Communications makes up about 2.1% of American Investment Services Inc.’s investment portfolio, making the stock its 11th biggest position. American Investment Services Inc.’s holdings in Verizon Communications were worth $9,538,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds also recently modified their holdings of VZ. RKL Wealth Management LLC increased its stake in shares of Verizon Communications by 4.3% during the 1st quarter. RKL Wealth Management LLC now owns 5,338 shares of the cell phone carrier’s stock worth $268,000 after purchasing an additional 218 shares in the last quarter. Strategic Investment Solutions Inc. IL lifted its position in shares of Verizon Communications by 8.6% in the fourth quarter. Strategic Investment Solutions Inc. IL now owns 2,765 shares of the cell phone carrier’s stock valued at $113,000 after acquiring an additional 219 shares in the last quarter. Frazier Financial Advisors LLC boosted its stake in shares of Verizon Communications by 32.7% during the first quarter. Frazier Financial Advisors LLC now owns 888 shares of the cell phone carrier’s stock valued at $45,000 after acquiring an additional 219 shares during the last quarter. Sumitomo Life Insurance Co. increased its position in Verizon Communications by 0.7% during the 4th quarter. Sumitomo Life Insurance Co. now owns 35,023 shares of the cell phone carrier’s stock worth $1,426,000 after purchasing an additional 227 shares in the last quarter. Finally, Blake Schutter Theil Wealth Advisors LLC raised its stake in Verizon Communications by 3.8% in the 4th quarter. Blake Schutter Theil Wealth Advisors LLC now owns 6,305 shares of the cell phone carrier’s stock valued at $257,000 after purchasing an additional 233 shares during the last quarter. Hedge funds and other institutional investors own 62.06% of the company’s stock.
Verizon Communications News Roundup Here are the key news stories impacting Verizon Communications this week:
Positive Sentiment: Verizon launched the Gizmo Watch 4 for families, a child-safety-focused wearable that could help deepen its connected devices ecosystem and add incremental service revenue. Verizon (VZ) Launches Gizmo Watch 4 For Families Focused On Child Safety Positive Sentiment: Verizon is offering preorders for Samsung’s Galaxy Z Fold8 lineup and new Galaxy wearables, which may support device upgrades and customer retention through attractive financing and bundle deals. Samsung’s next-generation Z Fold meets simplicity & value on Verizon Positive Sentiment: Some coverage continues to frame Verizon as an income stock worth holding, with investors drawn to its high dividend yield and defensive cash-flow profile. Retire on Dividends Alone: The Super-High-Yield Stocks Boomers Are Buying and Never Selling Neutral Sentiment: Analysts are mixed ahead of Verizon’s Q2 earnings, with bullish comments about valuation and FIFA-related momentum offset by concerns about 5G spending, competition, and discounting. Should You Buy, Sell or Hold Verizon Stock Before Q2 Earnings? Neutral Sentiment: Verizon is shrinking its retail footprint by selling 274 stores and cutting 500 office jobs, part of a broader restructuring that may improve efficiency but also signals pressure in the core business. Verizon To Sell 274 Stores, Cut 500 Office Jobs In Restructuring Negative Sentiment: Royal Bank of Canada reportedly issued a pessimistic forecast for Verizon, reinforcing concerns that earnings and growth expectations may be under pressure heading into results. Royal Bank Of Canada Issues Pessimistic Forecast for Verizon Communications (NYSE:VZ) Stock Price Negative Sentiment: Verizon’s planned cuts of 3,000 jobs and the handoff of 274 stores to franchisees highlight a significant restructuring effort, which can raise investor worries about demand, margins, and business stability. Verizon Is Cutting 3,000 Jobs and Handing 274 Stores to Franchisees Right Before July 24 Earnings. Is the 6.5% Dividend Still Safe? Wall Street Analysts Forecast Growth A number of research firms have issued reports on VZ. BNP Paribas Exane reduced their target price on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a report on Tuesday, July 14th. Dbs Bank lowered shares of Verizon Communications from a “moderate buy” rating to a “hold” rating in a research report on Tuesday, April 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a research note on Friday, May 29th. Morgan Stanley raised their target price on shares of Verizon Communications from $49.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 28th. Finally, Wells Fargo & Company started coverage on shares of Verizon Communications in a research note on Wednesday, July 8th. They issued an “equal weight” rating and a $43.00 target price for the company. Nine investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat, Verizon Communications presently has an average rating of “Hold” and an average price target of $50.03.
Read Our Latest Stock Analysis on Verizon Communications
Verizon Communications Stock Up 1.2% Shares of NYSE:VZ opened at $44.29 on Thursday. The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38. The firm has a market cap of $184.92 billion, a price-to-earnings ratio of 10.80, a PEG ratio of 1.07 and a beta of 0.26. The stock’s 50-day moving average price is $45.45 and its two-hundred day moving average price is $46.18. Verizon Communications Inc. has a 12-month low of $38.39 and a 12-month high of $51.68.
Verizon Communications (NYSE:VZ – Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.07. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. During the same period in the prior year, the firm posted $1.19 EPS. The company’s revenue was up 2.7% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. On average, research analysts forecast that Verizon Communications Inc. will post 4.98 EPS for the current year.
Verizon Communications Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.4%. Verizon Communications’s dividend payout ratio (DPR) is currently 69.02%.
About Verizon Communications (Free Report)
Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
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ABN Amro Investment Solutions lessened its holdings in Verizon Communications Inc. (NYSE:VZ – Free Report) by 15.4% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 476,313 shares of the cell phone carrier’s stock after selling 86,638 shares during the period. ABN Amro Investment Solutions’ holdings in Verizon Communications were worth $23,911,000 at the end of the most recent quarter.
A number of other hedge funds also recently bought and sold shares of VZ. Vanguard Group Inc. lifted its stake in shares of Verizon Communications by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 379,402,347 shares of the cell phone carrier’s stock valued at $15,453,058,000 after purchasing an additional 5,497,598 shares during the last quarter. State Street Corp boosted its holdings in shares of Verizon Communications by 3.5% in the 4th quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier’s stock worth $9,080,810,000 after purchasing an additional 7,461,335 shares during the period. Charles Schwab Investment Management Inc. increased its position in shares of Verizon Communications by 5.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier’s stock valued at $4,747,930,000 after purchasing an additional 5,851,715 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Verizon Communications by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 102,632,509 shares of the cell phone carrier’s stock valued at $4,168,080,000 after purchasing an additional 867,694 shares during the last quarter. Finally, Norges Bank purchased a new stake in Verizon Communications during the 4th quarter valued at $2,357,158,000. Hedge funds and other institutional investors own 62.06% of the company’s stock.
Verizon Communications Price Performance VZ opened at $43.76 on Wednesday. The business has a fifty day moving average of $45.51 and a 200 day moving average of $46.15. The stock has a market cap of $182.71 billion, a P/E ratio of 10.67, a PEG ratio of 1.06 and a beta of 0.26. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. Verizon Communications Inc. has a 52-week low of $38.39 and a 52-week high of $51.68.
Verizon Communications (NYSE:VZ – Get Free Report) last released its earnings results on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share for the quarter, topping analysts’ consensus estimates of $1.21 by $0.07. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The business had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. During the same quarter last year, the firm posted $1.19 earnings per share. The business’s revenue was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. As a group, sell-side analysts anticipate that Verizon Communications Inc. will post 4.98 EPS for the current year.
Verizon Communications Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.5%. Verizon Communications’s dividend payout ratio (DPR) is 69.02%.
