Verizon (VZ) AI Stock Analysis

• Market Cap: $167.05B
• Dividend Yield: 6.6%
• Average Volume (3M): 23.16M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.31
• 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: 24,202,914
• 30 Day Avg. Volume: 23,160,523
• 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: 1.97
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 6.43
• 1Y Price Target: $46.18
• Price Target Upside: 17.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $44.00 ▲(11.90% Upside)

The score is driven primarily by strong financial fundamentals (profitability and free cash flow) and attractive valuation (low P/E and high dividend yield). These positives are partially offset by weaker technical signals (below key moving averages and negative MACD) and execution risks noted around churn/competition, despite constructive guidance and strategic progress (including the Frontier integration and cost actions).

Positive Factors

Strong Free Cash Flow

Substantial FCF growth indicates robust cash generation that supports sustained capital investment in 5G and fiber, funds dividends and buybacks, and provides flexibility to service debt. This strengthens long-term financial resilience and strategic optionality despite telecom capex needs.

Healthy Profitability Margins

Consistently high gross and improving net margins reflect scale advantages and pricing power in core wireless and wireline services. Durable margins support reinvestment, shareholder returns and cushion against competitive pressure, enabling multi-year operational stability.

Material Fiber Expansion (Frontier)

Frontier close materially accelerates Verizon’s national fiber footprint and convergence strategy, enhancing long-term service mix toward higher-margin fiber and fixed wireless. This strengthens competitive moat, cross-sell opportunities and revenue diversification over the next several years.

Negative Factors

Elevated Leverage

Significant leverage raises sensitivity to rising interest rates and constrains financial flexibility for additional strategic investments. Even with strong cash flow, high debt levels increase refinancing and covenant risk and can pressure capital allocation between growth and shareholder returns.

Persistent Customer Churn

Ongoing churn and postpaid net losses indicate structural competitive pressure on subscriber retention and ARPU. Without sustained improvements in customer-centric offerings and retention, churn can erode lifetime value, slow revenue growth, and require continued marketing and promotional spend.

Major Workforce Reduction & Costs

Large scale job cuts signal operational strain and execution risks tied to cost-savings and Frontier integration. Significant severance and reorganization can disrupt service, lower morale, and create near- to medium-term execution risk that may hinder customer experience and integration synergies.

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

Strong profitability and cash generation (improving net margin; strong free cash flow growth and solid cash conversion) support operations and shareholder returns. The main constraint is elevated leverage (debt-to-equity 1.62), which increases sensitivity to funding conditions despite strong ROE.

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: Negative
• Last Price: 39.32
• 50DMA: Negative
• 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 Negative. The current price of 39.32 is below the 20-day moving average (MA) of 39.56, below the 50-day MA of 39.83, and below the 200-day MA of 40.76, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VZ.

Verizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	77 Outperform	$167.05B	8.45	19.70%	6.60%	2.42%	102.17%
CMCSA	77 Outperform	$107.24B	4.89	24.73%	4.42%	0.20%	61.54%
TMUS	77 Outperform	$210.23B	18.07	19.03%	1.75%	7.30%	17.67%
T	71 Outperform	$166.25B	7.61	20.88%	4.56%	1.98%	150.68%
CHTR	65 Neutral	$28.08B	5.05	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.87B	16.73	17.70%	2.69%	1.14%	83.48%

Verizon Corporate Events

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.

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.

The most recent analyst rating on (VZ) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

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.

The most recent analyst rating on (VZ) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.