A month has gone by since the last earnings report for Verizon Communications (VZ Quick QuoteVZ - Free Report) . Shares have added about 2.7% in that time frame, underperforming the S&P 500.

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

Verizon Beats Q1 Earnings Estimates on Strong Margins, Misses on Revenues

Verizon delivered adjusted earnings of $1.28 per share in the first quarter of 2026, up 7.6% year over year and ahead of the Zacks Consensus Estimate of $1.22 by 4.9%.
 
Total operating revenue rose 2.9% from the year-ago quarter to $34.44 billion but missed the consensus mark of $35.03 billion by 1.7%. The quarter featured 341,000 broadband net additions, led by fixed wireless access growth. 

VZ Revenue Mix Reflects Service-Led Momentum

Service revenues and other increased 2.4% year over year to $28.76 billion, supported by mobility and broadband service trends. Wireless equipment revenue climbed 5.2% to $5.68 billion, even as management pointed to moderated upgrade activity tied to a disciplined approach to promotional spending. 

Within reportable segments, Consumer operating revenue grew 3.3% to $26.5 billion, driven by higher mobility and broadband service revenue and a lift in wireless equipment sales. Business revenue increased 1.8% to $7.4 billion, as growth in “Other” revenue helped offset pressure in mobility and broadband service revenue. 

Verizon Expands Profitability With Better Operating Leverage

Net income attributable to Verizon rose 3.4% year over year to $5.05 billion, while operating income improved 3.3% to $8.24 billion. Total operating expenses increased 2.7% to $26.20 billion, with selling, general and administrative expenses down 3.1%, partially offset by higher depreciation and amortization expenses. 

Adjusted EBITDA increased 6.7% year over year to $13.4 billion, marking the company’s highest quarterly adjusted EBITDA, as cited by management. Interest expense rose 18.9% to $1.94 billion, a notable headwind versus the year-ago quarter. 

VZ Wireless Metrics Improve as Churn and Adds Rebound

VZ posted total postpaid phone net additions of 55,000 in the quarter, its first positive first-quarter result since 2013, supported by improvements in customer acquisition and churn trends highlighted by management. Core prepaid net additions were 115,000, extending a multi-quarter growth streak. 

Mobility and broadband service revenue reached about $22.9 billion, increasing 1.6% year over year, though the company noted an 80-basis-point impact to wireless service revenue growth from a January network outage. Verizon ended the quarter with roughly 16.8 million fixed wireless access and fiber broadband connections, reflecting continued scale in its broadband footprint. 

Verizon Cash Flow Enables Deleveraging and Buybacks

Cash flow from operating activities was $8.0 billion compared with $7.8 billion in the prior-year quarter, while free cash flow improved to $3.8 billion from $3.6 billion. Capital expenditures totaled $4.2 billion as Verizon maintained its network build pace across mobility and fiber. 

The company repurchased $2.5 billion of shares during the quarter and reiterated that it remains on track for at least $3.0 billion of buybacks for the full year. Verizon also emphasized progress on Frontier-related debt reduction, noting it had paid down about half since the acquisition closed and expects to repay substantially all of that debt by year-end. 

VZ Lifts 2026 Adjusted Earnings Outlook

Backed by first-quarter execution, VZ raised its 2026 adjusted earnings guidance to $4.95-$4.99 per share, implying 5.0%-6.0% year-over-year growth, up from $4.90-$4.95 expected earlier. It also tightened expectations for total retail postpaid phone net additions to the upper half of its 750,000 to 1.0 million range.
 
For 2026, Verizon continues to project total mobility and broadband service revenue growth of 2.0%-3.0%, cash flow from operations of $37.5-$38.0 billion, capital expenditures of $16.0-$16.5 billion, and free cash flow of $21.5 billion or more.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Verizon has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

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 upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Verizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.