Analyst Ratings Changes A number of analysts recently issued reports on the company. Erste Group Bank restated a “hold” rating on shares of Verizon Communications in a research report on Tuesday, May 5th. Royal Bank Of Canada reduced their target price on shares of Verizon Communications from $48.00 to $46.00 and set a “sector perform” rating on the stock in a research note on Monday. JPMorgan Chase & Co. raised their target price on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Wells Fargo & Company began coverage on shares of Verizon Communications in a research note on Wednesday, July 8th. They set an “equal weight” rating and a $43.00 price target for the company. Finally, BNP Paribas Exane cut their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a report on Tuesday, July 14th. Nine analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $50.03.
Check Out Our Latest Analysis on Verizon Communications
Key Headlines Impacting Verizon Communications Here are the key news stories impacting Verizon Communications this week:
Positive Sentiment: Several recent pieces frame Verizon as a value stock, highlighting its relatively low valuation and dividend appeal for income-focused investors. Positive Sentiment: Analysts cited FIFA-related network demand and stronger usage trends as potential near-term catalysts ahead of second-quarter earnings. Article Title Neutral Sentiment: Verizon is preparing for heavy network traffic around the first-ever World Cup halftime show, which reinforces its network scale but is not clearly a direct earnings driver yet. Article Title Neutral Sentiment: RBC lowered its price target on Verizon to $46 from $48 and kept a “sector perform” rating, signaling cautious sentiment rather than a major change in the thesis. Negative Sentiment: Verizon plans to cut about 3,000 jobs and sell 274 stores to franchisees, underscoring ongoing restructuring and raising questions about growth and margins. Article Title Negative Sentiment: Another report said Verizon will sell 274 stores and cut 500 office jobs, adding to concerns that management is leaning on cost reductions rather than clear revenue acceleration. Article Title Verizon Communications Profile (Free Report)
Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
See Also Five stocks we like better than Verizon Communications Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
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Allspring Global Investments Holdings LLC boosted its position in Verizon Communications Inc. (NYSE:VZ – Free Report) by 19.1% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 302,344 shares of the cell phone carrier’s stock after purchasing an additional 48,418 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in Verizon Communications were worth $14,933,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other large investors have also recently bought and sold shares of the company. Strengthening Families & Communities LLC raised its position in shares of Verizon Communications by 490.0% in the fourth quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock worth $26,000 after buying an additional 539 shares in the last quarter. Lam Group Inc. bought a new stake in Verizon Communications during the first quarter valued at $28,000. EQ Wealth Advisors LLC purchased a new position in Verizon Communications during the fourth quarter worth about $29,000. Sarver Vrooman Wealth Advisors grew its position in Verizon Communications by 173.0% during the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier’s stock worth $29,000 after buying an additional 448 shares in the last quarter. Finally, Quattro Advisors LLC bought a new position in Verizon Communications in the 4th quarter worth about $30,000. 62.06% of the stock is owned by institutional investors.
Wall Street Analysts Forecast Growth Several analysts have weighed in on the company. Wells Fargo & Company assumed coverage on Verizon Communications in a report on Wednesday, July 8th. They issued an “equal weight” rating and a $43.00 price target on the stock. Erste Group Bank reissued a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Scotiabank decreased their price objective on shares of Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating on the stock in a research report on Wednesday, July 15th. Barclays lowered their target price on shares of Verizon Communications from $47.00 to $45.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 8th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Nine equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $50.03.
View Our Latest Stock Analysis on Verizon Communications
Key Stories Impacting Verizon Communications Here are the key news stories impacting Verizon Communications this week:
Positive Sentiment: Several recent pieces frame Verizon as a value stock, highlighting its relatively low valuation and dividend appeal for income-focused investors. Positive Sentiment: Analysts cited FIFA-related network demand and stronger usage trends as potential near-term catalysts ahead of second-quarter earnings. Article Title Neutral Sentiment: Verizon is preparing for heavy network traffic around the first-ever World Cup halftime show, which reinforces its network scale but is not clearly a direct earnings driver yet. Article Title Neutral Sentiment: RBC lowered its price target on Verizon to $46 from $48 and kept a “sector perform” rating, signaling cautious sentiment rather than a major change in the thesis. Negative Sentiment: Verizon plans to cut about 3,000 jobs and sell 274 stores to franchisees, underscoring ongoing restructuring and raising questions about growth and margins. Article Title Negative Sentiment: Another report said Verizon will sell 274 stores and cut 500 office jobs, adding to concerns that management is leaning on cost reductions rather than clear revenue acceleration. Article Title Verizon Communications Trading Up 0.6% Shares of VZ stock opened at $43.76 on Wednesday. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. The business has a 50-day moving average price of $45.51 and a two-hundred day moving average price of $46.15. Verizon Communications Inc. has a 12-month low of $38.39 and a 12-month high of $51.68. The firm has a market cap of $182.71 billion, a P/E ratio of 10.67, a price-to-earnings-growth ratio of 1.06 and a beta of 0.26.
Verizon Communications (NYSE:VZ – Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share for the quarter, beating analysts’ consensus estimates of $1.21 by $0.07. The company had revenue of $34.44 billion for the quarter, compared to analysts’ expectations of $34.82 billion. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.Verizon Communications’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period last year, the firm posted $1.19 EPS. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. Equities analysts anticipate that Verizon Communications Inc. will post 4.98 EPS for the current fiscal year.
Verizon Communications Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.5%. Verizon Communications’s dividend payout ratio (DPR) is 69.02%.
Verizon Communications Profile (Free Report)
Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
Read More Five stocks we like better than Verizon Communications Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding VZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Verizon Communications Inc. (NYSE:VZ – Free Report).
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Preorder the Samsung Galaxy Z Fold8, Galaxy Z Fold8 Ultra, Galaxy Watch Ultra 2 and Galaxy Watch9 on Verizon starting July 22 with flexible, hassle-free deals July 22, 2026 09:00 ET | Source: Verizon Communications, Inc.
What you need to know:
Preorder the Galaxy Z8 series at Verizon: Switch to Verizon’s Simplicity Plan and get the new Samsung Galaxy Z Fold8 with no trade-in required.Get the ultimate Samsung bundle: Buy a new Samsung phone or bring your own and get a Galaxy Watch9 and Galaxy Tab S10 FE on us.No more activation or upgrade fees: All postpaid customers who preorder can waive activation and upgrade fees when you enroll in Verizon Loyalty in the MyVerizon app.Six months of streaming on us: For a limited time, get the Disney+, Hulu, & ESPN+ (With Ads) Perk for six months on us with a qualifying Galaxy Z Fold8 or Z Fold8 Ultra purchase. NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Starting today, customers can preorder Samsung’s highly anticipated foldable lineup on Verizon's Simplicity Plan and My Biz Plan.
At Verizon, we’ve removed plan complexity to put control back in our customers’ hands. By pairing Samsung's innovative folding technology with Simplicity, customers get fast speeds on our 5G network with zero network tiers and full device freedom.
