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VZ faces pressure from AT&T and Charter's aggressive fiber expansion despite 5G and broadband momentum.
Verizon Communications, Inc. (VZ - Free Report) is scheduled to report first-quarter 2026 earnings on April 27, 2026, before the opening bell. The Zacks Consensus Estimate for sales and earnings is pegged at $35.03 billion and $1.22 per share, respectively. Earnings estimates for VZ have declined marginally from $4.93 per share to $4.9 for 2026, while it has increased from $5.25 per share to $5.26 for 2027 over the past 60 days.
VZ Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The communication services provider has a solid trailing four-quarter earnings surprise history, having exceeded expectations on each occasion. It delivered a four-quarter earnings surprise of 2.85%, on average. In the last reported quarter, the company pulled off an earnings surprise of 2.83%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Verizon for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Verizon currently has an ESP of -1.78% with a Zacks Rank #3.
During the quarter, Verizon completed the acquisition of Frontier Communications after receiving regulatory approvals. The completion of the $20 billion Frontier acquisition is crucial for Verizon’s long-term growth initiatives. The acquisition boosted Verizon’s reach to more than 30 million fiber passings across 31 states in the country.
The buyout also brings significant cross-selling opportunities. Frontier customers will gain from Verizon’s premium mobility, home Internet, streaming and connected home offerings. Verizon’s wireless customers will have access to Frontier’s premium broadband offerings. The strategic acquisition is expected to have a favorable impact on Verizon’s first-quarter results.
In the quarter under review, Verizon took several initiatives to ensure consistent connectivity during harsh winter environments. The company has improved cell sites and infrastructure across the nation for the winter season. The company’s mobile asset fleet boasts nearly 3,000 network and satellite assets. This includes temporary emergency command centers, mobile generators and mobile cell sites. If the fiber connection is disrupted, Verizon’s fleet of nearly 400 satellite-linked portable assets will restore service. The company is conducting proactive maintenance for the backup batteries and generators throughout the year to ensure their optimum functionality. Verizon’s customer-focused approach is expected to drive customer growth.
However, Verizon faces stiff competition in the U.S. telecom market from other major players such as AT&T, Inc. (T - Free Report) , Charter Communications (CHTR - Free Report) and T-Mobile. AT&T’s fiber broadband network reached 30 million consumer and business locations across the United States. To expand its fiber footprint, AT&T has acquired Lumen’s fiber internet business. The acquisition added 1 million fiber customers and 4 million fiber locations across 11 U.S. states. Charter is committed to investing $7 billion to add more than 100,000 miles of fiber-optic network infrastructure nationwide. Such growing competition could hinder Verizon’s fiber expansion initiatives.
Verizon is expanding into other markets and opening up new revenue-generating opportunities to reduce reliance on legacy telecom services. The digital healthcare domain is an emerging growth market. In the quarter under review, Verizon enhanced its healthcare security solutions by introducing new tools like Security Management Program–Healthcare (SMP-H) & Partner Security Program. The solutions help organizations to strengthen data protection and compliance by managing network risks and safeguarding sensitive patient information. The company is also venturing into the automotive market with its leading-edge Verizon Connect Fleet technology. Such an approach is expected to have a positive impact on quarterly results.
Price Performance
Over the past year, VZ has gained 7.2% compared with the industry’s decline of 11%. It has outperformed its peers like AT&T Inc. and Charter Communications over this period. While AT&T declined 4%, Charter was down 27%.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Verizon appears attractive relative to the industry and is trading below its mean. Going by the price/earnings ratio, the company shares currently trade at 9.23 forward earnings, lower than 12.1 for the industry but higher than the stock’s mean of 8.94.
Image Source: Zacks Investment Research
Investment Considerations
Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. The telecom giant plans to accelerate the availability of its 5G Ultra-Wideband network across the country.
VZ is benefiting from healthy traction in the wireless vertical, backed by competitive price offers and diligent execution. The company has been focusing on customer experience improvements and better value propositions to improve churn over time. Moreover, its strategy of bundling wireless services with broadband products is also improving churn. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. This higher switching friction lowers churn rate and boosts customer retention.
Strong network investments are supporting wireless growth. The company reports that c-band deployment is 90% complete, and investment in 5G and RAN is ongoing. Moreover, the strategy of AI integration in wireless operations to predict potential issues and optimize the overall operations is positive.
However, stiff competition is weighing on the margin. AT&T is also aggressively expanding its 5G network. T-Mobile also boasts a strong position in the 5G market. The company’s 5G network covers 98% or 330 million people in the country. In a bid to expand its customer base, Verizon is spending heavily on promotion and is also offering lucrative discounts, which are weighing on margins. The company recorded high capital expenditures in order to support the launch and continued build-out of its 5G Ultra-Wideband network, deployment of significant fiber assets across the country and upgrade to Intelligent Edge Network architecture. It remains unclear if and when a reasonable return can be achieved from such investments.
End Note
Verizon is benefiting from solid momentum in the wireless vertical and strong fiber expansion initiatives. Its convergence strategy to improve customer churn is a positive factor. Focusing on improving customer experience is a tailwind. However, stiff competition from other major telecom players is straining margins. Prospects in the Business segment remain soft, owing to weakness in the wholesale and enterprise and public sector business. With a Zacks Rank #3, VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution.
