Telecom giant Verizon Communications (VZ) is preparing to release its third-quarter results for fiscal year 2025 on Wednesday. This is even as VZ stock popped on Tuesday morning after its commercial fiber agreement with Tillman Global, which will help complement its ongoing fiber builds and planned acquisition of Frontier (FYBR).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
As key rivals AT&T (T) and T-Mobile US (TMUS) last week reported results that drew neutral and positive sentiment, respectively, investors are turning to Verizon to see if it can beat Wall Street’s less-optimistic third-quarter projections.
What Does Wall Street Expect?
For Q3 2025, analysts anticipate Verizon’s earnings per share to remain unmoved: the consensus is that the telecom company will report EPS of $1.19, the same as last year. Wall Street also expects a low single-digit revenue growth of about 3%, with the figure projected to rise to $34.26 billion, up from $33.33 billion generated in the same period last year.
How Will Verizon Compare to Its Rivals?
In comparison, T-Mobile saw its revenue for the same quarter climb by 9% to $21.96 billion, beating Wall Street expectations by $500 million. The company marginally beat analysts’ expectations by 1 cent, reporting EPS of $2.41. This is even as the company recorded “best in industry” growth in its postpaid, broadband, and fiber network services.
On the other hand, AT&T marginally missed Wall Street’s revenue expectations by $160 million, as its revenue rose 1.6% year-over-year to $30.71 billion. The wireless communication services provider’s EPS also fell by 10% to 54 cents per share — this matched analysts’ expectations but is down from 60 cents per share in the same period last year.
AT&T’s performance came as strong growth in its broadband, mobility, and consumer wireline businesses was tempered by a decline in its business wireline revenue. Furthermore, the Texas-based company’s average revenue per user (ARPU) declined due to the addition of new customers from lower-paying, underpenetrated markets.
In addition, the decline stemmed from discounts offered to households for its bundled broadband and wireless services, in support of its convergence efforts.
Is Verizon a Buy, Sell, or Hold?
Across Wall Street, Verizon’s shares currently have a Moderate Buy consensus rating, according to TipRanks’ data. This is based on five Buys and nine Holds assigned by 14 Wall Street analysts over the past three months.
However, the average VZ price target of $47.79 indicates a 22% upswing potential from the current level.