This new generation of Galaxy foldables is built to handle busy routines, whether working on the go, streaming entertainment or multitasking. The lineup features the new Galaxy Z Fold8, designed for high-performance productivity and seamless multitasking on a spacious, immersive screen. Check the lineup out below:
Galaxy Z Fold8 will be available in Lavender, Graphite and Cream starting at $1,899.99.Galaxy Z Fold8 Ultra will be available in Violet Shadow, Graphite and Cream starting at $2,099.99.Galaxy Watch9 will be available in Graphite, Cream and Silver starting at $429.99.Galaxy Watch Ultra2 will be available in Titanium Gray and Titanium Silver starting at $699.99. Why choose Verizon for Samsung's newest lineup
Samsung's devices are built to elevate the mobile experience, while Verizon’s plans deliver maximum value without the usual carrier friction:
Switch to a Simplicity Plan & Get the Galaxy Z Fold8: Get the new Galaxy Z Fold8 (256GB) for just $60 a month for 48 months (phone $30/mo with 1 line on $30/mo Simplicity), no trade-in required. Plus taxes and fees. Additional terms apply. How it works: Purchase the phone ($1,899.99 retail value) on an interest-free, 48-month payment plan. Verizon applies $460 in promotional credits over those 48 months to lower your monthly device payment to $30/mo.How to get the $30/month Simplicity rate: New customers open a new smartphone line on the Simplicity Plan, sign up for Auto Pay and paper-free billing (saving $10 a month) and switch your number from another carrier (saving $15 a month). Save up to $420 on the Galaxy Z Fold8 Ultra: Get a lower monthly rate when you add a new line or upgrade on the Simplicity Plan. How it works: Purchase the Galaxy Z Fold8 Ultra (256GB, $2,099.99 retail value) on an interest-free, 48-month payment plan. Verizon applies $420 in promotional credits over 48 months to lower your monthly device payment to $35/mo.How to qualify: New customers open a new smartphone line on the Simplicity Plan. You must sign up for Auto Pay and paper-free billing (saving $10 a month) and switch your number from your previous carrier within 45 days (saving $15 a month). Upgrade and save up to $1,100: Trade in your eligible phone to receive up to $1,100 off the new Galaxy Z Fold8 or Galaxy Z Fold8 Ultra. How it works: Purchase your new device on a 36-month, interest-free payment plan and upgrade an existing line to an Unlimited Plus or Unlimited Ultimate plan.How you save: Verizon covers up to $1,100 of the cost through monthly trade-in/promotional credits applied over 36 months.Trade-in details: To qualify, the eligible trade-in phone must be active on your Verizon account for at least 60 days before your new purchase. Get the Ultimate Bundle: Buy a new Samsung phone on a payment plan or bring your own Samsung phone with a new line, and get a new Galaxy Watch9 and a Galaxy Tab S10 FE on us. How it works: After an eligible phone or bring-your-own-phone new line activation, purchase the watch and tablet on a 36-month, interest-free payment plan and add a monthly service line for each device, starting at $15 a month with Auto Pay.How you save: Verizon covers the hardware costs by providing monthly promotional credits (up to $650 per device) over 36 months.Bringing your own phone: Ensure your new smartphone line remains active on your account for at least six months. Accessorize and save with BYOD watch deals: Bring your own Android phone with a new Verizon line to get a Galaxy Watch9 on us, or get the rugged Galaxy Watch Ultra2 for as low as $8 a month. Galaxy Watch9 on us: Verizon applies $430 in promotional credits over 36 months (40mm only; $429.99 retail value).Galaxy Watch Ultra2 discount: The same $430 promotional credit applies to the premium Watch Ultra2 ($699.99 retail value) over 36 months, reducing your payment to just under $8 a month.Save on accessories: Save up to 30% on the latest Galaxy Z series accessories when you bundle them together at Verizon. Up to $900 off the Samsung Galaxy Z8 Series (Galaxy Z Fold8 Ultra and Galaxy Z Fold8) for new and existing Verizon Business customers adding a new line or upgrading their device with a qualifying trade-in. Device payment plan and My Biz Plan with $15+ monthly add-on spending required. Trade-in credits applied over 36 months. Exclusive weekly rewards and customer experiences
Verizon is making it more affordable and more rewarding to keep the entire household connected. By enrolling in the new Verizon loyalty program using the My Verizon app, customers will receive cash back in Verizon Dollars every single month to use on devices, accessories and more, plus daily surprises, and the end of device upgrade and activation fees.
And with Verizon Shine, Verizon customers have a reason to look forward to Monday, all year round. All Verizon customers on any plan 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, dining vouchers, gift cards and more.
Stream your favorite content, on us
Bring the ultimate entertainment package to your new, expansive foldable screen. For a limited time, customers who purchase a qualifying Samsung Galaxy Z Fold8 or Samsung Galaxy Z Fold8 Ultra can get the Disney+, Hulu, & ESPN+ (With Ads) Perk for six months on us (then $10/mo) with Simplicity Plan or myPlan.
Get your new Galaxy smartphone and watch today
Preorders for the Samsung Galaxy Z Fold8, Z Fold8 Ultra, Galaxy Watch9 and Watch Ultra2 begin on July 22 at Verizon stores, verizon.com and the My Verizon app, with full retail availability on August 7.
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/.
Disclaimers
Simplicity Offer - Samsung Galaxy Z Fold8: $1899.99 (256 GB only) w/48-month device payment purchase for new customers w/ new smartphone line on Simplicity Plan rea'd. Less $460 promo credit applied over 48 mos.; promo credit ends if eligibility rea's are no longer met; 0% APR. Simplicity Plan: $10/mo Auto Pay (ACH or Verizon Visa Card) & paper-free billing discount requires enrollment w/in 30 days. $15/mo Switch discount requires smartphone line port-in or an uploaded mobile bill from an eligible carrier dated w/in the past 45 days. Unlimited data is restricted to on-device smartphone usage. Domestic data roaming at 2G speeds. Galaxy Al basic features provided by Samsung are free. Any Samsung enhanced Al features and all third-party Al features are subject to different terms and may be subject to fees.
Simplicity Offer - Samsung Galaxy Z Fold8 Ultra: $2,099.99 (256 GB only) w/ 48 month device payment purchase for new customers w/ new smartphone line on Simplicity Plan req’d. Less $420 promo credit applied over 48 mos.; promo credit ends if eligibility req’s are no longer met; 0% APR. Simplicity Plan: $10/mo Auto Pay (ACH or Verizon Visa Card) & paper-free billing discount requires enrollment w/in 30 days. $15/mo Switch discount requires smartphone line port-in or an uploaded mobile bill from an eligible carrier dated w/in the past 45 days. Unlimited data is restricted to on-device smartphone usage. Domestic data roaming at 2G speeds.
Samsung Ultimate Bundle: Phone: Up to $2,299.99 device payment purchase w/new smartphone line with Samsung smartphone on postpaid service plan req’d. BYOD: New and existing customers activating a new smartphone line with your own Android smartphone on postpaid service plan req’d. Line must remain active on the account for 6 months. Watch/Tablet: Up to $649.99 device payment purchase w/new line on service plan (min. $15/mo w/Auto Pay (+taxes/fees) for 36 mos) req'd per watch/tablet. Less up to $650 promo credit applied per device over 36 mos.; 0% APR. Promo credit(s) may not exceed featured device retail price and end if eligibility req's per device are no longer met.
$1,100 off Samsung Galaxy Z Fold8: Up to $2,099.99 w/36 month device payment purchase w/ upgrade smartphone line on Unlimited Plus or Unlimited Ultimate plan req'd. Less up to $1, 100 trade-in/promo credit applied over 36 mos.; promo credit ends if eligibility req's are no longer met; 0% APR. For upgrades, trade-in phone must be active on account for 60 days prior to new device purchase. Trade-in terms apply.
$1,100 off Samsung Galaxy Z Fold8 Ultra: Up to $2,299.99 w/36 month device payment purchase w/ upgrade smartphone line on Unlimited Plus or Unlimited Ultimate plan req'd. Less up to $1,100 trade-in/promo credit applied over 36 mos.; promo credit ends if eligibility req's are no longer met; 0% APR. For upgrades, trade-in phone must be active on account for 60 days prior to new device purchase. Trade-in terms apply.
