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

Verizon Communications (NYSE:VZ) posted its earnings results on Friday. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.03, Briefing.com reports. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The firm had revenue of $34.25 billion during the quarter, compared to analyst estimates of $35.16 billion. During the same quarter in the prior year, the business posted $1.22 EPS. The business’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 Stock Performance

Shares of VZ stock traded up $1.29 during trading on Friday, reaching $45.11. 17,155,203 shares of the company’s stock traded hands, compared to its average volume of 29,031,354. The firm’s 50-day moving average is $45.39 and its 200 day moving average is $46.20. The company has a market capitalization of $188.37 billion, a P/E ratio of 11.03, a PEG ratio of 1.08 and a beta of 0.26. Verizon Communications has a 1 year low of $38.39 and a 1 year high of $51.68. 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 Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a $0.7075 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.3%. Verizon Communications’s payout ratio is 69.02%.

Key Headlines Impacting Verizon Communications

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.

Hedge Funds Weigh In On Verizon Communications

Several hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC boosted its stake in Verizon Communications by 61.2% in the 4th quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier’s stock worth $1,759,000 after purchasing an additional 16,704 shares during the period. United Bank grew its stake in Verizon Communications by 11.5% during the second 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 in the last quarter. Jump Financial LLC increased its holdings in Verizon Communications by 312.0% during the 2nd quarter. Jump Financial LLC now owns 23,639 shares of the cell phone carrier’s stock worth $1,023,000 after acquiring an additional 17,901 shares during the period. HUB Investment Partners LLC lifted its stake in 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 lifted its stake 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 in the last quarter. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on VZ shares. Barclays cut their target price on 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. Dbs Bank lowered Verizon Communications from a “moderate buy” rating to a “hold” rating in a report on Tuesday, April 7th. BNP Paribas Exane cut their price objective on Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Freedom Capital upgraded Verizon Communications to a “hold” rating in a research note on Friday, June 12th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Verizon Communications in a research report on Friday, May 29th. Nine research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price 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.