Verizon (VZ) AI Stock Analysis

• Market Cap: $171.82B
• Dividend Yield: 6.6%
• Average Volume (3M): 25.28M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.25
• 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: 27,126,659
• 30 Day Avg. Volume: 25,279,804
• 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: 2.01
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 6.76
• 1Y Price Target: $46.67
• Price Target Upside: 14.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $48.00 ▲(17.42% Upside)

Verizon's strong financial performance and attractive valuation are the most significant factors driving its overall stock score. The company's ability to generate substantial cash flows and maintain profitability despite high leverage is commendable. Technical indicators suggest positive momentum, although some resistance is noted in the longer term. The earnings call reinforces Verizon's strategic focus on customer-centric growth and cost efficiency, addressing challenges in churn and competitive pressures.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Verizon's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances Verizon's ability to invest in growth opportunities, reduce debt, and provide returns to shareholders, ensuring financial resilience.

Strategic Acquisitions

Strategic acquisitions like Frontier enhance Verizon's service capabilities and market reach, supporting its long-term growth strategy and competitive positioning.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Verizon's flexibility to invest in growth and manage economic downturns effectively.

Customer Churn

Ongoing customer churn challenges can hinder Verizon's ability to grow its customer base and maintain market share, impacting long-term revenue growth.

Workforce Reduction

Significant workforce reductions may impact employee morale and operational efficiency, potentially affecting Verizon's ability to deliver on its strategic objectives.

Verizon Business Overview & Revenue Model

Company Description

Verizon Communications Inc. is a leading American telecommunications company headquartered in New York City. It operates in two primary sectors: Wireless and Wireline. The Wireless segment provides mobile communication services, including voice, data, and messaging services, primarily through its extensive 4G LTE and growing 5G networks. The Wireline segment offers broadband, video, and landline services to residential and business customers. Verizon is known for its commitment to innovation and customer service, offering a range of products including smartphones, tablets, and IoT devices, alongside a suite of entertainment and digital media services.

How the Company Makes Money

Verizon generates revenue primarily through its Wireless services, which account for the majority of its earnings. This includes monthly subscription fees from customers for mobile plans, data usage, and device sales. The company also earns revenue from its Wireline segment through broadband Internet access, video services, and business services such as cloud and cybersecurity solutions. Additionally, Verizon has partnerships with various content providers and tech companies, enhancing its offerings with bundled services and exclusive content, which further drives customer acquisition and retention. Furthermore, Verizon invests in strategic acquisitions and partnerships to expand its capabilities and market reach, contributing to its overall financial performance.

Verizon Financial Statement Overview

Summary

Verizon demonstrates strong financial health with impressive revenue growth and profitability metrics. The company effectively manages its operations to generate substantial cash flows, supporting its high leverage. While the debt levels are significant, Verizon's ability to generate cash and maintain profitability mitigates potential risks, positioning it well for future growth in the telecommunications sector.

Income Statement

Verizon's income statement reflects strong profitability with a consistent gross profit margin around 46% and a net profit margin improving to 14.43% in TTM. The company has shown robust revenue growth of 35.8% in the TTM period, indicating a positive trajectory. EBIT and EBITDA margins have also improved, showcasing operational efficiency. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.62 in TTM, indicating significant leverage, which is a common trait in the telecommunications industry. Return on equity is strong at 19.44%, reflecting effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced asset structure. However, the high leverage could pose risks if interest rates rise or cash flows decrease.

Cash Flow

Verizon's cash flow statement is strong, with a significant free cash flow growth of 69.59% in TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.65, and the free cash flow to net income ratio is robust at 0.86, reflecting efficient cash conversion. These metrics highlight Verizon's ability to generate cash and sustain operations, despite the high leverage.

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	51.09B	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	20.65B	18.92B	18.71B	10.40B	19.25B	21.45B
Operating Cash Flow	38.45B	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: Positive
• Last Price: 40.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VZ, the sentiment is Positive. The current price of 40.88 is above the 20-day moving average (MA) of 40.79, above the 50-day MA of 40.36, and below the 200-day MA of 41.70, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VZ.

Verizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	81 Outperform	$171.82B	8.69	19.70%	6.60%	2.42%	102.17%
TMUS	76 Outperform	$221.46B	19.04	19.03%	1.75%	7.30%	17.67%
CMCSA	72 Outperform	$108.33B	4.94	24.73%	4.37%	0.20%	61.54%
T	71 Outperform	$170.64B	7.82	20.88%	4.56%	1.98%	150.68%
CHTR	69 Neutral	$30.62B	5.78	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.80B	16.85	17.70%	2.68%	1.14%	83.48%

Verizon Corporate Events

Verizon Announces Major Workforce Reduction Plan

On November 20, 2025, Verizon announced plans to record a severance charge of $1.6 billion to $1.8 billion in the fourth quarter of 2025 as part of its cost reduction strategy. This involves eliminating over 13,000 positions, with more than 80% of affected employees leaving in December 2025, and reducing outsourced labor expenses.

Verizon Completes Sale of Subordinated Notes

On November 10, 2025, Verizon Communications Inc. completed the sale of €2.25 billion and £1 billion in Fixed-to-Fixed Rate Junior Subordinated Notes due 2056. This transaction was conducted under a purchase agreement with several major financial institutions and was part of a strategic financial maneuver to strengthen Verizon’s capital structure, potentially impacting its market positioning and providing long-term financial stability.

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.