Samsung Galaxy Watch9 - BYOD: New and existing customers activating a new smartphone line with your own Android smartphone on postpaid service plan req'd. Line must remain active on the account for 6 months. Watch: $429.99 (40 mm only) device payment purchase w/new line on Unlimited Plus or Unlimited for Android Watches plan (min. $15/mo (+taxes/fees) for 36 mos) req'd. Less $430 promo credit applied over 36 mos.; promo credit ends if eligibility req's are no longer met; 0% APR.
Samsung Galaxy Watch Ultra2 - BYOD: New and existing customers activating a new smartphone line with your own Android smartphone on postpaid service plan req'd. Line must remain active on the account for 6 months. Watch: $699.99 device payment purchase w/new line on service plan req'd. Less $430 promo credit applied over 36 mos.; promo credit ends if eligibility req's are no longer met; 0% APR.
Verizon (VZ +0.59%) spent last week doing what it has done all year under CEO Dan Schulman: getting smaller. The telecom giant said it will sell 274 company-owned retail stores to franchise operators and cut about 500 corporate positions, moves that affect roughly 3,000 employees in total. The changes take effect in mid-August and come on top of the more than 13,000 job cuts Verizon announced in November.
Headlines like these can spook income investors. But does it make sense to be fearful? At the stock's current price near $44, shares yield about 6.5% -- one of the largest payouts among major U.S. companies.
So, with second-quarter earnings due Friday morning, July 24, is a dividend this big still safe at a company this focused on cutting?
I believe it is. If anything, the restructuring is part of why.
Image source: Getty Images.
Shrinking by design Schulman took over in October and has moved quickly to build a leaner company. The November restructuring was Verizon's largest-ever round of layoffs, and it included handing 179 stores to franchisees.
Last week's move extends the same strategy, leaving Verizon with about 1,000 corporate-owned stores. Most of the affected retail employees' jobs shift to the franchise operators taking over their locations rather than disappearing outright.
So far, the approach has coincided with better results, not worse. First-quarter revenue rose 2.9% year over year to $34.4 billion, and cash flow from operations came in at $8 billion. And adjusted earnings per share climbed 7.6% to $1.28 -- an acceleration the company said was its best quarterly growth on that measure since 2021.
The subscriber trends have turned as well. Verizon added 55,000 postpaid phone customers in the first quarter, its first positive result on that metric in a first quarter since 2013. Broadband remained a growth engine, adding 341,000 net customers, including 214,000 fixed wireless access connections.
Additionally, management raised its full-year guidance, now calling for adjusted earnings-per-share growth of 5% to 6%.
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A dividend is only as safe as the cash flow behind it. And Verizon's cash flow is heading in the right direction.
Verizon generated $3.8 billion of free cash flow during the period, up 4% year over year. For the full year, management guided for free cash flow of at least $21.5 billion, or growth of about 7%, even while spending $16 billion to $16.5 billion on capital expenditures.
The dividend costs Verizon a little over $11 billion a year. The company paid $11.2 billion in cash dividends in 2024, for instance. In other words, guided free cash flow covers the payout nearly twice over.
That's a comfortable cushion. It's also what lets a company keep raising its dividend straight through a restructuring -- Verizon has increased its payout for 20 consecutive years, a streak management extended in January.
And the valuation adds another layer of support. Shares trade at about 10 times earnings and about 9 times consensus earnings-per-share estimates for the next 12 months. Even measured against earnings rather than cash flow, the payout ratio sits near two-thirds -- elevated for most companies, but ordinary for a telecom. Nobody is paying a premium here for growth that doesn't exist.
There is an important caveat, though: growth is thin. Mobility and broadband service revenue rose just 1.6% year over year in the first quarter, growth management said was dented by a January network outage.
Of course, cost cuts can fund a dividend for a long time. But they can't grow one forever. Eventually, the leaner Verizon has to deliver sustained subscriber and revenue gains, not just a smaller expense base.
That's what makes Friday's report worth watching. The items I'd check first are free cash flow, postpaid phone additions against the company's full-year target of 750,000 to 1 million (management expects the upper half of that range), and service revenue growth with the outage noise gone.
Unless those numbers crack, the dividend looks well protected. A payout covered nearly twice over by free cash flow, backed by improving subscriber trends and a management team attacking the cost base, is not a payout in danger.
For income investors, I think the dividend stock remains a solid option at today's price. Collect the 6.5% yield, and let Schulman keep shrinking the company into better shape.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Verizon Communications (VZ - Free Report) Based in New York, Verizon Communications Inc. offers communication services in the form of local phone service, long-distance calls, wireless and data services. In January 2006, Verizon completed its merger with MCI Corporation, a leader in long-distance and data networking services. With the acquisition of Alltel Wireless Corp. in early 2009, Verizon has surpassed AT&T Inc. as the largest wireless carrier in North America, serving millions of customers nationwide.
VZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.75; value investors should take notice.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $4.98 per share. VZ also boasts an average earnings surprise of +3.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, VZ should be on investors' short list.
To say the 2026 FIFA World Cup final between Spain and Argentina is the most-anticipated sporting event of the year would be an understatement.
More than 80,000 people are expected to attend the final at the New York-New Jersey stadium, and well over a billion viewers are likely to tune in to the broadcast globally.
Meanwhile, the quarterfinals averaged over 25 million viewers across Fox, Telemundo, and Peacock, according to Nielsen Media Research and Adobe Analytics.
While soccer fans are excited for the game itself, many are also eager for the first-ever halftime show, which is being curated by Coldplay front man Chris Martin and produced by Global Citizen, and will feature Madonna, Shakira, BTS, and Justin Bieber as headliners.
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Oftentimes, viewership for sporting events spikes during halftime shows. Take, for instance, the Super Bowl LIX game in 2025, during which Kendrick Lamar drew 133.5 million viewers and garnered a larger audience for his performance than the actual game itself. Bad Bunny’s halftime show from earlier this year at Super Bowl LX also attracted a slightly larger viewership than the regular game.
Given the massive star power of the World Cup performers, it’s safe to say the halftime show could generate just as much—if not more—viewership for those 11 minutes.
But with a global event as massive as the World Cup and a star-studded halftime show, how do the companies involved ensure the technology goes smoothly for the live audience and the millions of viewers watching around the world?
Explore Topicsinternet connectivitySportsVerizonworld cup
Boston Common Asset Management LLC boosted its holdings in Verizon Communications Inc. (NYSE:VZ – Free Report) by 6.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 316,689 shares of the cell phone carrier’s stock after buying an additional 20,308 shares during the quarter. Verizon Communications makes up 1.0% of Boston Common Asset Management LLC’s holdings, making the stock its 29th biggest holding. Boston Common Asset Management LLC’s holdings in Verizon Communications were worth $15,898,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also recently bought and sold shares of VZ. AlphaCentric Advisors LLC lifted its stake in Verizon Communications by 133.8% in the 1st quarter. AlphaCentric Advisors LLC now owns 5,867 shares of the cell phone carrier’s stock valued at $295,000 after purchasing an additional 3,358 shares during the last quarter. Decker Wealth Management LLC acquired a new stake in Verizon Communications in the first quarter valued at approximately $494,000. Greenwood Gearhart LLC acquired a new stake in Verizon Communications in the first quarter valued at approximately $318,000. Koss Olinger Consulting LLC grew its stake in shares of Verizon Communications by 91.3% during the first quarter. Koss Olinger Consulting LLC now owns 16,373 shares of the cell phone carrier’s stock worth $822,000 after buying an additional 7,815 shares during the last quarter. Finally, Little House Capital LLC grew its stake in shares of Verizon Communications by 2.0% during the first quarter. Little House Capital LLC now owns 57,816 shares of the cell phone carrier’s stock worth $2,902,000 after buying an additional 1,129 shares during the last quarter. Institutional investors own 62.06% of the company’s stock.
