Verizon Communications (VZ) reported quarterly earnings and revenue that slightly outperformed Wall Street expectations. The company delivered $1.10 per share in adjusted earnings, up two cents from a year ago, while revenue rose 1.6% to $35.7 billion. Wireless service revenue climbed 3.1% to $20 billion, aligning with estimates. Earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $11.9 billion, just below forecasts of $12.05 billion. The company added 568,000 wireless postpaid subscribers, exceeding expectations of 479,000. Analyst Craig Moffett noted that Verizon grew by raising prices but faced mixed subscriber trends in 2024, yet delivered a strong end-of-year showing. In midday trading, Verizon stock rose 0.9% to close at 39.56.
Verizon also highlighted its growth in fixed wireless broadband, adding 373,000 subscribers in the quarter. For 2025, the company expects adjusted EPS growth of 1.5% and EBITDA growth between 2% and 3.5%. It projects free cash flow between $17.5 billion and $18.5 billion. Oppenheimer analyst Tim Horan noted that while management’s guidance was in line with expectations, it was weak on implied margins/EPS as the company invests to reduce churn.
Heading into the earnings report, Verizon shares had declined 2% earlier in the year. The stock holds a Relative Strength Rating of 26 according to IBD Stock Checkup. AT&T (T) will report its results later this week. Additionally, Verizon recently announced plans to acquire Frontier Communications for $20 billion, with the deal expected to close in approximately 18 months. Frontier is set to become the largest pure-play fiber provider in the U.S., with 10 million home connections by the end of 2026.
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Source: https://www.investors.com/news/technology/verizon-stock-verizon-earnings-vz-stock-q42025