Verizon (VZ) AI Stock Analysis

• Market Cap: $172.37B
• Dividend Yield: 6.66%
• Average Volume (3M): 30.60M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.26
• 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: 27,866,483
• 30 Day Avg. Volume: 30,601,908
• 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: 2.03
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 6.85
• 1Y Price Target: $46.79
• Price Target Upside: 14.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $44.00 ▲(7.63% Upside)

Verizon's strong financial performance and attractive valuation are significant strengths, supporting a solid overall score. However, technical analysis indicates bearish momentum, and challenges in customer churn and competitive pressures weigh on the outlook. The company's strategic initiatives and raised guidance provide confidence in its ability to overcome these challenges.

Positive Factors

Network Expansion

The partnership with AWS to build high-capacity fiber pathways enhances Verizon's network capabilities, supporting future AI innovations and solidifying its market position in high-speed connectivity.

Cash Flow Strength

Strong free cash flow growth indicates robust cash generation ability, providing financial flexibility for investments and debt reduction, supporting long-term operational stability.

Strategic Acquisitions

Strategic acquisitions like Frontier enhance Verizon's service offerings, expanding its fiber network and reinforcing its competitive edge in the telecommunications sector.

Negative Factors

High Leverage

Significant leverage poses risks, especially if interest rates rise or cash flows decrease, potentially impacting Verizon's financial flexibility and long-term stability.

Customer Churn

Ongoing customer churn challenges hinder Verizon's ability to grow its customer base and market share, necessitating a strategic shift to improve customer retention and satisfaction.

Competitive Pressures

Intense competitive pressures in the telecommunications industry impact Verizon's market position, requiring strategic initiatives to enhance customer-centric growth and operational efficiency.

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 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	33.25B	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: 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 Positive. The current price of 40.88 is above the 20-day moving average (MA) of 40.39, above the 50-day MA of 40.83, and below the 200-day MA of 41.67, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 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
AMX	74 Outperform	$70.18B	18.49	17.70%	2.44%	1.14%	83.48%
TMUS	73 Outperform	$231.42B	19.89	19.03%	1.77%	7.30%	17.67%
VZ	72 Outperform	$172.37B	8.71	19.70%	6.66%	2.42%	102.17%
T	72 Outperform	$183.05B	8.38	20.88%	4.30%	1.98%	150.68%
CMCSA	69 Neutral	$96.82B	4.41	24.73%	4.76%	0.20%	61.54%
CHTR	66 Neutral	$28.96B	5.51	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$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.