Wall Street Analysts Forecast Growth VZ has been the subject of a number of research reports. Scotiabank dropped their price target on Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a research note on Wednesday, July 15th. Dbs Bank downgraded Verizon Communications from a “moderate buy” rating to a “hold” rating in a report on Tuesday, April 7th. Barclays reduced their price objective on Verizon Communications from $47.00 to $45.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 8th. Freedom Capital raised Verizon Communications to a “hold” rating in a report on Friday, June 12th. Finally, Wells Fargo & Company started coverage on Verizon Communications in a research report on Wednesday, July 8th. They issued an “equal weight” rating and a $43.00 target price for the company. Nine equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $50.09.
View Our Latest Stock Report on Verizon Communications
Key Stories Impacting Verizon Communications Here are the key news stories impacting Verizon Communications this week:
Positive Sentiment: Verizon is moving to sell 274 company-owned retail stores to franchisees and cut roughly 3,000 jobs, a restructuring that could lower operating costs and improve margins over time. Reuters: Verizon to shed 274 stores, lay off another 500 corporate employees Positive Sentiment: Market reaction has been favorable to the cost-reset story, with articles noting VZ rose as investors responded to the store shakeup and expense reduction plans. Yahoo Finance: VZ Stock Rises — Verizon Moves To Slash Costs With Major Store Shakeup Neutral Sentiment: Erste Group Bank slightly raised its FY2026 earnings estimate for Verizon and kept a Hold rating, suggesting only modest near-term earnings improvement. MarketBeat analyst update Neutral Sentiment: Verizon is expected to report earnings on Friday, which keeps investors focused on whether the restructuring and broadband growth can offset slower revenue trends. American Banking News: Verizon Communications (VZ) to Post Earnings on Friday Negative Sentiment: Some analysts are cautioning that Verizon already trades at a premium relative to peers, which could limit upside if earnings growth disappoints. Trefis: VZ Earns Its Premium Over Peers. Now What? Negative Sentiment: Scotiabank also lowered its price target to $51.50, reflecting some skepticism about the pace of Verizon’s improvement. American Banking News: Verizon Communications (NYSE:VZ) Price Target Lowered to $51.50 at Scotiabank Verizon Communications Trading Down 0.1% VZ opened at $43.57 on Monday. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. Verizon Communications Inc. has a fifty-two week low of $38.39 and a fifty-two week high of $51.68. The company’s 50 day moving average price is $45.67 and its two-hundred day moving average price is $46.11. The firm has a market capitalization of $181.91 billion, a price-to-earnings ratio of 10.63, a PEG ratio of 1.07 and a beta of 0.26.
Verizon Communications (NYSE:VZ – Get Free Report) last released its quarterly earnings results on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.07. The firm had revenue of $34.44 billion during the quarter, compared to the consensus estimate of $34.82 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The company’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.19 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. As a group, research analysts predict that Verizon Communications Inc. will post 4.98 earnings per share for the current year.
Verizon Communications Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be issued a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a yield of 6.5%. The ex-dividend date is Friday, July 10th. Verizon Communications’s dividend payout ratio is presently 69.02%.
Verizon Communications Company Profile (Free Report)
Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
Recommended Stories Five stocks we like better than Verizon Communications Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding VZ? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Verizon Communications Inc. (NYSE:VZ – Free Report).
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Dimensional Fund Advisors LP increased its holdings in shares of Verizon Communications Inc. (NYSE:VZ – Free Report) by 6.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 32,734,998 shares of the cell phone carrier’s stock after acquiring an additional 1,972,634 shares during the quarter. Verizon Communications comprises 0.3% of Dimensional Fund Advisors LP’s portfolio, making the stock its 28th biggest holding. Dimensional Fund Advisors LP owned 0.78% of Verizon Communications worth $1,643,339,000 as of its most recent SEC filing.
A number of other large investors have also added to or reduced their stakes in VZ. RKL Wealth Management LLC boosted its position in Verizon Communications by 4.3% during the first quarter. RKL Wealth Management LLC now owns 5,338 shares of the cell phone carrier’s stock worth $268,000 after purchasing an additional 218 shares during the period. Strategic Investment Solutions Inc. IL boosted its holdings in shares of Verizon Communications by 8.6% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 2,765 shares of the cell phone carrier’s stock worth $113,000 after buying an additional 219 shares during the period. Frazier Financial Advisors LLC boosted its holdings in shares of Verizon Communications by 32.7% during the 1st quarter. Frazier Financial Advisors LLC now owns 888 shares of the cell phone carrier’s stock worth $45,000 after buying an additional 219 shares during the period. Sumitomo Life Insurance Co. grew its stake in Verizon Communications by 0.7% in the 4th quarter. Sumitomo Life Insurance Co. now owns 35,023 shares of the cell phone carrier’s stock valued at $1,426,000 after buying an additional 227 shares during the last quarter. Finally, Blake Schutter Theil Wealth Advisors LLC grew its stake in Verizon Communications by 3.8% in the 4th quarter. Blake Schutter Theil Wealth Advisors LLC now owns 6,305 shares of the cell phone carrier’s stock valued at $257,000 after buying an additional 233 shares during the last quarter. Institutional investors own 62.06% of the company’s stock.
Wall Street Analyst Weigh In Several research analysts have weighed in on VZ shares. JPMorgan Chase & Co. increased their price target on shares of Verizon Communications from $49.00 to $52.00 and gave the company a “neutral” rating in a report on Thursday, April 30th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Verizon Communications in a research report on Friday, May 29th. Barclays lowered their target price on Verizon Communications from $47.00 to $45.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 8th. Morgan Stanley lifted their price target on Verizon Communications from $49.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 28th. Finally, Scotiabank reduced their price target on Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a research note on Wednesday, July 15th. Nine equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $50.09.
Read Our Latest Research Report on Verizon Communications
Verizon Communications Price Performance Shares of Verizon Communications stock opened at $43.57 on Monday. Verizon Communications Inc. has a twelve month low of $38.39 and a twelve month high of $51.68. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. The company has a 50-day simple moving average of $45.67 and a two-hundred day simple moving average of $46.11. The stock has a market capitalization of $181.91 billion, a price-to-earnings ratio of 10.63, a price-to-earnings-growth ratio of 1.07 and a beta of 0.26.
Verizon Communications (NYSE:VZ – Get Free Report) last announced its earnings results on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.21 by $0.07. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The firm had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. During the same quarter in the prior year, the business posted $1.19 EPS. The business’s revenue was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. Analysts forecast that Verizon Communications Inc. will post 4.98 EPS for the current year.
Verizon Communications Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.5%. Verizon Communications’s dividend payout ratio is currently 69.02%.
