The revenue miss on equipment decline is a headwind, but the core service revenue acceleration and second consecutive guidance raise are strong signals. The stock should re-rate on the structural improvement in subscriber economics and FCF generation. Watch for Q3 service revenue approaching 3% growth as a confirmation of the inflection trajectory.
Price Chart
Executive Summary
Verizon reported Q2 2026 adjusted EPS of $1.30, beating the $1.27 consensus by 2.4%, while total revenue of $34.3B missed the $35.11B estimate due to a 19.7% decline in equipment revenue. The company raised full-year adjusted EPS guidance for the second consecutive quarter to $4.99-$5.04 (6-7% YoY growth) and raised free cash flow guidance to $21.94-$22.14B. The headline GAAP EPS fell 22% YoY to $0.92 due to $1.8B in special items, but the underlying operational momentum in mobility and broadband service revenue (+2.8% YoY) and record adjusted EBITDA margins (40.1%) signal a structural inflection point that supports the raised outlook.
Key Financial Metrics
Key Facts
- Adjusted EPS of $1.30 beat consensus of $1.27 by 2.4%
- Total operating revenue of $34.3B declined 0.7% YoY, missing $35.11B consensus due to 19.7% drop in equipment revenue
- Mobility and broadband service revenue grew 2.8% YoY to ~$23.4B, with guidance raised to 2.5-3.0% for full year
- Full-year adjusted EPS guidance raised to $4.99-$5.04 (6-7% YoY growth), second consecutive quarterly raise
- Free cash flow guidance raised to $21.94-$22.14B (9-10% YoY growth), up from prior $21.5B
- Record consolidated adjusted EBITDA of $13.7B and record adjusted EBITDA margin of 40.1%
- Delivered 184,000 postpaid phone net additions, best Consumer Q2 in five years
- GAAP EPS fell 22% YoY to $0.92 due to $1.8B in pre-tax special items including $746M loss on business disposition
- Share buyback target raised to up to $4.5B for full year; $3.5B completed YTD
- Net unsecured debt reduced to $128.7B from $130.1B QoQ; leverage ratio of 2.5x
Financial Impact
Adjusted EPS beat by $0.03 (2.4%) vs consensus; revenue miss of ~$0.8B (2.3%) vs consensus; full-year adjusted EPS guidance raised by $0.04-$0.05 at midpoint; FCF guidance raised by ~$0.5B
Risk Factors
- GAAP net income decline of 22.9% YoY due to special items may spook headline-focused investors
- Equipment revenue decline of 19.7% YoY reflects structural shift away from device subsidies, pressuring total revenue growth
- Net unsecured debt to adjusted EBITDA ratio of 2.5x, up from 2.2x at year-end 2025, though still manageable
- Wireless service revenue growth approximately flat in 2026 as mix shifts to lower-ARPU plans
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000732712-26-000040 |
| Document: vz-20260724.htm | 0000732712-26-000040 |
| Document: 0000732712-26-000040-index-headers.html | 0000732712-26-000040 |
| Document: 0000732712-26-000040-index.html | 0000732712-26-000040 |
| Document: 0000732712-26-000040.txt | 0000732712-26-000040 |
| 8-K Data (Synthetic) | 0000732712-26-000040 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 8, 2026 24d ago | GOVT-CONTRACT | $50.41 $51.45 | ▲ +2.06% | ▲ +3.18% | $45.97 (−8.81%) |
Jul 24, 2026 10w ago | 8-K | $46.38 $46.11 | ▼ −0.58% | ▼ −0.96% | $45.97 (−0.88%) |
Jul 24, 2026 10w ago | 8-K | $46.38 $46.11 | ▼ −0.58% | ▼ −0.96% | $45.97 (−0.88%) |
Jul 24, 2026 10w ago | Press Release | $46.38 $46.11 | ▼ −0.58% | ▼ −0.96% | $45.97 (−0.88%) |
Jul 9, 2026 12w ago | Press Release | $42.24 $43.88 | ▲ +3.88% | ▲ +4.01% | $45.97 (+8.83%) |
Jun 29, 2026 13w ago | 8-K | $44.10 $42.07 | ▲ +4.60% | ▲ +5.99% | $45.97 (−4.24%) |
Jun 17, 2026 15w ago | 8-K | $45.84 $45.68 | ▼ −0.35% | ▲ +0.69% | $45.97 (+0.28%) |
Jun 4, 2026 17w ago | Press Release | $45.37 $48.11 | ▲ +6.04% | ▲ +5.47% | $45.97 (+1.32%) |
Jun 2, 2026 17w ago | 8-K | $47.88 $45.78 | ▼ −4.38% | ▼ −1.42% | $45.97 (−3.98%) |
Jun 2, 2026 17w ago | Press Release | $47.88 $45.78 | ▼ −4.38% | ▼ −1.42% | $45.97 (−3.98%) |
US Market Status
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