Verizon Communications Inc.
VZ · NYSE
Next quarter
Expected to report Oct 28, 2026 — estimated from last year’s reporting date.
Consensus is $1.29 EPS for Sep 2026 across 8 estimates, ranging $1.24 to $1.38.
VZ Jun 2026
- 2.36%
- +2.03%
- $1.27
- $1.30
- —
- $34.25B
Reported results
- $34.25B
- $7.18B
- 20.96%
- $3.83B
- $0.92
Highlights
- Adjusted earnings: Adjusted EPS was $1.30, ahead of the $1.27 consensus and up 6.6% from $1.22 a year ago; GAAP diluted EPS was $0.92 versus $1.18.
- Margin expansion: Adjusted EBITDA rose 7.2% year over year to a record $13.7 billion, lifting adjusted EBITDA margin to 40.1% from 37.1%.
- Subscriber momentum: Verizon added 184,000 postpaid phone connections, compared with a loss of 9,000 in the year-ago quarter, while total mobility and broadband net additions exceeded 550,000.
- Broadband growth: Broadband net additions increased 12.3% year over year to 348,000, including 193,000 fixed wireless access and 155,000 fiber additions; total fiber and FWA connections reached 17.1 million.
- Service revenue: Mobility and broadband service revenue grew 2.8% year over year to approximately $23.4 billion, with management forecasting growth approaching 3.0% in the third quarter and approximately 4.0% in the fourth quarter.
- Revenue trade-off: Consolidated revenue declined 0.7% to $34.3 billion as service revenue growth was more than offset by a nearly 20% decline in wireless equipment revenue, or more than $1.2 billion.
- Cash generation: Second-quarter operating cash flow rose 16.3% to $10.4 billion and free cash flow increased 24.4% to $6.4 billion; first-half free cash flow was $10.2 billion, up 16.0%.
- Guidance raised: Verizon raised 2026 adjusted EPS guidance to $4.99-$5.04, mobility and broadband service revenue growth guidance to 2.5%-3.0%, and free cash flow growth guidance to 9.0%-10.0%.
- Capital returns: Verizon repurchased $1.0 billion of stock in the quarter and $3.5 billion year to date, expanding its full-year buyback target to as much as $4.5 billion.
Analysis
Verizon's second quarter was a quality-of-earnings and customer-momentum print rather than a headline GAAP growth quarter. Adjusted EPS of $1.30 exceeded the $1.27 consensus by 2.4% and increased 6.6% from $1.22 a year ago, while consolidated revenue fell 0.7% to $34.25 billion from $34.50 billion and was modestly below the $34.44 billion in the prior quarter. GAAP net income attributable to Verizon declined to $3.84 billion from $5.00 billion a year ago and $5.04 billion in the first quarter, largely reflecting $1.8 billion of pretax special items, including a $746 million loss on the planned international wireline transaction.
The operating backdrop was materially better. Mobility and broadband service revenue rose 2.8% to approximately $23.4 billion, postpaid phone net additions reached 184,000 versus a loss of 9,000 last year, and broadband additions rose 12.3% to 348,000. Verizon also delivered record adjusted EBITDA of $13.7 billion and a 40.1% margin, supported by lower upgrade activity and reduced device subsidies. Cash conversion strengthened sharply, with quarterly free cash flow up 24.4% to $6.4 billion. Management raised full-year guidance for the second consecutive quarter, pointing to accelerating service revenue growth and adjusted EPS growth of 6%-7%.
Customer momentum
Verizon's central message was that its shift toward less subsidized, more value-oriented offers is beginning to improve both volumes and retention. Postpaid phone net additions were 184,000, the best Consumer second-quarter result in five years, versus a loss of 9,000 in the year-ago quarter. Total postpaid phone connections reached 94.1 million, up 1.0% year over year, while phone churn improved to 0.92% from 0.97%.
- Broadband: Verizon added 348,000 broadband connections, up 12.3% year over year, with 155,000 fiber and 193,000 fixed wireless access additions. The installed base reached 10.9 million fiber and 6.2 million FWA connections, or 17.1 million in total.
- Prepaid: Core prepaid net additions were 73,000, the eighth consecutive quarter of positive additions, and prepaid ARPU increased 2.5% to $33.37.
- First-half trajectory: Mobility and broadband net additions exceeded 1 million in the first half, more than double the first-half 2025 result.
Service revenue acceleration
Underlying service revenue continued to improve even as reported revenue contracted. Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, including Consumer mobility and broadband service revenue growth of 3.3% to $19.6 billion. Business mobility and broadband service revenue was broadly stable at $3.7 billion, while Business total revenue rose 2.6% to $7.2 billion.
- Mix shift: Consolidated service revenues and other increased 3.5% to $29.2 billion, but wireless equipment revenue fell 19.7% to $5.0 billion as customers kept devices longer and Verizon reduced subsidies.
- Forward view: Management expects mobility and broadband service revenue growth to approach 3.0% in the third quarter and approximately 4.0% in the fourth quarter, while wireless service revenue is expected to be approximately flat for 2026.
- Consumer profitability: Consumer segment EBITDA rose 5.3% to $11.8 billion and its EBITDA margin expanded to 45.0% from 42.1%, despite a 1.5% decline in total segment revenue.
Margin and cash conversion
Operational discipline was the other defining feature of the quarter. Consolidated adjusted EBITDA increased 7.2% to $13.7 billion, up from $12.8 billion a year ago and $13.4 billion in the prior quarter. The 40.1% adjusted EBITDA margin was Verizon's highest reported, compared with 37.1% a year earlier. Lower device upgrade activity reduced equipment revenue but also helped improve unit economics and profitability.
- Cash flow: Operating cash flow increased 16.3% year over year to $10.4 billion, while free cash flow rose 24.4% to $6.4 billion after $4.0 billion of capital expenditures.
- First half: Operating cash flow reached $18.4 billion, up 9.9%, and free cash flow was $10.2 billion, up 16.0%, against $8.2 billion of capital expenditures.
- Balance sheet: Unsecured debt declined to $136.5 billion from $142.5 billion at the end of the first quarter, although net unsecured debt remained $128.7 billion and leverage was 2.5 times adjusted EBITDA.
Guidance and capital returns
Verizon raised its outlook for the second consecutive quarter, translating the stronger first-half operating performance into higher cash flow and earnings targets. The company now expects 2026 adjusted EPS of $4.99-$5.04, representing 6%-7% year-over-year growth, and free cash flow of $21.94-$22.14 billion, or 9%-10% growth.
- Operating outlook: Mobility and broadband service revenue growth is now expected at 2.5%-3.0% for 2026, while operating cash flow growth is forecast at 2%-4%.
- Subscriber outlook: Retail postpaid phone net additions are expected in the upper half of the 750,000-1.0 million range, roughly two to three times the 2025 result.
- Shareholder returns: Verizon returned $9.4 billion through dividends and buybacks in the first half, including $3.5 billion of repurchases, and raised its full-year buyback target to as much as $4.5 billion.
Special items and portfolio actions
The GAAP result was substantially affected by transformation and portfolio actions. Verizon recorded $1.8 billion of pretax special items, reducing consolidated net income to $3.9 billion and GAAP EPS to $0.92. The largest item was a $746 million loss to write down the international wireline connectivity and managed network services business being contributed to a planned 50/50 joint venture with BT Group.
- Other charges: Special items also included $397 million of severance, $258 million of asset rationalization charges and $135 million of acquisition and integration costs.
- Frontier: Verizon completed the Frontier acquisition in January for approximately $9.8 billion in cash and assumed approximately $12.9 billion of debt; it repaid roughly $12.4 billion of that assumed debt during the first half.
- Spectrum: Verizon paid $1.0 billion for selected UScellular licenses and won 82 AWS-3 licenses valued at approximately $3.2 billion, with about $3.1 billion paid in July.