Key Verizon Communications News Here are the key news stories impacting Verizon Communications this week:
Positive Sentiment: Verizon is moving to sell 274 company-owned retail stores to franchisees and cut roughly 3,000 jobs, a restructuring that could lower operating costs and improve margins over time. Reuters: Verizon to shed 274 stores, lay off another 500 corporate employees Positive Sentiment: Market reaction has been favorable to the cost-reset story, with articles noting VZ rose as investors responded to the store shakeup and expense reduction plans. Yahoo Finance: VZ Stock Rises — Verizon Moves To Slash Costs With Major Store Shakeup Neutral Sentiment: Erste Group Bank slightly raised its FY2026 earnings estimate for Verizon and kept a Hold rating, suggesting only modest near-term earnings improvement. MarketBeat analyst update Neutral Sentiment: Verizon is expected to report earnings on Friday, which keeps investors focused on whether the restructuring and broadband growth can offset slower revenue trends. American Banking News: Verizon Communications (VZ) to Post Earnings on Friday Negative Sentiment: Some analysts are cautioning that Verizon already trades at a premium relative to peers, which could limit upside if earnings growth disappoints. Trefis: VZ Earns Its Premium Over Peers. Now What? Negative Sentiment: Scotiabank also lowered its price target to $51.50, reflecting some skepticism about the pace of Verizon’s improvement. American Banking News: Verizon Communications (NYSE:VZ) Price Target Lowered to $51.50 at Scotiabank Verizon Communications Company Profile (Free Report)
Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
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Verizon Communications, the largest U.S. wireless carrier by subscriber count, is reportedly planning to cut about 3,000 jobs. Most of the job cuts are tied to a significant shift in the company’s retail store operations.
Here’s what you need to know about the Verizon layoffs and retail store changes.
What’s happened?On Wednesday, the Wall Street Journal reported that Verizon Communications Inc. (NYSE: VZ), is preparing to cut 3,000 workers. The majority of the job cuts are directly tied to a change Verizon has reported making to its retail store operations.
That change will see Verizon divest itself of 274 of its retail stores. The divestiture will result in the retail stores being transferred to franchise owners. After the divestiture, Verizon would still have about 1,000 company-operated retail stores.
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The WSJ reported that most of the job cuts, about 2,500 of them, will be due to the retail store divestiture. However, about 500 layoffs will impact employees on the corporate side.
It is not known which retail stores Verizon will divest. Reached for comment by Fast Company, a spokesperson for Verizon said 70% of impacted employees “typically end up working for the new franchise locations.”
“Ninety-three percent of the US population will continue to be within a 30-minute drive of a Verizon store,” a Verizon spokesperson said. “These changes, effective August 16, impact roughly 3000 employees, including those impacted in the corporate stores.”
Verizon Communications (VZ - Free Report) ended the recent trading session at $43.88, demonstrating a +2.45% change from the preceding day's closing price. This change outpaced the S&P 500's 0.51% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 6.57% lagged the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company plans to announce its earnings on July 24, 2026. The company is expected to report EPS of $1.27, up 4.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $35.31 billion, up 2.35% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.98 per share and a revenue of $142.33 billion, signifying shifts of +5.73% and +2.99%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Verizon Communications currently has a Zacks Rank of #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 8.6. Its industry sports an average Forward P/E of 10.49, so one might conclude that Verizon Communications is trading at a discount comparatively.
Meanwhile, VZ's PEG ratio is currently 1.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 1.08.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 214, positioning it in the bottom 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The latest implementation of a shifting retail strategy was the spark that lit the fuse under Verizon Communications (VZ +2.37%) stock on Thursday. Cheered by the move, investors pushed the big telecom's stock up by more than 2%, on a day when the S&P 500 index only ticked up by 0.4%.
Franchises on the rise Verizon announced that it aims to sell 274 of its stores around the U.S., and cut roughly 500 corporate jobs as part of a broader restructuring program.
Image source: Verizon Communications.
All told, this round of store transitions will affect around 3,000 of the company's retail and corporate employees. The stores are to be sold to third parties that will operate them under franchise agreements; many of the affected workers would likely be retained by those entities.
Increasingly, Verizon's retail outlets are being managed under the franchise model. Currently, around 5,000 company stores are run in this manner. Following the sale announced on Thursday, Verizon will directly operate only about 1,000 of its outlets.
Just after current CEO Dan Schulman took the reins last October, the company announced plans to cut roughly 15% of its workforce, or around 13,000 people. This is partly in anticipation of artificial intelligence (AI) taking over certain functions, such as aspects of customer service.
Other components of this corporate makeover include a recently introduced, simplified service plan for clients and a refreshed loyalty program.
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The dividend difference While it's never heartening to learn of potential job cuts, the silver lining is that the current program could result in a genuinely leaner, more efficient Verizon if done well. Shareholders would currently welcome the return of solid growth for the company, but as it stands, it's a reliable (if unspectacular) performer that pays a handsome, high-yield dividend (over 6%).
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Verizon Communications announced its second round of layoffs this year. (Patrick T. Fallon/Bloomberg)
Verizon Communications is laying off more workers, reducing the number of company-owned retail stores, and realigning its structure as the nation’s largest wireless carrier continues to cut costs under new CEO Daniel Schulman.
The company plans to divest itself of 274 of its retail stores to franchise owners. Most of Verizon's layoffs would come from the retail-store divestiture.
A contract crew from Verizon installs 5G telecommunications equipment on a tower in Orem, Utah, U.S. December 3, 2019. Picture taken December 3, 2019. REUTERS/George Frey/File Photo Purchase Licensing Rights, opens new tab
July 16 (Reuters) - U.S. wireless carrier Verizon (VZ.N), opens new tab said it will sell 274 company-owned retail locations and cut about 500 corporate jobs as part of its ongoing restructuring.
In total, the moves will impact about 3,000 retail and corporate employees. Verizon will own 1,000 stores after the sale effective Aug. 16. In May, Verizon eliminated several hundred jobs after announcing in November it was cutting more than 13,000 jobs in its largest single round of layoffs.
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Reporting by David Shepardson
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Verizon is reiterated as a "Buy," with an attractive valuation and a high 6.66% forward dividend yield. VZ raised its FY 2026 EPS guidance to $4.95–$4.99, supported by strong postpaid phone and broadband net adds. Despite competition risks and technical weakness, VZ's fundamentals remain solid, with $6.55 free cash flow per share over the past year.
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Verizon (NYSE:VZ | VZ Price Prediction) is one of the most compelling income setups on the board right now, and the July 24 earnings report is the trigger that converts a +6% yielder into a +24% total-return story. The setup favors longs into the earnings report.
The Valuation Alone Closes the Case Trading around $42.34 as of July 14, Verizon trades at a trailing P/E of 10 and a forward P/E of 8 against a PEG of 0.789. Analyst consensus target sits at $51.90, and our 247 model prints $52.47, a 24.78% upside with a 0.9 confidence score. Of 26 covering analysts, zero carry a sell rating. A beta of 0.238 means you collect that upside without stomach-churning volatility.
The Income Case Is Already Paid Up Verizon’s 6.68% dividend yield is backed by 19 consecutive years of increases. The 2026 free cash flow guide is $21.5 billion or more, growing roughly 7% off 2025, with at least $3 billion in buybacks planned ($2.5 billion already executed in Q1). That is durable coverage. For retirees comparing yield-plus-buyback shareholder return against Treasuries, the payout stack here beats duration-locked fixed income.
July 24 Is the Catalyst Verizon has beaten in 5 of its last 6 quarters with zero misses. The average earnings-day move is +3.54%, and the average 30-day post-report gain is +5.51%. Q1 2026 delivered $1.28 adjusted EPS, up 7.6% year over year, plus the first positive Q1 postpaid phone net additions since 2013. Management raised full-year adjusted EPS guidance to $4.95 to $4.99. Polymarket assigns an 89% probability that Q2 revenue clears $34.5 billion. T-Mobile US (NASDAQ:TMUS) is the loud comparable.
