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VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction
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Key Takeaways
VZ posted Q2 earnings of $1.22 per share on $34.5B revenue, surpassing consensus estimates.
Wireless service revenue rose 2.2% to $20.9B, driven by pricing, customer growth and broadband gains.
Fixed wireless net adds hit 278,000, boosting the subscriber base past 5.1M ahead of 2028 targets.
Verizon Communications Inc. (VZ - Free Report) recorded strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate.
The company recorded industry-leading wireless service revenues of $20.9 billion, up 2.2% year over year. Verizon registered solid broadband growth with total fixed wireless access net additions of 278,000, growing the subscriber base to more than 5.1 million. The company remains well-positioned to achieve its target of 8 to 9 million fixed wireless access subscribers by 2028.
Net Income
On a GAAP basis, net income in the quarter was $5.12 billion or $1.18 per share compared with $4.7 billion or $1.09 per share in the prior-year quarter. The improvement was primarily attributable to top-line growth. Excluding non-recurring items, quarterly adjusted earnings were $1.22 per share compared with $1.15 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Verizon Communications Inc. Price, Consensus and EPS Surprise
Quarterly total operating revenues improved 5.2% to $34.5 billion with growth in service revenues and higher wireless equipment revenues driven by targeted pricing actions, customer growth, sales of perks and add-on services and growth in fixed wireless access. The top line beat the consensus estimate of $33.58 billion.
Quarterly Segment Results
Consumer: Total revenues from this segment improved 6.9% year over year to $26.65 billion on wireless equipment revenues. The segment revenues exceeded our estimate of $25.63 billion.
Service revenues were up 2.1% to $20.26 billion, while wireless equipment revenues improved 29.6% to $5.37 billion. Other revenues totaled $1.02 billion, up 9.2% year over year.
Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.9%. The company recorded 28,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 293,000 broadband net additions in the quarter. However, it registered 62,000 Fios Video net losses in the quarter, reflecting the ongoing shift from traditional linear video to over-the-top offerings.
The segment’s operating income increased 0.5% to $7.64 billion with a margin of 28.7%. EBITDA improved 2.1% to $11.22 billion with a margin of 42.1% compared with 44.1% in the prior-year quarter due to lower costs of wireless equipment.
Business: The segment revenues were down 0.3% to $7.27 billion due to lower wholesale and enterprise and public sector revenues, partially offset by growth in business markets and other revenues. It was also lower than our estimates of $7.29 billion, largely due to challenging macroeconomic conditions.
The segment had 65,000 wireless retail postpaid net additions in the quarter, including 42,000 postpaid phone net additions. Wireless retail postpaid churn was 1.61%, while retail postpaid phone churn was 1.26%. Fixed wireless broadband net additions were 114,000 for the quarter.
Operating income improved to $638 million from $500 million in the year-ago quarter with respective margins of 8.8% and 6.8%. Segment EBITDA was up 5.8% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 22.9% compared with 21.6% in the year-earlier quarter.
Other Quarterly Details
Total operating expenses were up 5.4% to $26.33 billion, while operating income improved 4.5% to $8.17 billion. Consolidated adjusted EBITDA increased to $12.81 billion from $12.3 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.1% and 37.5%.
Cash Flow & Liquidity
Verizon generated $16.76 billion of net cash from operating activities for the first six months of 2025. Free cash flow was $5.17 billion for the quarter compared with $5.8 billion in the prior-year period.
As of June 30, 2025, the company had $3.43 billion in cash and cash equivalents with $123.93 billion of long-term debt.
Guidance
For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. However, adjusted EBITDA is expected to grow 2.5%-3.5%, up from prior expectations of 2%-3.5%. The company expects adjusted earnings to grow 1-3% range with a cash flow of $37-$39 billion on capital expenditures of $17.5-$18.5 billion.
Arista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, suggesting a growth of 25% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 14.8%. Arista delivered an average earnings surprise of 11.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters.
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VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) recorded strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate.
The company recorded industry-leading wireless service revenues of $20.9 billion, up 2.2% year over year. Verizon registered solid broadband growth with total fixed wireless access net additions of 278,000, growing the subscriber base to more than 5.1 million. The company remains well-positioned to achieve its target of 8 to 9 million fixed wireless access subscribers by 2028.
Net Income
On a GAAP basis, net income in the quarter was $5.12 billion or $1.18 per share compared with $4.7 billion or $1.09 per share in the prior-year quarter. The improvement was primarily attributable to top-line growth. Excluding non-recurring items, quarterly adjusted earnings were $1.22 per share compared with $1.15 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Verizon Communications Inc. Price, Consensus and EPS Surprise
Verizon Communications Inc. price-consensus-eps-surprise-chart | Verizon Communications Inc. Quote
Revenues
Quarterly total operating revenues improved 5.2% to $34.5 billion with growth in service revenues and higher wireless equipment revenues driven by targeted pricing actions, customer growth, sales of perks and add-on services and growth in fixed wireless access. The top line beat the consensus estimate of $33.58 billion.
Quarterly Segment Results
Consumer: Total revenues from this segment improved 6.9% year over year to $26.65 billion on wireless equipment revenues. The segment revenues exceeded our estimate of $25.63 billion.
Service revenues were up 2.1% to $20.26 billion, while wireless equipment revenues improved 29.6% to $5.37 billion. Other revenues totaled $1.02 billion, up 9.2% year over year.
Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.9%. The company recorded 28,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 293,000 broadband net additions in the quarter. However, it registered 62,000 Fios Video net losses in the quarter, reflecting the ongoing shift from traditional linear video to over-the-top offerings.
The segment’s operating income increased 0.5% to $7.64 billion with a margin of 28.7%. EBITDA improved 2.1% to $11.22 billion with a margin of 42.1% compared with 44.1% in the prior-year quarter due to lower costs of wireless equipment.
Business: The segment revenues were down 0.3% to $7.27 billion due to lower wholesale and enterprise and public sector revenues, partially offset by growth in business markets and other revenues. It was also lower than our estimates of $7.29 billion, largely due to challenging macroeconomic conditions.
The segment had 65,000 wireless retail postpaid net additions in the quarter, including 42,000 postpaid phone net additions. Wireless retail postpaid churn was 1.61%, while retail postpaid phone churn was 1.26%. Fixed wireless broadband net additions were 114,000 for the quarter.
Operating income improved to $638 million from $500 million in the year-ago quarter with respective margins of 8.8% and 6.8%. Segment EBITDA was up 5.8% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 22.9% compared with 21.6% in the year-earlier quarter.
Other Quarterly Details
Total operating expenses were up 5.4% to $26.33 billion, while operating income improved 4.5% to $8.17 billion. Consolidated adjusted EBITDA increased to $12.81 billion from $12.3 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.1% and 37.5%.
Cash Flow & Liquidity
Verizon generated $16.76 billion of net cash from operating activities for the first six months of 2025. Free cash flow was $5.17 billion for the quarter compared with $5.8 billion in the prior-year period.
As of June 30, 2025, the company had $3.43 billion in cash and cash equivalents with $123.93 billion of long-term debt.
Guidance
For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. However, adjusted EBITDA is expected to grow 2.5%-3.5%, up from prior expectations of 2%-3.5%. The company expects adjusted earnings to grow 1-3% range with a cash flow of $37-$39 billion on capital expenditures of $17.5-$18.5 billion.
Zacks Rank
Verizon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, suggesting a growth of 25% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 14.8%. Arista delivered an average earnings surprise of 11.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters.