Verizon Communications (VZ)
NYSE:VZ
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Verizon
(NYSE:VZ)
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Rating:71Outperform
Price Target:
$53.00
▲(13.86% Upside)
Action:Upgraded
Date:05/29/26
The score is driven primarily by solid, cash-generative financial performance despite high leverage, supported by upbeat earnings-call guidance (raised EPS outlook and reaffirmed strong free cash flow/cost-savings targets). Valuation is a meaningful positive with a low P/E and high dividend yield, while technicals are moderately supportive with price above key moving averages but some near-term momentum looks stretched.
Positive Factors
Cash generation
Consistent, multi-year operating cash flow (~$37B) and TTM free cash flow near $20B provide durable funding for capex, debt service, dividends and buybacks. This strong cash conversion underpins strategic investments (fiber, AI) and supports financial flexibility despite elevated leverage.
Negative Factors
High leverage
Leverage remains elevated (Q1 net unsecured leverage ~2.6x and debt-to-equity historically near ~1.9x), limiting strategic flexibility and increasing interest sensitivity. High long-dated debt raises refinancing and rating risk in tighter credit cycles despite plans to de‑leverage over the next 12–24 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, multi-year operating cash flow (~$37B) and TTM free cash flow near $20B provide durable funding for capex, debt service, dividends and buybacks. This strong cash conversion underpins strategic investments (fiber, AI) and supports financial flexibility despite elevated leverage.
Read all positive factors
Verizon Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue into categories such as wireless, broadband, and enterprise services, revealing how Verizon's diverse offerings contribute to overall sales.
Breaks down revenue into categories such as wireless, broadband, and enterprise services, revealing how Verizon's diverse offerings contribute to overall sales.
Data provided by:
The Fly
The FlyVerizon (VZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$191.16B
Dividend Yield6.6%
Average Volume (3M)22.39M
Price to Earnings (P/E)11.1
Beta (1Y)0.23
Revenue Growth2.85%
EPS Growth-2.51%
CountryUS
Employees99,400
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.42
Shares Outstanding4,175,559,000
10 Day Avg. Volume22,753,398
30 Day Avg. Volume22,386,582
Financial Highlights & Ratios
PEG Ratio-4.62
Price to Book (P/B)1.65
Price to Sales (P/S)1.25
P/FCF Ratio8.55
Enterprise Value/Market Cap2.03
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda7.96
Forecast
1Y Price Target
$51.18Price Target Upside9.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.95
Revenue Forecast (FY)$142.83B
Verizon Business Overview & Revenue Model
Company Description
Verizon Communications Inc. operates as a prominent global provider of diverse communication, technology, information, and entertainment solutions, catering to individuals, enterprises, and government entities worldwide through its various divisio...
How the Company Makes Money
Verizon primarily makes money by selling connectivity and related services on a recurring subscription basis. The largest revenue stream is its wireless business, where it charges monthly service fees for access to its mobile network (voice, text,...
Verizon Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational momentum and tangible financial improvement (revenue growth, positive postpaid phone net adds for the first time in 13 years, EBITDA and EPS expansion, churn improvement, lower acquisition/retention costs, raised EPS guidance and reaffirmed free cash flow guidance). These positives were balanced against identifiable near-term headwinds including the January network outage (≈80 bps hit to wireless service revenue), promotional amortization and pricing lapping (~180 bps), acquisition-related higher depreciation/interest, severance/integration costs (~$1.1B) and a temporary dip in wireless service revenue (down ~1%). Overall, management framed these as transitional and addressable through their transformation agenda, and the quantity and magnitude of the favorable operating and financial results materially outweigh the lowlights.Positive Updates
Revenue Growth
Total revenues grew 2.9% to $34.4 billion in Q1 2026; mobility and broadband service revenue grew 1.6% year-over-year to $22.9 billion, and management reaffirmed full-year mobility & broadband service revenue guidance of 2%–3% with Q1 as the low point.
Negative Updates
Wireless Service Revenue Pressure
Wireless service revenue declined ~1.0% year-over-year to $20.6 billion in Q1; management noted Q1 was the low point for mobility & broadband service revenue and that wireless service was impacted by one-time items.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenues grew 2.9% to $34.4 billion in Q1 2026; mobility and broadband service revenue grew 1.6% year-over-year to $22.9 billion, and management reaffirmed full-year mobility & broadband service revenue guidance of 2%–3% with Q1 as the low point.
Read all positive updates
Company Guidance
Verizon raised its 2026 adjusted EPS growth outlook to 5%–6% (from 4%–5%), now expects postpaid phone net adds to land in the upper half of its prior $750k–$1.0M guidance range, and reaffirmed mobility & broadband service revenue growth of 2%–3% with Q1 the low point; management also reiterated free cash flow growth of ~7%+ (full‑year FCF target $21.5B+), CapEx of $16.0B–$16.5B, an OpEx savings goal of $5.0B in 2026 and at least $1.0B of Frontier run‑rate operating synergies by 2028, while targeting net unsecured leverage of 2.0–2.25x in 2027 (Q1 leverage ~2.6x) with plans to repay substantially all Frontier debt by year‑end and continue shareholder returns (Q1 buybacks $2.5B, plan of at least $3B for the year and a $0.07 annualized dividend increase).Verizon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.15B | 138.19B | 134.79B | 133.97B | 136.84B | 133.61B |
| Gross Profit | 81.89B | 63.08B | 62.80B | 61.46B | 60.60B | 61.11B |
| EBITDA | 48.65B | 47.72B | 47.52B | 40.14B | 48.95B | 49.12B |
| Net Income | 17.34B | 17.17B | 17.51B | 11.61B | 21.26B | 22.07B |
Balance Sheet | ||||||
| Total Assets | 417.88B | 404.26B | 384.71B | 380.25B | 379.68B | 366.60B |
| Cash, Cash Equivalents and Short-Term Investments | 8.37B | 19.05B | 4.19B | 2.06B | 2.60B | 2.92B |
| Total Debt | 195.87B | 200.59B | 168.36B | 174.94B | 176.33B | 177.93B |
| Total Liabilities | 313.26B | 298.52B | 284.14B | 286.46B | 287.22B | 283.40B |
| Stockholders Equity | 103.31B | 104.46B | 99.24B | 92.43B | 91.14B | 81.79B |
Cash Flow | ||||||
| Free Cash Flow | 20.05B | 20.13B | 18.92B | 18.71B | 10.40B | 19.25B |
| Operating Cash Flow | 37.34B | 37.14B | 36.91B | 37.48B | 37.14B | 39.54B |
| Investing Cash Flow | -26.48B | -16.66B | -18.67B | -23.43B | -28.66B | -67.15B |
| Financing Cash Flow | -5.00B | -5.61B | -17.10B | -14.66B | -8.53B | 8.28B |
Verizon Technical Analysis
Negative
46.55
Price Trends
47.19
Negative
46.90
Negative
43.38
Positive
Market Momentum
-0.44
Positive
39.72
Neutral
27.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VZ, the sentiment is Negative. The current price of 46.55 is below the 20-day moving average (MA) of 47.19, below the 50-day MA of 47.19, and above the 200-day MA of 43.38, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VZ.
Verizon Risk Analysis
Verizon disclosed 18 risk factors in its most recent earnings report. Verizon reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verizon Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $85.20B | 4.59 | 19.83% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $194.21B | 18.73 | 17.82% | 1.75% | 9.48% | -8.46% | |
71 Outperform | $191.16B | 11.10 | 16.68% | 6.60% | 2.85% | -2.51% | |
71 Outperform | $77.40B | 15.20 | 20.61% | 2.69% | 9.51% | 187.55% | |
66 Neutral | $157.80B | 7.44 | 19.59% | 4.56% | 2.92% | 83.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $18.75B | 3.44 | 30.84% | ― | -0.92% | 3.13% |
* Communication Services Sector Average
VZ
Verizon
46.95
5.97
14.57%
AMX
America Movil
25.43
8.82
53.10%
T
AT&T
23.21
-3.95
-14.53%
CHTR
Charter Communications
137.79
-262.00
-65.53%
CMCSA
Comcast
23.97
-7.60
-24.08%
TMUS
T Mobile US
185.55
-41.12
-18.14%
Verizon Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Verizon Shareholders Approve 2026 Long-Term Incentive Plan
Positive
May 28, 2026
At its May 21, 2026 Annual Meeting of Shareholders, Verizon Communications Inc. received approval for its 2026 Long-Term Incentive Plan, which became effective immediately following the vote and is intended to govern equity-based compensation for ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Verizon Strengthens Capital Structure with $4 Billion Notes
Positive
May 14, 2026
On May 14, 2026, Verizon Communications Inc. closed a $4 billion junior subordinated notes offering, issuing $2 billion of 6.050% Fixed-to-Fixed Rate Junior Subordinated Notes due 2058 and $2 billion of 6.200% Fixed-to-Fixed Rate Junior Subordinat...
Business Operations and StrategyPrivate Placements and Financing
Verizon Launches Note Exchange Offers to Streamline Debt
Neutral
May 11, 2026
On May 11, 2026, Verizon announced private exchange offers and related consent solicitations targeting 11 series of outstanding subsidiary-issued debentures and notes, inviting qualified institutional buyers and certain non-U.S. investors to swap ...
Business Operations and StrategyFinancial Disclosures
Verizon Updates Revenue Reporting Structure and Operating Metrics
Neutral
Mar 13, 2026
In the first quarter of 2026, Verizon changed how it reports revenue for its Consumer and Business segments, breaking out results into mobility and broadband service revenue, wireless equipment revenue, and other revenue. During the same period, t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.