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Verizon
(NYSE:VZ)
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Rating:65Neutral
Price Target:
$50.00
▼(-0.50% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by dependable profitability and strong free cash flow, reinforced by a notably positive earnings call with raised 2026 guidance and improving operating metrics. These positives are tempered by high leverage and a weak recent revenue trend, while technical indicators remain bearish in the near term despite some oversold signals. Valuation is a supportive offset due to a moderate P/E and high dividend yield.
Positive Factors
Strong recurring cash generation
Verizon’s large recurring cash generation supports debt servicing, dividends, reinvestment, and disciplined capital returns. The scale of operating and free cash flow provides resilience across business cycles, while recent FCF growth indicates improving capacity to fund strategic priorities internally.
Negative Factors
High financial leverage
Verizon’s substantial debt burden reduces financial flexibility and leaves more cash flow exposed to interest costs and refinancing conditions. High leverage can constrain acquisitions, network investment, and shareholder distributions if operating performance weakens or capital needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recurring cash generation
Verizon’s large recurring cash generation supports debt servicing, dividends, reinvestment, and disciplined capital returns. The scale of operating and free cash flow provides resilience across business cycles, while recent FCF growth indicates improving capacity to fund strategic priorities internally.
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
$185.05B
Dividend Yield6.46%
Average Volume (3M)25.11M
Price to Earnings (P/E)11.3
Beta (1Y)0.06
Revenue Growth1.38%
EPS Growth-10.78%
CountryUS
Employees89,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.84
Shares Outstanding4,154,775,400
10 Day Avg. Volume31,013,859
30 Day Avg. Volume25,110,558
Financial Highlights & Ratios
PEG Ratio-4.63
Price to Book (P/B)1.65
Price to Sales (P/S)1.25
P/FCF Ratio8.75
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit4.44
Enterprise Value/Ebitda7.60
Forecast
1Y Price Target
$49.77Price Target Upside-0.96% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5
Revenue Forecast (FY)$140.74B
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 makes money primarily by selling connectivity and related services through recurring customer subscriptions and usage-based charges. Its largest revenue stream is wireless service, where consumers and small businesses pay monthly plan fees...
Verizon Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveys a strong positive operational and financial inflection: improving churn and customer economics, meaningful net add momentum in mobility and broadband, accelerating mobility & broadband service revenue growth, record margins and EBITDA, and sizable free cash flow and buybacks with raised guidance. Key near-term headwinds remain limited to equipment revenue declines (driven by deliberate lower upgrade/susbidy activity), a modest YoY total revenue decline, capital intensity for spectrum and fiber, and execution/timing risk around the nascent AI infrastructure revenue stream. On balance the positives—clear metric improvements, upgraded guidance, and large cash flow/margin gains—substantially outweigh the lowlights.Positive Updates
Strong Postpaid Phone Net Adds and Account Growth
Q2 postpaid phone net adds of 184,000 (best consumer Q2 in 5 years); Q2 postpaid phone net adds improved 193,000 year-over-year. First half postpaid phone net adds up 537,000 versus prior year and management expects full-year postpaid phone net adds to be in the upper half of the 750k–1M range. Net new accounts have been positive for the past two months.
Negative Updates
Total Revenue and Wireless Service Revenue Declines
Total revenue for Q2 was $34.3 billion, down 0.7% year-over-year. Wireless service revenue declined 0.7% year-over-year to $20.8 billion despite improving mobility and broadband trends.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Postpaid Phone Net Adds and Account Growth
Q2 postpaid phone net adds of 184,000 (best consumer Q2 in 5 years); Q2 postpaid phone net adds improved 193,000 year-over-year. First half postpaid phone net adds up 537,000 versus prior year and management expects full-year postpaid phone net adds to be in the upper half of the 750k–1M range. Net new accounts have been positive for the past two months.
