Verizon (VZ) AI Stock Analysis

• Market Cap: $167.56B
• Dividend Yield: 6.85%
• Average Volume (3M): 28.93M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.35
• Revenue Growth: 2.42%
• EPS Growth: 102.17%
• Country: US
• Employees: 99,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.21
• Shares Outstanding: 4,216,425,300
• 10 Day Avg. Volume: 34,869,652
• 30 Day Avg. Volume: 28,928,129
• PEG Ratio: 0.19
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 8.91
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $46.79
• Price Target Upside: 17.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $44.00 ▲(10.72% Upside)

Verizon's strong financial performance and positive earnings call are the most significant factors driving its stock score. The company shows resilience with solid profitability and strategic initiatives. However, technical indicators suggest bearish momentum, and moderate leverage poses a risk. The valuation is attractive, but market concerns about growth prospects persist.

Positive Factors

Revenue Growth

Verizon's consistent revenue growth, particularly in wireless and broadband, indicates a stable market position and potential for future expansion.

Cash Flow Generation

Strong free cash flow generation enhances Verizon's ability to invest in growth, reduce debt, and sustain shareholder returns.

Strategic Acquisitions

Strategic acquisitions like Frontier enhance Verizon's service capabilities, supporting long-term growth in the competitive telecom market.

Negative Factors

Customer Churn

Persistent customer churn challenges Verizon's ability to maintain and grow its subscriber base, impacting long-term revenue stability.

Market Share Challenges

Competitive pressures and market share challenges may hinder Verizon's growth prospects and require strategic adjustments to remain competitive.

Reliance on Debt

Moderate leverage poses a risk to Verizon's financial flexibility, especially if market conditions shift unfavorably, impacting long-term stability.

Verizon Business Overview & Revenue Model

Company Description

Verizon Communications Inc. is a leading global provider of telecommunications, media, and technology services. Headquartered in New York City, Verizon operates through two main segments: Verizon Wireless and Verizon Business. It offers a broad range of products and services, including wireless voice and data services, broadband, video, and enterprise solutions. With a strong focus on innovation and customer experience, Verizon continues to expand its network capabilities, particularly in 5G technology, to meet the growing demand for high-speed connectivity.

How the Company Makes Money

Verizon generates revenue primarily through its wireless and wireline segments. The wireless segment, which comprises the majority of the company’s revenue, includes sales from mobile voice and data plans, equipment sales, and accessory sales. The company also offers premium services, such as Verizon 5G Home and Fios internet, which contribute to its wireline revenue. In addition, Verizon earns income from its business solutions, including IoT services and managed services for enterprise customers. Key partnerships with technology providers and content creators enhance its service offerings and customer loyalty, while continuous investments in network infrastructure help to maintain its competitive edge. Furthermore, Verizon's advertising solutions and media partnerships provide additional revenue streams, leveraging its extensive customer data for targeted advertising.

Verizon Financial Statement Overview

Summary

Verizon's financial statements indicate strong profitability and cash flow generation, with a robust income statement and efficient cash management. The balance sheet shows moderate leverage, typical for the industry, but it should be monitored. Overall, Verizon demonstrates resilience and a solid financial footing.

Income Statement

Verizon's income statement reveals robust profitability with a consistent gross profit margin of approximately 59.3% TTM. The net profit margin remains strong at around 13.3% TTM, although it has slightly decreased from previous years, reflecting some pressure on net income growth. Revenue growth is modest but positive, indicating stable revenue trends in a competitive industry. The EBIT and EBITDA margins, at 21.5% and 35.6% TTM respectively, demonstrate efficient operational performance. Overall, Verizon's income statement reflects steady profitability and stable revenue generation.

Balance Sheet

Verizon's balance sheet shows a healthy equity base with a debt-to-equity ratio of 1.63 TTM, indicating moderate leverage for a telecom giant. The equity ratio stands at 27.2% TTM, reflecting a stable capital structure supported by a solid asset base. Return on equity (ROE) is commendable at 17.4% TTM, showcasing effective utilization of shareholder funds. While Verizon maintains a firm financial position, the reliance on debt financing could pose risks if market conditions shift unfavorably.

