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

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

Shares of NYSE:VZ opened at $46.34 on Friday. 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 has a 1 year low of $38.39 and a 1 year 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 firm has a market cap of $193.47 billion, a price-to-earnings ratio of 12.07, a P/E/G ratio of 1.14 and a beta of 0.26.

Verizon Communications Announces Dividend

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

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Freedom Capital upgraded shares of Verizon Communications to a “hold” rating in a research report on Friday, June 12th. Erste Group Bank reissued a “hold” rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Weiss Ratings restated a “buy (b)” rating on shares of Verizon Communications in a report on Friday, May 29th. Barclays dropped their price target on Verizon Communications from $47.00 to $45.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 8th. Finally, BNP Paribas Exane reduced their price objective on Verizon Communications from $46.00 to $44.00 and set a “neutral” rating for the company in a research note on Tuesday, July 14th. Nine research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $50.03.

Key Stories Impacting Verizon Communications

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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of VZ. Brighton Jones LLC raised its stake in Verizon Communications by 61.2% during the 4th quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier’s stock valued at $1,759,000 after purchasing an additional 16,704 shares during the last quarter. Redwood Park Advisors LLC grew its position in Verizon Communications by 222.9% in the 4th quarter. Redwood Park Advisors LLC now owns 2,790 shares of the cell phone carrier’s stock worth $114,000 after purchasing an additional 1,926 shares during the last quarter. Prosperity Bancshares Inc bought a new position in shares of Verizon Communications during the 4th quarter worth about $129,000. Advocate Investing Services LLC acquired a new position in shares of Verizon Communications during the fourth quarter valued at about $190,000. Finally, IFC & Insurance Marketing Inc. acquired a new position in shares of Verizon Communications during the fourth quarter valued at about $108,000. 62.06% of the stock is owned by institutional investors and hedge funds.

About Verizon Communications

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.