- Record Subscriber Growth: Verizon achieved 1.0 million mobility and broadband net adds in Q4 2025, including 616,000 postpaid phone net adds—the highest in 5 years.
- Frontier Acquisition Synergies: The acquisition added 30 million fiber passings, with $1 billion+ in annual cost synergies expected by 2028 and a total target of 40–50 million fiber passings.
- 2025 Financial Performance: Generated $50 billion in adjusted EBITDA, $4.71 adjusted EPS, and $20.1 billion in free cash flow, with a net debt/EBITDA ratio of 2.2x.
- 2026 Growth Guidance: Targets 2–2.5 million postpaid phone net adds, 2–3% mobility/broadband revenue growth, and $21.5 billion+ free cash flow (7%+ growth) despite flat wireless service revenue.
Operational Highlights
The company achieved over 1 million mobility and broadband net adds, its highest reported quarterly net adds since 2019, with 616,000 postpaid phone net adds, the highest in 5 years. Verizon has set a goal to become the most efficient telecom company in the industry, with a $5 billion OpEx savings target, and aims to reach 40 million to 50 million fiber passings over the medium term.
Guidance and Outlook
For 2026, Verizon expects to deliver a step-function improvement in performance across key metrics, with guidance reflecting the impact of recent bold actions. The company targets to deliver approximately 2 to 2.5 million consolidated postpaid phone net adds, with wireless service revenue growth expected to accelerate throughout the year. Adjusted EPS is expected to be $4.90-$4.95, a 4-5% year-over-year growth.
Valuation and Return Metrics
Verizon's current valuation metrics include a P/E Ratio of 10.97, P/B Ratio of 1.8, and EV/EBITDA of 7.74. The company's Dividend Yield is 6.14%, and Free Cash Flow Yield is 10.54%. Return metrics show an ROIC of 6.22% and ROE of 16.62%. The Net Debt / EBITDA ratio is 3.8, indicating some room to improve its leverage.
Capital Allocation and Shareholder Returns
Verizon's capital allocation priorities include investing in the business, maintaining a strong balance sheet, and returning cash to shareholders. The company has authorized up to $25 billion of share repurchases over the next 3 years, with at least $3 billion in 2026. A dividend increase of 2.5% is also announced, marking the 20th consecutive year of dividend increases.
Cost Savings and Efficiency
The company has identified areas for savings after 2026, focusing on three waves of efficiency: removing underperformance and inefficiencies, taking complexity out of the business, and automating processes. Verizon targets to return to its target leverage range of 2.0-2.25x in the 2027 time frame.