Head-to-Head: VZ Wins Against T-Mobile The head-to-head math is not close. Verizon’s forward P/E of 8 and EV/EBITDA of 7.47 are a fraction of TMUS’s growth-stock multiple (forward P/E near 21), and Verizon’s 6.49% yield dwarfs TMUS’s sub-1.5% payout. You get the same fiber-plus-5G exposure at a value multiple with a covered, growing dividend stacked on top. Add Verizon’s 10.8 million fiber broadband connections, up 41.9% YoY post-Frontier, and the growth gap narrows fast.
Verizon’s setup looks compelling ahead of the July 24 open.
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Mobile operator Verizon (VZ 0.49%) has seen its shares sell off in the wake of the SpaceX (SPCX 2.24%) IPO, lifting Verizon's dividend yield to 6.7%. The sell-off looks overdone in my view, making the stock an attractive buy at current levels.
Investors worry that SpaceX will use its leadership in satellite internet to challenge traditional mobile carriers like Verizon. However, there are multiple hurdles to this happening. Two of the biggest are technology constraints and regulatory issues.
Image source: The Motley Fool.
A look at the potential threat Cellular networks, like Verizon's, use dense, localized cell towers and small cell antennas that reuse spectrum thousands of times within a single city. Low-earth-orbit (LEO) satellites like those SpaceX deploys, on the other hand, project massive beams over large areas. If millions of people in a dense city or suburb tried to stream video via direct-to-cell satellite at the same time, capacity would collapse. Meanwhile, modern green building initiatives, such as reinforced concrete, steel, and low-e glass used in office buildings, block satellite signals.
Even SpaceX's VP for satellite engineering, Michael Nicolls, stated this at the company's Mobile World Conference: "Satellite is complementary to terrestrial networks; it cannot provide the data density that terrestrial networks have. But it can augment terrestrial networks in areas where they cannot reach. Or when terrestrial networks need additional capacity."
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Meanwhile, after discussing the potential for SpaceX to offer a mobile network with a former FCC attorney, BNP Paribas analyst Sam McHugh concluded there were few ways for SpaceX to enter the mobile space unless those companies struck a deal with SpaceX. He noted that current FCC rules prevent Elon Musk's company from requiring carriers to enter wholesale network agreements or to provide roaming access.
While there is a risk SpaceX gets into space by acquiring a carrier like T-Mobile, the three big carriers did form a joint venture to help address coverage gaps in the U.S. by pooling spectrum, looking to fend off any risk from satellite companies.
Bundling opportunity ahead Putting aside SpaceX's concerns, Verizon has a big opportunity ahead as it starts to cross-sell and bundle wireless and broadband services to the customers it gained when it acquired Frontier Communications earlier this year. This should be a nice subscriber and revenue growth driver, as only about 20% of its customers have both wireless and broadband subscriptions.
Meanwhile, Verizon's dividend is safe and well covered, with the company having low leverage and a dividend (around $12 billion projected this year) that is easily covered by its free cash flow ($21.5 billion forecast).
With a nearly 7% yield and a forward price-to-earnings (P/E) ratio of 8.6 based on 2026 earnings estimates, I think this dividend stock looks like a buy on its recent price dip.
The big moneymaker for Space Exploration Technologies (SPCX +1.64%), which is also known as SpaceX, is its Starlink business. That's the one area of the company that generates strong growth, and that's actually profitable. Without it, SpaceX's losses and cash burn would be even worse.
The exciting potential for Starlink has resulted in many telecom stocks struggling this year, as investors worry about what it might mean for the broader sector. An increase in competition could weigh on margins and limit growth even further for companies such as AT&T (T +1.99%) and Verizon Communications (VZ +1.33%) that don't generate much growth to begin with.
Starlink is reportedly looking at expanding its service in the U.S., which may only exacerbate those worries. Are the big players in telecom in trouble, and are their shares likely to fall even lower?
Image source: Getty Images.
Starlink to ramp up competition in the telecom sector? According to a recent report, SpaceX may be planning to build a terrestrial mobile network in the U.S. for Starlink, which would enable it to more directly compete with telecom providers such as AT&T and Verizon. Its service currently fulfills a big need for customers in hard-to-reach remote areas, but by planning to invest heavily into developing its own mobile network, it could drastically ramp up its growth rate and potentially wreak havoc for rivals in the process.
As of the end of March, Starlink had 10.3 million subscribers, which was more than double what it reported a year earlier. The business has been growing fast, as at the end of 2023 its subscriber count was just 2.3 million. By reaching a broader section of the market, that could enable its growth rate to accelerate at an even faster rate.
The capital-intensive business comes with challenges However, there's a reason investors aren't thrilled with telecom stocks, and why they typically don't make for great growth stocks: their costs and debt loads are often high. These capital-intensive businesses aren't ideal for fast-moving businesses and can make them less-than-ideal investments to own, particularly when interest rates are high and debt is costly. In the past five years, Verizon's stock has declined by more than 20% while AT&T has delivered flat returns. Meanwhile, the S&P 500 has risen by over 70%.
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For SpaceX, it already has a capital-intensive business in artificial intelligence (AI), where it has been spending increasing amounts of money to grow that area of its operations. In its most recent quarter, capital expenditures on AI totaled $7.7 billion, up from $2.6 billion a year ago. Spending on connectivity, which includes its Starlink business, totaled $1.3 billion during the first three months of the year, pales in comparison. For SpaceX, it could be a balancing act for the business in how it allocates cash most effectively and efficiently.
Should telecom investors be worried? Shares of AT&T and Verizon have been trading lower of late due to the perceived threat that Starlink poses to their businesses. But Starlink is still fairly small in size, and while it may be growing quickly, it is premature to suggest that it'll be a huge player in the telecom sector and that it'll end up taking significant market share from the current leaders. SpaceX needs to focus on space and AI -- the two areas of its business that are likely most compelling to growth investors and that drive its high valuation.
Ultimately, I don't think it's a huge risk right now or in the near future. While it may be worth AT&T and Verizon investors to keep an eye on Starlink, I don't think it's going to derail their respective businesses or make them worse investments. Competition has been a risk for these companies for years, yet they've continued to dominate, and that's likely to remain the case, as I don't think investing heavily in telecom will be a huge priority for SpaceX given the company's other pressing needs.
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 -9.3%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Wireless National industry, which Verizon falls in, has gained 109.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
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.
Verizon is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +4.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $4.98 for the current fiscal year indicates a year-over-year change of +5.7%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.27 indicates a change of +5.8% from what Verizon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Verizon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven 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 $35.41 billion indicates a year-over-year change of +2.6%. For the current and next fiscal years, $142.68 billion and $144.99 billion estimates indicate +3.3% and +1.6% changes, respectively.
Last Reported Results and Surprise HistoryVerizon reported revenues of $34.44 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.28 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $35.03 billion, the reported revenues represent a surprise of -1.7%. The EPS surprise was +4.92%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty 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.
ConclusionThe 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.
Social Security’s cost-of-living adjustment is a floor, not a raise. The 2026 Social Security COLA is 2.8%, which means retirees leaning on that check for real spending power need income streams that clear that bar without breaking a sweat. The three names below all pay yields that top 2.8%, and each one carries a dividend record long enough to matter. Safety, not yield chasing, is what qualifies them here.
Realty Income (NYSE: O) Realty Income (NYSE:O | O Price Prediction) is the net lease REIT that has branded itself “The Monthly Dividend Company,” and the branding is earned. The current yield sits at 5.12%, and shareholders collect it in twelve installments rather than four. The most recent monthly declaration was $0.271, with an annualized forward estimate of $3.252.
