Verizon Communications (NYSE:VZ) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Verizon Communications (NYSE:VZ) issued its quarterly earnings results on Friday. The cell phone carrier reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.03, FiscalAI reports. The firm had revenue of $36.38 billion for the quarter, compared to analysts’ expectations of $36.20 billion. Verizon Communications had a return on equity of 19.31% and a net margin of 14.43%.The business’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.10 EPS. Verizon Communications updated its FY 2026 guidance to 4.900-4.950 EPS.

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

• Management expects to realize $5 billion of in-year OpEx savings in 2026 via headcount reductions, marketing/real?estate/contract rationalization and automation, and will reinvest part of the savings into customer-facing initiatives and AI-enabled improvements.
• The company closed the Frontier acquisition, now has over 30 million fiber passings, plans at least 2 million additional passings in 2026 and a medium?term target of 40–50 million, and now expects >$1 billion of run?rate operating synergies by 2028.
• Q4 showed strong operational momentum with over 1 million mobility and broadband net adds and 616,000 postpaid phone net adds (551,000 consumer), the highest postpaid phone adds in several years and cited as validation of the volume?first strategy.
• 2026 guidance is transitional: management targets 2–3% mobility & broadband service revenue growth, 750,000–1,000,000 postpaid phone net adds, CapEx of $16–16.5 billion, free cash flow ?$21.5 billion, and authorized up to $25 billion of share repurchases plus a $0.07 annualized dividend increase.
• Management acknowledged a recent network outage and elevated postpaid churn (attributed to prior pricing and competition); reducing churn and absorbing promo amortization are highlighted as near?term revenue risks for 2026.

Verizon Communications Trading Up 11.8%

Shares of VZ stock opened at $44.52 on Friday. The company has a current ratio of 0.74, a quick ratio of 0.69 and a debt-to-equity ratio of 1.19. Verizon Communications has a 12-month low of $38.39 and a 12-month high of $47.35. The stock has a market capitalization of $187.70 billion, a P/E ratio of 9.51, a P/E/G ratio of 3.80 and a beta of 0.34. The firm’s 50 day moving average is $40.32 and its 200 day moving average is $41.58.

Verizon Communications Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Monday, January 12th will be issued a $0.69 dividend. The ex-dividend date is Monday, January 12th. This represents a $2.76 annualized dividend and a yield of 6.2%. Verizon Communications’s dividend payout ratio (DPR) is currently 58.97%.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Q4 beat on EPS and revenue — Verizon reported $1.09 EPS vs. consensus $1.06 and revenue of $36.38B, topping estimates and showing 2% year-over-year revenue growth. Read More.
• Positive Sentiment: Raised FY?2026 EPS guidance — management set guidance of $4.90–$4.95, above consensus, improving forward earnings visibility and supporting valuation. Read More.
• Positive Sentiment: Strong subscriber momentum — Verizon logged its highest quarterly wireless net adds in years (notably large postpaid phone adds), a primary driver of the upside in revenue and service growth metrics. Read More.
• Positive Sentiment: Capital return program — management outlined a large buyback program (cited in call writeups), which supports EPS and signals confidence in cash flow. Read More.
• Positive Sentiment: Unusual options activity — heavy call buying was reported intraday, consistent with speculative/hedged bullish positioning by some investors. (Options volume report)
• Neutral Sentiment: Operational resilience highlighted — company actions to harden networks for winter storms were noted; supports customer experience but is a longer-term benefit. Read More.
• Neutral Sentiment: Positive media/analyst writeups emphasize value after the beat, framing VZ as an income + growth story for yield-seeking investors. Read More.
• Negative Sentiment: Execution and cost risks called out — deeper analysis warns that aggressive subscriber promotions, the Frontier deal and integration/unit economics could pressure margins and near-term earnings visibility. Read More.
• Negative Sentiment: Analyst target cut — Wells Fargo trimmed its target in a sector reassessment, a reminder that some shops remain cautious on wireless pricing and capital intensity. Read More.
• Negative Sentiment: Dividend-safety concerns re-surfacing — articles questioning sustainability of the ~7% yield could weigh on long-term income-focused demand if cash flow dynamics shift. Read More.
• Negative Sentiment: Minor institutional selling — a small manager reduced its position, noted in filings; not a major red flag but adds to mixed signals. Read More.

Analyst Ratings Changes

Several equities analysts have recently issued reports on VZ shares. JPMorgan Chase & Co. dropped their price target on shares of Verizon Communications from $49.00 to $47.00 and set a “neutral” rating on the stock in a research note on Thursday, October 30th. Wells Fargo & Company reduced their price objective on shares of Verizon Communications from $43.00 to $41.00 and set an “equal weight” rating for the company in a research note on Monday, January 26th. Morgan Stanley dropped their target price on shares of Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Wednesday, December 10th. Sanford C. Bernstein cut their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “market perform” rating on the stock in a report on Friday, January 16th. Finally, Royal Bank Of Canada reduced their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “sector perform” rating for the company in a research report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $47.43.

Hedge Funds Weigh In On Verizon Communications

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its holdings in Verizon Communications by 61.2% during the fourth quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier’s stock valued at $1,759,000 after buying an additional 16,704 shares during the last quarter. United Bank grew its position in shares of Verizon Communications by 11.5% during the 2nd quarter. United Bank now owns 7,843 shares of the cell phone carrier’s stock valued at $339,000 after acquiring an additional 806 shares during the period. Jump Financial LLC grew its position in shares of Verizon Communications by 312.0% during the 2nd quarter. Jump Financial LLC now owns 23,639 shares of the cell phone carrier’s stock valued at $1,023,000 after acquiring an additional 17,901 shares during the period. HUB Investment Partners LLC increased its stake in shares of Verizon Communications by 17.2% in the 2nd quarter. HUB Investment Partners LLC now owns 41,121 shares of the cell phone carrier’s stock worth $1,779,000 after purchasing an additional 6,034 shares in the last quarter. Finally, Vivaldi Capital Management LP raised its holdings in Verizon Communications by 5.2% in the 2nd quarter. Vivaldi Capital Management LP now owns 8,993 shares of the cell phone carrier’s stock worth $389,000 after purchasing an additional 443 shares during the period. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

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.