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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VZ

Verizon Communications Inc.'s recent performance was driven by its solid Q4 earnings, which exceeded expectations due to surging wireless and broadband demand. The company's new CEO is executing cost-saving initiatives, driving subscriber growth, and implementing a $25 billion buyback program, supporting higher EPS and free cash flow guidance for 2026. Additionally, Verizon's focus on customer experience and growth, along with its robust cash flows and sustainable dividend yield, are key catalysts for long-term value creation. Analysts have a consensus rating of "Moderate Buy" on the stock.

1.c. Company Highlights

2. Verizon’s Q1 2026: A Resurgence on the Horizon

Verizon reported a 2.9% revenue lift to $34.4 billion, with adjusted EPS rising 7.6% to $1.28—outpacing the consensus of $1.21 (Verizon CFO, earnings call). Adjusted EBITDA climbed 6.7% to $13.4 billion, a 38.9% margin that reflects disciplined cost control, while free cash flow reached $3.8 billion, up 4% YoY. The company’s P/E sits at 11.42 and a dividend yield of 5.87%, underscoring a valuation that remains attractive for income‑focused investors.

Publication Date: Apr -28

📋 Highlights
  • Postpaid Phone Net Adds Surge:: Verizon reported 55,000 postpaid phone net adds, a 340,000 improvement YoY, its first positive Q1 postpaid adds in 13 years.
  • Revenue Growth:: Total revenues rose 2.9% to $34.4 billion, driven by mobility and broadband service revenue of $22.9 billion (+1.6% YoY).
  • Adjusted EPS Growth:: Earnings per share increased 7.6% YoY to $1.28, with guidance raised to 5-6% growth for 2026.
  • Free Cash Flow Strength:: Free cash flow reached $3.8 billion (+4% YoY), with full-year guidance of $21.5 billion or more.
  • Operational Efficiency:: Adjusted EBITDA margin improved 140 basis points to 38.9%, driven by cost synergies and network optimization.

Revenue Momentum

Revenue growth was modest but steady, driven by a 1.6% rise in mobility and broadband service revenue to $22.9 billion. The incremental $1.3 billion in revenue from the Frontier acquisition is expected to accelerate as integration matures, positioning Verizon to capture higher gross margins from its expanded portfolio.

Postpaid Phone Net Adds

The company delivered its first positive Q1 net additions in 13 years, adding 55,000 postpaid phones—a 340,000‑unit improvement YoY. Net churn fell to 90 basis points, a 5‑basis‑point sequential drop, and is projected to stay below 85 basis points in March. Management anticipates net adds to hit the upper half of its 750,000–1 million guidance range.

Broadband Expansion

Broadband net adds surged to 341,000, comprising 214,000 fixed‑wireless and 127,000 fiber units, bringing the subscriber base to 16.8 million. Verizon’s fiber footprint is poised to grow toward the $40–$50 million target, with a focus on high‑density markets where fixed‑wireless access remains secondary.

Guidance and Transformation

Verizon has lifted its adjusted EPS growth outlook to 5–6% for the year and reaffirmed 2–3% growth for mobility and broadband revenue. The transformation agenda—simplifying products, micro‑segmenting services, and pursuing AI‑native operations—aims to make Verizon “the most efficient telco in the world.”

Cost Synergies and Capital Allocation

Frontier integration is on track to deliver over $1 billion in run‑rate operating‑cost synergies by 2028. The company returned $2.5 billion in share repurchases during Q1 and lifted its dividend by 2.5%. Forecasted free cash flow guidance stands at $21.5 billion or more for the full year.

AI‑Driven Customer Experience

AI initiatives have already produced a 1,280‑basis‑point lift in customer satisfaction scores and are expected to deliver significant cost savings. Verizon plans to complete its AI tech stack by July, integrating it into billing, network optimization, and proactive service management.

Valuation and Outlook

With a P/E of 11.42, a free‑cash‑flow yield of 9.96%, and ROIC at 6.25%, Verizon trades at a discount to its long‑term growth prospects. The company’s guidance, combined with ongoing synergies and AI‑enabled efficiencies, suggests a favorable risk‑adjusted upside for investors seeking a resilient telecom platform.