On safety, the coverage math works. Realty Income’s 2026 AFFO guidance sits at $4.41 to $4.44, implying 3.0% to 3.7% growth, against an annualized dividend of $3.246. That leaves clear headroom on the funds available to pay the distribution. Portfolio occupancy stands at 98.9% with rent recapture of 103.4%, and Q1 2026 AFFO per share of $1.13 rose 6.6% year over year. Balance sheet leverage improved to Net Debt to Annualized Pro Forma Adjusted EBITDAre of 5.2x from 5.4x. The dividend track record is the headline: 670 consecutive monthly dividends declared and 114 consecutive quarterly increases, confirmed by an unbroken monthly dividend history going back to at least 1999, spanning 27 years.
The bull case for an income investor is simple: a monthly check that has been raised, in small increments, essentially every quarter, backed by a diversified global net lease portfolio and an $9.5 billion 2026 investment volume guide. Shares are up 16.81% year to date, so total return is showing up alongside the payout.
The caveat: interest expense and impairments remain a live headwind. Q1 2026 carried $129.3 million in impairment provisions and interest coverage of only 1.42x. That is the price of running a leveraged real estate model in a higher-rate world.
Verizon (NYSE: VZ) Verizon (NYSE:VZ) is the ultra-high-yield name in this trio. The current yield reads 6.66%, comfortably above the 6% threshold and roughly triple the COLA benchmark. The quarterly dividend was raised to $0.7075 from $0.69, with an annualized forward estimate of $2.83.
Safety here is about cash generation, not accounting earnings. 2026 adjusted EPS guidance sits at $4.95 to $4.99, up 5% to 6%, and 2026 free cash flow guidance is $21.5 billion or better, up roughly 7% year over year. That FCF envelope easily covers the dividend commitment plus the $2.5 billion in Q1 2026 buybacks, on pace for $3 billion or more this year. On the track record, the dividend has been paid quarterly without interruption for 27+ years, with the current $0.7075 quarterly rate up from $0.665 in Q3 2024.
The bull case is a turnaround with proof points. Under CEO Dan Schulman, Verizon posted its first positive Q1 postpaid phone net adds since 2013, and the Frontier acquisition expanded the fiber footprint past 30 million homes. Income investors get a real yield on a business that finally shows subscriber traction. If you are building a paycheck-style portfolio around names like this, our From $250K to $1,500 a Month research walks through how high-yield telecom, REIT, and energy income can be layered on top of Social Security.
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The caveat is the balance sheet. Total debt sits at $172.5 billion with net unsecured debt leverage at 2.6x after the Frontier deal. Add churn ticking up to 0.97% and ARPA slipping 1.9% year over year, and integration risk is real. The yield gets paid, but debt servicing capacity is what income holders should keep watching.
Chevron (NYSE: CVX) Chevron (NYSE:CVX) rounds out the group with the lowest headline yield of the three but arguably the sturdiest income structure. The current yield reads 3.97%, still comfortably ahead of the 2.8% COLA. The quarterly dividend was raised 4% to $1.78 per share, verified in the payment schedule showing $1.78 quarterly in 2026 versus $1.71 in 2025 and $1.63 in 2024.
On safety, the balance sheet does the heavy lifting. Debt to equity of 0.25, net debt to EBITDA of 1.08, and interest coverage of 13.7x is fortress-level for an integrated oil major. Cash generation backs the payout: FY 2025 operating cash flow was a record $33.9 billion with free cash flow of $16.6 billion, and Chevron returned $27.1 billion to shareholders in 2025, including $12.1 billion in buybacks. Q1 2026 buybacks of $2.5 billion marked the 16th consecutive quarter of returning $5 billion or more annually. On the track record, this is the 39th consecutive annual dividend increase, and the dividend history data confirms an uninterrupted quarterly payment pattern with no year-over-year decreases across the entire 27-year dataset.
The bull case: a dividend grower with a real production tailwind. Q1 2026 production hit a record 3,858 MBOED, up 15% year over year, on the back of Hess integration and Permian scale, with structural cost cuts targeting $3 to $4 billion by end of 2026. Shares are up 21.81% year to date, so the dividend is being paid on rising equity value, not falling.
The caveat is what it always is with an oil major: commodity prices set the tone. Q1 2026 net income fell 37% year over year, and free cash flow ran negative at -$1.55 billion on working capital timing. The FCF profile easily supports the dividend across a cycle, but a single quarter can look ugly when crude prices roll over.
The Bottom Line These three names give income investors three different ways to clear the 2.8% COLA hurdle. Realty Income delivers the monthly cadence and the longest unbroken payment record. Verizon delivers the fattest yield and a real FCF cushion behind it. Chevron delivers the strongest balance sheet and the most robust dividend growth streak of the group. Different engines, same job: paying a check that grows faster than the government’s inflation adjustment.
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Wall Street is beginning to factor SpaceX's growing telecom ambitions into its outlook for the US communications sector.
Research firm Bernstein on Monday lowered price targets for five major telecom companies, citing valuation risks tied to SpaceX's Starlink business as investors increasingly assess the satellite operator's long-term competitive threat.
The brokerage reduced its target on Verizon to $44 from $49 while maintaining a "Market Perform" rating.
The revised target still implies an upside of roughly 3% from current trading levels.
Charter Communications saw its price target cut to $170 from $210, also with a "Market Perform" rating, suggesting upside of around 29%.
Bernstein also lowered Comcast's target price to $28 from $32 while maintaining a "Market Perform" rating.
AT&T's target was reduced to $25 from $30, although the stock retained its "Outperform" rating.
T-Mobile's target was lowered to $220 from $245 with a "Market Perform" rating.
The revisions come after reports last month suggested that SpaceX is preparing to launch a direct-to-consumer Starlink mobile service and is exploring plans to build its own terrestrial wireless network in the United States.
While Bernstein does not expect Starlink to materially disrupt incumbent telecom operators in the near term, the firm believes the company's expansion introduces another competitor into an already saturated broadband market.
According to the brokerage, a Starlink mobile offering could intensify competition further, making subscriber growth increasingly dependent on winning customers from rival operators rather than on attracting first-time users.
Bernstein added that uncertainty surrounding SpaceX's long-term telecom strategy is likely to persist, prompting it to adopt a more cautious stance across the sector.
The report also drew attention from television personality Jim Cramer.
"I don't want to own AT&T or Verizon," Cramer said during CNBC's Mad Dash segment on Monday, referring to Bernstein's revised outlook.
Wall Street's assessment of Starlink has changed significantly over the past year.
The satellite broadband business was initially viewed primarily as a service for rural communities without reliable access to cable or fibre internet.
However, rapid subscriber growth and expansion into commercial aviation have led analysts to reconsider its long-term competitive position.
Starlink has doubled its subscriber base annually in recent years while securing broadband agreements with airlines including American Airlines and United Airlines.
The company's growth has strengthened investor confidence that it could eventually compete more directly with traditional broadband providers.
Wolfe Research analyst Peter Supino recently described Starlink as "a comet bearing down on broadband incumbents."
That view reflects growing concern that SpaceX could steadily capture broadband market share from cable operators such as Charter and Comcast, while also posing a longer-term challenge to fibre providers including Verizon and AT&T.
Among the major telecom companies, analysts generally view cable operators as the most exposed because broadband accounts for the bulk of their profits and their businesses rely heavily on ageing network infrastructure.
Although Starlink's immediate impact is expected to remain limited, analysts increasingly believe the company's ambitions warrant closer attention as SpaceX expands beyond satellite internet into broader telecommunications services.
Jim Cramer used his CNBC Mad Dash segment on Monday to warn viewers away from major telecom names after Bernstein published a research note tying valuation risk directly to SpaceX's Starlink.
