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

Verizon Communications (NYSE:VZ) released its quarterly earnings data on Friday. The cell phone carrier reported $1.30 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.03, Briefing.com reports. The firm had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business’s quarterly revenue was down .6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.22 earnings per share. 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 Performance

Shares of Verizon Communications stock opened at $46.34 on Friday. The stock has a market capitalization of $193.47 billion, a price-to-earnings ratio of 11.30, a price-to-earnings-growth ratio of 1.07 and a beta of 0.26. 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 business has a 50-day moving average of $45.39 and a 200 day moving average of $46.20. Verizon Communications has a 12 month low of $38.39 and a 12 month high of $51.68.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be issued a dividend of $0.7075 per share. This represents a $2.83 dividend on an annualized basis and a yield of 6.1%. 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 institutional investors have recently made changes to their positions in the business. Quattro Advisors LLC acquired a new position in shares of Verizon Communications in the fourth quarter worth $30,000. Imprint Wealth LLC acquired a new stake in shares of Verizon Communications in the third quarter valued at $40,000. Wilkerson Advisory Group LLC purchased a new position in Verizon Communications in the fourth quarter valued at $56,000. Caitong International Asset Management Co. Ltd purchased a new position in Verizon Communications in the third quarter valued at $57,000. Finally, Kemnay Advisory Services Inc. acquired a new position in Verizon Communications during the 4th quarter worth $63,000. Institutional investors and hedge funds own 62.06% of the company’s stock.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon beat Q2 adjusted EPS estimates at $1.30 versus $1.27 expected, helped by record EBITDA margins and stronger cash generation. Verizon earnings report
• Positive Sentiment: The company raised its full-year 2026 guidance for adjusted EPS, mobility and broadband service revenue, and free cash flow, signaling management confidence in the outlook. Reuters guidance article
• Positive Sentiment: Verizon posted better-than-expected subscriber momentum, including 184,000 postpaid phone additions and more than 550,000 total mobility and broadband net adds, showing the core business is improving. Verizon press release
• Positive Sentiment: Free cash flow rose 24.4% and Verizon expanded its full-year buyback target to as much as $4.5 billion, both supportive of shareholder returns. Verizon press release
• Positive Sentiment: Verizon also announced a more than $1 billion dark fiber deal with Google for AI data centers, suggesting potential upside from infrastructure demand and additional AI-related contracts. Reuters Google deal article
• Neutral Sentiment: Revenue came in below Wall Street expectations and was slightly lower year over year, so top-line pressure is still a concern. Verizon earnings report
• Neutral Sentiment: Options activity was unusually heavy, with traders buying more call options than normal, which may reflect speculative bullish positioning rather than fundamental news. GuruFocus earnings call highlights

Analysts Set New Price Targets

VZ has been the topic of several recent analyst reports. Morgan Stanley increased 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 note on Tuesday, April 28th. Scotiabank cut their price objective 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. Barclays lowered their price target on shares of 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. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Verizon Communications in a research note on Friday, May 29th. Finally, Royal Bank Of Canada decreased their price objective on Verizon Communications from $48.00 to $46.00 and set a “sector perform” rating on the stock in a report on Monday, July 20th. Nine equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, Verizon Communications presently has an average rating of “Hold” and an average price target of $50.03.

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.