Read all positive updates
Company Guidance
Verizon raised 2026 guidance across several fronts: mobility and broadband service revenue is now expected to grow 2.5%–3% for the full year (Q3 to approach ~3% YoY and Q4 to be ~4% YoY), total revenue guided to +2.5%–3%, adjusted EPS growth raised to 6%–7% (Q2 adj. EPS $1.30, +6.6% YoY), and free cash flow growth raised to 9%–10% (Q2 FCF $6.4B, +24% YoY; H1 FCF $10.2B, +16% YoY); CapEx remains on track at $16.0–16.5B, full‑year postpaid phone net adds are expected in the upper half of a 750k–1.0M range, buybacks have been increased to up to $4.5B (YTD repurchases $3.5B, including $1B in Q2), Q2 adjusted EBITDA was $13.7B (+7.2% YoY) with a 40.1% margin, net unsecured debt/adjusted EBITDA was 2.5x (improving 0.1x), and management reaffirmed targets to deliver at least $9B of OpEx/CapEx savings (plus >$1B Frontier synergies by 2028) while noting AI‑infrastructure/dark‑fiber deals (e.g., >$1B Google agreement) should add meaningful incremental revenue beginning in 2027.Verizon Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 138.90B | 138.19B | 134.79B | 133.97B | 136.84B | 133.61B |
| Gross Profit | 82.07B | 63.08B | 62.80B | 61.46B | 60.60B | 61.11B |
| EBITDA | 47.95B | 47.72B | 47.52B | 40.14B | 48.95B | 49.12B |
| Net Income | 16.17B | 17.17B | 17.51B | 11.61B | 21.26B | 22.07B |
Balance Sheet | ||||||
| Total Assets | 410.19B | 404.26B | 384.71B | 380.25B | 379.68B | 366.60B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 19.05B | 4.19B | 2.06B | 2.60B | 2.92B |
| Total Debt | 188.46B | 200.59B | 168.36B | 174.94B | 176.33B | 177.93B |
| Total Liabilities | 304.99B | 298.52B | 284.14B | 286.46B | 287.22B | 283.40B |
| Stockholders Equity | 103.92B | 104.46B | 99.24B | 92.43B | 91.14B | 81.79B |
Cash Flow | ||||||
| Free Cash Flow | 20.16B | 19.68B | 18.92B | 18.71B | 10.40B | 19.25B |
| Operating Cash Flow | 38.80B | 37.14B | 36.91B | 37.48B | 37.14B | 39.54B |
| Investing Cash Flow | -27.97B | -16.66B | -18.67B | -23.43B | -28.66B | -67.15B |
| Financing Cash Flow | -12.46B | -5.61B | -17.10B | -14.66B | -8.53B | 8.28B |
Verizon Technical Analysis
Neutral
50.25
Price Trends
47.02
Negative
45.62
Negative
45.31
Negative
Market Momentum
-0.72
Negative
49.65
Neutral
70.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VZ, the sentiment is Neutral. The current price of 50.25 is above the 20-day moving average (MA) of 44.67, above the 50-day MA of 47.02, and above the 200-day MA of 45.31, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $169.21B | 16.05 | 18.22% | 2.65% | 9.68% | -10.02% | |
72 Outperform | $79.35B | 7.17 | 12.04% | 5.98% | 0.58% | -48.94% | |
69 Neutral | $150.14B | 11.84 | 11.50% | 5.07% | 3.51% | -39.83% | |
65 Neutral | $185.05B | 11.34 | 15.52% | 6.46% | 1.38% | -10.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $19.38B | 2.75 | 30.43% | ― | -1.50% | 4.45% | |
50 Neutral | $4.60B | -4.36 | -52.11% | 9.72% | -7.74% | 13.54% |
* Communication Services Sector Average
VZ
Verizon
45.20
9.20
25.54%
T
AT&T
22.74
-0.76
-3.23%
LUMN
Lumen Technologies
4.46
-3.33
-42.75%
CHTR
Charter Communications
111.77
-132.15
-54.18%
CMCSA
Comcast
22.84
-3.21
-12.33%
TMUS
T Mobile US
158.79
-56.65
-26.29%
Verizon Corporate Events
Business Operations and StrategyExecutive/Board Changes
Verizon appoints Charles Phillips to board of directors
Positive
Sep 29, 2026
On September 25, 2026, Verizon Communications Inc. appointed Charles Phillips, co-founder and managing partner of Recognize Partners LP, to its Board of Directors, effective immediately on that date. Phillips, who joins as a non-employee director,...
Business Operations and StrategyExecutive/Board Changes
Verizon Extends CEO Daniel Schulman’s Contract to 2028
Positive
Jul 24, 2026
On July 23, 2026, Verizon Communications Inc. amended the employment agreement of Chief Executive Officer Daniel H. Schulman, extending the initial term of his contract by one year to December 31, 2028, with automatic one-year renewals thereafter ...
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.