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Verizon (VZ)
NYSE:VZ
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Verizon (VZ) AI Stock Analysis

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VZ

Verizon

(NYSE:VZ)

Rating:83Outperform
Price Target:
$52.00
▲(17.70% Upside)
Verizon's strong financial performance and positive earnings call are the most significant factors driving the score. The company's attractive valuation and positive technical indicators further support a favorable outlook. While the balance sheet shows moderate leverage, it is typical for the industry and does not significantly detract from the overall positive assessment.
Positive Factors
Earnings
Verizon posted solid upside in earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a key indicator of the company's financial performance.
Financial Flexibility
The company increased its free cash flow by $2 billion, largely driven by tax reform, which positively impacts its financial flexibility.
Growth Strategy
Verizon's acquisition of Frontier is expected to significantly accelerate the company's fiber reach, potentially boosting market share and financial returns by reducing churn.
Negative Factors
Broadband Growth
Increased competitive pressure from AT&T and T-Mobile, along with increased fiber deployments, has impacted Verizon's consumer broadband net additions, highlighting challenges in maintaining growth.
Competitive Environment
Elevated competition and corresponding promos from Verizon worried investors throughout Q2.
Subscriber Challenges
The company's subscriber position remains challenged, which suggests ongoing difficulties in maintaining or growing its customer base.

Verizon (VZ) vs. SPDR S&P 500 ETF (SPY)

Verizon Business Overview & Revenue Model

Company DescriptionVerizon 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 MoneyVerizon 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 Key Performance Indicators (KPIs)

Any
Any
Consumer Wireless Connections
Consumer Wireless Connections
Tracks the number of active wireless connections, indicating customer base size and growth potential in the competitive telecom market.
Chart InsightsVerizon's consumer wireless connections have shown stability with slight fluctuations over recent quarters. The latest earnings call highlights robust financial performance, with record wireless service revenue and increased adjusted EBITDA. Despite challenges like elevated postpaid churn and public sector pressures, Verizon's strategic initiatives, including C-band deployment and fixed wireless growth, are driving positive momentum. The company has raised its full-year guidance, reflecting confidence in overcoming current challenges and capitalizing on network advancements and subscriber growth.
Data provided by:Main Street Data

Verizon Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in key areas such as wireless service revenue, adjusted EBITDA, and free cash flow. Despite some challenges with elevated churn and public sector pressures, the company demonstrated effective execution and raised its full-year guidance. The strategic focus on AI-powered customer experiences and broadband expansion, along with disciplined financial management, supports a positive outlook.
Q2-2025 Updates
Positive Updates
Wireless Service Revenue Growth
Verizon reported a market-leading wireless service revenue of $20.9 billion, up 2.2% from the previous year.
Record Adjusted EBITDA
The company delivered adjusted EBITDA of $12.8 billion, marking a 4.1% increase year over year, setting a record for the best-reported quarter.
Free Cash Flow Increase
Free cash flow for the quarter was $5.2 billion, contributing to a year-to-date free cash flow of $8.8 billion, an increase of over $300 million compared to the first half of 2024.
Fixed Wireless Access Milestone
Verizon's fixed wireless base surpassed five million subscribers, demonstrating strong growth in their broadband strategy.
Raised Full-Year Guidance
The company raised its full-year guidance for adjusted EBITDA and adjusted EPS, driven by strong financial performance and tax reform benefits.
Launch of AI-Powered Customer Experience Initiatives
New customer experience initiatives leveraging AI were launched to improve retention and reduce churn.
Strong Sales Execution
Consumer postpaid phone net losses improved from 109,000 in the prior year period to 51,000 in the second quarter.
Negative Updates
Elevated Postpaid Churn
Postpaid churn remained elevated at 0.90%, reflecting the lingering effects of pricing actions and competitive pressures.
Public Sector Challenges
Verizon faced significant challenges in the public sector, leading to a decline in business phone net adds compared to the prior year.
Softer Move Environment for Broadband
The broadband market faced challenges with a softer move environment, impacting growth potential in the Fios footprint.
Company Guidance
In the second quarter of 2025, Verizon Communications Inc. announced strong financial performance and strategic progress, leading to an upward revision of its full-year guidance. The company reported a market-leading wireless service revenue of $20.9 billion, a 2.2% increase year-over-year, and adjusted EBITDA of $12.8 billion, representing a 4.1% growth from the previous year. Free cash flow for the quarter was $5.2 billion, contributing to a year-to-date total of $8.8 billion, up by over $300 million compared to the first half of 2024. Verizon surpassed five million subscribers in its fixed wireless base, with an ambitious goal of reaching eight to nine million by 2028. The company also noted a significant uptick in broadband net additions, reaching 293,000 for the quarter. Furthermore, Verizon is advancing its C-band deployment ahead of schedule and tracking ahead in its fiber build. Buoyed by these results and the positive impact of tax reforms, Verizon raised its full-year guidance for adjusted EBITDA growth to 2.5%-3.5% and adjusted EPS growth to 1%-3%, while increasing its free cash flow guidance to a range of $19.5 billion to $20.5 billion.

