Verizon Communications (NYSE:VZ) Issues Earnings Results

Verizon Communications (NYSE:VZ) released its earnings results on Monday. The cell phone carrier reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.04, FiscalAI reports. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The firm had revenue of $34.31 billion for the quarter, compared to analysts’ expectations of $34.77 billion. During the same period in the previous year, the company earned $1.21 earnings per share. The company’s quarterly revenue was up 1.5% on a year-over-year basis.

Here are the key takeaways from Verizon Communications’ conference call:

• Verizon raised its 2026 outlook, now expecting 1.1–1.2 million postpaid phone net additions, 7%–7.5% adjusted EPS growth, and free cash flow growth approaching 12%.
• Customer and financial metrics improved substantially: postpaid phone net adds rose 820% year over year to 406,000, churn declined, acquisition and retention costs fell 41% and 30%, respectively, and adjusted EBITDA margin expanded to 40.2%.
• Verizon said its AI Connect business has approximately $4 billion in signed contracts, including a new dark-fiber agreement with Amazon Web Services, with attractive-margin revenue expected to begin contributing meaningfully in 2027.
• The company plans to scale a new millimeter-wave fixed wireless product capable of gigabit speeds, potentially expanding one-gig coverage by 10–15 million premises beyond its planned 40–50 million fiber passings.
• Total revenue growth was constrained by a 9% year-over-year decline in equipment revenue, as upgrade volumes fell more than 20%; management expects lower upgrade activity to continue into the fourth quarter.

Verizon Communications Stock Performance

NYSE VZ opened at $43.18 on Tuesday. The firm has a market cap of $179.39 billion, a P/E ratio of 11.24, a price-to-earnings-growth ratio of 1.70 and a beta of 0.26. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The company’s 50 day moving average is $47.54 and its 200-day moving average is $46.65. Verizon Communications has a 12-month low of $38.68 and a 12-month high of $51.68.

Verizon Communications Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be given a $0.7075 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a dividend yield of 6.6%. Verizon Communications’s payout ratio is 73.70%.

More Verizon Communications News

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

• Positive Sentiment: Verizon reported third-quarter adjusted earnings of $1.31 per share, above the $1.27 analyst consensus, while net income increased year over year. The company also raised its full-year 2026 outlook for adjusted EPS, postpaid phone additions and free cash flow. Verizon Communications Q3 Earnings Surpass Estimates
• Positive Sentiment: Wireless momentum was strong: Verizon added 406,000 postpaid phone customers and 137,000 postpaid accounts, its best third-quarter phone-addition performance in five years. Mobility and broadband service revenue rose 2.9% year over year. Verizon Delivers Another Record-Breaking Quarter
• Positive Sentiment: A more-than-$2 billion agreement with Amazon Web Services to expand AI infrastructure and a dark-fiber opportunity support Verizon’s efforts to develop growth beyond traditional wireless services. Verizon Lifts Outlook and Inks Amazon Deal
• Neutral Sentiment: Verizon’s CEO said SpaceX could be years away from becoming a meaningful U.S. wireless competitor because it would require substantial ground infrastructure and investment. This may ease immediate competitive concerns but does not eliminate the longer-term threat. Verizon CEO Discusses SpaceX Competition
• Negative Sentiment: Revenue of $34.31 billion rose only 1.5% but missed the $34.77 billion consensus estimate. The revenue miss overshadowed the profit and subscriber beats, raising concerns about Verizon’s limited top-line growth in a mature market. Verizon Stock Falls on Revenue Miss
• Negative Sentiment: Lower phone upgrades and uncertainty surrounding a potential SpaceX wireless network add to investor caution. Several analysts continue to rate VZ “Hold,” citing strong cash flow and dividend support but limited upside from a slow-growth core business. Verizon Improving Profits Can Only Get You So Far

Analyst Ratings Changes

VZ has been the topic of a number of research reports. Royal Bank Of Canada lifted their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a “sector perform” rating in a report on Monday, July 27th. Morgan Stanley increased their price objective on Verizon Communications from $50.00 to $52.00 and gave the company an “equal weight” rating in a report on Monday, July 27th. BNP Paribas Exane decreased their target price on Verizon Communications from $46.00 to $44.00 and set a “neutral” rating for the company in a research report on Tuesday, July 14th. Moffett Nathanson lowered their target price on Verizon Communications from $56.00 to $49.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. Finally, Wells Fargo & Company boosted their target price on Verizon Communications from $43.00 to $47.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Eight equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, Verizon Communications has an average rating of “Hold” and a consensus target price of $50.80.

Insider Buying and Selling

In related news, CEO Kyle Malady sold 1,100 shares of Verizon Communications stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $44.48, for a total value of $48,928.00. Following the completion of the transaction, the chief executive officer directly owned 99,966 shares in the company, valued at approximately $4,446,487.68. The trade was a 1.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 9,900 shares of company stock valued at $469,073. 0.03% of the stock is currently owned by company insiders.

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.