3. NewsRoom

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One May Dog Of The Dow To Buy

May -02

Source: seekingalpha.com

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These ‘Preferred' Monthly Dividends Are On The Discount Rack

May -02

Source: forbes.com

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T-Mobile vs. Verizon: Which Big Phone Carrier Works Best for You?

May -01

Source: cnet.com

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Should You Add LUMN Stock to Your Portfolio Pre-Q1 Earnings?

May -01

Source: zacks.com

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Want $4,087 in Passive Income? Invest $10,000 Into These 3 High-Yielding Stocks

May -01

Source: 247wallst.com

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A Look at Verizon Communications Inc (VZ) After 3.0% Gain -- GF Value $42.14 vs Price $48.03

Apr -30

Source: gurufocus.com

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Cydcor Earns Verizon's 2025 ACD Wireless Agent of the Year Award

Apr -30

Source: newsfilecorp.com

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The Ticking Time Bomb That Could Force Income Investors to Sell Verizon Stock

Apr -30

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.12%)

6. Segments

Consumer

Expected Growth: 3.8%

Verizon's consumer segment growth is driven by the adoption of 5G technology, increasing demand for high-speed internet and bundled offerings, contributing to a forecasted CAGR of 3.8%.

Business

Expected Growth: 5.2%

Growing demand for cloud, cybersecurity, and IoT solutions drives business segment growth, driven by increasing digital transformation among government and enterprise customers.

Corporate and Other

Expected Growth: 4.3%

Verizon's corporate and other segment growth is driven by increasing demand for 5G network infrastructure and managed services, as well as cost savings initiatives, which will contribute to a steady growth rate.

Eliminations

Expected Growth: 3.6%

Verizon’s Eliminations segment growth is driven by intersegment eliminations, adjustments, and synergies from its wireless and wireline businesses, as well as cost savings initiatives.

7. Detailed Products

Wireless Services

Verizon's wireless services provide customers with access to a 4G LTE network, enabling them to make calls, send texts, and access the internet on their mobile devices.

Fios Internet

Verizon's Fios Internet provides high-speed internet connectivity to homes and businesses, enabling fast and reliable online access.

Fios TV

Verizon's Fios TV offers a range of TV channels, on-demand content, and streaming services, providing customers with a comprehensive entertainment experience.

5G Network Services

Verizon's 5G network provides ultra-fast wireless connectivity, enabling low-latency and high-bandwidth applications.

Cybersecurity Services

Verizon's cybersecurity services provide businesses with threat detection, incident response, and security consulting services to protect against cyber threats.

IoT (Internet of Things) Services

Verizon's IoT services enable businesses to connect and manage devices, providing insights and automation capabilities.

Cloud and IT Services

Verizon's cloud and IT services provide businesses with infrastructure, platform, and software as a service, enabling digital transformation.

Network Services

Verizon's network services provide businesses with secure, reliable, and high-performance network connectivity.

8. Verizon Communications Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Verizon Communications Inc. faces moderate threat from substitutes due to the presence of alternative communication services such as Skype, WhatsApp, and Google Voice.

Bargaining Power Of Customers

Verizon Communications Inc. has a large customer base, but individual customers have limited bargaining power due to the company's strong brand and extensive network coverage.

Bargaining Power Of Suppliers

Verizon Communications Inc. has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Verizon Communications Inc.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with Verizon Communications Inc. facing intense rivalry from other major players such as AT&T, T-Mobile, and Sprint.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.43%
Debt Cost 5.90%
Equity Weight 34.57%
Equity Cost 5.96%
WACC 5.92%
Leverage 189.27%

11. Quality Control: Verizon Communications Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 8.0

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Comcast

A-Score: 6.1/10

Value: 8.6

Growth: 5.2

Quality: 6.6

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Alphabet

A-Score: 5.8/10

Value: 1.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 8.1

Growth: 7.7

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.11$

Current Price

48.11$

Potential

-0.00%

Expected Cash-Flows