Verizon Financial Statement Overview

Summary
Verizon's financial performance is strong, marked by robust profitability, efficient cash flow generation, and a stable balance sheet. The income statement reflects solid profit margins and revenue growth, while cash flow statements show impressive free cash flow generation. However, moderate leverage on the balance sheet needs monitoring.
Income Statement
85
Very Positive
Verizon's income statement reveals robust profitability with a consistent gross profit margin of approximately 59.3% TTM. The net profit margin remains strong at around 13.3% TTM, although it has slightly decreased from previous years, reflecting some pressure on net income growth. Revenue growth is modest but positive, indicating stable revenue trends in a competitive industry. The EBIT and EBITDA margins, at 21.5% and 35.6% TTM respectively, demonstrate efficient operational performance. Overall, Verizon's income statement reflects steady profitability and stable revenue generation.
Balance Sheet
75
Positive
Verizon's balance sheet shows a healthy equity base with a debt-to-equity ratio of 1.63 TTM, indicating moderate leverage for a telecom giant. The equity ratio stands at 27.2% TTM, reflecting a stable capital structure supported by a solid asset base. Return on equity (ROE) is commendable at 17.4% TTM, showcasing effective utilization of shareholder funds. While Verizon maintains a firm financial position, the reliance on debt financing could pose risks if market conditions shift unfavorably.
Cash Flow
80
Positive
Verizon's cash flow statement exhibits strong cash generation capabilities, with a notable operating cash flow to net income ratio of 2.04 TTM, indicating effective conversion of income into cash. The free cash flow to net income ratio at 1.53 TTM underscores robust free cash flow generation, crucial for sustaining dividends and investments. Free cash flow growth is impressive with a 46.9% increase TTM compared to the previous period. Overall, Verizon's cash flow statement reflects strong liquidity and efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue137.00B134.79B133.97B136.84B133.61B128.29B
Gross Profit67.76B62.80B61.46B60.60B61.11B60.37B
EBITDA48.72B47.52B40.14B48.95B49.12B44.96B
Net Income18.19B17.51B11.61B21.26B22.07B17.80B
Balance Sheet
Total Assets383.29B384.71B380.25B379.68B366.60B316.48B
Cash, Cash Equivalents and Short-Term Investments3.44B4.19B2.06B2.60B2.92B22.17B
Total Debt169.89B168.36B174.94B176.33B177.93B150.55B
Total Liabilities278.92B284.14B286.46B287.22B283.40B247.21B
Stockholders Equity103.06B99.24B92.43B91.14B81.79B67.84B
Cash Flow
Free Cash Flow19.61B18.92B18.71B10.40B19.25B21.45B
Operating Cash Flow37.10B36.91B37.48B37.14B39.54B41.77B
Investing Cash Flow-16.75B-18.67B-23.43B-28.66B-67.15B-23.51B
Financing Cash Flow-20.31B-17.10B-14.66B-8.53B8.28B1.32B

