Verizon Communications (NYSE:VZ) Trading Up 5.7% After Earnings Beat

Verizon Communications Inc. (NYSE:VZ) shares were up 5.7% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $46.44 and last traded at $46.3350. Approximately 40,626,513 shares were traded during trading, an increase of 39% from the average session volume of 29,152,141 shares. The stock had previously closed at $43.82.

The cell phone carrier reported $1.30 EPS for the quarter, beating the consensus estimate of $1.27 by $0.03. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business had revenue of $34.25 billion for the quarter, compared to the consensus estimate of $35.16 billion. During the same period in the prior year, the company posted $1.22 earnings per share. Verizon Communications’s revenue was down .6% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a dividend of $0.7075 per share. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date is Friday, July 10th. Verizon Communications’s dividend payout ratio is presently 69.02%.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Verizon beat Q2 earnings estimates, with adjusted EPS of $1.30 versus $1.27 expected, while free cash flow rose 24.4% and adjusted EBITDA margin hit a record 40.1%.
• Positive Sentiment: The company raised its FY 2026 guidance again, lifting both adjusted earnings and cash flow outlooks, which signals improving confidence in the business. Article Title
• Positive Sentiment: Verizon added 184,000 postpaid phone customers, beating expectations, and said its new unlimited 5G plans and rewards programs are helping drive subscriber gains. Article Title
• Positive Sentiment: Verizon also announced a more than $1 billion dark fiber deal with Google for AI data centers, which adds a new growth narrative around enterprise connectivity and AI infrastructure demand.
• Positive Sentiment: The company expanded its full-year share buyback target to up to $4.5 billion and highlighted improved capital returns, which can support the stock.
• Neutral Sentiment: Revenue came in below estimates at $34.25 billion, and overall sales were down slightly from a year ago, so top-line pressure remains a concern even after the earnings beat.
• Neutral Sentiment: Unusually heavy call option trading suggests traders are positioning for more upside following the earnings and guidance news.
• Negative Sentiment: Verizon still faces a significant debt load, and some commentary noted that the stock is being helped by operational improvement rather than a full resolution of longer-term balance sheet pressure.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on VZ shares. JPMorgan Chase & Co. boosted their price target on Verizon Communications from $49.00 to $52.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Barclays lowered their price objective 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. Scotiabank dropped their price objective on Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a report on Wednesday, July 15th. Freedom Capital upgraded Verizon Communications to a “hold” rating in a research report on Friday, June 12th. Finally, Royal Bank Of Canada reduced their target price on Verizon Communications from $48.00 to $46.00 and set a “sector perform” rating on the stock in a report on Monday. Nine investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $50.03.

Institutional Investors Weigh In On Verizon Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in VZ. Strengthening Families & Communities LLC increased its stake in shares of Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock valued at $26,000 after purchasing an additional 539 shares during the last quarter. Robinswood Financial LLC bought a new stake in shares of Verizon Communications during the 1st quarter worth $27,000. Lam Group Inc. bought a new stake in shares of Verizon Communications during the 1st quarter worth $28,000. EQ Wealth Advisors LLC acquired a new stake in Verizon Communications in the fourth quarter valued at about $29,000. Finally, Sarver Vrooman Wealth Advisors boosted its stake in Verizon Communications by 173.0% in the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier’s stock valued at $29,000 after buying an additional 448 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors.

Verizon Communications Stock Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. The stock has a 50-day simple moving average of $45.39 and a 200-day simple moving average of $46.20. The stock has a market cap of $193.47 billion, a P/E ratio of 11.30, a PEG ratio of 1.08 and a beta of 0.26.

Verizon Communications Company Profile

Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.