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1. Company Snapshot

1.a. Company Description

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches.It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators.


As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections.The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions.This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services.


As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections.The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc.in June 2000.


Verizon Communications Inc.was incorporated in 1983 and is headquartered in New York, New York.

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1.b. Last Insights on VZ

Breaking News: Verizon Communications Inc reported strong Q4 2025 earnings, with 616,000 wireless postpaid phone net adds and a sharp rebound in growth. The company outlined a broad transformation plan, highlighting subscriber momentum, the closing of its Frontier acquisition, and a shift in capital allocation. Verizon also announced a $25 billion buyback program and a renewed focus on customer experience. Analysts forecast growth, with a number of equities analysts recently issuing reports on VZ. Recommendations include a buy from some analysts, citing Verizon as a complete package for investors.

1.c. Company Highlights

2. Verizon's Transformation Efforts Drive Shareholder Value

Verizon's 2025 financial results showed a 2% growth in wireless service revenue, with consolidated adjusted EBITDA reaching $50 billion and adjusted EPS coming in at $4.71, up 2.6% from the prior year. The company generated $20.1 billion in free cash flow and had a net unsecured debt to consolidated adjusted EBITDA ratio of 2.2x. The actual EPS beat estimates, coming in at $4.71 versus the expected $4.67 is not available, however, analysts estimates for the next year at 1.0% revenue growth.

Publication Date: Feb -02

📋 Highlights
  • 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.

3. NewsRoom

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Stock Of The Day: Is This The Top For Verizon?

Feb -02

Source: benzinga.com

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Digi Power X names former Verizon CEO Hans Vestberg as senior advisor

Feb -02

Source: proactiveinvestors.com

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What's Going On With Verizon Stock Monday?

Feb -02

Source: feeds.benzinga.com

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Principal Financial Group Inc. Sells 28,343 Shares of Verizon Communications Inc. $VZ

Feb -02

Source: defenseworld.net

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S&P 500 Declines For Third Consecutive Session But Records Gain In January: Investor Sentiment Declines, Fear Index Remains In 'Greed' Zone

Feb -02

Source: feeds.benzinga.com

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Why I Can't Stop Buying These 3 High-Yielding Dividend Stocks

Feb -01

Source: fool.com

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3 “Left for Dead” Dividend ETFs That Will Make a Big Comeback in 2026

Feb -01

Source: 247wallst.com

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Verizon Needs More Than A Stock Buyback

Feb -01

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.12%)

6. Segments

Consumer

Expected Growth: 3.8%

Verizon's consumer segment growth is driven by the adoption of 5G technology, increasing demand for high-speed internet and bundled offerings, contributing to a forecasted CAGR of 3.8%.

Business

Expected Growth: 5.2%

Growing demand for cloud, cybersecurity, and IoT solutions drives business segment growth, driven by increasing digital transformation among government and enterprise customers.

Corporate and Other

Expected Growth: 4.3%

Verizon's corporate and other segment growth is driven by increasing demand for 5G network infrastructure and managed services, as well as cost savings initiatives, which will contribute to a steady growth rate.

Eliminations

Expected Growth: 3.6%

Verizon’s Eliminations segment growth is driven by intersegment eliminations, adjustments, and synergies from its wireless and wireline businesses, as well as cost savings initiatives.

7. Detailed Products

Wireless Services

Verizon's wireless services provide customers with access to a 4G LTE network, enabling them to make calls, send texts, and access the internet on their mobile devices.

Fios Internet

Verizon's Fios Internet provides high-speed internet connectivity to homes and businesses, enabling fast and reliable online access.

Fios TV

Verizon's Fios TV offers a range of TV channels, on-demand content, and streaming services, providing customers with a comprehensive entertainment experience.

5G Network Services

Verizon's 5G network provides ultra-fast wireless connectivity, enabling low-latency and high-bandwidth applications.

Cybersecurity Services

Verizon's cybersecurity services provide businesses with threat detection, incident response, and security consulting services to protect against cyber threats.

IoT (Internet of Things) Services

Verizon's IoT services enable businesses to connect and manage devices, providing insights and automation capabilities.

Cloud and IT Services

Verizon's cloud and IT services provide businesses with infrastructure, platform, and software as a service, enabling digital transformation.

Network Services

Verizon's network services provide businesses with secure, reliable, and high-performance network connectivity.

8. Verizon Communications Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Verizon Communications Inc. faces moderate threat from substitutes due to the presence of alternative communication services such as Skype, WhatsApp, and Google Voice.

Bargaining Power Of Customers

Verizon Communications Inc. has a large customer base, but individual customers have limited bargaining power due to the company's strong brand and extensive network coverage.

Bargaining Power Of Suppliers

Verizon Communications Inc. has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Verizon Communications Inc.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with Verizon Communications Inc. facing intense rivalry from other major players such as AT&T, T-Mobile, and Sprint.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.43%
Debt Cost 5.90%
Equity Weight 34.57%
Equity Cost 5.96%
WACC 5.92%
Leverage 189.27%

11. Quality Control: Verizon Communications Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AT&T

A-Score: 7.0/10

Value: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

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Verizon

A-Score: 6.9/10

Value: 8.0

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

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Comcast

A-Score: 6.1/10

Value: 8.6

Growth: 5.2

Quality: 6.6

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

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Alphabet

A-Score: 5.8/10

Value: 1.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

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T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Charter

A-Score: 4.6/10

Value: 8.1

Growth: 7.7

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.61$

Current Price

44.61$

Potential

-0.00%

Expected Cash-Flows