Verizon Communications (NYSE:VZ) Issues Quarterly Earnings Results

Verizon Communications (NYSE:VZ) announced its earnings results on Friday. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.03, Briefing.com reports. The company had revenue of $34.25 billion for the quarter, compared to the consensus estimate of $35.16 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The company’s revenue was down .6% on a year-over-year basis. During the same period in the previous year, the business earned $1.22 EPS. Verizon Communications updated its FY 2026 guidance to 4.990-5.040 EPS.

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

• Verizon said Q2 marked a clear inflection, with postpaid phone net adds of 184,000, consumer churn improving to 84 basis points, and broadband net additions of 348,000.
• The company raised full-year guidance for mobility and broadband service revenue to 2.5%-3%, adjusted EPS growth to 6%-7%, and free cash flow growth to 9%-10%.
• Management highlighted early success from its new consumer offers, including Simplicity, Verizon One, and the loyalty program, saying they are driving better gross adds, more new accounts, and lower acquisition and retention costs.
• Verizon emphasized its expanding growth vectors beyond the core wireless business, including a BT joint venture for international wireline assets and new AI infrastructure deals such as the announced Google contract.
• Capital returns remain strong, with $3.5 billion of buybacks year to date and a raised full-year repurchase target of up to $4.5 billion, supported by record-style cash flow generation and an improved balance sheet.

Verizon Communications Stock Up 3.5%

NYSE VZ traded up $1.52 during trading on Friday, hitting $45.34. 15,678,573 shares of the company traded hands, compared to its average volume of 29,016,045. Verizon Communications has a 12 month low of $38.39 and a 12 month high of $51.68. The business has a fifty day simple moving average of $45.39 and a 200 day simple moving average of $46.20. The company has a market capitalization of $189.32 billion, a P/E ratio of 11.07, a PEG ratio of 1.08 and a beta of 0.26. The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38.

Verizon Communications Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.2%. The ex-dividend date is Friday, July 10th. Verizon Communications’s dividend payout ratio (DPR) is 69.02%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in VZ. Sumitomo Life Insurance Co. lifted its stake in Verizon Communications by 0.7% during the fourth 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 during the period. Monetary Management Group Inc. boosted its holdings in Verizon Communications by 0.8% during the second quarter. Monetary Management Group Inc. now owns 30,400 shares of the cell phone carrier’s stock valued at $1,315,000 after purchasing an additional 250 shares in the last quarter. American Trust grew its stake in shares of Verizon Communications by 3.7% in the 4th quarter. American Trust now owns 8,697 shares of the cell phone carrier’s stock valued at $354,000 after purchasing an additional 314 shares during the period. Adams Wealth Management grew its stake in shares of Verizon Communications by 4.3% in the 4th quarter. Adams Wealth Management now owns 8,324 shares of the cell phone carrier’s stock valued at $339,000 after purchasing an additional 340 shares during the period. Finally, CacheTech Inc. raised its holdings in shares of Verizon Communications by 4.3% in the 4th quarter. CacheTech Inc. now owns 8,324 shares of the cell phone carrier’s stock worth $339,000 after buying an additional 340 shares in the last quarter. Institutional investors and hedge funds own 62.06% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have commented on VZ shares. Morgan Stanley raised their price objective on Verizon Communications from $49.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 28th. Royal Bank Of Canada reduced their price target on shares of Verizon Communications from $48.00 to $46.00 and set a “sector perform” rating for the company in a research report on Monday. Scotiabank decreased their price target on shares of Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a report on Wednesday, July 15th. Wells Fargo & Company initiated coverage on shares of Verizon Communications in a research report on Wednesday, July 8th. They set an “equal weight” rating and a $43.00 price objective on the stock. Finally, Barclays dropped their price objective 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. Nine analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Verizon Communications presently has a consensus rating of “Hold” and a consensus target price of $50.03.

Verizon Communications News Roundup

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, and management raised full-year 2026 guidance for adjusted EPS, mobility revenue growth, broadband revenue growth, and free cash flow. Reuters: Verizon lifts annual forecasts as new mobile plans spur subscriber gains
• Positive Sentiment: The company also expanded its full-year share buyback target to as much as $4.5 billion, which signals confidence in cash generation and supports shareholder returns. RTT News: Verizon Lifts FY26 View Despite Weak Q2, Expands Buyback
• Positive Sentiment: Operational trends looked better, with stronger-than-expected postpaid phone net additions and improving mobility and broadband momentum, which suggests Verizon’s new plans are gaining traction with customers. Reuters: Verizon signs deal with Google worth over $1 billion
• Neutral Sentiment: Verizon also disclosed a more than $1 billion dark-fiber deal with Google, a positive long-term business win, but it is less likely to move the stock today than earnings and guidance. Reuters: Verizon signs deal with Google worth over $1 billion
• Negative Sentiment: Revenue for the quarter missed consensus, which may temper enthusiasm because it shows Verizon is still facing top-line pressure even as profitability and cash flow improve.

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.