Verizon (VZ) AI Stock Analysis

• Market Cap: $211.47B
• Dividend Yield: 6.6%
• Average Volume (3M): 34.07M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.29
• Revenue Growth: 2.42%
• EPS Growth: 102.17%
• Country: US
• Employees: 99,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.09
• Shares Outstanding: 4,217,684,000
• 10 Day Avg. Volume: 23,691,655
• 30 Day Avg. Volume: 34,069,507
• PEG Ratio: -4.62
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 8.55
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 8.24
• 1Y Price Target: $49.23
• Price Target Upside: -1.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 4.91
• Revenue Forecast (FY): $144.22B

• Rating: 72 Outperform
• Price Target: $55.00 ▲(9.69% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is primarily supported by steady financial performance with strong cash generation and a favorable income/valuation setup (low P/E and high dividend yield), reinforced by upbeat 2026 guidance focused on higher net adds, cost savings, and higher free cash flow. These positives are tempered by balance-sheet leverage and execution risks highlighted by elevated churn, outage impacts, and transitional revenue headwinds; technically, the uptrend appears extended with overbought signals.

Positive Factors

Cash generation

Sustained high operating cash flow and multi‑year free cash flow provide durable funding for network investment, dividends and buybacks without constant equity raises. This cash profile supports strategic flexibility and capital allocation through the 2–6 month horizon and underpins deleveraging plans.

Fiber scale expansion

Accelerated fiber build and the Frontier deal materially expand Verizon's addressable broadband market and scale economies. Higher fiber density strengthens competitive differentiation in broadband, supports higher ARPU enterprise wins and creates multi-year revenue durability from fiber monetization.

Capital allocation & cost focus

A clear shareholder-return program plus an explicit $5B OpEx savings target signals disciplined capital allocation and management commitment to margin improvement. This combination improves cash returns to investors while funding strategic investments and supports longer‑term ROIC improvement.

Negative Factors

High leverage

Substantial absolute debt and historically elevated debt/equity constrain financial flexibility, increasing sensitivity to adverse cash flow or higher rates. Deleveraging hinges on sustained FCF and execution of savings, leaving leverage a structural constraint for the next several quarters.

Modest revenue growth

A large, slow‑growing revenue base limits upside from core services and forces reliance on fiber expansion, pricing and cost cuts to lift overall performance. Low organic topline momentum increases execution risk for management's step‑change targets and compresses long‑term EPS scalability.

Customer experience & execution risks

Service outages, higher churn and large workforce cuts create near‑term retention and execution risks that can persist if not remediated. Customer experience issues and reduced headcount may undermine net‑add momentum and make achieving margin and growth targets harder over the medium term.

Verizon Business Overview & Revenue Model

Company Description

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches. It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators. As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions. This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services. As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

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

Stable, mature telecom financial profile with strong and consistent operating cash flow and improved free cash flow versus 2022, but limited revenue growth and a highly leveraged balance sheet (rising total debt and elevated historical debt-to-equity) constrain flexibility. Earnings have also been somewhat volatile year-to-year.

Income Statement

Verizon shows steady scale with revenue rising modestly from $128.3B (2020) to $138.2B (2025 annual), but the growth profile remains low (near-flat in 2024 and modestly positive in 2025). Profitability is generally solid for the sector (2024 net margin ~13% and EBITDA margin ~35%), yet earnings have been volatile—net income fell sharply in 2023 ($11.6B) before recovering in 2024–2025 (~$17–18B). Overall, consistent operating profit with limited growth and some profit variability.

Balance Sheet

The balance sheet is asset-heavy ($404.3B assets in 2025) with meaningful leverage: total debt increased to $181.6B in 2025 from $150.5B in 2020, and prior-year debt-to-equity levels were elevated (~1.65–1.90 from 2020–2024). Equity has grown (to $105.7B in 2025 from $67.8B in 2020), supporting returns on equity that have been decent but inconsistent (about 12.6% in 2023 vs. 17.6% in 2024). Strength is scale and improving equity base; key risk is high debt load that can constrain flexibility.

Cash Flow

Cash generation is a clear positive, with operating cash flow consistently strong around $37–42B (2020–2025). Free cash flow improved meaningfully versus the weaker 2022 level ($10.4B) and remains healthy in 2023–2025 (~$18.7–$20.1B), though 2025 shows a decline versus 2024 (negative free cash flow growth). Cash conversion is moderate: in 2024, free cash flow was about half of net income, and operating cash flow covered net income at ~0.57x, indicating cash flow is solid but not exceptionally high versus earnings in that year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	138.19B	134.79B	133.97B	136.84B	133.61B
Gross Profit	63.08B	62.80B	61.46B	60.60B	61.11B
EBITDA	47.72B	47.52B	40.14B	48.95B	49.12B
Net Income	17.17B	17.51B	11.61B	21.26B	22.07B
Balance Sheet
Total Assets	404.26B	384.71B	380.25B	379.68B	366.60B
Cash, Cash Equivalents and Short-Term Investments	19.05B	4.19B	2.06B	2.60B	2.92B
Total Debt	200.59B	168.36B	174.94B	176.33B	177.93B
Total Liabilities	298.52B	284.14B	286.46B	287.22B	283.40B
Stockholders Equity	104.46B	99.24B	92.43B	91.14B	81.79B
Cash Flow
Free Cash Flow	20.13B	18.92B	18.71B	10.40B	19.25B
Operating Cash Flow	37.14B	36.91B	37.48B	37.14B	39.54B
Investing Cash Flow	-16.66B	-18.67B	-23.43B	-28.66B	-67.15B
Financing Cash Flow	-5.61B	-17.10B	-14.66B	-8.53B	8.28B

