It has been about a month since the last earnings report for Verizon Communications (VZ Quick QuoteVZ - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Verizon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction

Verizon reported 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 poised 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.

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.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Verizon has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Verizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.