Verizon Communications Inc.
VZFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$34.4B
Q1 2026 · +4% YoY
TTM ROIC
7%
FY2025 · Adj. NOPAT / Invested Capital (incl. spectrum licenses + goodwill + Net PP&E + Net working capital) · WACC ~5% · Moat spread +2pp
Margin Profile
Gross 62%
Operating 21.2%
FY2025
Net Debt
$165.8B
· Debt $165.0B · Post-Frontier close (January 2026)
Diluted Shares
4.18B
Q1 2026
Business Overview
ticker: VZ step: 01 generated: 2026-05-12 source: quick-research
Verizon Communications Inc. (VZ) — Business Overview
Business Description
Verizon is one of the world's largest telecommunications companies, providing wireless voice and data services to 115M+ retail connections plus fiber broadband. The January 2026 close of the $20B Frontier Communications acquisition added a transformative fiber footprint (30M homes across 31 states), positioning VZ to lead the "Great Convergence" — bundled fiber-plus-mobile services with 40% lower churn. In October 2025, Dan Schulman (former PayPal CEO) took over from Hans Vestberg as CEO, signaling a renewed focus on postpaid wireless execution alongside Frontier integration.
Revenue Model
- Verizon Consumer Group (~75% of revenue): Wireless service revenue (postpaid + prepaid), wireless equipment, home broadband (fiber + 5G Home), legacy wireline
- Verizon Business Group (~25%): Mobility, network solutions (enterprise broadband + private 5G), advanced services (cloud, security)
- Q1 2026 revised reporting to disaggregate mobility, broadband service, wireless equipment, other
Products & Services
Wireless
- Postpaid phone: ~92M+ retail postpaid connections — premium tier vs T-Mobile + AT&T
- Prepaid: Verizon Prepaid + TracFone (acquired 2021)
- MyPlan tiered offerings: Unlimited Welcome, Plus, Ultimate
- 5G network: C-Band mid-band buildout; mmWave urban
- Devices: iPhone (sales), Android lineup, equipment installment plans
Fiber / Broadband (Frontier-enhanced)
- Fios fiber: Northeast/Mid-Atlantic incumbent — strong urban footprint
- Frontier Communications fiber (acquired Jan 2026): 31-state fiber footprint
- 5G Home (FWA): Fixed wireless access — alternative to fiber in non-fiber areas
- Total fiber passings post-Frontier: ~30M homes (path to 40-50M+ medium term)
Business
- Mobility: Enterprise mobile services
- Network Solutions: Dedicated internet, private networking
- Advanced Services: Verizon Cloud, security, IoT, private 5G
Customer Base & Go-to-Market
- Wireless retail connections: ~115M
- Postpaid phone subscribers: ~92M
- Fios broadband subs: ~7M
- Frontier broadband subs (incl. fiber + DSL): ~3M post-acquisition
- Convergence customers: Bundled fiber + mobile (40% lower churn)
- Geographic mix: US-only (~95% of revenue); some Verizon Connect international IoT
- Distribution: Retail stores, online, partners (Costco, Walmart, Amazon)
Competitive Position
Verizon is the #2 US wireless carrier by subscribers (behind T-Mobile post-Sprint) and the largest fiber operator in the Northeast (Fios + Frontier). Moats: (1) industry-leading network quality + premium brand, (2) wireless service revenue ARPU leadership, (3) Frontier's "one-and-done" fiber scale advantage that AT&T must spend years building, (4) C-Band mid-band 5G spectrum position. Faces (1) T-Mobile's continued aggressive postpaid net adds + fiber JV expansion, (2) AT&T's parallel fiber buildout + Lumen integration, (3) cable companies (Charter, Comcast) with MVNO offerings.
Key Facts
- Founded: 2000 (Bell Atlantic + GTE merger)
- Headquarters: New York, NY (corporate); operations Basking Ridge, NJ
- Employees: ~110,000+ (post-Frontier)
- Exchange: NYSE
- Sector / Industry: Communication Services / Diversified Telecom
- Market Cap: ~$185B (May 2026)
- CEO: Daniel Schulman (since October 2025)
- Chairman Emeritus: Hans Vestberg
- Dividend: $2.71 annual ($0.6775 quarterly) — 19+ consecutive years of dividend growth
- Total Debt: ~$150B+ (post-Frontier close)
Financial Snapshot
ticker: VZ step: 04 generated: 2026-05-12 source: quick-research
Verizon Communications Inc. (VZ) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $133.9B | $134.8B | $138.2B | +2.5% |
| Wireless Service Revenue | grew | $80B+ | $84B (+2.0-2.8%) | accelerating |
| Adj. EBITDA | $47.7B | $49.0B | $50.5B | +3% |
| Adj. EPS | $4.71 | $4.59 | $4.65 | +1% |
| Free Cash Flow | $18.7B | $19.8B | $19.0B | -4% |
Q4 2025 Highlights
| Metric | Q4 2025 | YoY |
|---|---|---|
| Postpaid Phone Net Adds | 616K | +22% (best since 2019) |
| Wireless Service Revenue | $21B (industry leading) | +2.1% |
| 19th Consecutive Dividend Increase |
Mobility Performance
| Metric | FY2024 | FY2025 |
|---|---|---|
| Q4 Postpaid Phone Net Adds | 568K | 616K |
| Postpaid Phone Churn | 0.88% | 0.95% (rising — concern) |
| ARPU (postpaid phone) | growing | growing |
Broadband / Fiber (post-Frontier)
| Metric | Value |
|---|---|
| Fios broadband subs | ~7M |
| Frontier broadband subs | ~3M (acquired Jan 2026) |
| Total fiber passings | ~30M homes |
| 5G Home (FWA) subs | ~4-5M |
| Total broadband subs | ~14M+ post-Frontier |
Frontier Acquisition (closed January 20, 2026)
| Metric | Value |
|---|---|
| Deal Value | $20B |
| Fiber footprint added | 31 states |
| Synergy target by 2028 | $1B run-rate |
| LTM net debt post-close | $165.8B |
| Net Debt/EBITDA | ~2.9-3.0x |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$37B |
| CapEx | ~$18B |
| Free Cash Flow | ~$19B |
| Total Debt (pre-Frontier) | ~$145B |
| Total Debt (post-Frontier) | ~$165B |
| Net Debt/EBITDA | ~2.9-3.0x |
| Annual interest expense | ~$7.5B |
Key Ratios (approximate, May 2026)
- P/E (forward): ~9x | EV/EBITDA: ~7x | Dividend Yield: ~6.2%
- FCF Yield: ~10%
- Net Debt/EBITDA: ~3.0x
Forward Estimates
- FY2026E Revenue: ~$148B (+7% with Frontier consolidation)
- FY2026E Adj EPS: ~$4.70 (slight dilution from Frontier interest cost)
- FY2026E FCF: $19-20B
- FY2027E EPS: ~$5.00 (synergies + reduced rate cost)
- Synergies by 2028: $1B run-rate
Capital Return
- Dividend $2.71 annual = ~$11B paid annually
- 19+ consecutive years of dividend growth (5G + fiber operator with highest dividend yield)
- $25B share buyback authorized (proxy disclosed)
- Total capital return ~$14-15B annually
- Combined yield ~8-9%
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $VZ.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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