Cash Flow

Verizon's cash flow statement exhibits strong cash generation capabilities, with a notable operating cash flow to net income ratio of 2.04 TTM, indicating effective conversion of income into cash. The free cash flow to net income ratio at 1.53 TTM underscores robust free cash flow generation, crucial for sustaining dividends and investments. Free cash flow growth is impressive with a 46.9% increase TTM compared to the previous period. Overall, Verizon's cash flow statement reflects strong liquidity and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.49B	134.79B	133.97B	136.84B	133.61B	128.29B
Gross Profit	63.35B	62.80B	61.46B	60.60B	61.11B	60.37B
EBITDA	55.63B	47.52B	40.14B	48.95B	49.12B	44.96B
Net Income	19.84B	17.51B	11.61B	21.26B	22.07B	17.80B
Balance Sheet
Total Assets	388.33B	384.71B	380.25B	379.68B	366.60B	316.48B
Cash, Cash Equivalents and Short-Term Investments	7.71B	4.19B	2.06B	2.60B	2.92B	22.17B
Total Debt	170.45B	168.36B	174.94B	176.33B	177.93B	150.55B
Total Liabilities	281.99B	284.14B	286.46B	287.22B	283.40B	247.21B
Stockholders Equity	105.04B	99.24B	92.43B	91.14B	81.79B	67.84B
Cash Flow
Free Cash Flow	13.80B	18.92B	18.71B	10.40B	19.25B	21.45B
Operating Cash Flow	27.19B	36.91B	37.48B	37.14B	39.54B	41.77B
Investing Cash Flow	-17.24B	-18.67B	-23.43B	-28.66B	-67.15B	-23.51B
Financing Cash Flow	-18.45B	-17.10B	-14.66B	-8.53B	8.28B	1.32B

Verizon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 39.74 is below the 20-day moving average (MA) of 39.96, below the 50-day MA of 41.81, and below the 200-day MA of 41.43, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 42.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VZ.

Verizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	―	$167.56B	8.47	19.70%	6.85%	2.42%	102.17%
AMX	―	$69.88B	18.39	17.70%	2.29%	1.14%	83.48%
TMUS	―	$234.94B	20.20	19.03%	1.68%	7.30%	17.67%
T	―	$176.97B	8.05	20.88%	4.48%	1.98%	150.68%
CMCSA	―	$101.43B	4.62	24.73%	4.76%	2.54%	60.53%
CHTR	―	$35.65B	6.36	36.19%	―	1.03%	17.05%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Verizon Corporate Events

Verizon’s Q3 2025 Earnings Show Steady Growth

Verizon Communications Inc., a leading telecommunications company, provides wireless services, broadband, and other communication solutions globally, known for its reliable network and innovative offerings.

Verizon’s Earnings Call: Growth Amid Challenges

Verizon’s Earnings Call Reflects Optimism Amid Challenges

Verizon Appoints Daniel Schulman as New CEO

On October 4, 2025, Verizon appointed Daniel H. Schulman as the new Chief Executive Officer, succeeding Hans E. Vestberg, who will serve as Special Advisor until October 2026. Schulman, with a strong background in financial and operational leadership, aims to drive Verizon’s growth and market share expansion. The transition is part of Verizon’s strategy to enhance its sector leadership and integrate Frontier Communications, with Schulman expected to focus on customer satisfaction and financial growth. Verizon reiterated its financial guidance for 2025, emphasizing a smooth leadership transition and continued strategic investments in its network and broadband expansion.

The most recent analyst rating on (VZ) stock is a Hold with a $50.50 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Appoints Jennifer Mann to Board of Directors

On August 25, 2025, Verizon Communications Inc. appointed Jennifer K. Mann, an executive from The Coca-Cola Company, to its Board of Directors. This addition is expected to bring valuable insights from her experience in a major consumer goods company, potentially impacting Verizon’s strategic direction and stakeholder interests.

The most recent analyst rating on (VZ) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.