Verizon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 50.14 is above the 20-day moving average (MA) of 48.02, above the 50-day MA of 42.95, and above the 200-day MA of 41.42, indicating a bullish trend. The MACD of 2.05 indicates Positive momentum. The RSI at 72.66 is Negative, neither overbought nor oversold. The STOCH value of 60.11 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
CMCSA	78 Outperform	$111.39B	5.74	21.92%	4.42%	0.20%	61.54%
TMUS	76 Outperform	$239.20B	22.34	18.18%	1.75%	7.30%	17.67%
VZ	72 Outperform	$211.47B	12.35	16.86%	6.60%	2.42%	102.17%
T	67 Neutral	$196.09B	9.18	20.43%	4.56%	1.98%	150.68%
AMX	62 Neutral	$79.52B	18.23	22.81%	2.69%	1.14%	83.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CHTR	57 Neutral	$33.35B	6.47	31.52%	―	0.42%	13.46%

Verizon Corporate Events

Verizon Issues Euro and Sterling Junior Subordinated Notes

On February 23, 2026, Verizon Communications Inc. completed the sale of €2.25 billion of 4.2462% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056, issued under an effective shelf registration statement and placed with a syndicate of international banks. On the same date, the company also closed a £600 million offering of 5.7427% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056, further expanding its long-dated subordinated Euro and Sterling funding base.

These junior subordinated issues, sold off Verizon’s shelf registration, add sizable hybrid-style capital to its balance sheet and diversify its investor base across European currencies. The concurrent filing of the forms of these notes into the existing registration structure formalizes the instruments’ terms, supporting Verizon’s ongoing access to international debt markets and potentially strengthening its capital structure over the long term.

The most recent analyst rating on (VZ) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Board Member Clarence Otis Plans 2026 Exit

On February 4, 2026, Verizon announced that board member Clarence Otis, Jr., has notified the company he will not stand for re-election when his term ends at Verizon’s 2026 annual meeting of shareholders. His planned departure signals upcoming changes in Verizon’s board composition, which could open the door to new perspectives in its governance and potentially influence the company’s strategic oversight.

The most recent analyst rating on (VZ) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon announces leadership transition in consumer division

On February 4, 2026, Sowmyanarayan Sampath ceased to serve as Executive Vice President and Group CEO of Verizon Consumer at Verizon Communications Inc., marking a leadership change in the company’s consumer division. He will remain with Verizon in an advisory role until March 27, 2026, when he is expected to leave the company, signaling a transitional period for the management of Verizon’s core consumer business.

The most recent analyst rating on (VZ) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Outlines 2026 Outlook, Launches Major Capital Returns

On January 30, 2026, Verizon detailed 2026 earnings and cash flow expectations tied to significant cost-structure and market-strategy changes designed to fund long-term business investment, reduce its net unsecured debt to Adjusted EBITDA ratio, and support returning about $55 billion to shareholders via dividends and share repurchases through the end of 2028. As part of this capital return plan, the board that day declared a quarterly dividend of $0.7075 per share, representing a 2.5% annualized increase, and authorized a share repurchase program of up to $25 billion in common stock, with at least $3 billion of buybacks anticipated in 2026, signaling an aggressive capital return stance while retaining discretion to adjust repurchases in response to market conditions and operational needs.

The most recent analyst rating on (VZ) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Completes Acquisition of Frontier Communications Parent

On January 20, 2026, Verizon Communications Inc. completed its previously announced acquisition of Frontier Communications Parent, Inc., with Frontier merging into a Verizon subsidiary and becoming a wholly owned unit of Verizon. As part of the transaction, each outstanding share of Frontier common stock was cancelled and converted into the right to receive $38.50 in cash per share, without interest, consolidating Frontier’s operations under Verizon and marking a significant expansion of Verizon’s communications footprint and asset base.

The most recent analyst rating on (VZ) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Updates Executive Performance-Based Equity Award Terms

On January 8, 2026, Verizon’s Human Resources Committee amended its prior letter agreement with executive Daniel H. Schulman to update the terms of a $30 million target value performance stock unit award initially slated for 2026. The award will now be granted in the first quarter of 2026 alongside the company’s regular long-term incentive equity grants to executive officers, will generally require Schulman’s continued employment through December 31, 2027, and will vest based on a mix of adjusted earnings per share performance and relative total shareholder return versus a comparator group over performance periods running from October 17, 2025 through December 31, 2027; all other provisions of Schulman’s agreement remain unchanged, underscoring Verizon’s use of performance-based equity to align executive incentives with shareholder outcomes.

The most recent analyst rating on (VZ) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.