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Verizon
(NYSE:VZ)
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Rating:69Neutral
Price Target:
$51.00
▲(9.96% Upside)
Action:Downgraded
Date:07/26/26
The score is driven primarily by improving fundamentals highlighted on the earnings call (raised 2026 guidance, margin expansion, stronger free cash flow and buybacks) and a supportive income-oriented valuation (high dividend yield with a moderate P/E). These positives are tempered by structurally high leverage and a weak recent top-line growth profile, while technicals are generally favorable but show slightly mixed momentum signals.
Positive Factors
Strong cash generation
Sustained high operating cash flow and meaningful free cash flow provide durable funding for dividends, buybacks, debt servicing and strategic investments. Over the next 2–6 months this cash flexibility supports capital allocation priorities and reduces refinancing risk.
Negative Factors
High leverage
Elevated absolute and relative debt levels constrain financial flexibility for sustained capex, acquisitions or faster deleveraging. In a higher‑rate or growth‑challenged environment, leverage amplifies downside risk and limits the pace of strategic investments over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating cash flow and meaningful free cash flow provide durable funding for dividends, buybacks, debt servicing and strategic investments. Over the next 2–6 months this cash flexibility supports capital allocation priorities and reduces refinancing risk.
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
$195.46B
Dividend Yield5.97%
Average Volume (3M)30.83M
Price to Earnings (P/E)12.2
Beta (1Y)0.17
Revenue Growth1.38%
EPS Growth-10.78%
CountryUS
Employees89,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.84
Shares Outstanding4,175,559,000
10 Day Avg. Volume25,567,067
30 Day Avg. Volume30,828,051
Financial Highlights & Ratios
PEG Ratio-4.63
Price to Book (P/B)1.65
Price to Sales (P/S)1.25
P/FCF Ratio8.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$49.42Price Target Upside6.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)4.99
Revenue Forecast (FY)$140.98B
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 recurring connectivity services and related products to consumers, businesses, and public-sector customers.
1) Consumer wireless service revenue (largest driver): Verizon earns monthly service fees from su...
Verizon Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 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 | 21.43B | 20.13B | 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
Positive
46.38
Price Trends
44.94
Positive
45.98
Positive
43.43
Positive
Market Momentum
0.85
Negative
59.07
Neutral
64.15
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 46.38 is above the 20-day moving average (MA) of 44.62, above the 50-day MA of 44.94, and above the 200-day MA of 43.43, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $185.26B | 18.03 | 18.22% | 2.19% | 9.68% | -10.02% | |
72 Outperform | $159.32B | 7.68 | 19.48% | 4.60% | 2.63% | 72.35% | |
72 Outperform | $85.03B | 7.78 | 12.04% | 5.92% | 0.58% | -48.94% | |
69 Neutral | $195.46B | 12.19 | 15.52% | 6.03% | 1.38% | -10.78% | |
67 Neutral | $78.00B | 14.71 | 21.99% | 2.28% | 13.40% | 75.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $19.40B | 3.72 | 30.43% | ― | -1.50% | 4.45% |
* Communication Services Sector Average
VZ
Verizon
46.47
6.83
17.22%
AMX
America Movil
24.02
6.29
35.47%
T
AT&T
23.06
-3.19
-12.17%
CHTR
Charter Communications
153.17
-108.87
-41.55%
CMCSA
Comcast
24.75
-3.99
-13.87%
TMUS
T Mobile US
173.46
-61.33
-26.12%
Verizon Corporate Events
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 ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Verizon Forms Global Network Joint Venture with BT
Negative
Jun 29, 2026
On June 28, 2026, Verizon entered a transaction agreement with BT Group to form a 50-50 joint venture, Jasper NewCo Limited, by contributing their respective international wireline connectivity and managed network services businesses, with Verizon...
Business Operations and StrategyPrivate Placements and Financing
Verizon Completes Exchange Offers to Streamline Debt Structure
Positive
Jun 17, 2026
On June 17, 2026, Verizon announced the expiration and final results of its previously launched private exchange offers and related consent solicitations for 11 series of notes issued by certain wholly owned subsidiaries, as of the 5:00 p.m. New Y...
Business Operations and StrategyPrivate Placements and Financing
Verizon Extends Early Participation Deadline for Debt Exchanges
Neutral
Jun 2, 2026
On June 2, 2026, Verizon announced it had extended the early participation date for its previously launched private exchange offers and related consent solicitations covering 11 series of notes issued by certain wholly owned subsidiaries, moving t...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Verizon Shareholders Approve 2026 Long-Term Incentive Plan
Positive
May 28, 2026
At its May 21, 2026 Annual Meeting of Shareholders, Verizon Communications Inc. received approval for its 2026 Long-Term Incentive Plan, which became effective immediately following the vote and is intended to govern equity-based compensation for ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Verizon Strengthens Capital Structure with $4 Billion Notes
Positive
May 14, 2026
On May 14, 2026, Verizon Communications Inc. closed a $4 billion junior subordinated notes offering, issuing $2 billion of 6.050% Fixed-to-Fixed Rate Junior Subordinated Notes due 2058 and $2 billion of 6.200% Fixed-to-Fixed Rate Junior Subordinat...
Business Operations and StrategyPrivate Placements and Financing
Verizon Launches Note Exchange Offers to Streamline Debt
Neutral
May 11, 2026
On May 11, 2026, Verizon announced private exchange offers and related consent solicitations targeting 11 series of outstanding subsidiary-issued debentures and notes, inviting qualified institutional buyers and certain non-U.S. investors to swap ...
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.