Verizon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.18
Price Trends
50DMA
42.95
Positive
100DMA
42.79
Positive
200DMA
41.54
Positive
Market Momentum
MACD
0.31
Positive
RSI
55.98
Neutral
STOCH
32.51
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 44.18 is above the 20-day moving average (MA) of 44.01, above the 50-day MA of 42.95, and above the 200-day MA of 41.54, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 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 17 risk factors in its most recent earnings report. Verizon reported the most risks in the "Legal & Regulatory" 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$184.68B10.1818.26%6.13%2.05%61.39%
81
Outperform
$126.02B5.6425.44%3.77%2.54%60.53%
81
Outperform
$287.98B24.1319.74%1.40%6.27%31.78%
77
Outperform
$209.43B16.5812.12%3.75%1.46%0.88%
68
Neutral
$61.08B21.0714.41%2.68%-0.64%56.92%
68
Neutral
$40.31B7.1136.19%1.03%17.05%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VZ
Verizon
44.18
5.47
14.13%
AMX
America Movil
19.50
3.63
22.87%
T
AT&T
29.58
9.86
50.00%
CHTR
Charter Communications
259.51
-71.27
-21.55%
CMCSA
Comcast
33.95
-4.52
-11.75%
TMUS
T Mobile US
252.12
57.71
29.68%

Verizon Corporate Events

Private Placements and Financing
Verizon Finalizes Private Exchange Offers for Notes
Neutral
Jun 23, 2025

On June 23, 2025, Verizon announced the final results of its private exchange offers for 10 series of notes and related tender offers. The exchange offers, which expired on June 18, 2025, involved swapping outstanding notes for newly issued 5.401% Notes due 2037. Verizon plans to issue approximately $2.2 billion in new notes, meeting the Minimum Issue Requirement. The company will not receive cash proceeds from these offers, and certain non-covered notes were rejected due to conditions not being satisfied, impacting some stakeholders.

Private Placements and Financing
Verizon Announces Results of Private Exchange Offers
Neutral
Jun 20, 2025

On June 20, 2025, Verizon announced the expiration and preliminary results of its private exchange offers for ten series of notes, alongside the expiration of related tender offers for certain investors. The exchange offers, which expired on June 18, 2025, involved swapping outstanding notes for new 5.401% notes due in 2037. Verizon expects the minimum issue requirement to be met, but will not receive cash proceeds from these offers. The issuance of new notes is subject to certain conditions, and they will not be registered under the Securities Act, limiting their sale in the U.S.

Private Placements and FinancingBusiness Operations and Strategy
Verizon Announces Pricing for Debt Exchange Offers
Neutral
Jun 18, 2025

On June 18, 2025, Verizon Communications Inc. announced the pricing terms for its private exchange offers and related tender offers for 10 series of outstanding notes. This strategic financial maneuver aims to exchange old notes for newly issued debt securities, potentially impacting Verizon’s financial structure and market positioning. The exchange offers were set to expire on the same day, with the settlement date expected to follow on June 25, 2025, indicating a swift execution of the plan.

Private Placements and FinancingBusiness Operations and Strategy
Verizon Initiates Private Exchange Offers for Notes
Neutral
Jun 12, 2025

On June 12, 2025, Verizon announced the initiation of private exchange offers for ten series of its outstanding notes, aiming to exchange them for newly issued debt securities. This strategic financial move is designed to optimize Verizon’s debt structure, potentially impacting its financial stability and market positioning. The exchange offers are targeted at qualified institutional buyers and non-U.S. qualified offerees, with the process set to conclude on June 18, 2025, unless extended.

Executive/Board ChangesShareholder Meetings
Verizon Shareholders Meeting Approves Board and Compensation
Neutral
May 28, 2025

At the 2025 Annual Meeting of Shareholders held on May 22, 2025, Verizon Communications Inc. announced the election of several board members and the approval of executive compensation. The meeting also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025. However, shareholder proposals on climate lobbying alignment, lead-sheathed cable reporting, and discrimination in advertising services were defeated, reflecting the company’s current strategic priorities and stakeholder interests.

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.Date of analysis: Aug 19, 2025