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Verizon Beats Q3 Earnings Estimates, Misses on Revenues
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Key Takeaways
Verizon beats Q3 earnings estimates with adjusted EPS of $1.21, but revenue missed at $33.82 billion.
Fixed wireless access net additions hit 261,000, lifting subscribers to nearly 5.4 million.
Business segment revenues dipped 2.8% on lower enterprise demand, while consumer growth stayed solid.
Verizon Communications Inc. (VZ - Free Report) recorded solid third-quarter 2025 results with industry-leading wireless service revenues of $21 billion, up 2.1% year over year. However, while adjusted earnings beat the Zacks Consensus Estimate, revenues missed the same.
The company registered solid broadband growth with total fixed wireless access net additions of 261,000, growing the subscriber base to nearly 5.4 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 $5.06 billion or $1.17 per share compared with $3.41 billion or 78 cents per share in the prior-year quarter. The improvement was primarily attributable to top-line growth and lower operating expenses. Excluding non-recurring items, quarterly adjusted earnings were $1.21 per share compared with $1.19 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents.
Verizon Communications Inc. Price, Consensus and EPS Surprise
Quarterly total operating revenues improved 1.5% to $33.82 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, however, missed the consensus estimate of $34.18 billion.
Quarterly Segment Results
Consumer: Total revenues from this segment improved 2.9% year over year to $26.1 billion with growth across all businesses. The segment revenues exceeded our estimate of $26.02 billion.
Service revenues were up 2.1% to $20.34 billion, while wireless equipment revenues improved 6.4% to $4.77 billion. Other revenues totaled $1 billion, up 3.9% year over year.
Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.91%. The company recorded 61,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 306,000 broadband net additions in the quarter. However, it registered 70,000 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 0.8% to $7.66 billion with a margin of 29.4%. EBITDA improved 2% to $11.23 billion with a margin of 43% compared with 43.4% in the prior-year quarter due to lower costs of wireless equipment.
Business: The segment revenues were down 2.8% to $7.14 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 $7.3 billion, largely due to challenging macroeconomic conditions.
The segment had 110,000 wireless retail postpaid net additions in the quarter, including 51,000 postpaid phone net additions. Wireless retail postpaid churn was 1.56%, while retail postpaid phone churn was 1.25%. Fixed wireless broadband net additions were 140,000 for the quarter.
Operating income improved to $637 million from $565 million in the year-ago quarter with respective margins of 8.9% and 7.7%. Segment EBITDA was up 4.2% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 23.4% compared with 21.8% in the year-earlier quarter.
Other Quarterly Details
Total operating expenses were down 6.2% to $25.72 billion, while operating income improved 36.8% to $8.1 billion. Consolidated adjusted EBITDA increased to $12.77 billion from $12.49 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.8% and 37.5%.
Cash Flow & Liquidity
Verizon generated $28 billion of net cash from operating activities for the first nine months of 2025 compared with $26.48 billion in the year-ago period. Free cash flow was $6.96 billion for the quarter compared with $5.96 billion in the prior-year period.
As of Sept. 30, 2025, the company had $7.71 billion in cash and cash equivalents with $126.63 billion of long-term debt.
Guidance
For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. Adjusted EBITDA is expected to grow 2.5%-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 third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
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Verizon Beats Q3 Earnings Estimates, Misses on Revenues
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) recorded solid third-quarter 2025 results with industry-leading wireless service revenues of $21 billion, up 2.1% year over year. However, while adjusted earnings beat the Zacks Consensus Estimate, revenues missed the same.
The company registered solid broadband growth with total fixed wireless access net additions of 261,000, growing the subscriber base to nearly 5.4 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 $5.06 billion or $1.17 per share compared with $3.41 billion or 78 cents per share in the prior-year quarter. The improvement was primarily attributable to top-line growth and lower operating expenses. Excluding non-recurring items, quarterly adjusted earnings were $1.21 per share compared with $1.19 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents.
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 1.5% to $33.82 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, however, missed the consensus estimate of $34.18 billion.
Quarterly Segment Results
Consumer: Total revenues from this segment improved 2.9% year over year to $26.1 billion with growth across all businesses. The segment revenues exceeded our estimate of $26.02 billion.
Service revenues were up 2.1% to $20.34 billion, while wireless equipment revenues improved 6.4% to $4.77 billion. Other revenues totaled $1 billion, up 3.9% year over year.
Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.91%. The company recorded 61,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 306,000 broadband net additions in the quarter. However, it registered 70,000 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 0.8% to $7.66 billion with a margin of 29.4%. EBITDA improved 2% to $11.23 billion with a margin of 43% compared with 43.4% in the prior-year quarter due to lower costs of wireless equipment.
Business: The segment revenues were down 2.8% to $7.14 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 $7.3 billion, largely due to challenging macroeconomic conditions.
The segment had 110,000 wireless retail postpaid net additions in the quarter, including 51,000 postpaid phone net additions. Wireless retail postpaid churn was 1.56%, while retail postpaid phone churn was 1.25%. Fixed wireless broadband net additions were 140,000 for the quarter.
Operating income improved to $637 million from $565 million in the year-ago quarter with respective margins of 8.9% and 7.7%. Segment EBITDA was up 4.2% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 23.4% compared with 21.8% in the year-earlier quarter.
Other Quarterly Details
Total operating expenses were down 6.2% to $25.72 billion, while operating income improved 36.8% to $8.1 billion. Consolidated adjusted EBITDA increased to $12.77 billion from $12.49 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.8% and 37.5%.
Cash Flow & Liquidity
Verizon generated $28 billion of net cash from operating activities for the first nine months of 2025 compared with $26.48 billion in the year-ago period. Free cash flow was $6.96 billion for the quarter compared with $5.96 billion in the prior-year period.
As of Sept. 30, 2025, the company had $7.71 billion in cash and cash equivalents with $126.63 billion of long-term debt.
Guidance
For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. Adjusted EBITDA is expected to grow 2.5%-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 & Stock to Consider
Verizon currently has a Zacks Rank #4 (Sell).
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 third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.