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

Verizon Communications (NYSE:VZ) announced its quarterly earnings data on Friday. The cell phone carrier reported $1.09 EPS for the quarter, beating the consensus estimate of $1.06 by $0.03, FiscalAI reports. The company had revenue of $36.38 billion for the quarter, compared to the consensus estimate of $36.20 billion. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. Verizon Communications’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.10 EPS.

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

• Management expects to realize $5 billion of in-year OpEx savings in 2026 via headcount reductions, marketing/real‑estate/contract rationalization and automation, and will reinvest part of the savings into customer-facing initiatives and AI-enabled improvements.
• The company closed the Frontier acquisition, now has over 30 million fiber passings, plans at least 2 million additional passings in 2026 and a medium‑term target of 40–50 million, and now expects >$1 billion of run‑rate operating synergies by 2028.
• Q4 showed strong operational momentum with over 1 million mobility and broadband net adds and 616,000 postpaid phone net adds (551,000 consumer), the highest postpaid phone adds in several years and cited as validation of the volume‑first strategy.
• 2026 guidance is transitional: management targets 2–3% mobility & broadband service revenue growth, 750,000–1,000,000 postpaid phone net adds, CapEx of $16–16.5 billion, free cash flow ≥$21.5 billion, and authorized up to $25 billion of share repurchases plus a $0.07 annualized dividend increase.
• Management acknowledged a recent network outage and elevated postpaid churn (attributed to prior pricing and competition); reducing churn and absorbing promo amortization are highlighted as near‑term revenue risks for 2026.

Verizon Communications Trading Up 9.8%

NYSE:VZ traded up $3.91 during midday trading on Friday, hitting $43.72. 76,334,059 shares of the company traded hands, compared to its average volume of 31,705,059. The firm has a market capitalization of $184.36 billion, a P/E ratio of 9.33, a P/E/G ratio of 3.76 and a beta of 0.34. The firm’s fifty day moving average is $40.25 and its 200-day moving average is $41.55. Verizon Communications has a 12-month low of $38.39 and a 12-month high of $47.35. The company has a current ratio of 0.74, a quick ratio of 0.69 and a debt-to-equity ratio of 1.19.

Verizon Communications Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 12th will be paid a $0.69 dividend. This represents a $2.76 annualized dividend and a dividend yield of 6.3%. The ex-dividend date of this dividend is Monday, January 12th. Verizon Communications’s dividend payout ratio (DPR) is presently 58.97%.

Analysts Set New Price Targets

Several brokerages recently issued reports on VZ. JPMorgan Chase & Co. dropped their target price on shares of Verizon Communications from $49.00 to $47.00 and set a “neutral” rating on the stock in a report on Thursday, October 30th. Barclays assumed coverage on Verizon Communications in a research note on Thursday, January 22nd. They issued an “equal weight” rating and a $43.00 price target on the stock. Scotiabank lifted their price objective on Verizon Communications from $50.50 to $51.00 and gave the stock a “sector perform” rating in a report on Thursday, October 30th. Morgan Stanley lowered their target price on Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating on the stock in a report on Wednesday, December 10th. Finally, TD Cowen cut their price target on Verizon Communications from $56.00 to $51.00 and set a “buy” rating for the company in a research note on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $47.43.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Imprint Wealth LLC bought a new position in Verizon Communications in the 3rd quarter worth about $40,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Verizon Communications during the third quarter valued at approximately $57,000. LGT Financial Advisors LLC boosted its holdings in shares of Verizon Communications by 115.2% in the third quarter. LGT Financial Advisors LLC now owns 1,500 shares of the cell phone carrier’s stock valued at $66,000 after purchasing an additional 803 shares during the period. Beaird Harris Wealth Management LLC grew its stake in Verizon Communications by 18.1% in the third quarter. Beaird Harris Wealth Management LLC now owns 3,752 shares of the cell phone carrier’s stock worth $165,000 after purchasing an additional 575 shares in the last quarter. Finally, WFA of San Diego LLC purchased a new position in Verizon Communications during the 2nd quarter worth $224,000. Institutional investors own 62.06% of the company’s stock.

More Verizon Communications News

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

• Positive Sentiment: Q4 earnings and revenue beat consensus (adjusted EPS $1.09 vs. ~$1.06; revenue $36.38B), with management posting results that topped estimates and attached slide/call materials. MarketBeat Earnings Release
• Positive Sentiment: Highest quarterly wireless net adds since 2019 and the largest subscriber additions in six years — management also guided to above-market annual profit and free cash flow for 2026, which supports upside to estimates. Reuters: Verizon forecasts upbeat annual profit
• Positive Sentiment: Company statements and press materials emphasize it “delivered on 2025 guidance” and highlighted the strong net adds and fiber/broadband momentum — reinforcing the narrative of durable service revenue growth. GlobeNewswire: Verizon Delivers on 2025 Guidance
• Positive Sentiment: Unusual options activity: investors bought a large block of call options (≈109k), about 33% above average daily call volume — a short-term bullish signal indicating speculative/hedged bets on further upside. (No external link)
• Neutral Sentiment: Analyst and write‑up coverage provides deeper metrics and the full earnings-call transcript for investors wanting detail on margins, fiber densification and ARPU trends. Seeking Alpha Transcript
• Positive Sentiment: Operational update: Verizon increased winter-storm resilience (mobile assets, backup power, crisis teams) — modestly positive for reliability and brand trust, which can support customer retention. Zacks: VZ Enhances Network Resilience
• Neutral Sentiment: Macro/regulatory note: broader market and Fed developments (new Fed Chair announced) are in play for interest-rate expectations and yield-sensitive telecom valuations. Zacks: Pre-market in Red (Fed Chair news)
• Negative Sentiment: Wells Fargo recently trimmed its price target on Verizon in a wireless‑sector reassessment — a reminder some analysts remain cautious on valuation and industry competition. MSN: Wells Fargo cuts Verizon target
• Negative Sentiment: Some income-focused commentary questions dividend safety despite the ~7% yield, and an institutional holder trimmed its stake — potential longer-term concerns for yield-driven holders. 24/7 Wall St.: Dividend Safety DefenseWorld: Stake Lessened

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.