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Verizon to Report Q1 Earnings: How to Approach the Stock Now?
Key Takeaways
Verizon Communications, Inc. (VZ - Free Report) is scheduled to report first-quarter 2026 earnings on April 27, 2026, before the opening bell. The Zacks Consensus Estimate for sales and earnings is pegged at $35.03 billion and $1.22 per share, respectively. Earnings estimates for VZ have declined marginally from $4.93 per share to $4.9 for 2026, while it has increased from $5.25 per share to $5.26 for 2027 over the past 60 days.
VZ Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The communication services provider has a solid trailing four-quarter earnings surprise history, having exceeded expectations on each occasion. It delivered a four-quarter earnings surprise of 2.85%, on average. In the last reported quarter, the company pulled off an earnings surprise of 2.83%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Verizon for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Verizon currently has an ESP of -1.78% with a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results
During the quarter, Verizon completed the acquisition of Frontier Communications after receiving regulatory approvals. The completion of the $20 billion Frontier acquisition is crucial for Verizon’s long-term growth initiatives. The acquisition boosted Verizon’s reach to more than 30 million fiber passings across 31 states in the country.
The buyout also brings significant cross-selling opportunities. Frontier customers will gain from Verizon’s premium mobility, home Internet, streaming and connected home offerings. Verizon’s wireless customers will have access to Frontier’s premium broadband offerings. The strategic acquisition is expected to have a favorable impact on Verizon’s first-quarter results.
In the quarter under review, Verizon took several initiatives to ensure consistent connectivity during harsh winter environments. The company has improved cell sites and infrastructure across the nation for the winter season. The company’s mobile asset fleet boasts nearly 3,000 network and satellite assets. This includes temporary emergency command centers, mobile generators and mobile cell sites. If the fiber connection is disrupted, Verizon’s fleet of nearly 400 satellite-linked portable assets will restore service. The company is conducting proactive maintenance for the backup batteries and generators throughout the year to ensure their optimum functionality. Verizon’s customer-focused approach is expected to drive customer growth.
However, Verizon faces stiff competition in the U.S. telecom market from other major players such as AT&T, Inc. (T - Free Report) , Charter Communications (CHTR - Free Report) and T-Mobile. AT&T’s fiber broadband network reached 30 million consumer and business locations across the United States. To expand its fiber footprint, AT&T has acquired Lumen’s fiber internet business. The acquisition added 1 million fiber customers and 4 million fiber locations across 11 U.S. states. Charter is committed to investing $7 billion to add more than 100,000 miles of fiber-optic network infrastructure nationwide. Such growing competition could hinder Verizon’s fiber expansion initiatives.
Verizon is expanding into other markets and opening up new revenue-generating opportunities to reduce reliance on legacy telecom services. The digital healthcare domain is an emerging growth market. In the quarter under review, Verizon enhanced its healthcare security solutions by introducing new tools like Security Management Program–Healthcare (SMP-H) & Partner Security Program. The solutions help organizations to strengthen data protection and compliance by managing network risks and safeguarding sensitive patient information. The company is also venturing into the automotive market with its leading-edge Verizon Connect Fleet technology. Such an approach is expected to have a positive impact on quarterly results.
Price Performance
Over the past year, VZ has gained 7.2% compared with the industry’s decline of 11%. It has outperformed its peers like AT&T Inc. and Charter Communications over this period. While AT&T declined 4%, Charter was down 27%.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Verizon appears attractive relative to the industry and is trading below its mean. Going by the price/earnings ratio, the company shares currently trade at 9.23 forward earnings, lower than 12.1 for the industry but higher than the stock’s mean of 8.94.
Image Source: Zacks Investment Research
Investment Considerations
Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. The telecom giant plans to accelerate the availability of its 5G Ultra-Wideband network across the country.
VZ is benefiting from healthy traction in the wireless vertical, backed by competitive price offers and diligent execution. The company has been focusing on customer experience improvements and better value propositions to improve churn over time. Moreover, its strategy of bundling wireless services with broadband products is also improving churn. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. This higher switching friction lowers churn rate and boosts customer retention.
Strong network investments are supporting wireless growth. The company reports that c-band deployment is 90% complete, and investment in 5G and RAN is ongoing. Moreover, the strategy of AI integration in wireless operations to predict potential issues and optimize the overall operations is positive.
However, stiff competition is weighing on the margin. AT&T is also aggressively expanding its 5G network. T-Mobile also boasts a strong position in the 5G market. The company’s 5G network covers 98% or 330 million people in the country. In a bid to expand its customer base, Verizon is spending heavily on promotion and is also offering lucrative discounts, which are weighing on margins. The company recorded high capital expenditures in order to support the launch and continued build-out of its 5G Ultra-Wideband network, deployment of significant fiber assets across the country and upgrade to Intelligent Edge Network architecture. It remains unclear if and when a reasonable return can be achieved from such investments.
End Note
Verizon is benefiting from solid momentum in the wireless vertical and strong fiber expansion initiatives. Its convergence strategy to improve customer churn is a positive factor. Focusing on improving customer experience is a tailwind. However, stiff competition from other major telecom players is straining margins. Prospects in the Business segment remain soft, owing to weakness in the wholesale and enterprise and public sector business. With a Zacks Rank #3, VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution.